Vote Smart's Synopsis:

Vote to pass a resolution that amends the state constitution to cap the allowable increases in property tax assessments and eliminates all ad valorem taxes on motor vehicles.

Highlights:

- Limits increases in property tax assessments for residential property to a maximum of two percent, and three percent for nonresidential property [sec. 2 (art. VII) (para. IV) (3)]. - Freezes the assessed value of residential and nonresidential property for 2008 [sec. 2 (art. VII) (para. IV)]. - Requires the reappraisal of residential and nonresidential property at fair market value for 2008 if it has undergone additions or improvements that are in service after December 31, 2007 [sec. 2 (art. VII) (para. IV)]. - Requires that residential and nonresidential property be appraised at fair-market value when ownership is sold or transferred [sec. 2 (art. VII) (para. IV) (2)]. - Exempts residential and nonresidential property from the Constitutional principle of uniform taxation [sec. 2 (art. VII) (para. III)]. - Exempts motor vehicles from 50 percent of the assessed value taxes levied at the time of a transaction (ad valorem taxes) from July 1, 2009 to June 30, 2010. After that, motor vehicles will be exempt from all ad valorem taxes [sec. 2 (art. VII) (para. III) (3)]. - Limits the amount of property tax revenue not attributed to new construction that a local taxing jurisdiction may collect to the amount received in the previous taxable year, unless otherwise proposed by an ordinance or resolution of the local governing body and approved by a majority vote of those residing within the limits of the taxing jurisdiction [sec. 2 (art. VII) (para. V) (b-c)]. - Mandates that tax rates benefiting any school system shall be increased or decreased only after being approved by a local act of the General Assembly, which requires approval from a majority of qualified voters voting in that school system (Sec. 3). - This is a substitute bill sponsored by the House Rules Committee.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a resolution that amends the state constitution to cap the allowable increases in property tax assessments and establishes criteria for any future increases.

Highlights:

- Limits increases in property tax assessments for residential property to a maximum of four percent in 2010, and two percent for every subsequent year [sec. 1 (art. VII) (para. IV) (3)]. - Limits increases in nonresidential property valuations to a maximum of six percent in 2010, and three percent for every subsequent year [sec. 1 (art. VII) (para. IV) (3)]. - Freezes the assessed value of residential and nonresidential property for 2008 [sec. 1 (art. VII) (para. IV) (a) (1)]. - Requires the reappraisal of residential and nonresidential property at fair market value for 2008 if it has undergone additions or improvements that are in service after December 31, 2007 [sec. 2 (art. VII) (para. IV) (a) (1)]. - Requires that residential and nonresidential property be appraised at fair-market value when ownership is sold or transferred [sec. 1 (art. VII) (para. IV) (2)]. - Allows for increases in property valuations above the cap only after they are adopted by an ordinance or resolution of the local governing body, and approved by a majority vote of those residing within the limits of the taxing jurisdiction [sec. 1 (art. VII) (para. IV) (c) (2)]. - Exempts residential and nonresidential property from the constitutional principle of uniform taxation [sec. 1 (art. VII) (para. III)]. - This is a substitute bill sponsored by the Senate Finance Committee.

Full Bill Text