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Bill > HB2124


OR HB2124

OR HB2124
Relating to land value taxation; prescribing an effective date.


summary

Introduced
01/13/2025
In Committee
01/17/2025
Crossed Over
Passed
Dead
06/27/2025

Introduced Session

2025 Legislative Measures

Bill Summary

The statement includes a measure digest written in compliance with applicable readability standards. Digest: The Act would require a study of land value taxation. The Act would define “land value taxation” to mean a tax imposed at a higher rate on land than on improvements on the land. The Act would require a report to be turned in next year. (Flesch Readability Score: 77.2). Directs the Legislative Revenue Officer to study land value taxation and submit a report to the interim committees of the Legislative Assembly related to revenue. Defines “land value taxation” to mean a property tax system that imposes a higher uniform rate of tax on land assessments than on improvement assessments. Takes effect on the 91st day following adjournment sine die.

AI Summary

This bill directs the Legislative Revenue Officer to conduct a comprehensive study on land value taxation (LVT), a property tax system that would impose a higher tax rate on land assessments compared to improvement assessments. The study must analyze several key aspects, including the potential tax burden effects of transitioning from the current property tax system established by Ballot Measures 5 and 50, create simulation models comparing tax applications using true market assessments, and examine economic incentive effects on different land uses in urban and rural jurisdictions. Additionally, the study will evaluate potential tax burden relief measures such as a homestead exemption and property tax deferral for financially overburdened homeowners. The Legislative Revenue Officer is required to submit a report to the interim legislative committees related to revenue by September 15, 2026. The bill includes a sunset provision that will repeal the section at the start of the 2027 legislative session, and it will take effect 91 days after the adjournment of the 2025 regular legislative session.

Committee Categories

Budget and Finance

Sponsors (3)

Last Action

In committee upon adjournment. (on 06/27/2025)

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