Issue No. 24-009 | August 5, 2024
Notable property tax developments:
- Colorado > Initiative 50, a proposed constitutional amendment in Colorado, aims to limit annual property tax revenue growth to 4%, requiring statewide voter approval for any increase beyond this. However, municipal bond investors and developers fear that this cap could disrupt infrastructure funding and halt development, as these bonds, repaid through future property tax bills, are a major source of financing for new projects. Despite supporters arguing that the measure would reduce housing costs, opponents warn of potential lawsuits and a chilling effect on new debt. Read more here
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- Texas > The Tarrant Appraisal District directors in Texas have proposed a new plan to change property tax appraisals, which critics argue will make the system more unfair. The plan includes appraising most properties biennially instead of annually and setting a 5% “threshold” limit for raising a property’s listed market value without a special reappraisal. Critics argue this could lead to increased taxes for new homeowners and those in less affluent areas, while potentially benefiting long-term homeowners and those in “hot” neighborhoods. Read more here
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- Minnesota > The Hennepin County Board has approved a 3.5% maximum property tax levy for 2022, which is set to fund $900 million of the county’s $2.4 billion budget. This decision comes after an average annual increase of 4.6% in the property tax levy since 2015. The approval was made amidst discussions about budget flexibility and concerns over the potential discontinuation of key health and human service programs previously financed by federal funding. Read more here
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- Pennsylvania > A tax assessment appeal settlement in Richland Township, Pennsylvania, is set to reduce Walmart’s property value from $18 million to $9.3 million, leading to a decrease in the company’s total property tax bill from $238,191 to $130,360. While local media reports focus on how this reduction is expected to further decrease local funding for government services and schools, property tax practitioners know that the real issue is why local assessment authorities are not noticing assessments that are in line with market values derived in accordance with state law and generally accepted assessment practice. Read more here
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Notable multifamily developments:
- Education & Housing > The Blaine County School District, in partnership with Advocates for Real Community Housing, has developed affordable housing for its employees to address the high cost of living in the area. The project, financed by $3.2 million in donations, resulted in eight rent-controlled homes. While the homes are intended as temporary accommodation, they represent a significant step towards solving the housing problem for school employees in resort communities. Read more here
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- Military Housing > The Michaels Organization, a developer-builder, is investing over $500 million in the construction and renovation of military housing, seeing growth opportunities in this sector. Despite past challenges with privatized military housing, new initiatives are underway to improve living conditions for service members, with a focus on community-building and resident wellness. These developments highlight the evolving landscape of military housing and the potential for further private sector involvement. Read more here
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