Amends TCA Title 48 and Title 67.
Except by a referendum election held as provided below, this bill prohibits a local government from increasing a real property tax rate by an amount that would cause the local government to realize an increase in total revenue:<br /> <br /> (1) Exceeding inflation plus two percent; or<br /> <br /> (2) Exceeding inflation plus six percent over the preceding three tax years.<br /> <br /> This bill requires the governing body of a local government to direct the county election commission to hold a referendum election to raise a real property tax rate by an amount that exceeds the limitations above upon the adoption of a resolution by the governing body by a two-thirds vote calling for a referendum election on the question.<br /> <br /> This bill requires that the resolution adopted by the governing body must specify the tax rate that is to be voted on by the electorate, the date on which the tax rate would go into effect, the proposed date of the election, and whether the referendum election is to be held at a special or general election. If a majority of the qualified voters vote in favor of approving the tax rate specified in the resolution, then the local government may increase the tax rate on the date specified in the resolution.<br /> <br /> However, the limitations in the provisions above do not apply to the following:<br /> <br /> (1) Taxes levied or pledged to pay or secure the payment of the principal and interest on bonds;<br /> <br /> (2) Certain actions taken by the comptroller of the treasury directing the local government to balance its budget; or<br /> <br /> (3) A local government's authority to change rates for utilities that the local government owns or operates.<br /> <br /> Under present law, a county is generally authorized to levy an ad valorem tax upon all property, for county purposes, at an amount fixed by the county legislative body of each county. This bill would change this provision by providing that the tax must be fixed by the county legislative body, subject to a referendum as described above.<br /> <br /> This bill takes effect July 1, 2024.<br />
Except by a referendum election held as provided below, this bill prohibits a local government from increasing a real property tax rate by an amount that would cause the local government to realize an increase in total revenue:<br /> <br /> (1) Exceeding inflation plus two percent; or<br /> <br /> (2) Exceeding inflation plus six percent over the preceding three tax years.<br /> <br /> This bill requires the governing body of a local government to direct the county election commission to hold a referendum election to raise a real property tax rate by an amount that exceeds the limitations above upon the adoption of a resolution by the governing body by a two-thirds vote calling for a referendum election on the question.<br /> <br /> This bill requires that the resolution adopted by the governing body must specify the tax rate that is to be voted on by the electorate, the date on which the tax rate would go into effect, the proposed date of the election, and whether the referendum election is to be held at a special or general election. If a majority of the qualified voters vote in favor of approving the tax rate specified in the resolution, then the local government may increase the tax rate on the date specified in the resolution.<br /> <br /> However, the limitations in the provisions above do not apply to the following:<br /> <br /> (1) Taxes levied or pledged to pay or secure the payment of the principal and interest on bonds;<br /> <br /> (2) Certain actions taken by the comptroller of the treasury directing the local government to balance its budget; or<br /> <br /> (3) A local government's authority to change rates for utilities that the local government owns or operates.<br /> <br /> Under present law, a county is generally authorized to levy an ad valorem tax upon all property, for county purposes, at an amount fixed by the county legislative body of each county. This bill would change this provision by providing that the tax must be fixed by the county legislative body, subject to a referendum as described above.<br /> <br /> This bill takes effect July 1, 2024.<br />
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