Senator Goehner: No on Proposed Property-Tax Increases

Legislative Update on Senate Bill 5798

information released

Dear Friends and Neighbors,

Today, my Senate Republican colleagues and I held a press conference on Senate Bill 5798, a proposal by the majority party to raise property taxes on your home.

The press conference included myself and Senate Republican leaders, each of us speaking briefly on a different aspect of the bill. As a property owner, I believe this proposal could effectively triple the rate at which your property taxes are assessed and your voices must be heard on this tax increase.

What is the current state law?

Currently, we pay two kinds of property taxes: state and local. Property-tax rates can’t increase more than 1% a year without voter approval. The 1% cap was established in 2001 by the passage of Initiative 747; in 2007, after the state Supreme Court overturned the law, a Democrat-controlled Legislature and Democrat governor reinstated the limit. Because voters must approve any increase beyond the 1% limit, the law gives the people some control over the growth of their taxes while keeping government accountable.

What would SB 5798 do?

Through Senate Bill 5798, the Senate majority party would completely change the 1% cap on the growth of property-tax rates. They would instead tie the annual growth rate to inflation and population. With no cap, that rate can grow each year – even into double digits, compounding year over year.

This is potentially much costlier than the House majority party proposal, which would lift the cap to 3%, allowing the growth rate to triple.

Who would be affected?

Everyone. The majority party likes to note that SB 5798 would exempt some senior citizens and disabled persons from part but not the entire state property tax increase. This is overshadowed by the fact that homeowners would see their property-tax bills increase much faster. The same is true for property owners who rent or lease their homes or multifamily housing units. They will be forced to pass the increases on to their tenants, making rents even less affordable than they are now. Property owners may sell their rental properties if the majority party imposes rent control. Single-family rentals could forever leave the rental market, contributing to our housing crisis.

Even worse…SB 5798 would hurt lower-income renters and homeowners the most. It’s highly regressive.

What’s next?

Once you’ve had a chance to watch the press conference, please send your comments to me and the legislature through this link and let us know you DO NOT support the proposed property tax increase. It’s important your voices are heard.

In the meantime, here are four resource links you can access to voice your concerns and learn more about the majority party’s attempt to increase property taxes.