HB 7322 Summary

• Increases sales and use tax rates from 6.35% to 6.99% effective July 1, 2017, and removes certain service exemptions including advertising and public relations services.

• Establishes a local revenue diversification account funded by 7.2% of tax revenues from chapter 219 to pay grants in lieu of taxes and provide unrestricted municipal grants.

• Creates a regional collaboration account funded by 2% of chapter 219 tax revenues to support regional councils of governments implementing regional service consolidation and collaboration plans.

• Modifies property tax assessment rates to 100% of present true and actual value (up from 70%) effective October 1, 2017, and caps motor vehicle property tax mill rates at 32 mills for assessment years after October 1, 2016.

• Increases various municipal filing and recording fees, including town clerk recording fees, marriage license fees, and permit filing fees, effective July 1, 2017.