Property tax assessed value increase limitations.

09LSO-0398.L3

FISCAL NOTE

This bill would limit the increase in the assessed value on “all other property, real and personal” to 25% per year.

This limitation could cause slower growth in 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 property values, which are unknown and cannot be anticipated. Therefore, the fiscal impact to future revenues is indeterminable.

This bill is effective January 1, 2011, but only if the electors adopt a constitutional amendment pertaining to the assessment and taxation of property prior to December 31, 2010.

NOTICE-AGENCY ESTIMATE OF ADMINISTRATIVE IMPACT REQUESTED

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 will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:

Department of Revenue

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

(Information provided by Marvin Applequist, DOR; 777-5235)