The proposed bill aims to significantly alter the property tax landscape for owner-occupied single-family dwellings by setting the maximum mill levy for these homes to zero, effectively eliminating property taxes for homeowners. To offset the loss of property tax revenue, the bill increases the gross receipts tax rate from 4.2% to 5% across various sectors, including retail sales and telecommunications, and modifies the excise tax on services and tangible personal property to align with this new rate. The additional tax revenues generated will be allocated to ensure that school districts remain financially stable, while the bill clarifies that these changes will not affect the mill levies for other types of real property.

Furthermore, the bill establishes a special education fund for school districts, funded by a levy based on property valuations, specifically aimed at addressing the special education needs of children within the district. The levy will be calculated based on a median assessment level of eighty-five percent of market value, and funds can be utilized for assistive technology as outlined in individual education plans, excluding real property improvements. The legislation also amends existing laws to clarify definitions related to disabilities and introduces a new allocation structure for students with disabilities, effective July 1, 2024. Additionally, it increases the rental vehicle tax to 5% and sets a future effective date of January 1, 2026, for certain provisions while repealing a previous sunset clause.

Statutes affected:
Introduced, 01/29/2025: 10-12-42, 10-45-2, 10-45-5, 10-45-5.3, 10-45-6, 10-45-6.1, 10-45-6.2, 10-45-8, 10-45-71, 10-46-2.1, 10-46-2.2, 10-46-58, 10-46-69, 10-46-69.1, 10-46-69.2, 10-46E-1, 10-58-1, 13-37-16, 13-37-35.1, 13-13-71, 13-13-72, 13-13-72.1, 32-5B-20