Politics
Property Assessment Reform Bill Clears State Legislature, Adjusting Downtown Core Tax Bills
The measure revises valuation methods for commercial and residential properties, with new assessments scheduled to reach Downtown Core property owners by early 2027.
How we reported this
The state legislature approved the Property Assessment Reform Bill on July 7. The legislation changes how assessors calculate values for both commercial buildings and single-family homes in the Downtown Core jurisdiction.
State budget documents show property taxes fund 38 percent of local services including street maintenance and public safety staffing. The bill updates the formula that determines assessed values, shifting from market-based estimates to a hybrid model that incorporates income data from the prior three years.
Daily Effects for Residents and Businesses
Property owners along Main Street and in the warehouse district will receive new notices next January. Renters in buildings owned by entities with holdings above 50,000 square feet may see landlords adjust lease terms once the revised valuations take effect. Local advocates note that small retail operators on Second Avenue have already requested meetings with the assessor to review their 2025 filings under the new rules.
The fiscal note attached to the bill projects an average reduction of $150 in annual tax liability for single-family homes assessed below $450,000. Commercial properties valued over $2 million face an estimated increase of 4 percent in the first year of implementation.
Next Steps in Rollout
The Department of Revenue will publish updated assessment guidelines by September 15. County assessors must complete training on the hybrid model before October 1. Public records requests for the underlying data sets used in the new formula are expected to open on August 1.
Residents can submit comments on the draft guidelines through the department website until September 10. Final tax bills incorporating the changes will arrive with the 2027 cycle.