A 10-bill package that proposes to provide
100 percent reimbursement to local governments for revenue lost as a result of
the phasing out of the tax on industrial personal property was introduced
Tuesday and unanimously passed by the Senate Finance Committee Wednesday.
Senate
Bills 821 through 830 have bipartisan sponsors and co-sponsors, and have
yet to receive anything other than the full-throated support of industry groups
ranging from those representing local units of government to large
manufacturers.
Under current law, local governments that
lose an amount of revenue from the personal property tax changes equal to at
least 2.3 percent of their total PPT revenues would see 80 percent of those
revenues reimbursed. The new proposal provides 100 percent reimbursement for
all services as a result of earmarking more use tax revenue than initially
enacted. In addition, the state, rather than local government, would conduct
essential services assessments. The 2.3 percent threshold is also removed so
local governments that would see no reimbursement under the prior proposal will
be made whole under the new plan.