School districts would set a lower property tax rate for 2026–2027

School boards would levy a 19-mill property tax for the 2026–2027 school year. The rate applies to taxable tangible property in each school district. The text also states a 20-mill rate for the 2025–2026 school year. The stated rates apply in the 2025–2026 and 2026–2027 school years, respectively.

State officials would calculate and transfer money tied to a school tax rate below 20 mills. The calculation concerns a school district tax rate that decreases from 20 mills. The amount would equal the revenue the lower rate would have generated at 20 mills. The transfer would come from the budget stabilization fund when money is available. The budget director would certify the amount each August 15; the transfer would follow when money is available.

State officials would calculate and transfer money tied to an increase in a property tax exemption. The calculation concerns an increase to the exemption identified in the bill. The amount would equal the revenue the exemption increase would have generated if the exemption remained at $42,049. The transfer would come from the state general fund when money is available. The budget director would certify the amount each August 15; the transfer would follow when money is available.