Tax Type
Local Taxes
Property Tax
Description
Formula for Reduction in Certain Transportation Districts; Ceiling on Local Revenues
Topic
Local Power to Tax
Local Taxes Discussion
Rate of Tax
Date Issued
05-01-1980
A formula for the reduction in real estate taxes in certain transportation districts where a sales tax is imposed on gasoline does not place a ceiling on the locality's tax revenues. The formula, which reduces the real estate tax rate to compensate for the allocation of sales tax revenues, uses the prior year's property tax rate and multiplies that figure by the current assessed property valuation. Although the rate is constant, the revenue figure may increase if there is an increased valuation. The statute does not establish a limitation nor does the application of the formula result in such a revenue ceiling. In addition, since the statute imposing the tax provides a method for allocating the fuel sales tax revenues for purposes of the real estate tax rate reduction, the transportation district commission does not have the discretion to develop an alternative method to allocate the costs for rapid transit. H. B. No. 631, Ch. 225, Laws 1980.
Attorney General's Opinion