House passes HB329 to extend study of 'intangible' property valuation, amendment to lock 20% reduction fails

The House approved House Bill 329, which extends the ongoing study of property tax ‘intangibles’ and maintains a 20% intangible valuation reduction for locally assessed property while giving the tax commission more time to refine the definition and percentage.

Sponsor Representative Franklin W. Knowlton explained that the 20% reduction on intangibles has been a recurring transitional rule tied to legal and valuation complexities and said the bill "all it really does is carry in effect a study" to allow the tax commission to review the appropriate figure. He described past swings in study results and the need to avoid a sudden statewide tax shift.

Representative Milton offered an amendment (under suspension) to delete page 2, lines 3–13, explicitly keeping the 20% rule intact and removing the study provision; Milton said deleting the study language would protect property taxpayers from a downward reclassification that could raise valuations. The sponsor and others argued removing study authority could jeopardize ongoing litigation and the constitutionality of the statutory framework. The Milton amendment was defeated on the House floor.

The House then voted to pass HB329; the clerk recorded 54 affirmative votes and no negative votes. The bill will be transmitted to the Senate for further action.

What happens next: HB329 goes to the Senate. If enacted, the tax commission will continue its study into intangible valuation and the 20% reduction will stay in place while the commission refines figures and methodology.