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Show For Against r O O ever Official Ballot Title: Shall a law be enacted to: type (1) implement limitations on growth in: Initiative prop valui 34 (a) state government appropriations to 85 of the difference between the total personal income of the current year and the prior year, and A inch (b) local government revenues to 90 of the increase in state per capita income plus the growth rate of population of the local TAX AND SPENDING LIMITATIONS drfir does exen government unit; (2) limit, except for legally-incurre- d (a) residential property taxes to debt: 34 of secti 1 of fair market value, and property taxes to (b) of fair market value; and t0 1 15 of 80 (3) require voter approval of local govern- ment proposals for new taxes or increases in taxes? value y Any Legis non-- propi be m busir IMPARTIAL ANALYSIS amon exist have Initiative A proposes three different tax and spending limitations on state and local governments. They are: 2. Spending limitation on state government and revenue tation on local government Property tax is used to provide avarietyof services to taxpajei These include police, fire, paramedic, education, health, wall sewer, and garbage collection. 1. limi- These limitations already exist in law. Initiative A implements them using personal income and population estimates adopted by the Department of Employment Security. Under the limitation, state spending may not increase by more than 85 of the growth in personal income from year to year. Local government revenues may not increase by more than 90 of the growth in state per capita income plus the growth rate of population of the local government unit. Fiscal Impact Until personal income and population estimates are adopted by the Department of Employment Security, the impact of the spending and revenue limitations cannot be estimated. The limitation could significantly restrict some local budgets. Page 16 limitations on property taxes a. Limitations under current law Property tax limitations already exist. They are based property's fair market value, services provided, and public cation and hearings on proposed tax increases. on r noi. (i) There are a variety of types of property, like businr property, personal property, and homes. Each has a fair Fair market value is what a willing buyer would pay a will seller. This fair market value is the full value of the property for sor classes of property. However, the fair market value for homes t small businesses includes a 20 reduction from full value ' intangible assets (like real estate fees, water hookups, etc.). M residential property receives an additional 25 reduction in value, a residential exemption. This means cars are taxed on their full val but homes are taxed on a smaller percentage of their full value. |