HB 5086 Summary

• Modifies the Local Community Stabilization Authority Act to adjust how revenue from the use tax is distributed to municipalities to compensate for lost property tax revenue from industrial and commercial personal property exemptions.

• Establishes new formulas for calculating "personal property exemption loss" based on 2013 baseline taxable values, with different calculations for school districts, intermediate school districts, tax increment finance authorities, and other municipalities.

• Requires county equalization directors and assessors to report commercial and industrial personal property taxable values annually to the Department of Treasury by specified deadlines, with current values reported on May 10 each year beginning in 2018.

• Prioritizes distributions to municipalities in order: school debt losses, essential services funding, school operating losses, tax increment finance authority obligations, and remaining balances distributed proportionally based on qualified losses.

• Allows municipalities to challenge reported taxable values and calculation errors with substantiating documentation by specified deadlines, with the Department of Treasury responsible for recalculating underpayments and overpayments.