Property-tax bills moving in General Assembly
Property-tax-reform bills are making their way through the General Assembly.
The state House on Tuesday passed House Bill 1677 and HB 125. The latter would make a constitutional change to provide for full homestead exclusions, while the former ensures the statutory definition of homestead.
Currently, relief cannot exceed one-half of the median assessed value of all homestead property within the school district.
Earlier this month, the House passed HB 1189, which would give school districts the power to reduce or eliminate property taxes by replacing the revenue with earned income tax, business privilege tax or a mercantile tax. They also could use a combination approach.
Meanwhile, other elimination bills remain in limbo. The Senate Finance Committee on Tuesday held a hearing on HB 76 and Senate Bill 76, which were introduced earlier this year.
Those proposals would eliminate property taxes dedicated to school districts and replace the funding by raising the personal income tax from 3.07 to 4.34 percent and increasing and broadening the sales tax to 7 percent from 6 and include previously exempted items.
The bills come up short on revenue replacement, according to the state’s Independent Fiscal Office.