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Legislative conferees agree to 9% assessed-valuation growth cap, plan August ballot placement
Summary
Conferees said they will propose a constitutional amendment (SCR 1616) that would cap annual assessed valuation growth at 9% (base year 2024) for tax year 2027, include standard exceptions and permit later legislative rules on improvement-related increases.
Conferees at a legislative meeting agreed on language for a proposed constitutional amendment to limit annual assessed valuation growth to 9 percent, using 2024 assessed values as the base and applying the cap for tax year 2027. Staff told the group the concurrent resolution would mirror SCR 1616 as passed in the Senate and would explicitly exempt normal maintenance and repairs from value increases.
The package would cover residential, commercial, industrial and agricultural property subclasses and would also apply to mobile homes used for residential purposes. Staff said the resolution includes the Senate’s exceptions and a transferability provision discussed in earlier meetings.
Members discussed how to treat improvements and remodeling. One participant, identified in the discussion as Adam, said the intent is to permit the legislature, at a later date, to authorize assessed-value increases that are proportional to the appraised increase attributable to new construction or additions. Adam described that change as a permissive "may" approach rather than a mandatory "shall," meaning future lawmakers could set parameters for how improvements affect assessed value.
Conferees also reviewed ballot timing. The Senate preference for an August ballot placement was defended; after discussion members agreed to leave the measure on the August ballot so the tax-year effect could begin in 2027. Staff noted the language could be set to take effect upon being placed on the register, allowing time for election preparations this year.
The group did not record a formal floor vote in the transcript; members described the points of agreement and scheduled a reconvene time for final action. The committee said it will return at an agreed time to complete any remaining drafting and to prepare the measure for conferee work with the other chamber.
Next steps: staff will prepare the concurrent resolution language consistent with the described terms and the committee will reconvene to finalize the package before filing for the August ballot.
