Raised Bill No. 419 is designed to regulate property tax increases in municipalities by setting a cap on how much the total tax levied can increase each year. Starting from the assessment year beginning on or after October 1, 2024, the bill restricts any increase in the total tax levied by a municipality to no more than two percent or the consumer price index rate, whichever is less, compared to the previous year. If a municipality exceeds this limit, it must reduce its levy by at least fifteen percent each year until it complies with the limit, ensuring that the total tax levied does not fall below the limit. The bill also allows for voter referendums to approve additional taxes beyond the set limit, with varying majority requirements based on the amount proposed.

Additionally, the bill provides mechanisms for municipalities to adjust their tax levies for specific circumstances. Municipalities can increase their total tax levied for new or significantly improved properties and can hold referendums to approve additional taxes for specific purposes. The legislative body of a municipality can also levy additional taxes for water or sewer debt charges, provided that water and sewer charges are reduced by the amount of any such additional taxes levied. The bill permits adjustments to the tax limit in response to extraordinary, nonrecurring events. The act is intended to take effect on October 1, 2024, and aims to make property tax increases more predictable and manageable for taxpayers.