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, allowing for a maximum increase of 4% based on the average rate of inflation from prior years. Additionally, it stipulates that a portion of newly taxable property will be included in the mill levy limitation calculation. The bill removes the fixed limit on mill levy authority and introduces a provision allowing local governments to create a large taxpayer reserve account, which will require them to deposit 10% of revenue generated from newly taxable property in certain classes.

The bill outlines the conditions under which funds from the large taxpayer reserve account can be utilized, particularly in cases where a large taxpayer ceases operations or experiences a significant decrease in taxable value. It specifies that these funds can be used for various purposes, including paying off capital project bonds, reducing mill levies, attracting new industries, and investing in infrastructure. The provisions of this act will apply to 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