AN ACT RELATING TO TAXATION -- LEVY AND ASSESSMENT OF LOCAL TAXES

SB 1091 adjusts property tax growth limits for cities and towns, gradually reducing the allowable annual increase from 5.5% (through 2007) to 4% (starting in 2013). It permits exceptions for emergencies, revenue losses, debt service increases, or substantial tax base growth from new construction. Crucially, it allows cities to exceed the 4% cap for taxes on new housing units added to the tax base, including newly built homes and converted properties, starting in 2025. The bill also requires cities to report tax levies to the state and sets annual compliance monitoring. This law, signed by the governor on July 1, 2025, directly affects local governments' budgeting for property taxes.