Capitol Connection – April 16, 2024
Legislative Advocacy This Week at the Capitol
The Senate and House of Representatives agreed to conference committee changes to the annual budget bill known as the “Long Bill” on April 14th. After accounting for all obligated and necessary expenses, the state government’s budget is limited between $15M to $20M for any unfunded legislation. There are only 23 days left in the General Assembly’s regular session and bills sitting in Appropriations committees will begin to see action, with a high likelihood of being defeated by budgetary constraints. Action on bills will also quicken in pace as legislators rush to the finish line before May 8th.
Testimony and Bill Positions
CAR staff are testifying this week in opposition to HB 1230 “Protections for Property Owners” and please don’t let the bill title fool you, it will stall development of new homes similar to what we are experiencing with condo development. CAR staff are testifying against SB 33 (see below) and against HB 1151 “Disclose Mandatory Fees in Advertisements.”
LPC met last Friday 4/12 and changed positions on a number of bills after we secured critical amendments. For a full list of bills and LPC positions, please visit the CAR Bill Sheet.
Bill Updates
Short-Term Rental (STR) bills SB 33 and HB 1299
(Oppose) SB 33 Lodging Property Tax Treatment
Sponsors: Sen. Hansen and Rep. Weissman
(Support) HB 1299 Short-Term Rental Unit Property Tax Classification
Sponsors: Rep. Bird and Sen. Hansen
As we shared previously in the 4/10 Legislative Update, we expect SB 33 to be significantly amended possibly later today in the Senate Finance Committee. As of 4pm, the Senate is still on the floor taking up about a half dozen pieces of legislation for 2nd reading then will adjourn for committee hearings.
There are issues with a proposed “strike below” amendment on SB 33, which we’re working to address, but it would eliminate reclassifying a property used as an STR as commercial lodging and taxing it four times its current rate (29% commercial compared to 6.7% residential). A property could be used as an STR for any number of nights and not be taxed at the higher commercial rate.
CAR supports HB 1299 in part to counter SB 33 and protect small “mom and pop” investors by exempting primary and secondary residences from any possible classification, and therefore tax, changes related to STRs. We are awaiting the possible changes to SB 33 today to determine next steps before HB 1299 is heard in committee next week.
Landlord/Tenant Updates
(Monitor) HB 1098 Cause Required for Eviction of Residential Tenant
Sponsors: Rep. Mabrey, Rep. Duran, Sen. Gonzales, and Sen. Hinrichsen
(Monitor) SB 94 Safe Housing for Residential Tenants
Sponsors: Sen. Gonzales, Sen. Exum, Rep. Lindsay and Rep. Froelich
HB 1098 is waiting for an executive decision from the Governor. SB 94, which affects the warranty of habitability, is also headed his way. The Governor has not given any indication that he would veto these bills, so they are expected to become law.
HB1098 would require a “just cause” in order to evict a tenant. This legislation would prevent a housing provider from “nonrenewing” a tenant at a property unless the situation met a “no-fault eviction.” Landlords could still evict tenants with cause based on current law.
CAR moved to a monitor position from an amend position on HB 1098 after securing key amendments including the elimination of the requirement for housing providers to pay two or three months of relocation assistance. CAR also changed the timeline to give notice when selling a property from a 180-day notice at the end of lease to a floating 90-day notice anytime during the lease. CAR also shortened the timeline from when a unit could re-enter the rental market if notice was given to sell it. Already included in the bill when it was first introduced in the 2024 session were changes CAR advocated for in 2023, including the withdrawal of a rental unit to the for-sale market as a no-fault eviction, ensuring exemptions for property owners from mandated relocation payments.
For SB 94, CAR changed positions from an Amend position to Monitor after securing key amendments including:
- Removing verbal notice for an uninhabitable condition (only written notice);
- Removing the withholding of rent if a tenant felt there was a breach in the warranty of habitability;
- Preventing a breach of habitability claim if water service was interrupted for more than four hours, which happens during service or water main breaks;
- Capping the number of days or nights at 60 if a hotel or other lodging is needed for an uninhabitable condition, current law does not cap this number;
- Allowing faster access to a unit for both an individual’s health and safety and if a condition would cause damage to the premises; and
- Providing legal and financial recourse for landlords if a tenant wrongfully deducts rent or acts in bad faith
Other Legislation
(Support) SB 111 Senior Primary Residence Prop Tax Reduction
Sponsors: Sen. Chris Kolker, Sen. Chris Hansen, Rep. Shelia Lieder, and Rep. Mary Young
Last week, the Legislative Policy Committee changed CAR’s position from an opposition to a support for SB111. CAR initially opposed SB111 because CAR believed SB111 was circumventing the Property Tax Commission’s process of recommendations to the General Assembly. Now that the Commission has started to finalize its recommendations, CAR is in support of SB 111 and helping qualified seniors by extending the homestead exemption to their new in-state homes. An update on the Property Tax Commission’s recommendations can be found below.
Property Tax Commission Update
The Property Tax Commission met on April 12th and will meet again on April 26th to finalize their recommendations to the General Assembly. The Commission is working on a legislative packet for the current state session that includes paying property taxes in installments, deferrals for seniors and fixed-income earners, expanding the homestead exemption, and more.
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