HB 516 Summary

• Extends the school district reimbursement schedule for tangible personal property tax phase-out losses indefinitely, removing the previous end date of fiscal year 2018 and continuing payments "each year thereafter"

• Modifies the payment schedule for fixed-rate levy losses starting in fiscal year 2014, implementing a tiered system based on district classification (Classes I-IV) that gradually reduces reimbursement percentages over time through fiscal year 2052

• Requires the Department of Education to classify school districts into four classes based on the ratio of fixed-rate levy losses to operating budget (Class I: 10% or more; Class IV: less than 3.3%), with Class I districts receiving full reimbursement and other classes receiving graduated percentages

• Changes fixed-sum levy loss reimbursement to continue indefinitely for debts levied for debt purposes in tax year 2005, rather than terminating in fiscal year 2018

• Updates provisions related to the school district tangible property tax replacement fund to allow balances to carry forward for future school purposes beginning in fiscal year 2012, rather than being transferred to the general revenue fund