State Panel Releases Tax Reform SuggestionsMembers of a State House Select Committee on Property Tax Reform has released recommendations for changes to the current system of local real estate taxation.
Rep. Tom Quigley (R-Montgomery), who chaired the committee, noted the panel did not attempt to find a “silver bullet” for property tax reform, but instead sought common ground.
The committee recommended the state constitution be amended to allow a homestead or farmstead exclusion of up to 100 percent of the property value (the current limitation is 50 percent of median value). Other recommendations include providing more diversified taxing options to local governments, and requiring the State Tax Equalization Board to develop a “best practices” guide to make the property valuation system more efficient and equitable.
The committee also suggested further study on providing property tax relief based on various levels of income, and providing tax incentives for intergovernmental cooperation or consolidation.
Finally, the committee recommended statutory changes that would allow local governments to make the best use of debt collection tools.