Morgan County plan would link home tax breaks to sales tax

The proposal would exempt part of the county property tax on qualifying homes, with the exempt amount based each year on net sales tax proceeds. It would cover residents with qualifying homes in the Morgan County special district and apply only to county taxes for county purposes. The exempt amount would be based on net sales tax collected in the special district. Any home value above the exempt amount would remain taxable. The exemption would be added to other homestead exemptions that apply. If approved by voters, the exemption would apply to tax years beginning January 1, 2027, through December 31, 2039.

The proposal would impose a 1 percent local sales and use tax in the special district. The tax would apply in the special district that covers Morgan County. The bill links the tax proceeds to the yearly home tax exemption amount. The tax would run from January 1, 2028, through December 31, 2037.

The proposal would require approval by state lawmakers and Morgan County voters before its tax and exemption provisions could take effect. The county election superintendent would hold the election for Morgan County voters. The measure would need a two-thirds vote in both the state House and Senate. More than half of votes cast in the county election would need to favor the Act. If voters reject it or the election is not held as required, the Act would not take effect and would be repealed 365 days after the scheduled election date. The county vote was set for the Tuesday after the first Monday in November 2026. If approved, the Act would take effect January 1, 2027.