WHAT WILL CHANGE

The three-part plan slows how fast a home’s assessed value can grow, pays a portion of property taxes and includes a tax cut on groceries while raising the overall sales tax.

Assessment increases capped

A constitutional amendment, which must be approved by voters this fall, would limit the increase in tax value, for all property, to 15 percent over a five-year period.

Sales tax raised and property taxes cut

The state sales tax will increase to 6 percent from 5 percent in June 2007. Combined with existing state appropriations, $500 million of the added sales tax money will go to pay all school operating taxes on owner-occupied homes — up to two-thirds of most property bills on a home. Additional money will boost school funding by $28 million and pay part of the county operating tax that homeowners pay through property taxes.

Tax on groceries cut

The plan uses about $130 million from the state budget to reduce the sales tax on groceries to 3 percent from 5 percent.