SPONSOR: Byrnes
Currently, if the assessed valuation of property, excluding the value of new construction and improvements, increases by a larger percentage than the increase in the general price level from the previous year, the maximum authorized current levy applied must be reduced to yield the same gross revenue from the property. This limitation does not apply to taxes imposed that are related to bonds or indebtedness.
Upon voter approval, this constitutional amendment repeals the exclusion of property taxation related to bonds or indebtedness. This amendment also provides that, if the total assessed valuation of real property increases by a larger percentage than the percentage increase in the general price level from the previous year, the increase in the total assessed valuation must be limited to the percentage increase in the general price level from the previous year. If the total assessed valuation increases by less than the general price level from the previous year, there must be no increase in the total assessed valuation when equalized. The calculation of total assessed valuation of real property no longer excludes the value of new construction.
The amendment provides that, if the assessed valuation of a subclass of real property increases by any percentage over the previous year, the maximum authorized current levy applied to the subclass must be reduced to yield the same gross revenue from existing real property in the subclass that could have been collected at the existing levy on the prior assessed value. However, the county or political subdivision may adjust the reduction to account for changes to the general price level.
If a political subdivision needs to increase the current levy applied to a particular subclass of real property to yield the same gross revenue as would had been collected at the existing levy on the prior assessed value of the subclass, the political subdivision must submit the question to the voters on the next general election day.