HB 1405 Summary

• Authorizes counties to impose an additional tax rate under either the County Adjusted Gross Income Tax (CAGIT) or County Option Income Tax (LOIT) to offset up to 75% of circuit breaker property tax losses for political subdivisions in the county.

• The additional tax rate cannot exceed 1% and is limited to a 5-year period, with options to extend for another 5 years or reimpose after expiration.

• The additional rate cannot be imposed simultaneously with other additional rates designated for freezing property tax levies or providing property tax relief.

• Establishes procedures for county fiscal bodies to adopt ordinances, conduct public hearings, and notify the budget agency before implementing the additional tax rate.

• Revenue from the additional tax rate distributes to political subdivisions based on their proportional share of circuit breaker losses, with no requirement to reduce property tax levies in return.