2011 House Bill 4602

Revise commercial rental property assessment occupancy formula

Introduced in the House

April 28, 2011

Introduced by Rep. Rudy Hobbs (D-35)

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.

Referred to the Committee on Tax Policy

Sept. 14, 2011

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Oct. 13, 2011

Substitute offered

The substitute passed by voice vote