§ 30-A §706-A — Limitation on county assessments

1.
Definitions.
As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
2.
County assessment limit.
Except as otherwise provided in this section, a county may not in any year adopt a county assessment that exceeds the county assessment limit established in this subsection.
3.
Growth limitation factor.
The growth limitation factor is the average personal income growth plus the property growth factor.
4.
Adjustment for new state funding.
If the State provides net new funding to a county for existing services funded in whole or in part by the county assessment, other than required state mandate funds pursuant to section 5685 that do not displace current county assessment expenditures, the county shall lower its county assessment limit in that year in an amount equal to the net new funds. For purposes of this subsection, "net new funds" means the amount of funds received by the county from the State in that fiscal year, with respect to services funded in whole or in part by the county assessment, less the product of the following: the amount of such funds received in the prior fiscal year multiplied by one plus the growth limitation factor described in subsection 3. If a county receives net new funds in any fiscal year for which its county assessment limit has not been adjusted as provided in this subsection, the county shall adjust its county assessment limit in the following year in an amount equal to the net new funds.
5.
Exceeding county assessment limit; extraordinary circumstances.
The county assessment limit established in subsection 2 may be exceeded for extraordinary circumstances only under the following circumstances.
6.
Increase in county assessment limit.
The county assessment limit established in subsection 2 may be increased for other purposes only as provided in subsection 7.
7.
Process for exceeding county assessment limit.
A county may exceed or increase the county assessment limit only if approved by a vote of a majority of all the members of both the county budget committee or county budget advisory committee and the county commissioners.
8.
Treatment of surplus; reserves.
Any county tax revenues collected by a county in any fiscal year in excess of its county assessment limit, as determined by a final audited accounting, must be transferred to a county tax relief fund, which each county must establish, and used to reduce county assessments in subsequent fiscal years. Nothing in this subsection limits the ability of a county to maintain adequate reserves.
9.
Enforcement.
If a county adopts a county assessment in violation of this section, the State Tax Assessor may require the county to adjust its county assessment downward in an amount equal to the illegal county assessment and impose such other penalties as the Legislature may provide.

Legislative History

PL 2005, c. 2, §B1 (NEW). PL 2005, c. 2, §§B2,4 (AFF). PL 2005, c. 12, §WW10 (AMD). PL 2005, c. 12, §WW14 (AFF). PL 2005, c. 348, §1 (AMD). PL 2005, c. 621, §§5-8 (AMD). PL 2005, c. 683, §I1 (AMD). PL 2007, c. 653, Pt. A, §10 (AMD). PL 2015, c. 267, Pt. L, §§11, 12 (AMD). PL 2015, c. 335, §12 (AMD).