HCSHB1906--REALPROPERTYVALUATIONASSESSMENTS
SPONSOR: Chappell
COMMITTEEACTION:Voted"DoPasswithHCS"bytheSpecial
CommitteeonPropertyTaxReformbyavoteof21to2.
ThefollowingisasummaryoftheHouseCommitteeSubstituteforHB
1906.
BeginningJanuary1,2025,thetruevalueinmoneyofrealproperty
maintainedandusedbytheownerasaprimaryresidencefor
assessmentpurposeswillbeequaltothemostrecentpurchaseprice
ofsuchrealproperty. Suchtruevalueinmoneyshallbethetrue
valueinmoneyforallsubsequentassessmentsuntilthenextsale
ofsuchproperty.
Asspecifiedinthebill,ifahomeownermakesadditionsor
improvementstotheproperty,andthoseadditionsorimprovements
increasethevalueofsaidpropertyby50%ormore,thehomeowner
mustnotifytheassessor. Theassessormustthenestablishanew
assessedvaluation,whichwillbethetruevalueinmoneyforall
subsequentassessmentsuntilthenextsaleofsuchproperty.
Ifthesaleofapieceofrealestateresultsinatransactionthat
isbelowmarketvalue,theassessormustprovideevidencetothe
BoardofEqualizationorotherequivalententitythatsuchsale
priceshouldnotbeusedasthenewtruevalueinmoneyfor
assessmentpurposes.
Participationintheassessmentprocessisoptional. Ifa
homeownerwishestoparticipateintheassessedvaluation
provisionsasspecifiedinthisbill,suchownermayoptinby
notifyingtheassessor'soffice,andthehomeowners'realproperty
mustbeassessedundertheassessmentprocessinexistenceonor
beforeDecember31,2024.
ThisbillisthesameasHB1078(2023).
Thefollowingisasummaryofthepublictestimonyfromthe
committeehearing. Thetestimonywasbasedontheintroduced
versionofthebill.
PROPONENTS: SupporterssaythattheStateisnotsupposedtotax
unrealizedgains,andyetthatiswhathappenswhenhomeowner's
realestatetaxesincreasebecauseofrisinghomevalues.Asa
result,manypeoplearebeingtaxedoutoftheirhomes.Supporters
furthersaythatmosthomeownersareunawareofwhyorbyhowmuch thevalueoftheirpropertyisrising,butthatthisbillwould
treatallpropertyownersequally.
TestifyinginpersonforthebillwasRepresentative Chappell.
OPPONENTS: Therewasnooppositionvoicedtothecommittee.
TestifyinginpersonagainstthebillwasLisaPannett,Armorvine.
OTHERS:Otherstestifyingonthebillsayifthepriceatwhicha
homeissoldisnotarequireddisclosure,thiswillnegatively
affectcompaniesorinvestorswhentheyevaluatetheprice-to-sales
ratio.
TestifyinginpersononthebillwasKennethMohr,BooneCounty
Assessor'sOffice.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.