No LGA increase in House tax bill

The House Tax Committee introduced its omnibus tax bill on Wednesday. Despite including roughly $1.35 billion in tax cuts, the bill (HF 4, authored by Rep. Greg Davids, R-Preston), does not include any increase to Local Government Aid (LGA).

CGMC lobbyist Bradley Peterson testified in front of both the House Property Tax Division and the full House Tax Committee this week. He expressed the CGMC’s disappointment in the proposal, and spoke to the vital role that LGA plays in helping cities provide basic services while holding down property taxes.

The House’s failure to propose an LGA increase comes on the heels of the recent announcement that the state’s budget surplus has risen to $1.65 billion. Nonetheless, despite a flourishing economy and overflowing state coffers, legislators have thus far chosen to prioritize other tax cuts rather than restore LGA to its 2002 funding level.

The Senate’s version of the omnibus tax bill has not yet been released. If you have not contacted your senators about the importance of an LGA increase, please do so immediately. Each of these bills has a long way to go before it reaches the Governor’s desk, and the CGMC will continue to advocate for a substantial increase in LGA funding.