The proposed bill, known as the "Property Tax Relief Act of 2025," aims to alleviate the financial burden on municipalities by reinstating the state's contribution to retirement system costs for group I teachers and group II members. Specifically, the bill stipulates that starting in the fiscal year 2026, the state will cover 7.5 percent of the contributions for these retirement system employers, while the employers themselves will be responsible for 92.5 percent. This change is intended to provide property tax relief to cities and towns, thereby enhancing public education and safety services.

In terms of legal amendments, the bill modifies existing law by deleting the previous fiscal year reference of 2013 and replacing it with 2026, while also specifying that the state will pay both normal and accrued liability contributions for teachers and group II members employed by the state. The fiscal impact of this legislation is significant, with an estimated increase in state expenditures of $28 million in FY 2026, rising to $29.51 million by FY 2028, while simultaneously reducing expenditures for political subdivisions by the same amounts. However, the bill does not provide any appropriations to cover these costs in the initial years.