Senate Passes H887 to Adjust Property‑Tax Yields, Add Education Finance Study and New Revenue Measures

The Senate passed H887, an act making major changes to homestead property tax yields, non‑homestead rates and education finance after floor debate that lasted much of the session.

Senator Cummings, presenting the report of the Committee on Finance, said the measure reflected urgent work to contain an unusually high increase in school spending: "This year, it went up 18%. It is an unprecedented number," the senator said, stressing the need for a focused legislative response and a study committee to develop legislation next year.

Finance committee amendments carved the bill into discrete parts: a Finance Study Committee to draft proposed legislative fixes; a revamped date and membership for the broader commission on the future of education; adjustments to the Common Level of Appraisal (CLA) calculations to reduce tax swings; reintroduction of an excess spending cap (set at 116% of statewide average per pupil) and changes to pupil weighting transition rules. To reduce the tax rate, the Senate adopted revenue measures including a targeted short‑term rental surcharge and a narrower cloud‑service tax than the House had proposed.

Multiple floor amendments were offered and debated (membership of the study committee, tuition and cross‑border school payment limits, and parity rules for independent schools). Several amendments were adopted after roll calls and some failed; the combined package was ordered for third reading and passed on final third reading.

Supporters said the bill balances immediate tax relief with study and legislative work to produce longer‑term structural reforms. Opponents repeatedly pressed for broader public engagement and warned of unintended impacts on rural districts and recipients of tuition payments for out‑of‑state special education services. The bill now proceeds to the House for consideration of the Senate changes.