Fiscal Note
BILL # SB 1274 TITLE: property tax levy; calculation; federal monies
SPONSOR: Leach STATUS: As Introduced
PREPARED BY: Lydia Chew
Description
SB 1274 would prohibit counties, cities, and towns that received American Rescue Plan Act (P.L. 117-2) Coronavirus Local
Fiscal Recovery Fund (CLFRF) allocations from setting their primary property tax levies for tax year (TY) 2022 such that the
amount levied on existing property exceeds the amount levied for all property in TY 2021. The limitation would also apply
for TY 2023.
Estimated Impact
The bill is expected to have no impact on the General Fund.
The impact on local governments cannot be determined in advance of the adoption of their budgets for FY 2023.
Analysis
Under the American Rescue Plan Act, counties, cities, and towns received federal monies from the CLFRF. For counties
and large cities and towns, the U.S. Treasury sent allocations directly to the recipients. For small cities and towns, the
state received the CLFRF allocations and was required to distribute the monies to these entities.
SB 1274 would require that local governments use their CLFRF allocations to reduce their TY 2022 primary property tax
levies on existing property so that they do not exceed their TY 2021 levies. The bill would also require that local
governments use their CLFRF allocations to reduce their TY 2023 primary property tax levies on existing property so that
they do not exceed what their TY 2022 levies would have otherwise been.
Each year, local governments set levies and tax rates during the budget process. Because these entities have not yet
adopted their FY 2023 budgets, we are unable to determine the bill's impact on local governments.
2/18/22