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HF 600

A bill for an act relating to local government finances by placing limitations on property tax levy rates.

2025-2026 Regular Session Introduced by Bob Henderson

Bill HF 600 limits property tax levy rates for local governments, providing financial relief to homeowners and requiring voter approval for any increases beyond set limits.

Introduced, referred to Ways and Means.
#localgovernment #propertytaxes #taxlevies
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Bill Summary · HF 600

Summary of Bill HF 600

Bill Number: HF 600
Title: A bill for an act relating to local government finances by placing limitations on property tax levy rates.
Status: Introduced, referred to Ways and Means
Introduced Date: February 25, 2025
Classification: Bill
Subject: Local Government, Property Taxes, Tax Levies

Purpose and Intent

Bill HF 600 aims to regulate local government finances by imposing limitations on property tax levy rates. The primary intent is to control the growth of property taxes levied by governmental subdivisions, thereby providing financial relief to property owners and ensuring fiscal responsibility among local governments.

Key Provisions

  1. Maximum Levy Rate Limitation:

    • For fiscal years beginning on or after July 1, 2026, the maximum levy rate for each specific levy imposed by a governmental subdivision cannot exceed 102% of the average levy rate per $1,000 over the preceding five fiscal years.
    • Alternatively, if a lower limit is established by another law, that lower limit will apply.

  2. Exceeding the Maximum Levy Rate:

    • A governmental subdivision may exceed the maximum levy rate for one fiscal year within a five-fiscal-year period if approved by a 60% majority of voters in an election specifically addressing this question.

  3. Rescinding Levy Rates:

    • The process for rescinding a levy rate follows the same voting requirements as exceeding the maximum levy rate, requiring a simple majority of 50% for approval.

  4. Legislative Review:

    • The legislature will review this section during the Ninety-second General Assembly and every subsequent general assembly. Any changes to this section will require a 60% vote from the members elected to each house of the general assembly.

Impact

  • Local Governments: This bill will directly affect local governments by limiting their ability to increase property tax levies, potentially impacting their revenue streams and budget planning.
  • Property Owners: Homeowners and property owners may benefit from reduced tax burdens due to the limitations imposed on levy rates, promoting affordability in local taxation.
  • Voter Engagement: The requirement for voter approval to exceed the maximum levy rate may increase civic engagement and awareness regarding local government financing.

Procedural Aspects

  • The bill was introduced on February 25, 2025, and has been referred to the Ways and Means committee for further consideration. The timeline for further legislative action will depend on the committee's schedule and subsequent votes in the general assembly.

This summary provides an overview of Bill HF 600, highlighting its purpose, key provisions, and potential impacts on local government finances and property taxation.

Compiled from official sources — confirm details with the bill’s official record.

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