Legislative Update 2025 - Flipbook - Page 44
TAX REFORM
Proposal 1
Mandate referendums in every city, county, and special district to eliminate property taxes on
homestead properties. Concerns included how to cover the funding for essential services
and considerations for non-homesteaded properties and renters.
Proposal 2
Create a new $500,000 homestead exemption for non-school taxes, raising it to $1 million for
residents who are 65+ or those with 30+ years of homestead exemption. Supporters
highlighted relief for seniors and long-time homeowners, while opponents worried about
eroded local revenue in lower-valued areas.
Proposal 3
Create a new $500,000 homestead exemption for non-school taxes, raising it to $1 million for
residents who are 65+ or those with 30+ years of homestead exemption. Supporters
highlighted relief for seniors and long-time homeowners, while opponents worried about
eroded local revenue in lower-valued areas.
Proposal 4
Adjust assessment increase limits: For homestead properties: Change from the current limit
(the lower of 3% or CPI increase annually) to a 3% increase over any three-year period. For
non-homestead properties: Change from a 10% annual increase to 15% over any three-year
period (for non-school taxes).Some members expressed this as their least favored option,
raising concerns about long-term impact on government funding and services.
A fifth proposal/issue was brought forward at the end.
Proposal 5
(Briefly mentioned) Eliminate the ability to foreclose on a homestead property due to a
property tax lien. There was a great deal of discussion from the committee members that
there would be a need to better educate their constituents about property tax details such as
what the each of the taxes fund, how assessments and millages work, and the differences
between tax types. There was also many concerns about a one size fits all approach when
you have so different areas.The members of the committee discussed the effects on urban
versus rural areas, and on funding for critical services like police, fire, and social
services.There was extensive debate on how to provide relief to homeowners while ensuring
local governments have adequate revenue to cover essential services. The Speaker wants
the committee to produce a House Joint Resolution or multiple House Joint Resolutions by the
time interim committee meetings start in September. The proposals will then go through the
committee process and end with bills being ready to be heard on the floor during week one
of the 2026 Session.
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