The 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 maximum increase of 4% based on the average rate of inflation from prior years. Additionally, it modifies the calculation of mill levies by allowing a portion of newly taxable property to be included in the calculation, while also removing the fixed limit on mill levy authority.

A significant new provision allows local governments to create a large taxpayer reserve account, where they must deposit 10% of revenue generated from newly taxable property (excluding class four property) annually. The funds in this account can be used to support local economies in the event of a large taxpayer ceasing operations or experiencing a significant decrease in taxable value. The bill also outlines specific uses for these funds, such as paying off capital project bonds, reducing mill levies, attracting new industries, and investing in infrastructure. The act will 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(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: 15-10-420