Enactment of this legislation could reduce property tax revenue to project area taxing entities by approximately $17,870,000 ongoing in aggregate beginning in FY 2027; impacts to individual entities will vary. To the extent that certain property improvements may no longer be considered as new growth, enactment of this legislation could reduce property tax revenue to local taxing entities; the aggregate impact is unknown.

Enactment of this legislation could reduce property taxes paid by businesses and individuals within project area taxing entities by approximately $17,870,000 ongoing in aggregate beginning in FY 2027. A homeowner with property worth $500,000 may see an average reduction of approximately $9 per year, and a business owner of a property worth $1 million may see an average reduction of $34 per year; individual impacts will vary. Enactment of this legislation could also reduce the primary residential exemption for owners of tenant-occupied property beginning in FY 2027, increasing total taxable values and decreasing tax rates, in aggregate, and resulting in a relative shift in property tax burden onto owners of tenant-occupied property; statewide, this is estimated to result in an average reduction of approximately $21 per year for a homeowner with a property worth $500,000 and approximately $75 per year for a business owner with a property worth $1 million, though individual impacts will vary. To the extent that certain property improvements may no longer be considered as new growth, enactment of this legislation could reduce property taxes paid by businesses and individuals; the aggregate impact is unknown. To the extent that properties currently eligible for the primary residential exemption may become ineligible, enactment of this legislation may shift property tax burden within taxing entities between commercial and residential property owners; impacts to individuals and businesses may vary.