The bill under consideration, Substitute House Bill No. 5514, introduced as File No. 564, proposes an additional tax reduction for eligible homeowners under the Circuit Breaker property tax relief program. This bill, if enacted, would take effect on July 1, 2025, and would apply to the fiscal year ending June 30, 2026. It outlines a tiered additional tax reduction system based on the qualifying income of both married and unmarried homeowners, with reductions ranging from $100 to $300. The specific income brackets and corresponding tax reductions are detailed in the bill, with the highest reduction of $300 for those earning up to $22,000, and the lowest reduction of $100 for those earning between $43,800 and $53,400.

The fiscal impact of the bill indicates that municipalities could experience a cumulative revenue loss of $6.5 million beginning in the fiscal year 2026. The Office of Policy and Management (OPM) may potentially reimburse municipalities for this loss, although historically, such reimbursements have not been made by the OPM. The bill's fiscal note does not specify any immediate cost for the fiscal year 2025 but acknowledges a potential cost for the OPM in the fiscal year 2026. The ongoing fiscal impact of the additional tax reduction is expected to continue into the future, subject to inflation and the extent of OPM's reimbursement to municipalities. The bill has received a Joint Favorable Substitute recommendation from the Finance, Revenue and Bonding Committee.