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February05

Leased property bill leaves House bound for Senate

Just like last year, only with a handful of fewer votes, the House of Representatives passed a bill that would create a new tax levy for a school district’s general fund for leased property.

 

On a 49-20 vote, Representatives sent House Bill 1086 to the Senate. A similar version of the bill passed the House on a 55-13 vote last year.

 

Unlike the 2013 version, this year’s bill would maintain the same levy as the commercial property tax classification from which it would be removed from. The proposed reclassification the levy would be set at $9.20 per thousand dollars and would take effect in fiscal year 2016.

 

“It has no cost,” Rep. Hal Wick, the bill’s sponsor, said.

 

Supporters of HB 1086 said the reclassification would not create a cost shift, would protect leased property owners against tax increase and would allow for new data collection to make decisions on housing.

 

“At least let’s study the numbers,” Rep. Christine Erickson said. Rep. Erickson added that a review of the effects of separating leased property into its own tax classification could take anywhere from five to 20 years.

 

Rep. David L. Anderson said the change would benefit property owners, but its benefits to renters would take longer to determine.

 

“If there’s no immediate tax advantage how reliable will the information be?” Rep. Anderson asked.

 

“We should look at the whole picture,” Rep.  Anderson said. “It is gonna cost some money.”

 

ASBSD is monitoring the bill.

 

For updates on HB 1086 and other bills, check the ASBSD Blog and our Bill Tracker page.

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