NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

Relates to HB-682, HB858

SOURCES OF INFORMATION

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

HB-707 would freeze the assessed value of residential properties of persons 65 years old and older to the values established in 1999 or the valuation determined in the year the person turns 65, whichever is greater.

The bill carries an emergency clause and thus would become effective upon enactment.

FISCAL IMPLICATIONS

TRD reports that the fiscal impact of the bill would be relatively minor as it would only affect the growth of 5 to 6 percent of the property tax base. However, according to TRD, the bill may imply a small increase in the property taxes of those below 65, if the taxing localities that are able to increase tax rates do so.

ADMINISTRATIVE IMPLICATIONS

TRD reports that there would be no administrative impact for the department, but that there may be some costs imposed on county governments.

OTHER SUBSTANTIVE ISSUES

TRD notes that while the intent of the bill is admirable, many elderly are wealthier than the average taxpayer.

BT/gm