HB 2347

House Bill (HB) 2347: tax levy; bond costs

Sponsor: Representative Lesko

Overview: HB 2347 limits property tax levies to the amount necessary to make annual payments.

League Position: NEUTRAL - The League is neutral on the measure due to the bill being amended to address our concerns.

Summary: HB 2347 prohibits local governments from levying a property tax in excess of the amount necessary to pay the annual interest and principal payment. It is our understanding that two amendments will be made to the bill. The amendments will allow certain bond transaction fees to be paid annually and will provide for the inclusion of an annual tax delinquency factor.

Updates

01/28/13: The bill passed out of the House Ways and Means Committee on a 7-1 vote. The bill now proceeds to the Rules Committee.

02/14/13: The bill was amended in COW to include annual bond administrative fees, levy errors and delinquency amounts in the annual bond levy.

02/20/13: HB 2347 passed out of Third Read with 45 ayes, 13 nays, and 2 not voting. It has been transmitted to the Senate.

03/13/13: HB 2347 passed out of Senate Finance Committee unanimously with 1 not voting. It should next be heard in Rules.

03/25/13: HB 2347 passed Senate Committee of the Whole with a floor amendment. The floor amendment expands the list of eligible investments for monies managed by treasurers of counties, non-charter cities or towns. The bill is currently awaiting a third read vote.