State of State Callout: Armstrong's Prop Tax Reform Plan

The 69^th Legislative Assembly kicked off January 7, with Governor Armstrong giving his first State of the State Address. This constitutionally mandated speech, given by the governor to the legislative branch, elected officials, and dignitaries is to set the tone and outline the priorities of the office of the governor. This is also an opportunity to showcase and promote specific legislative initiatives.
 
During his address, a primary point was unveiling his property tax reform plan.
 
Some of his proposed components include: 

• Increasing the existing Primary Residence Credit from $500 to $1,000 per year for individuals.
  • This would be a cost to the state’s general fund of about $310M for the 2025-27 biennium. 
• Dedicate a stream of Legacy Fund earnings to provide the proposed additional funds to the primary residence credit
  • Initially $550 per residence at an expected cost of $173M next biennium
• Capping future increases in local property tax budgets at 3% per year for political subdivisions.
  • If the entire 3% increase isn’t used, the remainder would be allowed to be carried forward for up to five years.

Governor Armstrong indicated this plan would put the majority of primary residences on a path to zero property taxes within the next decade. 
 
This bill is HB 1176 and will be heard in House Finance and Tax on 1/14. Currently, this bill has a lot of support from leadership including both Majority Leaders and multiple committee chairs. GNDC will be evaluating the impacts and goals to how they impact our membership not only today but for the future.