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F I S C A L I M P A C T R E P O R T

SPONSOR:	Miera		DATE TYPED:	01/30/02		HB	287
SHORT TITLE:		Limit Seniors Residential Property Valuation				SB
					ANALYST:		Gilbert

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY02	FY03
	($0.1) *See Narrative		Recurring	General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to HJR7

SOURCES OF INFORMATION

LFC Files

Response Received

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

House Bill 287 would modify eligibility requirements for the low-income property tax valuation freeze. Under current statutes, single-family dwellings occupied by low-income individuals aged 65 and over are eligible for the valuation freeze. The proposed measure would allow individuals owning and occupying multifamily dwellings to also qualify for the assessed value limitation.

Significant Issues

According to the Taxation and Revenue Department (TRD), individuals (meeting the age and income requirements) who own high value duplexes or apartment complexes would appear to qualify for the freeze. As the measure is written, the value limitation applies to the entire property.

FISCAL IMPLICATIONS

By freezing values of some properties, this bill would shift the property tax burden to individuals who do not qualify for the freeze. The number of individuals likely to qualify for the limitation would probably be small since the legislation requires individuals to own and occupy residential property, as well as satisfy low-income and age requirements.

ADMINISTRATIVE IMPACT

Counties would experience some increase in workloads, but these would be minor since the mechanisms for implementing the freeze have already been implemented.

POSSIBLE QUESTIONS

If the intent of this bill is to assist low-income senior citizens, how can renters also be aided?

RLG/ar