AN ACT proposing to amend Section 172B of the Constitution of Kentucky relating to property exempt from taxation.
If passed, HB797 would provide local governments the authority to create property tax incentives to stimulate growth and investment in real estate. By establishing a structured framework for property assessment moratoriums lasting up to five years, the bill could lead to significant economic development opportunities in targeted areas, benefiting both property owners and local governments through increased economic activity and enhanced property values over time.
House Bill 797 proposes to amend Section 172B of the Constitution of Kentucky, allowing local governments to declare moratoriums on the assessment or reassessment of real property for property tax purposes. The aim of this bill is to encourage the development, repair, rehabilitation, or restoration of real properties within their jurisdictions. This change would enable county, municipal, and urban-county governments to have greater control over property tax assessments, potentially fostering urban development in areas that seek revitalization.
The general sentiment towards HB797 appears to be cautiously optimistic among proponents, who view it as a necessary tool for revitalizing underdeveloped or neglected areas within Kentucky. Supporters include various local government officials and real estate advocates who emphasize the importance of flexible tax policies to attract investments. However, there are concerns among critics regarding the potential for abuse of such moratoriums, as they fear it could lead to losses in tax revenues for localities that rely heavily on property taxes for funding essential services.
Notable points of contention surrounding HB797 focus on the balance of authority between state-level directives and local governance. Opponents worry that allowing broad discretion for local assessment moratoriums could lead to inconsistencies in property tax structures across Kentucky. Additionally, there are arguments concerning the long-term viability of such measures and their implications for state funding, as decreased property tax revenues during moratorium periods could hinder local governments' abilities to maintain public services.