House adopts late compromise on property‑tax relief; constitutional amendment fails

The House adopted the conference committee report on House Bill 20‑43 after extended debate over petition thresholds, TIF treatment and exclusions for new construction and bonds.

Representative Adam Smith described the measure as “a pretty good compromise” retaining a CPI cap (up to 3 percent) while preserving exclusions for new construction, jurisdictional territory additions and certain bond and loan payments. He said a comma had been restored in the statutory text to avoid excluding new bonds from an exemption.

Members raised procedural and policy concerns: Representative Bergkamp warned that half of property taxes fund schools and urged longer‑term scrutiny; Representative Hsu queried how active TIF increments would be treated and whether those revenues counted against local levies. Representative Shriver clarified that a July 1, 2026 cutoff applies to certain Public Building Commission payments in the exemptions.

The recorded vote on HB2043 was 88 in favor and 34 opposed.

Separately, the House considered HCR5008, a proposed constitutional amendment on valuation methods that would permit the legislature to set valuation limits and combine a rolling average with a 3 percent cap. Supporters said it provides protection for property owners; opponents said hard caps shift taxes to other owners and create long‑term inequities. The amendment failed to achieve the required constitutional majority, with 59 voting in favor and 62 against.

The House’s actions resolve final floor action on HB2043; the constitutional amendment will not advance given the recorded vote.