Commission on Replacement Funding for Elimination of the Property Tax on Industrial Machinery, Equipment, and Computers (M&E) (J)

Charge

To study the current statutory system under which reimbursement
claims are calculated and funds paid by the state to local
governments to replace revenue lost from the elimination of the M & E property tax, including the following: evaluating the impact of the phaseout of the M & E property tax on individual units of local government, reviewing the impact from an economic development perspective, assessing the impact of state replacement funds in mitigating the loss of local government revenue, projecting the amount of replacement funding necessary
for payment of reimbursement claims to local governments
through fiscal year 2006-2007, and recommend modifications of the current statutory system for calculation of reimbursement claims in order to further mitigate the revenue loss to those units of local government for which the elimination of the property tax
creates a severe adverse economic impact.