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Subcommittee approves bill lowering equalization minimum millage and adding penalty for deep rollbacks
Summary
Rep. Cannon’s substitute to HB12 (LC492215S) would lower the minimum millage threshold for school equalization from 14 mills to 10 mills, allowing some school systems to roll back rates while preserving local contributions; it also adds a penalty of a 25% reduction in equalization if a locality goes below the new threshold.
Representative Cannon presented a substitute to House Bill 12 (LC492215S), proposing to change the statutory minimum millage used in equalization calculations from 14 mills to 10 mills and to add a penalty for jurisdictions that drop below the new threshold.
Cannon told the committee the 2019 law that set a 14‑mill threshold has led some systems to avoid rolling back local millage despite large increases in assessed values; without change, he said, taxpayers in some counties experienced effective tax increases because systems did not roll back. The substitute would allow systems that see rising digests to reduce millage while keeping equalization calculations stable.
The bill also creates a penalty: if a school system reduces millage below the new 10‑mill threshold, 25% of its equalization funding would be withheld. Committee members asked whether existing floating homestead exemptions or other local policies would interact with the change; the sponsor and counsel explained how rollback and exemptions function and said the penalty is intended to maintain broad contribution to equalization.
The subcommittee voted to advance the substitute to full committee by voice vote.
Why it matters: Changing the threshold affects local tax rates, equalization funding, and incentives for local governments when property assessments rise.
What’s next: HB12 substitute will appear before the full committee.
