HB 547 Summary

• Modifies the school district reimbursement schedule for tangible personal property (TPP) tax phase-out losses by changing payment thresholds and percentages for fiscal years 2012-2013 and establishing a phased reduction schedule for fiscal years 2014 and thereafter.

• For fiscal years 2012-2013, establishes threshold percentages of 2% for FY 2012 and 4% for FY 2013, with schools receiving reimbursement only when current expense TPP allocation exceeds the threshold percentage of total resources.

• For fiscal years 2014 and beyond, creates a four-class system based on school districts' total fixed-rate levy losses as of tax year 2011, with Class I (highest loss) receiving 100% of FY 2011 payments and Class IV (lowest loss) receiving gradually reduced percentages through 2053.

• Extends debt levy reimbursements indefinitely rather than limiting them through fiscal year 2018, allowing schools to receive 100% reimbursement for losses on debt-related taxes as long as the qualifying levy continues to be used for debt purposes.

• Changes the reimbursement schedule reference in the definition of "state education aid" from "the section" to specific section numbers for H.B. 153 of the 129th general assembly regarding school district and joint vocational school district funding.