H0842 Allow Greater Property Tax Increases By Local Governments

OPPOSE -  This bill is intended to provide flexibility for fast-growing communities (under 30,000 residents) by raising the property tax growth cap from 8% to 15% and increasing the use of foregone revenue from 1% to 2% to meet rising public safety demands. It also limits future accumulation of unused tax capacity and allows voters to reduce local tax budgets through initiatives.

We oppose this legislation because it has the potential to increase housing costs in high-growth areas through higher property taxes. Additionally, using the ballot initiative process—traditionally reserved for broader policy issues—to address local budgeting concerns has drawn criticism. Finally, limiting these provisions to smaller cities excludes larger communities facing similar growth pressures.

This legislation failed in the House on March 23, 2026.