House Bill 1572 Summary

• Amends Section 27-31-104 to authorize county boards of supervisors and municipal authorities to enter fee-in-lieu agreements that exempt businesses from school district ad valorem taxes while requiring alternative annual gifts or donations to school districts.

• Minimum fee-in-lieu payment for non-school taxes set at one-third (1/3) of the ad valorem levy excluding school district taxes, with school district exemptions limited to 10-year duration.

• Requires school district board of education approval before agreements become effective and mandates annual gifts or donations to the school district in cash, personal property, or real property valued at fair market value.

• Annual gifts or donations to school districts must equal or exceed the amount that would have been collected as school district fees under standard fee-in-lieu provisions.

• Effective July 1, 2020, with provisions allowing existing fee-in-lieu agreements entered before July 1, 2020 to be amended to comply with the new requirements.