Local Taxpayer Relief Act

Local Taxpayer Relief Act - Amends the Impact Aid program (which compensates local educational agencies [LEAs] for the financial burden of federal activities affecting their areas) of the Elementary and Secondary Education Act of 1965 to alter the formula for determining the payments due LEAs for federal ownership of property when appropriations for a fiscal year are insufficient to provide them with full compensation.

Prohibits an LEA from being paid amounts for federal ownership of property that exceeds its total current expenditures in the second prior fiscal year.

Changes the method for calculating the value of federal property located in an LEA's area.

Alters the formula for determining the payments due LEAs for eligible federally-connected children.

Includes not only children in average daily attendance, but also those enrolled pursuant to a state open enrollment policy. Continues an LEA's eligibility for such payments while activities associated with military base closures and realignments or force structure changes or relocations are ongoing. Allows the calculation of such payments using current student counts instead of prior fiscal year data when LEAs experience a specified influx of new federally-connected students due to federal activities or the closure of an LEA that was receiving Impact Aid due to federally-connected children.

Requires the Secretary of Education to allow LEAs to count their federally-connected children using the date they register their students for the fiscal year for which their application is filed.

Alters the formula for determining the construction payments due LEAs that are eligible for other Impact Aid payments.

Divides 80% of the construction funds evenly between LEAs impacted by military dependent children and LEAs impacted by children residing on Indian lands, with the remainder reserved for emergency repair and modernization grants to LEAs serving Indian lands or experiencing a specified influx of new students due to federal activities.

Alters the formula for determining whether a state's plan for equalizing assistance to its LEAs will except it from the prohibition on state aid to LEAs being affected by Impact Aid payments.

Requires new LEAs applying for Impact Aid to have boundaries established by state law and the authority to tax or receive an imputed local tax.

Directs the Secretary to complete Impact Aid payments to eligible LEAs within three fiscal years of their appropriation.

Reauthorizes appropriations for the Impact Aid program.