Property Tax Committee Overview - 2004

The Department of Revenue, in consultation with the Department of Management, shall initiate and coordinate the establishment of a property tax implementation committee and provide staffing assistance to the committee. The property tax implementation committee shall include four members of the General Assembly, one each appointed by the majority leader of the Senate, the speaker of the House of Representatives, the minority leader of the Senate, and the minority leader of the House of Representatives. The committee shall also include members appointed by the Department of Revenue representing the Department of Revenue, the Department of Management, counties, cities, school districts, local assessors, commercial property taxpayers, industrial property taxpayers, residential property taxpayers, and agricultural property taxpayers, and other appropriate stakeholders.

The department may consider participation on the committee of former state officials with expertise in budget and tax policy. The chairpersons of the committee shall be those members of the General Assembly appointed by the majority leader of the senate and the speaker of the House of Representatives.

The committee shall study and make recommendations relating to the land tax, square footage tax, the baseline assessment for the square footage tax, and other related provisions. The committee shall also study and make recommendations on issues relating to implementation of a land tax and square footage tax, including, but not limited to, whether or not maximum square footage rates and land tax rates should be imposed and, if such rates are recommended, the imposition of rates that have a revenue neutral impact on classes of property, the property tax financing portion of the school funding formula, treatment of current property tax credits and exemptions under a land tax and square footage tax and continued state reimbursement of any credits or exemptions, implementation of urban revitalization and urban renewal programs under the land tax and square footage tax, implementation of a payment in lieu of taxes program for local government services, and maintenance of equity among classes of taxpayers and among taxpayers within the same class.

The property tax implementation committee shall also study the role of property taxes in funding local government services and the types of services currently funded by property taxes.

The property tax implementation committee shall direct three counties and cities within those counties to submit data as prescribed by the committee. The Department of Revenue, in consultation with the Department of Management, shall select the three counties and the cities within those counties that will be required to provide data to the committee. The committee shall devise a system for testing the data, including the necessary computer hardware and software to allow the selected counties and cities to prepare projected budgets, to determine the rates for the land tax and the square footage tax for those projected budgets, and to provide a sampling of the effect on the various classes of property in those jurisdictions. The committee shall use the data and the results of the projections to resolve, and make recommendations relating to, the issues described in subsection 2, and related issues, in a revenue neutral manner that will not result in a shift of property tax burden between classes of property.

The committee shall submit to the general assembly by October 31, 2003, October 31, 2004, and October 31, 2005, a report for each of those years resolving the issues in subsection 2 and other related issues for implementation of this Act. The reports shall include detailed estimates of the cost to the counties and cities of providing the data and an estimate of the cost of statewide implementation of this Act.