School property taxes could fall when state revenue comes in above expectations
What it does
The comptroller would deposit 90 percent of the amount by which general revenue received in a state fiscal biennium exceeds 104 percent of the total general revenue received during the preceding biennium into the property tax relief fund, and that money could be appropriated only for property tax relief through the state compression percentage. The education commissioner would then reduce the state compression percentage to the lowest level possible as a result of that money, which lowers the share of school funding districts must raise locally. If the compression percentage were zero, a school district could not impose a tier one maintenance and operations tax and would be funded as if it had its maximum compressed tax rate and no local share. The bill would apply beginning with the state fiscal biennium that starts September 1, 2029.
What it means for your community
Homeowners and renters in school districts would see relief in local school property taxes in years when state revenue runs above the threshold in the bill. Because the money can go only to property tax relief, the benefit would show up in your school tax bill rather than elsewhere in the state budget. The size of any cut would depend on how much extra revenue the state collects in each biennium. The bill would take effect September 1, 2027, but the tax changes would start with the 2029 biennium.
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