House Rules Committee approves rule substitute to roll down taxable home value to 10%
Loading...
Summary
The House Rules Committee approved a rule substitute on March 3 to roll the taxable value of owner‑occupied homes from 40% to 10% over a 10‑year phase‑in, include a disabled‑veteran homestead exemption, and create sales‑tax and grant mechanisms to backfill local revenues; members pressed for school funding analysis.
The House Rules Committee on March 3 approved a rule substitute that would begin reducing the taxable value of owner‑occupied homes from 40% to 10% over a 10‑year period, Chairman Blackman said.
"It reduces the taxable value from 40% down to 10%," Chairman Blackman said as he described the measure, which he said includes a disabled‑veteran homestead benefit under which "100% disabled veteran gets a 100% homestead exemption." He said the proposal sets up sales‑tax proceeds and a grant fund to backfill local governments for lost property‑tax revenue and ties a future excise mechanism to high‑speed data‑center proceeds as the existing exemption phases out in 2028.
The measure would phase in reductions to taxable value over a decade and provide several local options for backfilling revenue, Blackman said, including use of local sales tax pennies, growth, or a state grant fund. "As many as two‑thirds of all of our local governments could eliminate homestead property tax as early as 2028," he said.
Members pressed for more information about school impacts. Leader Heugeling asked how the plan would affect schools and whether the constitutional amendment language — which "says the general assembly may appropriate such amount each year for grants to local governments and school districts" — would obligate funds. Chairman Blackman said the enabling legislation will specify the mechanics of appropriations and that the draft provides for a 10‑year dedicated fee intended to support grant payments.
Representative Park asked whether an independent fiscal analysis exists at state and local levels. Blackman said much analysis has been performed by local governments and directed members to materials made public by local government associations, including ACCG and GMA.
The committee moved, seconded and approved the rule substitute to House Resolution 1114 by voice vote; the transcript records the approval but does not provide a roll call tally. Later in the meeting members moved to place the resolution on a supplemental calendar for March 3; that calendar motion drew one objection but the committee placed the item on the calendar.
The committee did not take a separate final floor action on the underlying constitutional amendment during the meeting; the rule substitute advances the measure to the next step in the House process. The Rules Committee chair said the next rules meeting is scheduled for 9 a.m. the following day.
