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 necessitates an automatic reduction of a fixed millage rate on the gross dollar amount of revenue raised annually. If any local governmental unit currently has such a cap in place, it will be rendered void and unenforceable, and the unit will not be required to lower 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 self-imposed limitation on the gross dollar value of property tax revenue, excluding any limitations imposed by the state constitution or other laws.

Statutes affected:
House Introduced Bill: 211.1, 211.155