Property Tax Classification - House Bill 3119

HB3119 was signed into law on November 16, 2007. This bill negatively changed the property tax laws for businesses in some communities with a split rate (tax classification). In response to residential tax bill increases, a law was enacted in 2004 that raised the cap on commercial/industrial tax rates from 175% to 200% of the equalized rate. The cap was to be phased back down over a five-year period with the stipulation that municipalities that went to the 200% ceiling would have to reduce their rates to 170% - five percent less than the limit prior to the temporary increase. H.3119 eliminates that final step down to 170%. Therefore businesses in communities with a split rate will continue to be unfairly burdened by more than their fair share of the property taxes.

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