Overview: HB 6395, "AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES", was effective without the Governor's signature on July 1, 2025. It was introduced on January 23, 2025.
Purpose and Intent: The main goal of this bill is to provide municipalities with greater flexibility and authority in levying and assessing local taxes. This legislation aims to empower local governments to generate revenue and address their unique budgetary needs more effectively.
Key Provisions:
- Grants municipalities the ability to levy new types of local taxes, such as sales taxes, income taxes, and property taxes, subject to voter approval
- Allows local governments to adjust tax rates and assessment methods for existing taxes without state-level approval
- Establishes guidelines for municipalities to conduct public hearings and referendums on proposed local tax measures
- Requires local governments to publish detailed information on tax revenues and expenditures for public transparency
Affected Parties and Impacts: This bill primarily affects municipal governments and their residents. It provides local leaders with more tools to raise funds for public services, infrastructure, and other community needs. Taxpayers may see changes in the types and rates of local taxes they pay, depending on decisions made by their local governments.
Procedural and Timeline Considerations: HB 6395 was effective without the Governor's signature on July 1, 2025. The legislation grants municipalities the authority to implement new local taxes or modify existing ones, subject to public approval processes outlined in the bill.