COMMON GROUND-USA
Current and Recent Legislative Efforts
ALABAMAAn effort led by the City of Tuskegee, AL, Mayor and former State Legislator Johnny Ford, led to passing a statute for a narrow constitutional amendment bill in the Alabama Legislature. The 2005 HB 449 would permit a Site Value Taxation system in the city of Tuskegee.
CONNECTICUTThe 2006 Connecticut Land Value Tax enabling bill, HB 5038, entitled "An Act Concerning the Use of Eminent domain by Municipalities and Authorizing Municipalities to Establish Separate Rates of Taxation for Real Estate," was favorably reported out of the Planning and Development Committee. Section (H)(2) of the bill was to provide "authorizing municipalities to establish separate rates of taxation for real estate."The 2005 Raised Bill HB 5892, An Act Concerning Community Preservation would have permitted split rates for real property in cities larger than 100,000 (Hartford, New Haven, Stanford, Bridgeport, Waterbury). It was supported by the Interfaith Coalition for Equity and Justice/ARISE. HB 5892 and companion SB 977 (raised), An Act Authorizing Separate Rates of Taxation for Real Estate were endorsed by the Connecticut Home Builders Association and by the Mayor of the City of Hartford, CT. A 2004 bill, SB 405, with support from the Interfaith Coalition for Equity and Justice in Connecticut and assistance from the Center for the Study of Economics, would have enabled any municipality with a population of more than 100,000, by ordinance adopted by its legislative body, to adopt split property tax rates heavier on land. Previous land value tax enabling legislation, HB 5069, was introduced in 2002 by Rep. Jefferson Davis and cosponsored by Rep. Mary Murkinsky. In 2000, S 78 was introduced to enable land value taxation for distressed municipalities.
ILLINOISIn Peoria in 1987 a 10-year tax abatement program was put into place to partially abate local real estate taxes for new taxable improvements only which were made within the Enterprise Zone in an aging industrial area along the riverfront and in a 20-year old industrial park. The action was instigated by John Kelley of Peoria.In 1976 Rep. Cal Skinner introduced, and in 1979 reintroduced, a House Joint Resolution Constitutional Amendment to amend Sec. 4 of Art. IX. Home rule municipalities would be allowed to designate certain specific contiguous areas within their boundaries to be taxed on the basis of site taxation, without regard to the value of improvements for up to 24 years. The taxing district, upon designation of such an area, would keep constant the conversion factor to the tax rate on land. Art. VIII, Sec. 4 of the Illinois constitution allows Boards in nine counties with more than 200,000 population to classify real property for taxation. Any one class can be taxed at an effective rate no more than 250% of the rate applied to the lowest class. According to Charles Metalitz of the Henry George School of Chicago, this appears to permit land to be taxed at 250% of the rate applicable to improvements.
IOWAResearched by retired Des Moines horticulturalist Robert P. Willis, a legislative proposal for Iowa tax reform was presented in 2001 to Iowa legislators and Iowa mayors. The proposal would amend Iowa Code Sections 441.21, 433, 434, 437, and 438. It would permanently exempt from property taxation 100% of the value of new construction in cities and all utility and railroad construction. It would tax every class of land at 100 percent of valuation but lower the taxable percentage of existing buildings by 50 percent or more. It would allow communities to replace minimum water bills and local option sales taxes with land value levies.
MARYLANDThe 2006 House Bill 1552, sponsored by Maryland Delegate Clarence Davis of East Baltimore, is entitled "Land Value Taxation -- Local Option for Baltimore City." The synopsis of HB 1552 is: "Establishing separate classes for property tax assessment purposes for land and improvements to land; requiring that the property tax rate in Baltimore city for improvements to land be less than or equal to the rate for land; requiring the property tax rates in Baltimore City applicable to specified property to bear specified relationships to the rate for improvements to land; authorizing the Mayor and City Council of Baltimore City to set a tax rate of zero for improvements to land, etc."Four two-tiered LVT bills were considered in the 2005 session. Delegate Clarence Davis sponsored HB 1036, entitled Land Value Taxation - Local Option for Baltimore City. Delegate Davis and Delegate Mike Gordon, along with others, sponsored three other bills: HB 842, HB 846, and HB 1075. HB 842 was entitled Land Value Taxation - State Property Tax. HB 846 was entitled Land Value Taxation - Funding for the Bridge to Excellence in Public Schools Act. HB 1075 was entitled Land Value Taxation - Local Option for Counties and Baltimore City. In 2004, HB 1168, the Land Value and Incentive Taxation Act, introduced by Delegate Michael Gordon, would have given Maryland counties and Baltimore city officials local option to lower or eventually eliminate the portion of the property tax on buildings while making up the revenues with a higher rate on land value. The Center for Study of Economics worked with Delegate Gordon, who also sponsored city-enabling legislation in 1994 and was the force behind the Maryland Attorney-General's decision (1995) that LVT was already permitted for Maryland cities.
