Bill Summary: SB 1139

• Eliminates property tax on most motor vehicles effective October 1, 2019, except rental vehicles that municipalities elect to continue taxing under Section 3.

• Increases uniform property assessment rate from 70% to 100% of present true and actual value for all municipalities.

• Allows municipalities to moderate tax burden shifts over up to five years through decreasing surcharges on former motor vehicle taxpayers and tax credits for residential property owners.

• Establishes motor vehicle property tax grants and municipal revenue sharing grants to compensate municipalities losing motor vehicle tax revenue, with specific distribution formulas based on mill rates and population.

• Removes motor vehicles from personal property declarations and eliminates several property tax exemptions and statutes related to motor vehicle taxation.