Relating to local government finances by placing limitations on property tax levy rates

This bill relates to local government finances by placing limitations on property tax levy rates. The bill specifies that for fiscal years beginning on or after July 1, 2026, the maximum levy rate for each specific levy imposed by a governmental subdivision shall not exceed 102 percent of the average levy rate per $1,000 imposed by the governmental subdivision for such specific levy over the immediately preceding five fiscal years, or the levy rate limitation imposed by another provision of law, whichever is less. The maximum levy rate calculated in the bill may be exceeded for one fiscal year during a five-fiscal-year period after an election at which 60 percent of those voting on the question of exceeding the maximum levy rate vote in favor of the increase. The levy rate may be rescinded in the same manner as the vote to exceed the levy rate in the bill, except the vote in favor of the question shall be 50 percent. The general assembly is required to review the bill beginning with the next general assembly (92nd). However, an enactment to change the bill requires a 60 percent vote of the members elected to each house of the general assembly.12 by prohibiting cities and counties from exceeding certain levy limitations or levying additional taxes following approval at election at which only a majority approval is required.