Rep. Myers proposes excluding ADU value from homestead calculation to encourage accessory units

Rep. Myers introduced House File 3608 to the House Housing Finance and Policy Committee, proposing a change to property-tax law that would exclude the value of an accessory dwelling unit (ADU) when calculating the homestead market value exclusion. The sponsor said the change would take effect in 2027 and is intended to encourage homeowners to add ADUs as a way to expand housing supply.

Members discussed potential local tax impacts. Co-chair Howard asked whether excluding ADU value would shift property-tax burdens to other taxpayers; Rep. Myers acknowledged there would be a small shift and said he was open to further discussion and complementary incentives. The chair noted the provision could particularly help moderate starter-home price ranges and said the committee would need more work to evaluate trade-offs.

Members agreed this is a policy area that would require additional study and local-government consultation; the committee laid HF3608 over for further consideration and follow-up work.