Bill > HB66

This bill establishes the "Alternative Homestead Option Sales and Use Tax Act of 2026," creating a new mechanism for counties to levy a 1% local sales and use tax, with specific provisions for motor fuels, to fund capital outlay projects and services. This tax is intended to offset revenue lost due to an expanded homestead exemption, which is a tax break for primary residences. The bill outlines procedures for counties to propose this tax and a corresponding homestead exemption through a referendum, requiring voter approval for both to take effect. It also details how the tax proceeds will be distributed to counties and municipalities, with specific formulas for funding capital projects like road improvements and for compensating for the homestead exemption's impact on services. The tax and exemption are set to terminate after ten years, though they can be re-adopted. Importantly, this new tax cannot be levied in areas already subject to a tax under Article 2 of the relevant chapter, and it includes provisions for crediting taxes paid in other jurisdictions.