Introduced
by
To place before voters in the next general election a Constitutional amendment to exclude from the property tax revenue cap on local governments those increases in the taxable value of property which occur because the property is sold. Note: The 1978 Headlee Amendment requires local governments to lower property taxes if their aggregate property tax revenue goes up as the result of property values (and tax assessments) rising faster than inflation, unless voters approve the previous rate in a “Headlee rollback” election. The 1994 Proposal A amendment capped annual increases in the assessed value of individual properties to the rate of inflation or five percent, whichever is less. The capped level is called the “taxable value.” This “bumps up” when the property is sold, because then the new basis for property tax assessment becomes the property’s market-based state equalized value, rather than the (lower) capped “taxable value” of the previous owner. The net effect of this proposal would be to reduce the revenue increase threshold which requires a local government to either cut taxes or call a "Headlee rollback" election.
Referred to the Committee on Tax Policy
