This bill aims to revise property tax regulations by adjusting the limits on property tax increases imposed by governmental entities. It increases the inflation limitation for calculating property tax levies, establishing a fixed limit of 4% on the average rate of inflation that can be applied. Additionally, it modifies the calculation of mill levies by including a portion of newly taxable property in the calculation, while also allowing local governments to create a large taxpayer reserve account. This account would require local governments to deposit 10% of revenue generated from newly taxable property, which can be used to support various local initiatives if a large taxpayer ceases operations or experiences a significant decrease in taxable value.

The bill also removes the previous fixed limit on mill levy authority and introduces new provisions for how newly taxable property is accounted for in tax calculations. Specifically, it allows for different percentages of newly taxable value to be included based on whether a local government has established a large taxpayer reserve account. The changes are set to take effect for property tax years beginning after December 31, 2025.

Statutes affected:
LC Text: 15-10-420
SB0117_1(1): 15-10-420
SB0117_1(2): 15-10-420
SB0117_1(3): 15-10-420
SB0117_1(4): 15-10-420
SB0117_1(5): 15-10-420
SB0117_1(6): 15-10-420
SB0117_1(7): 15-10-420
SB0117_1(8): 15-10-420
SB0117_1: 15-10-420
SB0117_2(1): 15-10-420
SB0117_2(10): 15-10-420
SB0117_2(11): 15-10-420
SB0117_2(2): 15-10-420
SB0117_2(3): 15-10-420
SB0117_2(4): 15-10-420
SB0117_2(5): 15-10-420
SB0117_2(6): 15-10-420
SB0117_2(7): 15-10-420
SB0117_2(8): 15-10-420
SB0117_2(9): 15-10-420
SB0117_2: 15-10-420
SB0117_X(1): 15-10-420
SB0117_X(10): 15-10-420
SB0117_X(11): 15-10-420
SB0117_X(12): 15-10-420
SB0117_X(13): 15-10-420
SB0117_X(2): 15-10-420
SB0117_X(3): 15-10-420
SB0117_X(4): 15-10-420
SB0117_X(5): 15-10-420
SB0117_X(6): 15-10-420
SB0117_X(7): 15-10-420
SB0117_X(8): 15-10-420
SB0117_X(9): 15-10-420
SB0117_X: 15-10-420