The bill modifies the property taxation approval process by prohibiting taxing jurisdictions from approving budgets that exceed the previous year's property tax revenues, adjusted for inflation, by more than 3% without obtaining majority approval from qualified electors through an election. This replaces the previous method that allowed protest petitions to limit funding based on property tax revenues. Additionally, the bill extends the reimbursement from the taxpayer notification costs fund for five more years, ensuring counties can cover expenses related to notifying taxpayers about budget proposals. It also establishes new requirements for notifying taxpayers about proposed property tax increases and mandates that county clerks provide detailed information regarding property tax assessments.

Moreover, the bill requires governing bodies of taxing subdivisions to hold public hearings and vote to exceed the Revenue Neutral Rate before increasing total property taxes collected. These hearings must be scheduled to allow taxpayer participation, and the bill specifies the information that must be included in property tax statements. If a governing body fails to comply with these requirements, they must refund any over-collected property taxes. The bill clarifies that tax increases solely due to specific tax revenue increases will not be considered as exceeding the revenue neutral rate and includes provisions for making budget documents and tax information publicly available on the Department of Administration's website to enhance transparency.

Statutes affected:
As Introduced: 72-5137, 79-2988, 79-1801, 79-2929, 79-2989
As Amended by House Committee: 72-5137, 79-2988, 79-1801, 79-2929, 79-2989
S Sub for: 79-1801, 79-2988
As Amended by Senate Committee: 79-2989, 79-1801, 79-2988
As introduced: 72-5137, 79-2988, 79-1801, 79-2929, 79-2989