MACo Executive Director Michael Sanderson testified in opposition to HB 695 before the House Ways and Means Committee on March 10. The proposed legislation would require a local government to provide for a semiannual payment of State, county, municipal, and special taxing district taxes for all residential property. Under current law, property taxes may be paid on a semiannual basis for owner-occupied residential property and small business property. HB 695 would extend this payment schedule to apartment buildings, vacation homes, and investment properties, all of which lack the compelling public policy argument that brought about the semiannual option for homeowners.
MACo expressed concern about the administrative burden placed on local governments to collect taxes in this manner and the possibility of increased payment defaults. It is unknown how many non-owner-occupied residential property owners may opt to pay on a semiannual basis. However, considering the assessed value of these properties, if property owners go into default, local governments would suffer a substantial revenue decline.