Substitute Senate Bill No. 1554 proposes the elimination of the property tax on motor vehicles, initiating a gradual phase-out starting in the fiscal year ending June 30, 2029. This will be achieved through the establishment of a new dedicated account known as the "municipal offset vehicle expense account" (MOVE), which will be funded by transfers from the General Fund, specifically from savings related to reduced employer contributions for state employees and teachers' retirement systems. The Secretary of the Office of Policy and Management (OPM) will be responsible for exempting a portion of the assessed value of motor vehicles each year until the tax is fully eliminated, while municipalities will receive grants to offset the revenue loss incurred during this transition.

The bill also details the methodology for calculating and distributing grants to municipalities based on their population and fiscal capacity, ensuring an equitable distribution of funds. The OPM secretary is mandated to provide annual reports to the General Assembly regarding the status of the MOVE account, including the total amount of property tax exemptions and grants disbursed. While the bill introduces new legal language for the establishment of the MOVE account and grant distribution processes, it does not specify any deletions from current law.