Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Property Taxes topic
No spam. Unsubscribe anytime.
Scott County staff warn 2% revenue cap in proposed bills could shave hundreds of thousands from local tax base
Summary
County budget staff outlined how three competing state bills with a 2% revenue-growth cap and shifts from tax credits to exemptions could materially reduce county revenue beginning fiscal 2028; staff projected an initial $300,000 drop in general-basic new dollars and highlighted bond-use and fund-balance provisions as additional concerns.
David Farmer presented an assessment of three competing property-tax reform proposals (House study bill 596, a Senate study bill, and the Governor's bills) and walked supervisors through concrete fiscal scenarios. Farmer said most proposals would take effect for fiscal 2028 (tax year starting 07/01/2027) and commonly include a 2% cap on recurring property-tax revenue and changes that convert tax credits into exemptions, which reduce local compensation from the state.
"If a 2% revenue cap went in there on the base level, what would that do that 1st year? That would drop that general basic tax levy for new dollars down to $700,000 ... difference about $300,000," Farmer said. He noted one provision would allow taking a local option sales tax from 1% to 1.5%, which Farmer estimated could raise about $3,000,000 of additional revenue if implemented; however, he warned revenue timing and TIF/urban renewal designations could prevent the county from realizing new-construction gains. Farmer also raised concerns about language restricting bonds and a governor bill clause tying tax-levy capacity to a 10% unassigned fund-balance threshold.
