Bill Summary: SB 1105

• Eliminates property tax on most motor vehicles starting October 1, 2021, except for rental motor vehicles that municipalities may opt to continue taxing.

• Increases the uniform property assessment rate from 70% to 100% of present true and actual value for all non-motor vehicle property.

• Allows municipalities to moderate the tax burden shift over up to five years through methods such as decreasing surcharges and tax credits for residential property owners.

• Establishes a municipal revenue sharing account with sales tax distributions based on formulas considering mill rates and population to compensate municipalities for lost motor vehicle tax revenue.

• Provides municipalities with the option to continue imposing property tax on rental motor vehicles through a vote of their legislative body.