Bill > HB2011

This bill aims to adjust school district taxation by decreasing the rate of ad valorem tax, which is a tax based on the value of property, imposed by school districts. It also increases the exemption for residential property from the statewide school levy, meaning homeowners will be exempt from paying property tax on a larger portion of their home's value. Furthermore, the bill mandates certain transfers of funds to the state school district finance fund, which is a fund dedicated to supporting school districts. Specifically, it lowers the ad valorem tax rate for school districts from 20 mills (a unit of taxation equal to one-tenth of a cent per dollar of assessed value) to 18.5 mills for the 2023-2024 and 2024-2025 school years, and then adjusts it annually thereafter to maintain revenue levels. The residential property exemption from the statewide school levy is increased from $75,000 to $100,000 of appraised valuation, starting with the 2026 taxable year. The bill also outlines a process for the director of the budget to certify the revenue impact of these changes and for the director of accounts and reports to transfer those amounts from the state general fund to the state school district finance fund.