Bill > SB01554

This bill establishes a gradual elimination of the property tax on motor vehicles through a multi-year process beginning in the fiscal year ending June 30, 2028. The bill creates a new "municipal offset vehicle expense account" funded by transfers from the General Fund based on decreases in state employee and teacher retirement system contributions. Starting in fiscal year 2029, the Secretary of the Office of Policy and Management (OPM) will begin exempting a portion of motor vehicle assessed values each year until the property tax reaches zero. Municipalities will receive reimbursement grants to offset their revenue loss from these exemptions. Once the motor vehicle property tax is fully eliminated, any remaining funds in the account will be distributed: 50% based on a "municipal needs capacity gap metric" (calculated using a 2015 research report methodology) and 50% on a per capita basis. The Secretary of OPM is required to submit an annual report to the General Assembly detailing the account's balance, exemption amounts, grant distributions, and other relevant information. The goal is to phase out motor vehicle property taxes while providing financial support to municipalities to mitigate potential revenue losses.

Budget and Finance

Finance, Revenue and Bonding Committee (J)

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