1. personal property tax REFORMING

2. EXPIRED THE PLAN NEW GF REVENUE STATE USE TAX TRANSFER TO LOCALS CREDITS GENERAL FUND STATE USE TAX LOCAL USE TAX

3. STATE + USE TAX LOCAL

4. WHAT IS USE TAX? Use tax is sales tax on:

5. 100% POLICEFIREAMBULANCEJAILS K-12/ISD OPERATING AND DEBT LOSS LOST TIF CAPTURE EVERYTHINGELSE 80% REIMBURSEMENT

6. The legislature shall appropriate an amount to cover all debt loss REIMBURSEMENT FY 2014 AND 2015 Calculate essential services loss – up to 100% of that amount made up through locally levied Essential Services Assessment (ESA) Calculate remaining loss amount, not including loss eligible for reimbursement through ESA – 80% of that amount made up through use tax distribution LOCAL TAXING UNIT Basic operating loss - 100% of that amount made up through SAF Calculate debt loss and hold harmless/out-of- formula operating loss – 100% of that amount made up through use tax distribution Calculate sinking fund/recreational mill loss – 80% of that amount made up through use tax distribution LOCAL SCHOOL DISTRICT ISD Calculate debt/operating loss – 100% of that amount made up through use tax distribution FY 2016 AND BEYOND

7. Total PPT Cut $576.6 M Total Reimbursement $511.7 M UNREIMBURSED EXEMPTIONS VS. TOTAL LOCAL REVENUE FY 2023 (EST) Total General Revenue $47.4 B Amount Not Reimbursed $64.9 M 0.137% of General Revenue

8. $400 $200 $0 $0 $600 2033 PROJECTED GROWTH OF EXEMPT PP REVENUE VS. USE TAX REVENUE 2023-2033 Projected growth in Use Tax revenue: $582 M Projected growth in Use Tax revenue: $582 M Projected growth in revenue from exempt personal property, assuming no exemption: $30.3 M 2023

9. personal property tax REFORMING