Bill Summary: Raised Bill No. 326

• Lowers the motor vehicle property tax mill rate cap from 45 mills to 30 mills effective October 1, 2021 and each assessment year thereafter, while maintaining 39 mills for October 1, 2016 and 45 mills for October 1, 2017 through October 1, 2020.

• Allows municipalities and districts to set different motor vehicle mill rates from other property taxes, provided combined district and municipal rates do not exceed the caps.

• Permits municipalities that set motor vehicle rates before October 31, 2017 to revise those rates by December 15, 2017 to comply with the new requirements.

• Establishes a phased reimbursement schedule for municipalities losing revenue due to the lower cap, beginning at 100% reimbursement for fiscal year 2023 and declining by 20 percentage points annually until reaching 20% for fiscal year 2027 and thereafter.

• Requires municipalities to disburse grants attributable to districts within 15 calendar days of receiving them.