Senate Bill 3125 Summary

• Exempts the entire assessed value of commodities, raw materials, works-in-process, products, goods, wares and merchandise held for resale by manufacturers, distributors, and wholesale or retail merchants from ad valorem taxation, with assessed value determined by physical count or book value at the taxpayer's option.

• Exempts the entire assessed value of eligible personal property (furniture, fixtures, and equipment) owned and used by business enterprises solely on their premises from ad valorem taxation, excluding motor vehicles and Class IV property.

• Sets the total annual local privilege tax at $10.00 for all businesses engaging in any privilege, with licensees engaging in additional businesses requiring only updated licenses without additional privilege taxes.

• Repeals specific local privilege taxes on motor vehicle rental operators, flea market sellers, pawnbrokers, wholesale or retail store operators, deadly weapons dealers, drilling rig operators, and optometrists.

• Takes effect January 1, 2026.