Holding a referendum to increase a political subdivision's levy limit. (FE)

What it does

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

Under current law, with certain exceptions, no political subdivision may increase its property tax levy in any year by a percentage that exceeds the valuation factor. The valuation factor is a percentage equal to the greater of either the percentage change in the political subdivision's January 1 equalized property values due to new construction (less improvements removed between the previous year and the current year) or zero percent. One exception allows a political subdivision to increase its levy limit beyond the amount of the previous year's levy, as increased by the valuation factor, by adopting a resolution and having the increase approved at a referendum. The increase may apply for the next fiscal year or on an ongoing basis Current law prescribes the exact wording of the ballot question. The ballot question must include the name of the political subdivision and provide a description of the levy limit that applies to the political subdivision for the next fiscal year. The ballot question must then ask the elector whether he or she agrees to allow the political subdivision to exceed the limit by a specified amount, which is also expressed as a percentage increase from the previous year's levy. The question must also describe the purpose for which the increase will be used. For any levy in an odd-numbered year, the political subdivision may call a special referendum to consider the question. In an even-numbered year, the political subdivision must hold the referendum at the next spring primary or election or partisan primary or general election following adoption of the resolution.

This bill allows a political subdivision to use its best estimate of its valuation factor, based on the most current data available to it, in order to adopt a resolution and hold a referendum to increase its levy beyond the allowable limit. The political subdivision may call a special referendum to consider the resolution. Otherwise, the referendum would be held at the spring primary or election or partisan primary or general election. The bill does not prescribe the exact wording for the ballot, but instead provides that the question include the following:

Who's behind it

15 lawmakers are its authors⁠. 9 are Republicans and 6 are Democrats.

7 more lawmakers signed on in support⁠.

What it would cost

State agencies filed a cost estimate. Each opens as a PDF from the Legislature.

• Fiscal Estimate From DOR
• Fiscal Estimate From ELEC

Versions and amendments

Every text the Legislature printed for this bill, including proposed changes. Each opens on the Legislature's site.

• Amendment Histories
• LC Amendment Memo