Establish a new fund to provide property tax relief.
Summary
SB 199 creates a new state treasury account called the property tax relief fund and directs the Department of Revenue to administer it. The fund’s stated purpose is to supplement property tax levies of political subdivisions so that property taxes on real property can be reduced as later authorized by the Legislature. Interest earned on the fund stays in the fund, and any spending from it would require a special appropriation.
The bill also establishes a funding formula tied to growth in general fund revenues. Beginning August 1, 2026, the state treasurer would transfer 25% of the annual increase in general fund moneys from the prior fiscal year into the new fund, with no transfer if general fund revenues do not increase. In later years, the annual transfer would equal the prior year’s deposit plus 25% of the most recent year-over-year increase, again with a floor of zero growth producing no new growth-based deposit beyond the prior year’s amount.
Impact
SB 199 would amend state law in chapter 10-13 by creating a dedicated property tax relief fund in the state treasury and assigning administration to the Department of Revenue. It would also create a recurring statutory mechanism for moving a portion of general fund revenue growth into that fund, potentially reducing the amount available for other state spending. The bill would affect state budgeting practices, local governments and school districts or other political subdivisions that rely on property tax levies, and property owners who could benefit from future tax reductions.
Sentiment
The available voting history suggests the bill generated mixed but meaningful support rather than broad consensus. One committee vote was close but favorable, while a later vote failed narrowly, indicating that lawmakers were divided on the proposal. The bill’s stated goal of property tax relief is likely attractive to many members, but the close votes show that there was not uniform agreement on the funding approach or its fiscal implications.
Contention
The main point of contention appears to be the tradeoff between property tax relief and the use of state general fund growth. Supporters likely view the bill as a direct way to return revenue growth to taxpayers through lower property taxes, while opponents may be concerned about diverting general fund dollars away from other state priorities or about creating an ongoing commitment based on revenue growth. The lack of committee transcript detail limits the record of specific arguments, but the narrow vote margins indicate disagreement over both the policy goal and the mechanism used to finance it.