Bill Summary: SB00466

• Establishes motor vehicle property tax grant program capping municipal mill rates at 32 mills for fiscal year 2017 and 29.36 mills for fiscal year 2018 and thereafter, with municipalities exceeding the cap receiving state grants equal to the difference in taxes.

• Creates municipal revenue sharing grants for fiscal years 2017-2019 with specific dollar amounts for each municipality, with municipalities able to opt out for up to two years.

• Implements a 2.5% spending cap (or inflation rate, whichever is greater) on municipal budget expenditures for grant eligibility beginning in fiscal year 2018, with 50-cent reduction per dollar exceeded, excluding debt service, special education, and disaster-related costs.

• Allocates $3 million for fiscal year 2017 and $7 million annually thereafter (fiscal year 2018+) to regional councils of governments for regional service consolidation grants, with 35% dedicated to education service center mergers.

• Modifies payment in lieu of taxes (PILOT) grants for college, hospital, and state property, applying tiered reduction percentages based on municipalities' percentage of tax-exempt property for fiscal years 2020 and beyond.