Legislators introduced several bills in the 2009 session to eliminate Act 388’s point of sale provision. These bills further cut into local government revenues and shift the tax burden from owners of rapidly appreciating property to owners of less rapidly appreciating property and to businesses. Additionally, the bills make piecemeal changes to our already fragmented tax system. The real estate industry was, and continues to be, behind these bills.
House and Senate versions of the bill were debated during the session. Association Executive Director Miriam Hair testified at a hearing against the Senate version of the bill. At the end of the session, the Association and other allies were able to stall the bill, but it will be up for priority consideration in the Senate in January.
In its current form, H3272 includes the following:
- Limits increases in fair market value of sold properties to 15 percent at the point of sale. This is in addition to the existing 15 percent cap at reassessment.
- Returns to current law after tax year 2014 meaning property sold after December 31, 2008, but before the 2014 tax year, would never be taxed at its fair market value if its value increased more than 15 percent over five years.