AB 368

Generally under current law, local levy limits are applied to the property tax

levies that are imposed in December of each year. Current law prohibits any city,

village, town, or county (political subdivision) from increasing its levy by a

percentage that exceeds its “valuation factor," which is defined as the greater of

either zero percent or the percentage change in the political subdivision's equalized

value due to new construction, less improvements removed. In addition, the

calculation of a political subdivision's levy does not include any tax increment that

is generated by a tax incremental district.

Current law contains a number of exceptions to the levy limit, such as amounts

a county levies for a countywide emergency medical system, for a county children

with disabilities education board, and for certain bridge and culvert construction and

repair. In addition, a political subdivision may exceed the levy limit that is otherwise

applicable if its governing body adopts a resolution to do so and if that resolution is

approved by the electors in a referendum.

This bill creates another exception to local levy limits. Under the bill, amounts

levied by a political subdivision for public safety purposes do not apply to the levy

limit that is otherwise applicable. The bill first applies to a levy that is imposed in

December 2017.