MINNESOTAThe 2005 Senate/House joint bills SF 978 and HF 1035 would phase in converting the statewide property tax on commercial/industrial property, for funding education inequities, into a tax that falls more heavily on assessed land values. Support is from ISAIAH (a Gamaliel-associated group of congregations in the Minneapolis-St. Paul area) and from a study performed by Mark Haveman with the Minnesota Taxpayers. Sponsors of SF 978 are Senators Mee Moua and Ann Rest. Sponsor of HB 1035 is Rep. Ron Abrams.In 2003, HF 1033, sponsored by House Tax Com. Chairman Rep. Ron Abrams, and SF 996, sponsored by Senator Ann Rest, related to "property taxation, converting the state general tax on commercial-industry property to a tax based on land value, amending Minnesota Statutes 2002, section 275.025." In 2001, the House passed Rep. Abrams' bill that "would have shifted the newly created statewide business property tax toward site-based taxation over a 10-year period." In 1999, the Minnesota Planning Environmental Quality Board issued a report, "Smart Signals: Economics for Lasting Progress," which contained a section dealing with site-value taxation and cited the 1970s site-based tax efforts of former Minn. State Rep. John Burger.
MISSOURIIn 1999, SJR 17, proposed constitutional amendment, sponsored by Senator Walt Mueller, authorizing the General Assembly to provide for site valuation of land for property tax purposes, was referred to the Senate Ways and Means Com.A 1995 House Bill 1526 was introduced by Rep. Nancy Farmer to enable adoption of the two-rate tax by the city of St. Louis. Previous legislation introduced calling for a state study of land value (site) taxation was introduced in 1992.
NEW HAMPSHIREIn 2003, HB 0439, introduced by Rep. Richard Noyes, would have amended RSA 72 to allow towns and cities to tax the value of buildings and improvements at a lower property tax rate than the value of land.Previous bills had also been sponsored by Rep. Noyes. The 1998 HB 1666, proposed a statewide property tax on land values, the proceeds of which would be divided and sent to municipalities on basis of student population. The 1996 HB 1380 would have allowed a higher rate on land than on buildings.
NEW JERSEYAssembly Concurrent Resolution 58, introduced in 2000, proposed an amendment to the constitution to permit a system of "site value" taxation in certain municipalities.A bill to amend the state constitution to allow two-rate property taxes was introduced in 1998 by Assemblyman Michael Arnone and had a hearing in March 1999 before the N.J. House of Representatives. That bill followed earlier local option bills introduced in 1992 and 1993.
OREGONSenator Ryan Deckert of Beaverton (suburb of Portland) introduced 2005 Senate Joint Resolution 1. SJR 1 proposes an amendment to the Oregon Constitution to allow a local taxing district to adopt site value taxation. A jurisdiction would have to submit the shift of the property tax to local voter approval. Deckert's action is at the request of the prior year's Interim Committee on Revenue.In 2003, House Joint Resolution 30 was introduced by Rep. Jackie Dingfelder and cosponsored by Rep. Lane Shetterly. HJR 30 proposed amending the Oregon constitution to "allow local taxing districts to adopt site value taxation system that taxes land at one rate and all other property at lesser rate in lieu of uniform ad valorem property taxes of district." An amendment to 2001 environmental tax study bill HB 2473 included a provision directing the Legislative Revenue Office and its assigns to conduct a study of the economic effects of enabling local government to lower tax rates on improvements and compensate for the reduced revenue by raising tax rates on sites. Actively supporting property tax reform to land (site) value taxation is the Forum on Geonomics, Portland.
