SB 291

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:

1. The name of the political subdivision to which the levy increase applies.

2. The purpose for which the increase will be used.

3. If the increase is for the next fiscal year only, the percentage increase in the

levy from the previous year's levy and the amount of the increase.

4. If the increase is on an ongoing basis, the amount of the increase for each

fiscal year for which the increase applies.