The proposed bill establishes a new requirement for the state treasurer to deposit funds into a homeowner tax reduction fund, as created in Senate Bill 125. Specifically, the treasurer must deposit either one hundred million dollars or a calculated percentage of taxes collected from specific chapters (10-45, 10-46, 10-46E, and 10-58) from the previous year, whichever amount is greater. Additionally, if Senate Bill 125 does not take effect, the treasurer is prohibited from transferring any funds under this provision. The bill also defines "applicable percent" as three-tenths percent divided by the relevant tax rate.

Furthermore, the bill amends existing laws to clarify that all revenue from the specified chapters will be credited to the general fund, with the exception of the provisions outlined in the new section regarding the homeowner tax reduction fund. This ensures that the new fund takes precedence over the general fund for the specified tax revenues. The bill is set to take effect on July 1, 2027.

Statutes affected:
Introduced, 01/23/2026: 10-46-48, 10-46E-9, 10-58-5
Senate Taxation Engrossed, 02/11/2026: 10-46-48, 10-46E-9, 10-58-5