Vote Smart's Synopsis:

Vote to pass a bill that establishes limitations on property tax levies.

Highlights:

• Limits property tax levy growth to the following (Sec. 1):
• 1 and 2 one-hundredths; or
• The sum of 1 plus the inflation factor.

• Defines "inflation factor" as the quotient of the following averages (Sec. 1):
• The average of the national consumer price indexes for the 12 month period ending 6 months prior to the start of the coming fiscal year minus the average of the national consumer price indexes for the 12 month period ending 6 months prior to the start of the prior fiscal year, and
• The average of the national consumer price indexes for the 12 month period ending 6 months prior to the start of the prior fiscal year.

• Requires the State Comptroller to perform the following (Sec. 1):
• Calculate the tax levy limitation for each local government 120 days before the commencement of each local government's fiscal year, and notify each local government of its calculation;
• Determine the tax levy limitation for a local government that assumes fiscal responsibility for a local government that has been dissolved based on the tax levy limitation from the last fiscal year of the dissolved local government;
• Determine the tax levy limitation for the first fiscal year following the consolidation of two or more local governments based on the respective tax levy limitations of the consolidated local governments from the fiscal year prior to consolidation.

• Authorizes local government to levy taxes above the limit for the coming fiscal year if any of the following is true (Sec. 1):
• 2/3 of the total voting power of the local government votes to levy taxes above the limit;
• A local law is passed to override the limit; or
• A resolution is passed to override the limit.

• Exempts local governments that are newly established through a process other than consolidation or dissolution from the tax limitation for the first fiscal year after establishment (Sec. 1).

• Specifies that if the actual tax levy for a given year exceeds the maximum allowable levy that the excess will be placed in reserve and should be used to offset the tax levy for the next fiscal year (Sec. 1).

• Amends education law by limiting the amount of taxes that may be levied by or on behalf of a school district (Sec. 2).

• Requires the Commissioner to perform the following (Sec. 2):
• Annually determine the tax levy limit of each school district no later than March 1 of each year; and
• Notify each school district of the allowable levy growth factor, the district's tax levy base and the district's tax levy limit.

• Defines "tax levy limit" as the amount of taxes a school district is authorized to levy that does not include the district's capital tax levy (Sec. 2).

• Specifies that for each school, the tax levy limit shall be the sum of the tax levy base and the available carryover, if any (Sec. 2).

• Defines "tax levy base" as the amount of taxes a school district is authorized to levy without the addition of any available carryover amount (Sec. 2).

• These acts shall take effect immediately and shall first apply to the levy of taxes by school districts for the 2012-2013 school year and to school district meetings and elections held on and after July 1, 2012 (Sec. 26).

Full Bill Text