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Lawmakers press Department of Revenue for 'apples‑to‑apples' commercial assessment data after sharp year‑to‑year changes
Summary
The Legislative Service Office presented tables of commercial assessed values; Department of Revenue staff said year‑to‑year percentage jumps can reflect new properties and changes in inventory. Lawmakers asked for account‑level longitudinal comparisons and explanations for county anomalies such as a large drop in Crook County.
LSO staff presented a spreadsheet showing assessed values for commercial property from 2019 to 2025 and warned members that percent changes can be misleading without account‑level detail. "Those percentage changes from year to year are never apples‑to‑apples because businesses have been added, new commercial properties built, new subdivisions created," Ken Gil of the Department of Revenue told the committee.
Members asked staff to return longitudinal information that follows accounts over time so the committee can distinguish growth from reclassification or demolitions. Representative Lean pointed to Crook County, which the table showed with a 31% decline in 2025, and asked the Department to contact the county assessor to explain whether demolitions or other adjustments drove the change. Mr. Gil agreed to follow up.
Lawmakers also pressed for clarity on how personal property changes affect totals. The Department noted that a recent commercial personal property exemption had major effects; in 2026 the department expects many businesses that report personal property will receive a zero bill because of the exemption enacted earlier. "Seventy percent of the businesses reporting personal property ... will receive a tax bill of zero," the department told the committee.
Members further asked whether data centers and large IT loads are treated as commercial or industrial. The department said data centers are generally treated as commercial under current statutory definitions; however, members noted statutory language referencing digital processing and suggested a policy discussion could clarify whether data centers should be reclassified in statute.
The committee requested follow‑up deliveries: (1) account‑level trend data isolating properties that existed across the period, (2) explanations for county anomalies, and (3) a breakout showing whether assessment increases stem from new construction, added businesses, or revaluations.
The commercial assessment discussion concluded with staff agreeing to produce the requested verification and analysis in a subsequent report to help the committee assess policy options and potential statutory clarifications.
