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S.B. 97 makes several changes to how property taxes are calculated and how much money cities and counties can hold in reserve. It reduces the property tax discount (called a "residential exemption") on most rental properties from 45% to 40% of assessed value, while preserving the full 45% exemption for owner-occupied homes and for low-income housing tax credit properties. It caps how much cities and counties can keep in their general fund reserves — limiting larger cities to 25% of annual revenue rather than the previous 35% — and requires that cities holding excess reserves have their property tax rate automatically reduced starting in fiscal year 2032. The bill also tightens rules on who qualifies for the owner-occupied exemption, making clear it applies to only one primary residence per household regardless of how many properties an owner holds through a business entity, and requires counties to share information about business entities claiming the exemption across county lines. Landlords who rent out residential properties that aren't covered by the low-income housing tax credit program will see a smaller property tax discount, which could lead to higher operating costs and potentially higher rents for tenants in those units.