Lawmakers in some states are working to provide property tax relief because of soaring home values, increased bills

(Photo by Jennifer Grismer, Unsplash)

Alongside soaring home values, U.S. property taxes have increased, leaving some homeowners struggling to pay eye-popping bills. "The typical home value in Idaho increased from $275,852 in November 2019 to $434,224 this November — a 57% increase over four years, according to data provided by real estate giant Zillow, which tracks the average of the middle one-third of home values," reports Kevin Hardy of Stateline. Property tax rates are "generally set by local governments, not legislatures. But public pressure has compelled lawmakers in several states, including Idaho, to use surplus state revenues to mitigate property tax hikes."

Commenting on the public outcry, Idaho state Rep. Jason Monks told Hardy, "The biggest problem was they just went up so quickly. … I think that's one of the reasons why it became this rallying cry from the people asking for tax relief." Jared Walczak, vice president of state projects at the Tax Foundation, a pro-business research organization, told Hardy: "In virtually every state where the legislature meets this year, property tax relief bills will be filed. This is a front-of-mind issue for many legislators across the country."

However, intervening in property taxes is complex, and failure to do it correctly could leave some coffers empty because the money is being used for tax relief. "The effort across the country to provide property tax relief has sparked some concern that states could go too far, jeopardizing revenue for school districts and local governments," Hardy explains. "And some policymakers worry about overly broad relief that could benefit the wealthiest property owners at the expense of those most in need."

Colorado lawmakers are trying for a measured approach, which is difficult when the state's "landscape ranges from rural ranching communities to booming urban and suburban markets," Hardy reports. Democratic state Rep. Marc Snyder told Hardy: "I've been struggling with this. It's really hard to come up with a statewide solution when you have such a variety of situations in Colorado."

Democratic state Rep. Chris deGruy Kennedy said he "wants to ensure that Colorado's school and fire districts have the revenue sources they need to operate well. But he's wary of tax relief that is overly broad," Hardy adds. Kennedy told him: "I want to make sure that whatever we do to provide property tax or rent assistance is done in the most targeted way possible so that we're actually giving the dollars to the people that need them, rather than doing across-the-board cuts."