(Note To Readers, Legislators, and Media: This article is meant to be a strictly factual article without judgement and opinion. As the alternative bills on property tax reform are introduced, I will provide similar summaries, then offer a compare/contrast of the bills. I am taking this approach because the biggest challenge the legislature will face is the arguments over which plan is better, rather than the details. This would cause the legislature to bog down. It is my intention to help legislators and the public determine what these proposals actually do and what provisions of each proposal make the most sense and offer the most bang for the buck to the taxpayers, within the context of the framework for property tax reform I have previously outlined. Previously, the explanation of Governor Armstrong’s plan was published and can be found here, the explanation of Representative Scott Louser’s plan can be found here, and the explanation Representative Ben Koppelman’s plan can be found here.)
House Bill 1474 proposes to shift from the current system based on assessed value to one based on square footage. The bill aims to create a more predictable and transparent property tax system, making property taxes less susceptible to fluctuations in market value.
Currently, property taxes are based on a home's assessed value, which can change annually, leading to unpredictable tax increases even if tax rates remain the same. HB 1474 proposes using square footage as a more stable and predictable metric for calculating property taxes.
Supporters of the bill argue that the current system, based on property valuations, leads to unpredictable and often significant increases in property taxes, especially during periods of rapid economic growth or inflation. They believe that basing property taxes on square footage would make the system more stable and predictable, allowing homeowners to better anticipate their tax liability.
However, the bill has also faced criticism and concerns. One major concern is the potential for the new system to shift the property tax burden from higher-valued properties to lower-valued ones. This could disproportionately impact homeowners with lower property values, even if their homes have a large square footage.
Another concern is the complexity of transitioning to a new system. The bill would require significant changes to the state's tax code and could lead to administrative challenges for local governments. There are also questions about how the new system would interact with existing property tax exemptions and credits. Some see the bill as a potential solution to the issue of rising property taxes, while others view it as a major shift with uncertain consequences.
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