HB 3194 raises property tax cap for re-evaluation SUPPORT

HB 3194

VOTE:YES

SUBMIT TESTIMONY

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In CommitteePublic Hearing 02/16/2023 8:00am HR A
Status (overview) of bill:https://olis.oregonlegislature.gov/liz/2023R1/Measures/Overview/HB3194
Committee assigned to bill:https://olis.oregonlegislature.gov/liz/2023R1/Committees/HREV/Overview

This bill will make it so you can do projects at today’s costs as “minor construction” without running into the caps to trigger a re-evaluation of your property by the county. The current caps are $10,000/year and $25,000 over rolling five year period. These caps were set back in 1997.

HB 3194 changes from fixed amounts for everyone to a 10 percent of property value to account for the increase cost of construction (materials and labor) as well as be proportionate to the property being “improved”.

The $25,000 cumulative over 5 years is replaced with 3 consecutive assessment years that cumulate to 20 percent of the real market value.

Allowing remodeling without the added property tax will help support businesses and help control inflation.

“Minor construction” means additions of real property improvements.