Introduced
by
To eliminate a cap on the maximum amount that tax assessors can raise the assessment of rental property due to a higher occupancy rate, if the assessment had been previously lowered as a result of a lower occupancy rate. A 2002 Supreme Court ruling (WPW vs. Troy) held that raising these assessments faster than inflation violates the Constitutional tax cap put in place by Proposal A in 1994, which limits assessment increases to five percent or the rate of inflation, whichever is less. This bill exempts commercial rental property from the regular property tax law, and instead subject it to a new property tax law which taxes this property at the same rate as the current law. Note: The effect of the bills in some sense would be retroactive, requiring property owners to pay higher taxes in the future to compensate governments for past tax savings under the WPW ruling.
Referred to the Committee on Tax Policy
Reported without amendment
Without amendment and with the recommendation that the bill pass.
Substitute offered
by
To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.
The substitute passed by voice vote
Substitute offered
by
To replace the previous version of the bill with one that eliminate the retroactive nature of the bill, which would require property owners to pay higher taxes in the future to compensate governments for past tax savings under the WPW ruling.
The substitute failed 51 to 57 (details)
Passed in the House 59 to 49 (details)
Referred to the Committee on Finance
