This bill aims to amend existing laws regarding property tax levies for school districts and to modify 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 the general fund of a school district is set at $5.54 per thousand dollars of taxable valuation, with specific provisions for agricultural property. The bill also mandates that all levies must be based on valuations where the median level of assessment represents 85% of market value, as determined by the Department of Revenue.

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 adjustments in levies maintain the relationship between local effort and local need on a statewide basis, particularly in the context of state aid to education. The bill emphasizes that any adjustments to levies must occur in a manner that keeps the proportion of local need funded by local effort and state aid constant.

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