Substitute Senate Bill No. 1554 proposes the elimination of the property tax on motor vehicles, initiating a phase-out process starting in the fiscal year ending June 30, 2029. The bill establishes a new dedicated account known as the "municipal offset vehicle expense account" (MOVE), which will be funded through transfers from the General Fund, specifically from savings related to reduced employer contributions for state employees' and teachers' retirement systems. Each year, the Secretary of the Office of Policy and Management (OPM) will exempt a portion of the assessed value of motor vehicles until the property tax is completely eliminated. To mitigate the revenue loss for municipalities during this transition, the bill mandates the distribution of grants based on municipalities' needs and population metrics.

Additionally, the bill requires the OPM secretary to provide annual reports to the General Assembly detailing the status of the MOVE account, the amount of assessed value exempted, and the grants disbursed. The OPM secretary will also be responsible for calculating and notifying municipalities of the exempted assessments and reimbursement grants. Once the property tax is fully phased out, further grants will be distributed based on a "municipal needs capacity gap metric" and population metrics, ensuring equitable support for municipalities. The bill introduces new legal language regarding the establishment of the MOVE account and grant distribution procedures, while no specific deletions from current law are noted.