FISCAL NOTE (HB0189)
Source of revenue increase:
Increase in ad valorem property tax assessment rate from
11.5 percent to 13.5 percent for “industrial” property. Increase in ad valorem
property tax assessment rate from 9.5 percent to 11.5 percent for “all other
property”.
Assumptions:
- Increase
in assessment rates would increase property tax revenues collected by the
counties, including local resources for school funding, and the 12 mill
state share that goes to the School Foundation Program.
- Counties
would also experience property tax revenue increases in other funding
areas such as municipalities, community college districts, and special
districts.
- Increase
in assessment rate from 11.5 percent to 13.5 percent for “industrial”
property would increase county property tax collections by an estimated
$17.4 million per year, beginning in FY05. Increase in assessment rate
from 9.5 percent to 11.5 percent for “all other property” would increase
county property tax collections by an estimated $39.6 million per year,
beginning in FY05. Estimates based on 2002 property tax assessment and
2002 average mill levy of 65 mills.
Prepared by: Dean Temte, LSO Phone: 777-7881