Residential property tax-limitation.

03LSO-0086.L1

                                                         

FISCAL NOTE (SJ0005)

 

 

This bill proposes a constitutional amendment to create an additional property class for the assessment of ad valorem taxes on residential property. This proposal would also limit the increase in ad valorem taxes on any residential property to a maximum of 10 percent per year, subject to certain exceptions.

 

This 10 percent per year limitation will cause slower growth in residential property tax revenues collected by the counties, including local resources available for school funding, and the 12 mill state share that goes to the School Foundation Program.

The timing and amount of the impact to revenues will be a function of future residential property values, which are unknown and cannot be anticipated. Therefore, the fiscal impact to future revenues is indeterminable.

 

 

Prepared by:   Dean Temte, LSO    Phone:   777-7881

(information provided by Allen Black, Dept. of Revenue;

phone 777-5235)

 

 

In addition, the Secretary of State's Office will experience an expenditure increase of about $18,000 in FY04 for statutory publication costs, based on historical data.  This cost is the same for all joint resolutions of this type, assuming the length of the statement on the proposed amendment is roughly the same.  Information provided by Pat Arp, Secretary of State's Office, phone:  777-5333.

 

(This cost may be considered an administrative cost but is listed here for consistency.)

 

 

 

In addition, this bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements.  As introduced, the bill does not modify any state agency budget or current personnel authorizations.  The following state agencies may be affected administratively:

 

Department of Revenue