Representative Craig Hedlund summarized House Bill 1176 and committee changes that create a Property Tax Relief Fund. Hedlund said the committee shifted revenue sources and transferred $225,000,000 from a legacy-stream account into the property tax relief fund and identified additional legacy earnings, producing roughly $398,000,000 from that fund. Hedlund said total appropriations tied to the PRC (property tax credit) reached approximately $473,000,000, with about $74,000,000 from the general fund to cover homestead-credit costs in the fiscal note.

Hedlund told members the committee revised revenue flows so legacy earnings designated for “tax relief” would be dedicated to property-tax relief rather than passing first into the general fund. “If we're going to create a funding mechanism for property tax in the future … it just made sense for us to transfer that earnings right into the property tax relief fund rather than having to make the transfer from the general fund,” Hedlund said.

Committee discussion addressed caps, opt-out periods, and voter overrides. Hedlund said the draft included a 10-year opt-out provision for political subdivisions that vote to exceed the cap; Representative Steeman asked whether that remained in the bill and Hedlund confirmed it was written as a 10-year opt-out. Majority Leader Mike Lafore offered an amendment that clarified override timing (general election only, 50% plus one to approve a temporary override for up to four taxable years) and added language clarifying that the state would not reduce property tax for locally approved levies.

Representative Lafore explained several amendment provisions including a definition for “primary residence” drawn from advice by the State Tax Department and a change to require general-election timing for voter overrides. Lafore said the amendment sought to keep legislative control over the property tax credit amount over time, and he cited long-term legacy-fund projections as the reason to tie the credit to legacy earnings while preserving legislative discretion.

The committee moved and approved Amendment 03/0002 to HB1176 (roll call 21 yes, 2 absent). Members discussed implementation details and whether the amendment affects Century Code provisions governing school-district levy thresholds; staff said they would review potential statutory conflicts and offer technical fixes before final action.

Ending: Committee approved the amendment and will continue to finalize funding and statutory language before taking final action on the bill.