This bill amends provisions governing the business equipment tax exemption. Current law allows municipalities to recover from the State 50% of the tax revenue lost as the result of a valid business equipment tax exemption. The bill increases the percentage that a municipality may recover for property tax years beginning April 1, 2026 to 60%. Under the bill, the percentage recoverable increases each property tax year until the percentage recoverable is 80% for property tax years beginning on or after April 1, 2030.

Statutes affected:
Bill Text LD 1206, SP 495: 36.694