Bill > HB1168

This bill establishes new funds and modifies existing laws related to property tax relief and the state's legacy fund, appropriating $295,000,000 for the primary residence credit for the 2025-2027 biennium. * **Legacy Earnings Fund and Legacy Property Tax Relief Fund:** Creates these funds to manage distributions from the legacy fund. The legacy earnings fund will receive 7% of the legacy fund's five-year average balance. From this, $102,624,000 (or less, if debt service payments are lower) will go to the legacy sinking and interest fund, $100,000,000 to the legacy earnings highway distribution fund, and the remainder to the legacy property tax relief fund. * **Primary Residence Credit:** Modifies and extends the primary residence credit, increasing the maximum credit to $1,000. It also clarifies eligibility, application processes, and how the credit is applied to property tax statements. * **Appropriation for Primary Residence Credit:** Appropriates $295,000,000 from the legacy property tax relief fund to the tax commissioner for state reimbursement of the primary residence credit for the 2025-2027 biennium. For taxable years 2025 and 2026, 100% of the credit will be considered derived from legacy fund distributions. * **Property Tax Levy Limitations:** Amends laws to limit property tax levies by taxing districts without voter approval, with exceptions for new authority, voter-approved increases, bonded indebtedness, and certain other specific levies. * **School District Levies:** Adjusts school district levy limits, including a reduction in the mill levy for the local contribution to education costs. * **Property Tax Statement Changes:** Requires property tax statements to include information about the primary residence credit and the portion derived from legacy fund distributions. * **Legislative Management Study:** Directs the legislative management to study the feasibility of revising real estate tax statements for improved transparency. * **Effective Dates:** Various sections have different effective dates, with some provisions related to the primary residence credit and emergency measures taking effect in 2025 and 2026.