Signed by Governor Brad Little

Vote Smart's Synopsis:

Vote to pass a bill that establishes small breaks for homeowners and needy seniors, larger breaks for big businesses and a new break for developers, and an array of new limits on growth in local government budgets.

Highlights:

• Establishes for each tax year, the first $25,000 of the market value for assessment purposes of the homestead, or 50% of the market value for assessment purposes of the homestead, whichever is the lesser, is exempt from property taxation (Sec. 1-1).

• Requires any unpaid recovered property taxes to become a lien upon the real property in the same manner as provided for by property taxes, except such lien will attach as of the first day of January in the year following the year the county assessor sent the notice to the taxpayer (Sec. 1-5.i).

• Classifies "residential improvements" as the following (Sec. 3-3):

• Single-family residences;

• Residential townhouses; or

• Residential condominium units.

• Specifies if the current year's assessed value of the home owned by the individual, according to the current year's assessment notice, exceeds 125% of the median assessed valuation for all homes in the county receiving the homestead exemption, then the individual will instead be referred to the property tax deferral program. Using the current year's assessed values, each county reports the median assessed value of all properties receiving the homestead exemption in such county as of that date to the state tax commission no later than the first Monday in June (Sec. 4.b).

• Requires the taxing district to determine what portion of the 3% increase permitted that it requires and then calculate a preliminary levy rate based on the percent chosen (Sec. 1.a.i).

• Specifies if the forgone increase is budgeted for maintenance and operations, the rate of recovering the reserved forgone money may increase the taxing district's budget by no more than 1% per year (Sec. 7.e.i).

• Specifies a capital project includes the following (Sec. 7.e.iii):

• The construction, expansion, renovation, or replacement of public facilities, including the acquisition of land and other site improvements;

• The construction, expansion, or reconstruction of public works improvements, including roads, bridges, water systems, sewer systems, and broadband systems; and

• The purchase of equipment with a useful life of 10 years or more.

• Requires each person's personal property, located in the county, which is not otherwise exempt, to be exempt to the extent of an additional amount of $150,000. The combined exemption will not exceed a total amount of $250,000 (Sec. 8-8).

• Requires each person's personal property, located in the county, which is not otherwise exempt, to be exempt to the extent of an additional amount of $150,000. The combined exemption will not exceed a total amount of $250,000 (Sec. 9-8).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes small breaks for homeowners and needy seniors, larger breaks for big businesses and a new break for developers, and an array of new limits on growth in local government budgets.

Highlights:

• Establishes for each tax year, the first $25,000 of the market value for assessment purposes of the homestead, or 50% of the market value for assessment purposes of the homestead, whichever is the lesser, is exempt from property taxation (Sec. 1-1).

• Requires any unpaid recovered property taxes to become a lien upon the real property in the same manner as provided for by property taxes, except such lien will attach as of the first day of January in the year following the year the county assessor sent the notice to the taxpayer (Sec. 1-5.i).

• Classifies "residential improvements" as the following (Sec. 3-3):

• Single-family residences;

• Residential townhouses; or

• Residential condominium units.

• Specifies if the current year's assessed value of the home owned by the individual, according to the current year's assessment notice, exceeds 125% of the median assessed valuation for all homes in the county receiving the homestead exemption, then the individual will instead be referred to the property tax deferral program. Using the current year's assessed values, each county reports the median assessed value of all properties receiving the homestead exemption in such county as of that date to the state tax commission no later than the first Monday in June (Sec. 4.b).

• Requires the taxing district to determine what portion of the 3% increase permitted that it requires and then calculate a preliminary levy rate based on the percent chosen (Sec. 1.a.i).

• Specifies if the forgone increase is budgeted for maintenance and operations, the rate of recovering the reserved forgone money may increase the taxing district's budget by no more than 1% per year (Sec. 7.e.i).

• Specifies a capital project includes the following (Sec. 7.e.iii):

• The construction, expansion, renovation, or replacement of public facilities, including the acquisition of land and other site improvements;

• The construction, expansion, or reconstruction of public works improvements, including roads, bridges, water systems, sewer systems, and broadband systems; and

• The purchase of equipment with a useful life of 10 years or more.

• Requires each person's personal property, located in the county, which is not otherwise exempt, to be exempt to the extent of an additional amount of $150,000. The combined exemption will not exceed a total amount of $250,000 (Sec. 8-8).

• Requires each person's personal property, located in the county, which is not otherwise exempt, to be exempt to the extent of an additional amount of $150,000. The combined exemption will not exceed a total amount of $250,000 (Sec. 9-8).

Full Bill Text