Breaking down property tax bills
HB78
I proudly support this bipartisan legislation. It would reset the homeowner’s exemption to the level it would be at today if it hadn’t been capped in 2016, an increase from $125,000 to $224,000. It would also restore the exemption’s annual index, allowing the exemption to adjust automatically as home prices change in the future. I have been a strong advocate for this solution since I took office. It will correct the unfair tax shift that has a compounding impact on homeowners every year.
HB77
This bill uses $150 million in state revenue to reduce property taxes only for homeowners. I am glad this bill focuses on homeowners because this is the class of property taxpayer that has seen large increases. Commercial properties that were in existence in 2016 have seen a 24% decrease in their property taxes, while homeowners have seen property taxes go up 21%, on average.
However, I am concerned about the inequity in this bill. It will use sales taxes from everyone - including renters - and provide the biggest tax relief on homeowners with high home values. I would rather see us fix the shift, as H78 does, and provide renters and homeowners with more equitable tax rebates, targeting assistance to those who are at risk of getting priced or taxed out of their homes.
HB79
This bill has promising features but is also worrisome. It sends state dollars to school districts to pay off supplemental levies and school bonds and, once those are paid off, give districts funds they can use for maintenance needs.
My main concern is that it takes $50 million from the new school operations fund we established in the September Special Session, hurting our future ability increase compensation for teachers and education support staff. Additionally, it draws funds from other parts of the budget that are under water. This could create a hole in our General Fund budget, which again hurts school funding.
I am also disappointed that it increases the homeowner’s exemption to only $150,000, which doesn’t correct for even one year’s worth of the rise in home prices.
