The bill amends the General Property Tax Act of 1893 by adding a new section, 34f, which prohibits local governmental units from enacting or enforcing a local property tax cap that requires an automatic reduction on a fixed millage rate. If any local governmental unit currently has such a cap in place, it will be deemed void and unenforceable, meaning that the unit will not be required to reduce its millage rate.

The bill defines key terms, including "local governmental unit," which refers to counties, cities, townships, or villages, and "local property tax," which is an ad valorem property tax levied by these units. It also clarifies that a "local property tax cap" is a fixed limitation on the gross dollar value of property tax levied or raised annually by a local governmental unit, excluding any limitations imposed by the state constitution or other laws.

Statutes affected:
House Introduced Bill: 211.1, 211.155