Governor Signs Property Tax Transparency Legislation

Gov. Reynolds signed SF 634 into law this morning. The legislation increases transparency and accountability of local governments when it comes to property taxation. The bill requires the local government to establish a maximum property tax amount. The local government is then required to show the citizens if assessments increase, what the levy rate would need to be reduced to in order to keep the taxes the same. Local governments can increase taxes up to 2% over the prior year by a simple majority vote, just like a budget resolution. However, if the local government wants to pass a greater than 2% increase, the elected body needs a ⅔ majority. This bill does not affect existing levies or change any of the levies. The bill also does not affect IPERS. ABI supported the legislation and was at the Capitol when the governor signed the bill.