2002 Senate Bill 1166 ↩

House Roll Call 400: Passed

To permanently change to July for all taxpayers the payment date for the six-mill state school property tax. Owners of 24.1 percent of the total state taxable value now pay all the tax in July; owners of 49.7 percent pay half in July and half in December; taxes on the remaining 26.3 percent are paid in December only. To compensate for the accelerated expense which will be incurred by approximately 75 percent of taxpayers, in 2003-only the tax rate would be reduced to five-mills. The House Fiscal Agency reports that the owner of house with a $75,000 taxable value will have a one-year savings of $75. However, those who now pay all or part of the tax in December will incur an ongoing opportunity cost for the time-value of money paid earlier each year. Local governments which do not now collect summer taxes will receive $2.50 per parcel from the state for the extra expense of having to collect summer taxes, or may allow the state to collect the tax. The change in date is part of a package of measures intended to close a deficit in the FY 2002-2003 school aid budget (see Senate Bill 1107). It is projected to accelerate $490 million in tax collections forward to FY 2002-2003, including the one-year, one-mill discount. This bill amends the general property tax act to accommodate the date change.