On February 26, Legislative Director Kevin Kinnally testified before the House Ways and Means Committee to oppose HB 1214 – Property Tax – Homestead Property Tax Credit – First-Time Homebuyer. This bill mandates a new property tax credit for first-time homebuyers under the Homestead Property Tax Credit.
While promoting home ownership is a laudable goal, this bill imposes a significant unfunded mandate onto county governments by mandating new property tax exemptions without local authority or offsetting revenue. This significantly reduces local governments’ primary revenue source — property taxes — while leaving counties responsible for funding critical services such as education, public safety, infrastructure, and social programs.
This proposal comes as the General Assembly considers shifting a quarter-billion dollars in new costs onto counties, including $185.9 million in teacher pension costs, alongside rising local obligations for other State programs. With limited revenue-raising options, counties must choose between raising property tax rates on residents or cutting funding for schools, public safety, and infrastructure.
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