Bill
HB 5967
Overview: HB 5967, "AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES", was signed by the Governor on July 2, 2025.Purpose and Intent: The bill aims to provide muni
Overview: HB 5967, "AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES", was signed by the Governor on July 2, 2025.
Purpose and Intent: The bill aims to provide municipalities with greater flexibility and autonomy in setting local tax rates and assessment policies. It seeks to address concerns about the limitations of the current state-level tax framework and empower local governments to better respond to their unique needs and economic conditions.
Key Provisions:
- Allows municipalities to levy local taxes, including property taxes, sales taxes, and other revenue sources, within specified parameters
- Grants municipalities the authority to determine their own assessment methodologies and valuation processes for property taxes
- Requires municipalities to establish transparent public processes for setting tax rates and assessment policies
- Provides guidelines for coordination between state and local governments on tax administration and revenue sharing
Affected Parties and Impacts:
- Municipalities will have increased control over their local tax policies and revenue generation
- Homeowners, businesses, and other taxpayers within each municipality may see changes in their tax burdens depending on local decisions
- The state government will need to adjust its revenue sharing and oversight mechanisms to accommodate the new local tax authorities
Procedural and Timeline Considerations:
The bill has been signed into law and will take effect on January 1, 2026, allowing municipalities time to develop and implement their new tax policies.
Compiled from official sources — confirm details with the bill’s official record.
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