The House Ways and Means Committee on Wednesday advanced changes to House Bill 129 that would limit school districtsability to reallocate existing property tax millage and change how certain levies are counted toward a 20-mill floor.

Vice Chair Thomas moved to amend the bill with Amendment AM1360548; the committee accepted the amendment by voice. The amendment removes a school district income tax component from the bill, clarifies that school districts cannot shift inside millage to increase tax revenue without voter approval, specifies that newly voted levies are added on top of the 20-mill floor rather than treated as climbing out of it, eliminates substitute levies, and renames emergency levies as "fixed sum levies" while prohibiting renewal of current emergency levies going forward.

The amendmentas explained by Vice Chair Thomasis intended to preserve voter clarity and to prevent school districts from reallocating non-voted inside mills into general operating purposes without a vote. "The first piece removes the school district income tax component to the bill," Thomas said in the committee. He added the change on new levies is meant to ensure "these new levies will be added to 20 mils for the 20 mil floor." Representative Troy raised questions about whether eliminating substitute levies would be redundant with the ban on renewing emergency levies; Thomas said the change is intended to make voter intent and voter knowledge clearer.

Representative Paul and others pressed for an explanation of how the bill would affect practice in counties where inside millage has been reallocated in prior years. Vice Chair Thomas cited examples offered at prior hearings and by school board members, saying the practice of shifting mills has occurred and can result in unvoted revenue increases for districts.

Committee members also discussed whether an emergency levy converted to a fixed sum levy could later be renewed if voters approved the fixed-sum version. Thomas and other members said the language needs coordination with the budget process and the Senate budget language; he acknowledged the committee would work with the budget process to ensure the provisions are "very crisp." Representative Hall and others sought additional clarifications about renewal rules and the names used on ballots.

The committee accepted the amendment and concluded the third hearing of House Bill 129.

Votes and formal motions recorded in the hearing included Vice Chair Thomasmotion to offer AM1360548, which the committee accepted (voice vote; no roll call recorded).