Vote Smart's Synopsis:

Vote to pass a resolution that amends the state constitution to freeze the assessed value of residential and nonresidential real property at the 2008 valuation amount, provides for guidelines for any future increases, and phases out the property tax on motor vehicles.

Highlights:

- Requires the reappraisal of residential and nonresidential real property at fair market value if it has undergone additions or improvements that are in service after December 31, 2007 [sec. 2 (art. VII) (sec. I) (para. IV) (a) (1)]. - Requires the reappraisal of residential and nonresidential real property at fair market value if it is sold or transferred to another person [sec. 2 (art. VII) (sec. I) (para. IV) (a) (2)]. - Limits annual increases in property tax assessments for residential real property to a maximum of two percent, and three percent for nonresidential real property [sec. 2 (art. VII) (sec. I) (para. IV) (a) (3)]. - Requires the General Assembly to provide by general law for the exemption of all ad valorem taxes levied on motor vehicles. The law will provide an exemption equal to half of the assessed value of all motor vehicles beginning July 1, 2009 and ending June 30, 2010, whereupon the law will provide an exemption equal to the full assessed value of all motor vehicles [sec. 2 (art. VII) (sec. I) (para. III) (b.1) (3)]. - The text of this substitute bill, sponsored by the Senate Finance Committee, was replaced by an amendment sponsored by Representative Glenn Richardson.

Vote Smart's Synopsis:

Vote to pass a resolution that amends the state constitution to freeze the assessed value of real property at the 2008 valuation amount, and provides guidelines for any future increases.

Highlights:

- Requires the reappraisal of real property at fair market value if it has undergone additions or improvements that are in service after December 31, 2007 [sec. 2 (art. VII) (sec. I) (para. IV) (a) (1)]. - Requires the reappraisal of real property at fair market value if it is sold or transferred to another person [sec. 2 (art. VII) (sec. I) (para. IV) (a) (2)]. - Allows for an annual increase in the assessed value of real property to keep up with inflation. The increase cannot exceed the most recent annual percentage change in the price index for gross state and local government output [sec. 2 (art. VII) (sec. I) (para. IV) (a) (2)]. - Allows for additional increases in the assessed value of real property if adopted by an ordinance or resolution of the local governing body and by a local Act of the General Assembly, and approved by a majority or voters residing within the limits of the taxing jurisdiction. As a precondition, each county must adopt by majority vote a uniform process for assessing real property that specifies the maximum allowable annual increase in the valuation amount, and that any property sold or transferred must be reappraised at fair market value [sec. 2 (art. VII) (sec. I) (para. IV) (c)]. - Eliminates the state's ability to levy a sales tax on tangible property at a rate of up to one-fourth mill on each dollar of the assessed value of property, and specifies that no tax may be levied for any purpose except for defending the state in an emergency. This does not apply to the assessment and collection of taxes on public utilities, railroad companies, and airlines on behalf of local governments [sec. 1 (art. VII) (sec. I) (para. II) (a)]. - Mandates that tax rates benefiting any school system may be increased or decreased only after being approved by a local Act of the General Assembly and a majority of voters residing in that school system (Sec. 3). - This is a substitute bill sponsored by the Senate Finance Committee.

Full Bill Text