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Committee adopts amendment to HB335 to cap inside millage growth at inflation per revaluation cycle
Summary
The committee amended House Bill 335 to harmonize an inside-millage cap with the school revaluation cycle, using a GDP-deflator-style cap on revenue increases between revaluations rather than annual increases, and adopted the amendment without objection.
The House Ways and Means Committee adopted a sponsor amendment to House Bill 335 that applies a cap on growth of inside millage revenue for counties, cities, townships, villages and schools, tying allowed increases to an inflation measure over the revaluation cycle.
Vice Chair Representative David Thomas said the amendment harmonizes the cap concept used elsewhere in the package and applies it to inside millage so that revenue collections will not increase above an inflation measure between property revaluations. Under the change, the cap would be calculated over the three-year revaluation cycle; any allowable increase would remain constant through the revaluation period rather than accruing annual increases.
Ranking members and witnesses discussed the intent to prevent tax-bill spikes and to preserve inside millage as a partial hedge against inflation rather than a source of revenue growth beyond inflation. Representative Glassburn praised the sponsor for incorporating feedback.
The amendment was accepted without objection and the committee concluded the third hearing on HB335. Sponsors said the provision aims to stabilize taxpayer bills by preventing inside-millage revenue increases above the inflationary measure between revaluations.
