Bill
HB 5447
HB 5447 would cap annual property tax increases, aiming to slow bills for homeowners and businesses while pressuring local budgets and possibly boosting state aid.
Status snapshot
- Bill number: HB 5447
- Title: An Act Concerning Limits to Property Tax Increases
- Introduced: March 14, 2025
- Current procedural status (as recorded): Public hearing held; committee substitute reported favorably; placed on General State Calendar and later laid on the table subject to call. Companion bill: SB 1023.
- Subject: Property tax
Note: The actual bill text and full committee report were not provided. This summary describes the bill’s stated purpose (from its title), the legislative actions taken so far, likely types of provisions such a bill would contain, who would be affected, and key questions to watch. For precise legal language and fiscal details, consult the official bill text and fiscal notes on the legislature’s website.
Purpose and intent
- The bill’s title indicates its intent is to place limits on increases in property taxes. That generally aims to restrain year‑to‑year growth in property tax levies or bills for residential, commercial, or other property classes.
Key provisions likely to be included (text not available)
Because the bill text is not supplied, the following are common provisions found in legislation that limits property tax increases. They are listed as examples of what HB 5447 could contain — not as confirmed contents of this bill:
- An annual cap on increases in assessed value or on the tax levy or individual property tax bill (e.g., a percentage cap or indexing to inflation).
- Exemptions or exclusions (for new construction, state‑mandated services, voter‑approved bonds/levies, or emergency measures).
- Procedures for municipalities or local taxing districts to override the cap (e.g., by referendum or supermajority vote of the local governing body).
- Adjustments for revaluation years or for properties that change ownership.
- Transitional rules or phase‑in schedules for existing levies.
- Enforcement, reporting, and certification requirements for local officials.
- Fiscal mechanism to offset revenue reductions (e.g., increased state aid or limits on local spending).
Who would be affected
- Property owners (residential, commercial, industrial) — changes could reduce future property tax growth or change the timing of increases.
- Municipalities, counties, school districts, and special taxing districts — potential limits on local revenue growth and budget flexibility.
- State budget — if local revenues are constrained, the state may face pressure to provide additional aid or modify funding formulas.
- Tax assessment and collection offices — may need new administrative processes for caps, exemptions, or overrides.
Potential impacts
- Short‑term: Reduced or stabilized property tax increases for many taxpayers if caps are strict. Administrative burden to implement any new calculation or reporting requirements.
- Medium/long‑term: Pressure on local budgets to cut services, find efficiencies, or seek voter overrides; possible shift of funding responsibilities to the state; changes in local fiscal planning and capital projects.
Procedural/timeline highlights (as recorded)
- Jan 17, 2025: Referred to Joint Committee on Planning and Development (record shows reference).
- Jan 27–30, 2025: Reserved for/held subject matter public hearing (PUBLIC HEARING 0203).
- Mar 14, 2025: Bill filed.
- Apr 7, 2025: Read first time; referred to Ways & Means.
- Apr 21, 2025: Considered in public hearing; testimony taken; left pending.
- Apr 24, 2025: Committee substitute considered and reported favorably as substituted.
- Apr 30–May 1, 2025: Committee report filed and sent to Calendars.
- May 6–9, 2025: Placed on General State Calendar, considered in Calendars, and ultimately laid on the table subject to call; companion considered in lieu on May 9.
Key unanswered questions / items to watch
- What exact numerical limits (if any) does the bill impose (e.g., percentage cap or CPI linkage)?
- What exemptions or override mechanisms are included?
- Does the bill alter assessment or revaluation rules?
- What is the estimated fiscal impact on local governments and the state (fiscal note)?
- Has the committee substitute changed the original bill materially — if so, how?
Where to find more information
- Consult the official HB 5447 bill text, committee substitute, committee reports, and fiscal note on the state legislature’s website. Also review companion SB 1023 for parallel language or amendments.
Compiled from official sources — confirm details with the bill’s official record.
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