This amendment replaces the previous committee amendment and fundamentally changes how the homeowner property tax exemption is funded, replacing direct appropriations with new sales and use taxes.
- Removes the sunset date provision from the bill's purpose statement and adds language indicating the bill will provide sales and use tax funding for local governments to offset property tax exemption revenue loss. (Page 1, lines 2-9)
- Expands the bill's scope to amend multiple tax code sections (39-15-104, 39-15-111, 39-16-104, and 39-16-111) to establish new sales and use tax provisions. (Page 1, lines 8-17)
- Adds automatic annual inflation adjustment to the homeowner exemption amount beginning in tax year 2027, starting from $1,000,000 and adjusting annually by the lesser of the consumer price index or 2%. (Page 2, lines 19-28)
- Deletes two lines that previously addressed the sunset provision. (Page 2, lines 22-23)
- Renumbers subsection designations to reflect removal of deleted content. (Page 3, line 2)
- Establishes a new additional sales tax of 0.92% beginning July 1, 2025, with provisions allowing the governor to reduce the rate and exemptions for industrial facilities during their permitting and construction periods. Revenue from this tax is directed to a new property tax reduction and replacement account. (Page 3, lines 35-44 and continuing to Page 4)
- Creates the property tax reduction and replacement account and establishes a distribution mechanism to reimburse counties and governmental entities for property tax revenue lost due to the homeowner exemption, based on verified exemption amounts. (Page 2, lines 35-44 through Page 3, lines 16)
- Establishes a parallel additional use tax of 0.92% beginning July 1, 2025, with the same reduction and exemption provisions as the sales tax, with revenue directed to the property tax reduction and replacement account. (Page 3, lines 24-44 through Page 4, lines 1-9)
- Modifies the distribution statute to reference the new sales and use tax revenues attributable to the homeowner exemption funding mechanism. (Page 4, lines 11-19)
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