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 such a cap is already in place as of the effective date of this amendment, it will be deemed void and unenforceable, meaning that the local governmental 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 self-imposed limitation on the gross dollar value of property tax revenue raised annually, but does not include limitations imposed by the state constitution or other laws.

Statutes affected:
House Introduced Bill: 211.1, 211.155