SB 1 - Tax Fairness and Economic Development

• Establishes new state grants in lieu of taxes effective July 1, 2016, with municipalities guaranteed to receive amounts no less than fiscal year 2014 levels for state, municipal, tribal, college, and hospital properties.

• Grants range from 24% to 100% of property taxes based on property type, with correctional facilities, tribal lands acquired after June 8, 1999, and certain state properties receiving 100% compensation.

• Creates municipal revenue sharing account funded by sales tax revenue, distributing 90% to municipalities based on per capita and pro rata formulas, with municipalities having mill rates of 25 or more mills receiving higher distributions.

• Caps municipal motor vehicle tax mill rate at 29.36 mills effective October 1, 2015, and allows municipalities with multiple taxing districts to set a uniform city-wide motor vehicle mill rate.

• Establishes optional regional property tax base revenue sharing system allowing planning regions to share commercial and industrial property tax revenue growth beyond base year values through regional councils of governments.