Rumors abound that property tax fix may still be endgame option, with new bill revising state and local cap

As budget negotiations continue in these final days of the legislative session, we are hearing rumors that a property tax cap fix like newly introduced SB 5770 revising the cap on state and local property taxes or HB 1670 could still be part of the final end-of-session grand agreement. In a rare procedural move, SB 5770 was just introduced on April 11 with 20 Senate democrats signed-on to the bill as co-sponsors. Bills necessary to implement the budget are exempt from legislative cutoffs. Watch for further information as we learn more about the impact of SB 5770, and track the progress of this issue. Contact your legislator to remind them of the need for action this session on this local option to assist with your city’s growing costs.

AWC has supported revising the arbitrary 1% cap on property taxes to inflation and population growth up to a cap of 3% as a modest proposal to help keep up with expenses. The State Tax Structure Work Group proposal recognized that local elected officials need this fix to keep up with the increasing costs of providing services to their community’s residents, and cities will not be able take on new responsibilities in housing and public safety without additional revenue.

In a recent poll of likely voters 72% indicated support for a 3% cap on property tax revenue.