Property tax-assessed value increase limitations.

08LSO-0360.L1

FISCAL NOTE

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 the annual rate of inflation, subject to certain exceptions.

This annual rate of inflation limitation could 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 would be a function of future residential property values, which are unknown and cannot be anticipated. Therefore, the fiscal impact to future revenues is indeterminable.

In addition, the Secretary of State's Office will experience an expenditure increase of about $30,000 in FY09 for statutory publication costs, based on current estimates.  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.)

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