Proposed amendment would cap yearly property tax increases

Property taxes on real estate would use taxable market value, and yearly increases would be capped. The rules would cover each parcel of real property unless the state constitution exempts it from tax. The yearly cap would not apply when taxable market value is adjusted for the events listed in the proposal. These rules would begin January 1, 2027.

Taxable market value would be adjusted after certain property changes. For nonagricultural land, the adjusted value would be 100 percent of fair market value. For agricultural land, it would generally be 75 percent. The listed changes are a purchase, new construction, combining parcels, or a change of ownership after the 2026 assessment. Work on an existing building and rebuilding a home destroyed by a natural disaster would not count as new construction. Transfers between spouses would not count as a purchase or change of ownership. For school taxes that pay bonds approved by voters on or after January 1, 2022, agricultural land would be valued at 50 percent of fair market value. The adjustment would apply to listed changes after the 2026 assessment.

A local taxing entity could ask voters to approve a special bond levy during an emergency. This would apply to local taxing entities with a financial need during an officially declared emergency. An appropriate government official, as determined by the Legislature, would have to declare an emergency. The entity would need a financial need that previously appropriated funds could not cover. At least half of the entity's registered voters would have to vote, and at least two-thirds of votes cast would have to favor the levy.