HB 521 Summary

• Reduces individual income tax rate from 5.8% to 5.695% and corporate income tax rate from 5.8% to 5.695% effective January 1, 2024, providing income tax relief.

• Creates new School Modernization Facilities Fund funded by $125 million annually from sales tax revenues, allowing school districts to choose annualized or lump-sum distributions for facility construction, renovation, and maintenance needs.

• Establishes School District Facilities Fund receiving distributions from general fund excess cash balances and sales tax revenues to reduce school district reliance on property tax levies for facility needs.

• Removes school district election restrictions on bonded indebtedness and property tax levy questions, allowing elections beyond the traditional two per calendar year limit.

• Repeals bond levy equalization support program (sections 33-905, 33-906, 33-906A, 33-906B) and redirects related funding mechanisms to new facilities funds while requiring school districts submitting ten-year facility plans to attest to compliance with state education requirements and dignity protections.