HB5120 Summary

• Creates phased distribution of Personal Property Tax Replacement Fund revenues to new Countywide Personal Property Tax Distribution Funds beginning 2023, with the county share increasing from 5% to 50% by 2032.

• Establishes phased distribution of commercial and industrial property tax revenues to new Countywide Commercial and Industrial Property Tax Funds beginning 2023, with the county share increasing from 5% to 50% by 2032.

• Requires county treasurers to create and maintain separate funds for distributing tax revenues to school districts on a per-pupil basis using daily pupil attendance calculations.

• Mandates school boards provide monthly pupil attendance calculations to county treasurers and requires county boards to ensure treasurer compliance with fund distribution duties.

• Implements gradual transition over 10 years from existing tax distribution system to new countywide, per-pupil distribution model for school funding.