Rep. Mark Matheson proposes barring pre-1975 levies from applying to personal property

Rep. Mark Matheson presented House Bill 3,342 to the Special Committee on Property Tax Reform, saying the measure would prohibit any tax levy enacted before Jan. 1, 1975, from being applied to personal property, with sponsors focused on motor vehicles (class 4). Matheson framed the bill as a corrective to a 1974 law (Senate Bill 402) that, in his words, reclassified motor vehicles as tangible property and began the modern application of personal-property levies.

"No tax, no levy that existed prior to that should now or ever be applied to personal property," Matheson said, arguing those earlier levies were never voted to apply to personal property. He traced the change to the mid-1970s and said the bill’s cut‑off date is intended to reflect that legal shift.

Why it matters: committee members warned the change could shift tax incidence. Representative Steinhoff and others pressed whether the bill would exclude only motor vehicles or broader class 4 property such as boats, trailers and motors; the committee’s assessor reported that boats are classified in class 4. If motor-vehicle levies were removed, some members said, communities might see a temporary shift of motor-vehicle tax burdens onto real-property owners until local voters or governing boards acted to reauthorize levies.

During questioning, Rep. Fowler said he expected the simpler administrative approach would be to change assessment categories so assessors would not list vehicles as taxable personal property. Matheson said he preferred changing how levies apply rather than altering the assessment process, but he accepted the need for clearer drafting and said he would consider an amendment to limit the language to class 4 personal property if that eased administration: "If we want to change this bill to demotor vehicles is not taxable, I am all for that. I will take that amendment," Matheson said.

Members also pressed effects on renters and landlords, with Matheson noting his belief that renters ultimately bear property-tax costs through rent and that shifting vehicle tax off individuals could raise real‑property levies. Representative Taylor (member, different from Chair Tim Taylor) argued older communities have repeatedly approved levies with knowledge that vehicles were included; Matheson countered that levies enacted before the statutory redefinition were not explicitly voted to apply to personal property.

The sponsor and members discussed the practical scope of the change and how many local levies might pre-date 1975; Matheson said that would vary by political subdivision’s date of origin. No members or members of the public testified in favor or opposition during the public‑testimony portion. The committee did not take a vote on the bill during the hearing.