The proposed bill, General Assembly Proposed Bill No. 5612, aims to amend the current statutes regarding the taxation of motor vehicles by replacing the existing municipal property tax with a uniform state-wide property tax rate. This change would eliminate the variability in tax rates across different municipalities, establishing a fixed rate for all motor vehicles statewide.

Additionally, the bill stipulates that the revenue generated from this new state-wide property tax will be distributed proportionally to municipalities based on their current collections from motor vehicle property taxes. This approach is intended to ensure that municipalities do not lose funding as a result of the transition to a state-wide tax system, while also simplifying the tax structure for motor vehicle owners.