LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6379 NOTE PREPARED: Nov 25, 2024
BILL NUMBER: SB 283 BILL AMENDED:
SUBJECT: Library Governance.
FIRST AUTHOR: Sen. Byrne BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill eliminates the authority of public libraries to impose an ad valorem
property tax as a "taxing unit". It requires a public library to prepare and submit a recommended annual
budget to the fiscal body of the county in which the territory of the public library is located to provide the
revenues necessary for the operation and maintenance of the public library by a special tax levy, a specific
appropriation, or both. The bill also provides that a special tax levy for public library purposes is included
in the calculation of the maximum permissible property tax levy for the county.
Effective Date: July 1, 2025; January 1, 2026.
Explanation of State Expenditures: Department of Local Government Finance (DLGF): This bill’s
provisions will likely result in a decrease of the administrative workload for the DLGF. Currently, the DLGF
reviews and certifies the annual budgets for public libraries. For CY 2024, the DLGF reviewed and issued
a certified budget order for 244 public library local units of government. Under this bill’s provisions, public
libraries will submit their annual budget information to the applicable county (or counties) to be included
in the county’s budget submission. The end result will be fewer budgets reviewed and fewer budget orders
issued by the DLGF.
Explanation of State Revenues:
Explanation of Local Expenditures: County Fiscal Bodies: This bill's provisions will result in an increase
of the administrative workload for county fiscal bodies. Currently, most public libraries submit their annual
budgets to their respective library boards, which then review and adopt the budgets. Under this bill's
provisions, public libraries will submit their annual budget information to the applicable county to be
reviewed and adopted by the county's fiscal body. The end result will be additional budgets reviewed and
adopted by the applicable county’s fiscal body.
Explanation of Local Revenues: Public Library Maximum Levy: Starting January 1, 2026, this bill removes
public libraries from the definition of a taxing unit, which effectively eliminates a public library’s ability to
levy property taxes to help fund its operations. In order to continue funding the operations of a public library
SB 283 1 for CY 2026 and beyond, this bill takes the maximum levy for the library in CY 2025 (the last year that
public libraries would be able to have their own dedicated property tax levy) and applies the CY 2026
maximum levy growth quotient to the CY 2025 maximum levy. That calculated amount is then added to the
applicable county’s maximum levy for CY 2026 and in effect, becomes the new maximum levy base for the
county. In conjunction with the shift of the library’s maximum levy amount to the applicable county, starting
with the January 1, 2025, assessment date (for taxes payable in 2026), a new special taxing district that
incorporates the boundaries for the library district is established that will allow the county to levy a special
benefits tax for purposes of funding the operations and maintenance of the library. These provisions should
have an overall neutral impact on the public library’s revenues since the levy authority is simply being
transferred from the public library to the applicable county. Furthermore, any local income tax and excise
tax revenue that are connected to the property tax allocation and distribution process would continue to be
distributed to the public libraries.
Additional Information - The DLGF calculates a permissible maximum levy for each taxing unit on an annual
basis. Generally, a taxing unit’s growth in its non-debt service property tax levy is capped year to year by
the maximum levy growth quotient. For CY 2025, this growth quotient is capped at 4%.
State Agencies Affected: Department of Local Government Finance.
Local Agencies Affected: Public libraries; county and municipal fiscal bodies.
Information Sources: Local Government Budget Database.
Fiscal Analyst: James Johnson, 317-232-9869.
SB 283 2