Rep. Steuerwald's Bill Passes on Third Reading
STATEHOUSE -Tuesday, House Bill 1004 passed on its third reading in House by a vote of 81-13. HB 1004 will add an extra layer of protection and predictability to property owners.
HB 1004 is coauthored by state Representative Greg Steuerwald (R-Avon) and by Rep. Dale Grubb (D-Covington).
HB 1004, as written, would place a cap on the property owner's tax liability according to the change in the Consumer Price Index (CPI). Originally, the bill was written to place a cap on assessed value growth. If the bill passes during session, when a property owner's tax bill is calculated it would be compared with the previous year's property tax bill. If that bill exceeds the years CPI growth change, a credit is issued to the property owner so the bill would be lowered not to exceed the cap.
"If a property owner's assessment increase by 50 percent, and the CPI grew one percent in one year, then their property tax bill would be reduced down to one percent growth," said Rep Greg Steuerwald (R-Avon). Hopefully this will help taxpayers understand the tax bill and be able to better budget for future years.
"HB 1004 protects the integrity of the property tax caps we instituted two years ago. This is an additional protection over the caps. These would work in unison with the constitutional tax caps."
In the previous session, Rep. Steuerwald authored a similar bill, House Bill 1095, to limit growth on property value assessments. Unfortunately, the bill was not given a hearing.
House Bill 1004 will now move to the Senate.