Representative King Introduces CAPS Act

COLUMBUS—State Representative Angie King (R-Celina) recently introduced House Bill 504, legislation to provide local governments tools to mitigate sudden property tax spikes. 

The Calculated Adjustments for Property Surges, or CAPS Act will provide local governments the option to phase-in property tax assessment increases over a three-year period. During this time period, property owners will receive a tax credit, while local governments experience modest revenue growth, accounting for inflationary costs and population growth.

“The CAPS Act will provide local governments another solution to directly address rising property taxes by offering communities a way to protect residents from sudden spikes,” said King. 

King illustrated the process with an example: A 15% increase in a property’s reassessed value would be implemented gradually. The owner would pay 5% more in the first year, 10% more in the second, and the full 15% by the third year.

The CAPS Act awaits consideration from the House Ways and Means Committee.