LVT Study Bill Gets Hearing Feb. 21

The Senate Finance and Revenue Committee heard Common Ground OR-WA’s requested bill, Senate Bill 702, (Sen. Boquist, R-Dallas) to study the economic incentive and equity effects of a land-weighted property tax on February 21.

Prior to the hearing, Legislative Revenue Office director Chris Allenach reviewed the study’s scope and confirmed that the study would not likely impose a fiscal impact on the state budget (under $50,000).

Sen. Boquist emphasized the need to produce findings for the Legislature to consider solutions to the broken property tax limitations. Sen. Hass asked us what voters would need to understand to support a referral to the ballot for a local option land value tax. Tom Gihring, research director, suggested that once home and business owners realize the incentive to improve buildings by reducing the tax on improvements, they would support the removal of the equal rate structure. Kris Nelson, legislative director, reminded the committee that a return to real market values will require relief measures such as a homestead exemption, deferrals, and phasing in the split rates.

There was no testimony in opposition.

A work session for a vote on the bill may be set in the coming weeks, since it appears to have bipartisan support.