In this report, we provide an overview of local property tax administration and review the administration's proposed three-year pilot program to improve tax administration and generate state General Fund savings. In particular, we (1) describe how the current property tax system weakens the incentive counties have to fund property tax administration, (2) review and evaluate the administration's three-year pilot program to improve county incentives, and (3) provide recommendations regarding the pilot's design. In our view, the administration's pilot program merits the Legislature's serious consideration but could be improved by incorporating several modifications. These include: ensuring each county has the same fiscal incentive to participate, providing participating counties greater funding certainty, promoting representative and consistently measured results, and potentially increasing near-term state savings on school spending.