Senate Bill 321
Enrolled Senate Bill (S)
DIGEST
Local government budgeting. Provides that for each budget year after 2018, the department of local government finance (DLGF) shall certify a political subdivision's budget, tax rate, and tax levy not later than: (1) December 31 of the year preceding the budget year, unless a taxing unit in a county is issuing debt after December 1 in the year preceding the budget year or intends to file a shortfall appeal; or (2) January 15 of the budget year, if a taxing unit in a county is issuing debt after December 1 in the year preceding the budget year or intends to
Local government budgeting. Provides that for each budget year after 2018, the department of local government finance (DLGF) shall certify a political subdivision's budget, tax rate, and tax levy not later than: (1) December 31 of the year preceding the budget year, unless a taxing unit in a county is issuing debt after December 1 in the year preceding the budget year or intends to file a shortfall appeal; or (2) January 15 of the budget year, if a taxing unit in a county is issuing debt after December 1 in the year preceding the budget year or intends to
file a shortfall appeal. (Under current law, these certifications must be completed not later than February 15 of the budget year.) Retains the November 1 deadline for a political subdivision to adopt a budget for the following year. Specifies that after 2017, the county auditor shall provide before June 1 an initial estimate of assessed valuations to political subdivisions within the county. For calendar years after 2017, changes: (1) the date by which a county must submit the coefficient of dispersion study and property sales assessment ratio study to the DLGF; (2) the date by which a political subdivision must submit a proposal to establish a cumulative fund to the DLGF; (3) the date by which the budget agency must provide to the DLGF and county auditors an estimate of each county's local income tax distributions for the following year; and (4) the date by which the DLGF must estimate each taxing unit's distribution of local income tax for the following year.
Changes other deadlines in the local budgeting process in order to conform to the December 15 deadline for DLGF certification of budgets, tax rates, and tax levies. Provides that the DLGF shall before July 15 of each year provide taxing units with an estimate of the maximum property tax levies that will apply for the ensuing calendar year. Provides that the DLGF must before August 1 of each year provide to each taxing unit an estimate of the amount by which the taxing unit's distribution of property taxes may be reduced by circuit breaker credits in the ensuing year. Provides that for a fund of a political subdivision subject to the levy limits, the DLGF shall calculate and certify the allowable budget of the fund if the political subdivision adopts a tax levy that exceeds the estimated maximum levy limits as provided by the DLGF. Specifies that for a fund subject to levy limits and for which the political subdivision adopts a tax levy that is not more than the levy limits, the DLGF shall review the fund to ensure the adopted budget is fundable based on the unit's adopted tax levy and estimates of available revenues. Requires the budget agency to provide the assessed value growth quotient for the ensuing year to civil taxing units, school corporations, and the DLGF before July 1 of each year. Requires the DLGF to provide to political subdivisions: (1) the maximum property tax rate that may be imposed by the political subdivision for each cumulative fund or other fund for which a maximum rate is established; and (2) the property tax rates that must be imposed by the political subdivision in the following year for debt service. Requires the DLGF to update the estimate before August 1. Provides that in formulating a political subdivision's estimated budget, the proper officers of the political subdivision must consider the net property tax revenue that will be collected by the political subdivision during the ensuing year, after taking into account the estimates by the department of local government finance of: (1) the amount by which the political subdivision's distribution of property taxes will be reduced by circuit breaker credits; and (2) the maximum amount of net property tax revenue and miscellaneous revenue that the political subdivision will receive in the ensuing year. Repeals the statutes concerning county fiscal body nonbinding review of local budgets, tax levies, and tax rates and the nonbinding review pilot project. Requires the county fiscal body to review the following at a public meeting: (1) The estimated levy limits provided by the DLGF. (2) The estimated circuit breaker credit impact on taxing units. Provides that after this meeting is held, the county fiscal body may prepare and distribute a written recommendation for taxing units in the county. For property taxes first due and payable after December 31, 2016, provides that the maximum appropriations for a community intellectual disability and other developmental disabilities center is equal to the maximum allowable appropriation by the county for the preceding year multiplied by the assessed value growth quotient. Specifies that a county shall fund the operation of community mental health centers (unless a lower tax levy amount will be adequate to fulfill the county's financial obligations, as provided under current law) in an amount equal to: (1) the maximum amount that could have been levied in the county in the preceding year (using the amount calculated under for this purpose in 2004 as the base amount); multiplied by (2) the county's assessed value growth quotient. Requires the DLGF to provide to counties before July 15 of each year an estimate of the maximum appropriation amount for the ensuing year. Provides that for purposes of determining the property tax levy limits, a county's or municipality's tax levy excludes all the taxes imposed for a county or municipal cumulative capital development fund. Requires the DLGF to provide annually to each county and municipality an estimate of: (1) the maximum tax rate that the county, city, or town may impose for a cumulative capital development fund; and (2) the maximum amount of property taxes imposed for community mental health centers or community intellectual disability and other developmental disabilities centers that are exempt from the levy limits for the ensuing year. Requires the DLGF to make a one time permanent adjustment to the levy limits equal to the amount of property taxes imposed on personal property of banks that became subject to assessment in 1989 (this amount is currently excluded under a separate statute). Repeals the statute providing that property taxes imposed by a county or municipality to pay supplemental juror fees (above the required amount) are exempt from the levy limits. Changes the date (from July 1 to June 15 of each year) by which a redevelopment commission must determine the amount, if any, of excess assessed value that may be allocated to the respective taxing units. Urges the legislative council to assign to an interim study committee the study of the procedures by which a political subdivision in a county may: (1)
transfer the political subdivision's funds to another political subdivision located in the same county; and (2) transfer additional money from the political subdivision's other funds into the political subdivision's rainy day fund or general operating fund.
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