Counties Support Flexible Tax Incentives

On January 13, 2022, MACo Legislative Director Kevin Kinnally testified before the House Ways and Means Committee in support of HB 103 Property Tax Credit for Disabled Veterans – Established with amendments to authorize rather than mandate a prescriptive property tax credit.

As introduced, this bill would drastically undermine county revenues and jeopardize limited local funds for public health, schools, public safety, roadway maintenance, and other essential public services. However, the bill sponsor addressed MACo’s concerns by offering an amendment to make the bill enabling for local governments.

From the MACo testimony:

MACo generally supports legislation that provides local autonomy to determine the best way to provide tax incentives, rather than those that mandate reductions in local revenue sources. Mandated tax exemptions require counties to forego meaningful local revenues to support essential public services, even if the exemptions do not serve their best interests.

As such, MACo urges amendments to authorize rather than mandate the property tax credit. This will allow each jurisdiction that chooses to enact the credit to tailor it to their specific community needs. Additionally, it gives each county broad discretion to determine how much revenue it is willing to forego to provide the desirable benefits enabled by the bill.

Follow MACo’s advocacy efforts during the 2022 legislative session on MACo’s Legislative Tracking Database.