This bill proposes significant changes to the allocation of tax revenues related to education funding in the state. Specifically, it mandates that all revenue collected from the statewide education property tax be directed to the general fund, replacing the previous requirement for these funds to be paid to municipalities for the use of local school districts. The bill introduces new legal language that states the commissioner of the department of revenue administration will issue a warrant for the education tax revenue to be transmitted to the state treasurer for deposit in the general fund.

Additionally, the bill establishes a new section that requires the commissioner to transfer specific amounts of tax revenue from the business enterprise tax, business profits tax, and real estate transfer tax into the education trust fund, starting July 1, 2025. This transfer is intended to generate a minimum of $363,000 annually for the education trust fund. Furthermore, the bill repeals a section of current law related to the determination of education grants, indicating a shift in how education funding is managed. The effective date for these changes is set for July 1, 2025.

Statutes affected:
Introduced: 77-E:2