Substitute Senate Bill No. 1554 proposes the elimination of the property tax on motor vehicles, beginning in the fiscal year ending June 30, 2029. The bill establishes a new "municipal offset vehicle expense account" (MOVE account) to reimburse municipalities for the revenue loss incurred during this phase-out. The funding for the MOVE account will be sourced from transfers from the General Fund, specifically from savings related to reduced employer contributions to the state employees and teachers' retirement systems. The Secretary of the Office of Policy and Management (OPM) will gradually exempt a portion of the assessed value of motor vehicles each year until the tax is fully eliminated.

Furthermore, the bill mandates the OPM Secretary to calculate and post a municipal needs capacity gap metric for each municipality, which will guide the distribution of funds from the MOVE account. Grants will be allocated based on this metric and on a per capita basis to ensure equitable financial support for municipalities during the transition. The Secretary is also required to submit an annual report to the General Assembly detailing the account's status, the amount of exemptions granted, and other relevant information. Overall, the bill aims to alleviate the financial burden on vehicle owners while providing necessary funding to municipalities to offset potential revenue losses.