IN SB0238

Delays the effective date for local income tax (LIT) changes enacted in SEA 1-2025 from 2028 to 2029, with corresponding adjustments to expiration dates for county single voting bloc provisions from May 31, 2027 to May 31, 2028

Changes the business personal property tax exemption threshold from $2 million in acquisition cost to $1 million in assessed value for assessment dates after December 31, 2025

Modifies local income tax rate caps, reducing the county general purpose rate from 1.2% to 0.7%, the fire/EMS rate from 0.4% to 0.2%, and increasing the municipal services rate from 1.2% to 1.9%

Reinstates excess tax levy appeal provisions allowing civil taxing units to petition the Department of Local Government Finance for levy increases when assessed value growth exceeds statewide growth by 2% or more over a three-year average

Lowers the population threshold for cities and towns to adopt a municipal LIT from 3,500 to 2,000 residents, and removes the requirement for counties and municipalities to annually readopt their LIT rates