HB 2972 Study of “land value taxation” to increase property taxes

This bill directs a study on how property values influence and constrains tax assessments creating a shortfall. The study is to look into ways to increase property taxes levied on the land value instead of the building (improvements) value, skirting around the constitution and Measure 5.

Personal Choice and Responsibility
A study on redistribution of wealth by evaluation of tax burden relief measures that might accompany land value taxation, including a homestead exemption and property tax deferral for homeowners who are financially overburdened (underserved).

Fiscal Responsibility
The goal is a progressive two-rate taxation system that goes by the principle of what is in the public interest should be taxed less and what is not desirable should be taxed more. Economic instability due to poor policy management can’t be fixed by aggressive property taxation.

Limited Government
Since the passage of voter approved Measures 5 and 50, the Oregon property tax system has experienced increased horizontal inequities within cities and across different regions of the state. Land value taxation, sometimes referred to as a split-roll option. may be one possible solution to updating the property tax system. HB 2972 requires the Legislative Revenue Officer to study land value taxation and submit a report to an interim Revenue Committee. Defines “land value taxation” to mean a property tax system that taxes land at a higher rate than improvements. The study is to include, in part, the impact of such a change on tax burdens within a revenue neutral framework. Takes effect on the 91st day following adjournment sine die.