House panel takes up property tax caps

A House committee heard arguments on whether caps on property tax bills should be placed in the state constitution, and the panel plans to vote on the measure next week. Under a law passed in 2008, property tax bills on homeowners this year were capped at 1.5 percent of their homes' assessed values, with 2.5 percent limits on rental property and 3.5 percent caps on business property. The caps are expected to save property owners about $465 million in 2010 and $488 million the next year, but that's money local governments and schools will not get as a result. Counties can raise local income taxes to offset losses