HB4997 Summary

• Creates the School District Extension Freeze Law, effective July 1, 2019, limiting school district property tax extensions based on reserve fund levels.

• Freezes a school district's tax extension at the previous year's level if the district maintains reserves of 50% or more of its operating budget at the end of any levy year.

• Requires an additional reduction in tax extension for districts with reserves of 60% or more, reducing the extension by the amount exceeding the 60% threshold.

• Allows school districts to override the freeze through a referendum seeking voter approval to increase the educational limiting rate for specified levy years.

• Requires tax bills to include a separate statement showing the reduction amount when a school district's extension is reduced due to excessive reserves under this law.