Special IAC Member Meeting on Property Tax Replacement Proposal this Week
Leaders in the House and Senate are focusing in on a proposal to increase the state sales tax to 7.95%, dedicating the increase to expand the grocery tax credit and provide property tax relief for owner-occupied homes. Under the proposal, anyone receiving the homestead exemption would only pay property taxes to schools and for voter-approved bonds. The increased sales tax collections would be used for property tax replacement funds for the exempted owner-occupied property. Eligible taxing districts would receive an annual increase in replacement funding plus 3% growth. If the fund generates revenues in excess of 103% of prior year collections, the excess would be apportioned out based on the number of homestead exemptions in a taxing district. The first quarter of sales tax collection would be held in a property tax budget stabilization account for disbursement during economic downturns. Distributions will be made quarterly.
Since this proposal would significantly change the tax structure for counties and the state, IAC will host a Zoom call with the membership on Wednesday, February 23, 2022 at 1:30 pm PST / 2:30 pm MST. Please join IAC to discuss the mechanics of this proposal and the potential impacts on counties.
To join this membership call, you will need to register in advance. Please register by clicking here.