Relating to state and local government taxes, budgets, and authority, by modifying provisions relating to the assessment and taxation of property, funding from the secure an advanced vision for education fund, urban renewal areas, establishing a program for certain first-time homebuyers, establishing a local government efficiency grant fund, making appropriations, and including effective date, applicability, and retroactive applicability provisions

17 and the governmental entity shall remedy the violation and recertify the budget. For purposes of this provision, the bill defines “governmental entity” to mean any unit of government or other public body or public corporation, including any intergovernmental entity, that has the power to impose or certify a property tax levy, but excludes school districts.8 relating to unexpended funds of county agricultural extensions.35 shall be performed, including verification of the circumstances resulting in actual reserve funds exceeding the specified limits.25, which establishes a maximum aggregate amount of property tax dollars that may be certified for levy among all property tax levies imposed by a governmental entity other than a school district, excluding debt service levies. For the budget year beginning July 1, 2027, and each budget year thereafter, the maximum aggregate amount of property tax dollars that may be certified for levy among all property tax levies imposed by a governmental entity against property that is not new valuation, as defined in the bill, shall not exceed an amount equal to the sum of 102 percent of the aggregate amount of property tax dollars certified for levy by the governmental entity among all property tax levies imposed by the governmental entity for the preceding fiscal year for each of the governmental entity’s property tax levies for the budget year. If the budget year includes a voter-approved property tax levy that was not approved for imposition in the preceding fiscal year, the maximum aggregate amount of property tax dollars for the governmental entity for the budget year is increased by the amount of the voter-approved property tax levy approved at election for the budget year.25, the department of management shall reduce each of the applicable governmental entity’s property tax levies on a pro rata basis so that the governmental entity is in compliance.25 does not remove or otherwise affect property tax limitations, including levy rate and use limitations, otherwise provided by law for any property tax levy of the governmental entity.25.26, which provides that, on or after July 1, 2026, a governmental entity, as defined in the bill, shall not issue bonds or other indebtedness payable from an ad valorem property tax levy for the purpose of funding the general operations of the governmental entity or otherwise use proceeds from the sale of bonds or issuance of other indebtedness to fund general operations. The bill defines “general operations” to mean services or activities generally funded from the governmental entity’s general fund, which are necessary for the operation of the governmental entity, including salaries and benefits, or which are for the health and welfare of the governmental entity’s citizens or primarily intended to benefit all residents of the governmental entity, but excluding services financed by statutory funds other than a debt service fund. The department of management, following consultation with the city finance committee and the county finance committee, may adopt rules under Code chapter 17A to implement the new Code section governing funding of general operations. DIVISION II —— COMMERCIAL AND INDUSTRIAL PROPERTY ASSESSMENT LIMITATIONS.21 imposes an assessment limitation (rollback) on commercial property, industrial property, and property valued by the department of revenue under Code chapter 434 (railway company property). For valuations established for the assessment year beginning January 1, 2022, and each assessment year thereafter, the portion of actual value at which each property unit of commercial property shall be assessed shall be the sum of the following: (1) an amount equal to the product of the assessment limitation percentage applicable to residential property multiplied by the actual value of the property that exceeds $0 but does not exceed $150,000; and (2) an amount equal to percent of the actual value of the property for that assessment year that exceeds $150,000. The limitation, by operation of law, applies to the assessed value of railway company property. The bill increases the amount of value subject to the residential assessment limitation rates from $150,000 to $350,000 for each property unit.21(5)(c)(2) apply retroactively to assessment years beginning on or after January 1, 2026.21(5)(e) for payments to replace property taxes due to the application of the residential property assessment limitation to certain portions of commercial and industrial property valuations. DIVISION III —— HOMESTEAD PROPERTY TAX EXEMPTION. The bill establishes a property tax exemption for residential property that is receiving a homestead property tax credit. For assessment years beginning on or after January 1, 2026, a property tax exemption is allowed on each such property in addition to any exemption or credit for such property under any other provision of law. The exemption is percent of the taxable value of the property or $25,000 in taxable value, whichever is less. However, the exemption shall not apply to a property tax imposed by a school district.7 provides that for a property tax credit or exemption enacted on or after January 1, 1997, if a state appropriation made to fund the credit or exemption is not sufficient to fully fund the credit or exemption, the political subdivision shall be required to extend to the taxpayer only that portion of the credit or exemption estimated by the department of revenue to be funded by the state appropriation.7 inapplicable to the exemption established in this division. DIVISION IV —— SECURE AN ADVANCED VISION FOR EDUCATION FUND —— EQUITY TRANSFER PERCENTAGE —— FUTURE REPEAL. Pri