PROVIDED SUMMARY
Prohibition on Levying Ad Valorem Taxes on Tangible Personal Property; Proposes amendment to State Constitution to prohibit levying of ad valorem taxes on tangible personal property by certain entities.
Full bill text →
Plain English Summary
AI-GENERATED
Bans local ad valorem taxes on business equipment and machinery.
Counties, school districts, and municipalities can no longer levy ad valorem taxes on tangible personal property, such as business equipment and machinery.
This removes a major source of local government revenue, forcing a shift in how these entities fund their operations.
The ban takes effect on January 1, 2027, and applies to all local taxing units across the state.
Existing exemptions for specific property types are removed, as the underlying tax itself is now prohibited.
KEY PROVISIONS
§ 1
Prohibition on Tangible Personal Property Taxes
majors. Article VII, Section 9(a)
AIProhibits counties, school districts, and municipalities from levying ad valorem taxes on tangible personal property.
“except ad valorem taxes on intangible personal property and tangible personal property and taxes prohibited by this constitution.”
bill text, line 276 →
§ 2
Removal of Tangible Personal Property from Millage Limits
majors. Article VII, Section 9(b)
AIRemoves tangible personal property from the base for calculating maximum ad valorem tax millage rates.
“upon the assessed value of real estate and tangible personal property: for all county purposes, ten mills”
bill text, line 283 →
§ 3
Removal of Tangible Personal Property Exemptions
majors. Article VII, Section 3(c)
AIRemoves constitutional provisions allowing exemptions for tangible personal property, including stock in trade and livestock.
“Pursuant to general law tangible personal property held for sale as stock in trade and livestock may be valued for taxation”
bill text, line 108 →
§ 4
Removal of Business Exemption for Tangible Personal Property
moderates. Article VII, Section 3(c)
AIRemoves the requirement that business exemptions apply to tangible personal property of new or expanding businesses.
“and shall also apply to tangible personal property of such new business and tangible personal property related to the expansion”
bill text, line 47 →
§ 5
Removal of $25,000 Tangible Personal Property Exemption
moderates. Article VII, Section 3(e)
AIRemoves the constitutional exemption of $25,000 of assessed value for tangible personal property.
“Twenty-five thousand dollars of the assessed value of property subject to tangible personal property tax shall be exempt”
bill text, line 69 →
§ 6
Removal of Renewable Energy Device Exemption
moderates. Article VII, Section 3(e)
AIRemoves the constitutional exemption for solar and renewable energy devices subject to tangible personal property tax.
“The assessed value of solar devices or renewable energy source devices subject to tangible personal property tax may be exempt”
bill text, line 72 →
§ 7
Removal of Household Goods Exemption
moderates. Article VII, Section 3(b)
AIRemoves the constitutional exemption for household goods and personal effects for heads of families.
“cumulatively, to every head of a family residing in this state, household goods and personal effects to the value fixed”
bill text, line 28 →
§ 8
Effective Date for Prohibition
moderates. Article XII, Schedule
AISets the effective date for the prohibition on levying ad valorem taxes on tangible personal property as January 1, 2027.
“prohibiting the levying of ad valorem taxes on tangible personal property by counties, school districts, and municipalities, shall take effect January 1, 2027”
bill text, line 301 →