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 a "hog house" that gutted the original property tax and education funding bill and replaced it with extensive revisions to school district levy caps and education funding formulas, including lowering the general fund levy from $5.87 to $4.21 per thousand dollars of valuation, reducing the owner-occupied property levy from $2.35 to $2.66 per thousand dollars, and adjusting the agricultural property levy. The changes narrow the bill's scope to focus specifically on revising levy maximums and education funding procedures rather than comprehensively addressing property tax policy.
The amendment reduced the maximum general fund mill levy for school districts from $5.21 to $4.86 per thousand dollars of taxable valuation (effective for 2027 taxes), lowered the agricultural property levy from $1.125 to $1.05, and eliminated the owner-occupied dwelling levy entirely (from $2.518 to $0.669), while removing language requiring proportional maintenance of the three levies—WEAKENING the bill's funding for schools by substantially cutting property tax levy authority. The change also corrected cross-references and removed the "hoghouse" designation, converting the engrossed appropriations bill to its enrolled final form.
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