In 1998, the impending demise of the optional mills translated into a substantial loss of tax revenue for public schools ($19 million relative to 1996 and $32 million relative to 1997, when many districts took advantage of the incentive to increase their optional mills).

Many of those working on school finance issues felt that property taxes for schools should at least be kept even, if not increased. Keeping even with 1996 would have required a statewide property tax levy of approximately 2.4 mills; with 1997, 4.2 mills.

HB 93 was a 1998 version of HB 1004, except it proposed a two-mill statewide property tax levy. The concept was killed in the House Revenue Committee on a 3-6 vote.

Please refer to the chart at the end of the Taxation & Revenue section which compares the relative effect of the property and sales tax increases proposed in 1998, taking into account elimination of the optional mills.

The vote listed below is the House Revenue Committee vote on HB 93. (Note: This vote was recorded by witnesses at the committee meeting; it is not included in the official legislative digest.)