Changing the cap on property taxes to tie it to inflation and population growth, which AWC has supported for several years, would help cities keep up with the increasing costs of services. SB 5618, which revises the property tax cap for local governments to account for inflation and population growth up to three percent, is scheduled for a hearing in the Senate Local Government, Land Use & Tribal Affairs Committee on Tuesday. While your city is in town for City Action Days, we encourage you to talk to your legislators about your support for local revenue flexibility in SB 5618 and a similar bill in the House (HB 1670) that also revises the cap up to three percent.

This proposal would allow local governments under 10,000 population to increase property tax by three percent. The cap for local governments over 10,000 population would be the lesser of growth in inflation and population or three percent, or up to three percent with a finding of substantial need.

Remind your legislators that this structural revenue fix was recommended by the State Tax Structure Work Group last fall and that 72 percent of respondents indicated support for a three percent cap on property taxes in a recent public opinion survey sponsored by AWC. Check out the fact sheet for more information.

Date to remember

SB 5618 is scheduled for public hearing in the Senate Local Government, Land Use & Tribal Affairs Committee on Valentine’s Day, Tuesday, February 14 at 8 am.