Chairperson Smith opened the discussion for HB2745.
Adam Siebers, Office of Revisor of Statutes, provided an overview for HB2745 that would require a vote of the electors to approve increases in property tax revenues for the next year for a taxing jurisdiction. The bill would also establish the property tax relief fund and provide transfers to the counties that limit property taxes to certain increases. HB2745 would provide a $60.0 million transfer, pursuant to a yearly transfer to the fund that a portion would be distributed out to the counties. The bill would increase or continue in existence the taxpayer notification fund and replace the revenue neutral rate provisions with budget increase above a certain limit.
Mr. Siebers stood for questions from Committee members.
Representative Smith moved, seconded by Representative Sawyer, to amend HB2745. (Attachment 1)
Representative Smith explained his technical amendment on page 2, lines 31 and 32 that directed the Director of Property Valuation to provide County Clerks with the information in paragraph 2. He explained the county clerks already have this information; therefore, the Director of Property Valuation does not need to provide.
Representative Smith closed on his amendment for HB2745. Motion carries.
Representative Wolf moved, seconded by Representative Essex, to amend HB2745. (Attachment 2)
The amendment would change the election to a protest petition to provide taxpayers a voice where they could sign a protest petition if the adopted budget is over 3.0 percent. The protest petition may be located in the County Treasurer's office. Once the signatures are certified by the governing board, the city county commissioners will redo their budgets to stay under the 3.0 percent.
Committee discussion ensued.
Representative Xu made a conceptual substitute motion, seconded by Representative Carlin to amend HB2745 changing qualified electors from 10% to 20%.
Committee discussion ensued.
Representative Xu closed on his conceptual substitute motion for HB2745. Motion failed.
The following representatives asked to have their yes votes recorded: Representative Stogsdill, Representative Carlin, Representative Xu and Representative Sawyer Clayton.
Representative Wolf closed on her amendment for HB2745. Motion carries.
Representative Essex moved, seconded by Representative Hoheisel, to amend HB2745. (Attachment 3)
Adam Siebers provided an overview on the amendment for HB2745 that adds exclusions or built-in factors when determining the budget amount to be allocated. Most of the exclusions would be taken from prior versions either the bill or prior tax. The bill addresses annexed property, expiring abatements, property that changes classification, expiration of TIF, RHID, NRA and other economical development tools.
Committee discussion ensued.
Representative Essex closed on her amendment for HB2745. Motion carries.
Representative Corbet moved, seconded by Representative Sanders to amend HB2745. (Attachment 4)
Committee discussion ensued.
Representative Corbet closed on his amendment for HB2745. Motion failed.
Representative Caiharr moved, seconded by Representative Hoheisel to amend HB2745. (Attachment 5)
Representative Caiharr noted the amendment for HB2745 changes counties when it comes to the $60.0 million revenue disbursement to taxing jurisdictions. Cities or the boards that are keeping their percentage at 3% or less would also be able to benefit from the disbursement
Committee discussion ensued.
Representative Caiharr closed on her amendment for HB2745. Motion carries.
Representative Caiharr moved, seconded by Representative Corbert to amend HB2745. (Attachment 6)
Committee discussion ensued.
Representative Caiharr closed on her amendment for HB2745. Motion fails.
Division was called and the motion failed with 4 Ayes and 15 Nays.
Representative Sawyer moved, seconded by Representative Francis, the Committee recommends HB2745 as amended favorable for passage. Motion carries.
Chairperson Smith adjourned the meeting at 5:10 p.m.
Next scheduled meeting is February 24, 2026.