This bill aims to amend existing laws regarding property tax levies for school districts and to repeal certain sales tax exemptions. Specifically, it reduces the maximum property tax mill levy on owner-occupied single-family dwellings from $2.67 to $1.99 per thousand dollars of taxable valuation, effective for taxes payable in 2026 and thereafter. Additionally, it establishes that the maximum mill levy for agricultural property will remain at $1.19 per thousand dollars of taxable valuation. The bill also clarifies that if a district's levies are below the maximum, they must maintain proportionality between the different types of levies.

Furthermore, the bill amends the list of services exempt from sales tax, adding several categories such as health, educational, social, and agricultural services, while also repealing a previous exemption related to membership fees for lodging organizations. It includes provisions to ensure that state aid to education increases annually in line with local needs and mandates that adjustments to levies must maintain the relationship between local effort and local need. The bill also repeals a specific exemption related to membership fees for lodging organizations, streamlining the tax code.

Statutes affected:
Introduced, 01/29/2025: 10-12-42, 10-45-12.1, 13-13-71, 13-13-72, 13-13-72.1, 10-45-7.1