AN ACT ESTABLISHING A PROPERTY TAX CAP AND AN UNFUNDED MUNICIPAL MANDATES TASK FORCE.

SB 556 establishes a property tax cap limiting annual increases to 2% or the inflation rate (whichever is higher), effective July 2027, directly affecting all property owners statewide. It also creates a task force to review and recommend repealing unfunded state mandates on local governments by January 2026. Unfunded mandates refer to state laws requiring municipalities to spend money without providing corresponding funding. The bill aims to control tax growth while addressing financial pressures on local governments from state-imposed costs.