The Revenue Committee advanced a joint resolution that would amend the state constitution to authorize the Legislature to provide by law for valuation methods for residential real property, a change proponents say would let lawmakers adopt alternatives to annual market revaluation such as acquisition or transfer-based valuation.

LSO staff described 26 LSO 0102 as a broad change intended to give the Legislature flexibility rather than lock it into a single valuation method. Dozens of witnesses — including county assessors, the Department of Revenue and members of the public — urged the committee to refine definitions and implementation details.

Marty Hartzog, vice chair of the State Board of Equalization, told the committee the draft risks legal challenge because it repeats existing constitutional language without explicitly creating an exception to uniformity and full-value requirements. He advised being forthright in the amendment text: "If you want acquisition cost, say acquisition cost," he said, arguing the courts will start with the text. LSO staff and co-chairs said the draft intentionally leaves options for the Legislature but agreed clarifying language could reduce litigation risk.

County assessors and Department of Revenue staff warned the committee about operational complexity if valuation methods change: extensive rulemaking, software programming and guidance would be required. Assessor Dixie Huxtable recommended shifting certain effective dates to allow counties time to implement changes and asked that definitions for "residential real property," "significant addition," and transfer exceptions be tightened.

The committee voted to advance the constitutional amendment draft as amended. Committee members said the change is a step to permit legislative action on valuation methods but that subsequent statutory bills will be needed to implement any specific approach. The clerk recorded the committee vote in favor (tally reported by the clerk).

What’s next: The constitutional amendment draft will move forward to the legislative calendar; staff and stakeholders will continue refining statutory and rule details requested by assessors and DOR.

Source: Committee hearing transcript and roll-call vote.