HB 218 Summary

• Establishes a phased exemption of operating personal property from taxation beginning in 2022, with full exemption by 2031, using industry-specific percentages ranging from 55% (electric) to 100% (railcars and water transportation)

• Creates phased exemption for all personal property acquired before January 1, 2022, increasing 10% annually from 2022 through 2031 with replacement tax funding provided to taxing districts

• Exempts all personal property acquired on or after January 1, 2022 from taxation with no replacement funding provided

• Exempts all transient personal property from taxation beginning January 1, 2022 with no replacement funding

• Provides replacement tax revenues from sales tax distributions under section 63-3638 to offset lost property tax revenues from exempted operating and personal property, subject to taxing district budget limitations