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House Bill 1116


House Bill 1116

ARCHIVE (2013)

Latest Information

 

DIGEST OF HB 1116 (Updated April 25, 2013 2:26 pm - DI 92)


Property taxes. Eliminates provisions establishing department of local government finance (DLGF) control of a county's reassessment fund. Provides that the DLGF is required to conduct a public hearing on a political subdivision's budget, tax rate, and tax levy if requested in writing by a taxpayer. Allows the DLGF to consider budgets, tax rates, and tax levies of multiple political subdivisions at the same hearing. Reconciles past legislation amending the statute for calculating tax rates for rate controlled funds. Authorizes townships to petition the DLGF for permission to increase the township levy by the amount borrowed in 2012 or 2013, but not both. Requires the DLGF to grant permission for the levy increase. Allows the loan subject to the levy increase to be repaid from additional borrowing over three years. Provides that if a township receives such a maximum levy increase in 2014 based on a fire emergency loan, the levy limits imposed on the township may be exceeded in calendar years 2014, 2015, and 2016 by the amount of ad valorem property taxes imposed by the township to repay the money borrowed for the three year repayment schedule. Provides that the taxes imposed in excess of the levy limits are not included in the township's levy for purposes of determining its maximum levy. Removes an obsolete provision under which the DLGF had discretion to approve similar levy increases. Specifies that any school building for academic instruction is: (1) subject to the petition and remonstrance process if the cost of the project is less than or equal to $10,000,000; or (2) subject to the referendum process if the cost of the project is more than $10,000,000. (Under current law the threshold is $10,000,000 for elementary and middle school buildings and $20,000,000 for high school buildings.) Provides that in determining whether a local government capital project is a controlled project and whether the petition and remonstrance process or the referendum process apply to the capital project, the cost of the capital project does not include expenditures for the capital project that will be paid from donations or other gifts. Eliminates a requirement that a county auditor notify each political subdivision of the property tax reductions resulting from the circuit breaker credit. Permits an owner to pay property taxes attributable to changes in assessment of the owner's property over the same number of years that corresponds to any delay in assessment of the owner's property if the owner complied with the applicable statutes concerning filing an assessment registration notice or obtaining permits for the changes to the real property. Requires redevelopment commissions to submit reports to the appropriate fiscal body regarding tax increment financing areas. Requires the fiscal body to provide the same information to the DLGF. Specifies that an adjustment to the base assessed value of an allocation area: (1) may not include the effect of the phase in of assessed value due to property tax abatements; and (2) may decrease base assessed value only to the extent that assessed values in the allocation area have been decreased due to annual adjustments or the reassessment under a reassessment plan. Specifies that assessed value increases attributable to the application of an abatement schedule may not be included in the base assessed value of an allocation area. Requires the commission on state tax and financing policy to study the circumstances in which an elected fiscal body should review the budget and property tax levy of an appointed public library board and library district border changes. Urges the legislative council to create a study committee to study tax increment financing.
Current Status:
 Law Enacted
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