A BILL for an Act to provide for a legislative management study of property tax reform for residential property.

69th Legislative Assembly (2025-26) Introduced by Jose Castaneda and 11 co-sponsors

HB 1474 directs a 2025–26 interim study on residential property tax reform, including limiting valuation growth and a potential move to a price-per-square-foot taxation method.

Second reading, failed to pass, yeas 5 nays 42

Summary — HB 1474

Title: A BILL for an Act to provide for a legislative management study of property tax reform for residential property
Introduced: November 26, 2024
Primary sponsors (intro): Representatives Toman, Dockter, Kasper, Schatz, Steiner, VanWinkle, Koppelman, D. Johnston, Louser; Senators Meyer, Castaneda, Paulson
Status (as provided): Second reading — failed to pass (yeas 5, nays 42)

Main purpose / intent

HB 1474 would direct the Legislative Management to conduct a focused interim study (2025–26) of reforms to the residential property tax system. The study’s aim is to evaluate whether to limit taxable valuation increases and to assess the feasibility, impacts, and implementation issues of replacing the existing ad valorem residential property tax model with a taxation method based on a price per square foot.

Key provisions

Directs Legislative Management to consider a study during the 2025–26 interim on property tax reform for residential property.

Specifies topics the study must cover:

Review current residential property tax system: assessment procedures, equalization and abatement processes, and the mechanics used to determine taxing district budgets.
Consider methods to limit the growth of residential property valuations and analyze advantages/disadvantages for property owners and taxing districts.
Consider a square‑footage (price per square foot) taxation method: implementation and administration, impacts on taxpayers and taxing districts, unintended consequences of transitioning from ad valorem taxation, and possible mitigation approaches for transition effects.

Requires the Legislative Management to report findings, recommendations, and any draft implementing legislation to the Seventieth Legislative Assembly.

Who is affected

Directly: legislative committees and Legislative Management staff conducting the study.

Potentially (if recommendations lead to legislation): residential property owners (homeowners, condominium and townhouse owners), county and local taxing districts, county auditors/assessors, and state equalization bodies.

Indirectly: entities that rely on property tax revenues (schools, local governments, special districts) and taxpayers generally if tax bases or distribution change.

Timeline / procedural notes

Study period: 2025–26 interim (per text).

Report due to the Seventieth Legislative Assembly (the next legislative session following the interim).

The bill as introduced is a study directive only — it does not enact immediate tax changes; any statutory changes would require subsequent legislation based on the study’s recommendations.

Potential impacts and considerations

Immediate fiscal impact: none from altering tax law (bill authorizes a study only). The study itself may require staff time/resources from Legislative Management.

If future policy changes were adopted (e.g., valuation caps or square‑foot taxation), effects could be significant: redistribution of tax burden across properties, shifts in local government and school district revenues, administrative costs for new assessment/valuation systems, and transitional protections needed for taxpayers and taxing districts.

The study is designed to identify implementation challenges and mitigation strategies before any statutory change is proposed.

For more detail, see the bill text directing the Legislative Management study (First Engrossment version) which enumerates the study topics and reporting requirement.