PENNSYLVANIAPhiladelphia City Controller Jonathan Saidel in Nov., 2001, with support from the presidents of the Chamber of Commerce and the Greater Philadelphia Association of Realtors, presented his 93-page "Tax Structure Analysis Report." Included among recommendations to lower commuter wages and gross receipts taxes was the adoption of a well-administered land value tax (2-rate property tax).The first step, reinstatement of wage tax cuts, was accomplished by direct action, a march on City Hall, supported by the Chamber of Commerce, the NAACP, the Teamsters, and many persons from the Henry George School of Philadelphia, Center for the Study of Economics, and Common Ground-USA. A special research project, co-funded by C.S.E., the Realtors, Drexel, and the Controller's office determined that current assessments are accurate. Subsequently numerous groups and organizations testified for the land value tax before the Tax Reform Commission and at hearings by the Philadelphia City Council. In Oct. 2003 the Philadelphia Tax Reform Commission included the 2-rate property tax (land value tax) in its recommendations. In 1997, Rep. Joseph Gladek introduced a package of bills to extend the two-rate option to lst and 2nd class townships (HB 557 and HB 554), to a city of the first class (HB 556) relevant only to Philadelphia, and also HB 552 permitting a municipality to designate an area or areas within the municipality as a tax-free development zone. Another 1997 bill introduced by Rep. Ronald Buxton, HB 287, amended the Public School Code in order to permit a two-rate tax.
UTAHUtah's Legislature in March 2005 passed SB 53, whose chief sponsor was Howard A. Stephenson. SB 53 authorizes a study of Land Value Taxation to be completed by November, 2005. The Utah Tax Review Commission would undertake the study, and Center for the Study of Economics offered its assistance. Previous efforts in Utah include those of the late Cedar City, UT activist Earl Hanson (who died in 1995). He got the Cedar City Council in 1993 to unanimously pass Resolution 93-0909-2. It was entitled "An Appeal to Governor Mike Leavitt and the Utah Legislature to Initiate a Resolution for a Constitutional Amendment to Reform Utah's Property Tax." Hanson had been behind getting two bills introduced in the 1990s in the Utah Legislature for a 2-rate property tax.
VERMONTA 2006 land value tax feasibility study was done by Gary Flomenhoft, who is a researcher at the University of Vermont's Gund Institute.In 2002 the Vermont State Legislature voted to have one of their staffers do a feasibility study of site value taxation. An empirical Site Value Tax feasibility study, conducted by the Central Research Group, Albany, NY, was presented by Dr. William Batt at the April 2002 Global Conference on Environmental Taxation in Woodstock, VT. In 2002 the Vermont Coalition for Fair Tax went on record supporting the shift to a land value tax.
VIRGINIASenate Bill 1095, introduced by Patron John S. Edwards, and signed into law in 2003, enables the City of Roanoke, VA to impose a tax rate on improvements to real property that is equal to or less than the City's tax rate on the land upon which the improvements are located.The 2002 HB 239, sponsored by Patron J. Chapman Peterson, was enacted into law, amending Art. 3 of the code of Virginia to permit the City of Fairfax to declare improvements to real property as a separate classification for local taxation of real property and permitting the City of Fairfax to levy a tax on such improvements at a different rate than the tax imposed on the land on which it is located. The Virginia Municipal League in their 1999 legislative agenda included that the General Assembly should do a two-rate property tax study. This followed endorsement of land value taxation for special districts, for commercial districts, by the Fairfax Taxation Task Force chaired by Fairfax City Councilman Anthony Coughlan.
WASHINGTON STATEIn 1995 Rep. Sandra Romero reintroduced her bill requiring a state study of the two-tier tax proposal, with findings to be reported to the legislature by Nov. 1996. his legislation was preceded by and based on a Resolution Calling for Two-Tier Property Tax Study passed at the 1993 annual conference of the Association of Washington Cities.
WEST VIRGINIAThe 1996 HJR 19, proposed constitutional amendment esignated the "Land Value Tax Option," introduced by Delegate Bruce Petersen, would have allowed municipalities by local option "to adjust levy rates by decreasing the levy on personal property and improvements while increasing the levy on land values. HRJ 19 passed the W.V. House.
WISCONSINIn 1992 Senate Bill 244 was introduced by Senator im Weeden for a state study of land (site) value taxation, to include the two-rate tax. The bill passed the Senate, ut not the Assembly before the Legislature adjourned. This followed local option enabling bills introduced in the 1970s and two resolutions for constitutional amendments introduced in the l980s by Rep. Gary Johnson. Legislation was initiated at the request of Wis. Property Owners League.
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