Starting in 2027, this bill lowers the maximum property tax rate that school districts can charge on residential homes while adjusting rates for agricultural land and other properties. The new limits set the general school fund levy at $4.87 per $1,000 of property value (down from the previous rate), with homeowners paying just $0.67 per $1,000 on owner-occupied homes and farmers paying $1.05 per $1,000 on agricultural land. The bill also changes how state education funding formulas work to account for these new property tax limits.
This amendment was extensively rewritten (hoghoused) and now includes specific changes to school district property tax mill levies and state education funding formulas, such as lowering the general fund levy from $5.87 to $4.21 per thousand dollars of taxable valuation and adjusting agricultural and owner-occupied property levy caps, while also revising enrollment calculation procedures for state aid purposes. The bill shifts from general property tax revision to more detailed technical adjustments in school funding formulas and levy structures.
The amendment converts the bill from an extensively rewritten "hoghouse" version back to its original purpose by restoring the genuine property tax levy and education funding formula revisions, while making substantive changes including: reducing the general fund mill levy from $5.21 to $4.86 per thousand dollars of valuation, lowering the agricultural property levy from $1.125 to $1.05, and eliminating the owner-occupied dwelling levy (from $2.59 to $0.67 per thousand). This WEAKENS the overall tax burden on school districts and property owners while refocusing the bill on its core mission of revising property tax levies and state education aid formulas.
Signed by the Governor H.J. 578
Delivered to the Governor H.J. 574
Signed by the President S.J. 545
Signed by the Speaker H.J. 574
Senate Do Pass Amended Passed, YEAS 34, NAYS 0. S.J. 542
First read in Senate and referral to committee waived pursuant to JR 6D-1 S.J. 542
House of Representatives Do Pass Amended Passed, YEAS 66, NAYS 1. H.J. 572
Committee on Appropriations Do Pass Amended Passed, YEAS 18, NAYS 0. J. 67
Committee on Appropriations Motion to amend J. 61
Committee on Appropriations Scheduled for hearing J. 1
Committee on Appropriations Scheduled for hearing J. 1
House of Representatives Referred to Joint Committee on Appropriations H.J. 37
First Reading House H.J. 15
Do Pass Amended
Do Pass Amended
Committee on Appropriations — Do Pass Amended