RÉSUMÉ DIGEST
ACT 718 (SB 164) 2018 Regular Session Morrell
Present constitution requires property subject to ad valorem taxes to be listed on the
assessment roles at its assessed value which is a percentage of its fair market value. Requires
all property subject to taxation to be reappraised and valued at intervals of not more than four
years.
Proposed constitutional amendment retains the present constitution but provides that in a
reassessment year, if the assessed value on residential property subject to the homestead
exemption increases by greater than 50% of the amount of the property's assessed value in
the previous year, the collector shall phase-in the additional tax liability resulting from the
increase in the property's assessed value over a four-year period.
First Year Following Reappraisal
Provides that in calculating the ad valorem taxes on property in the first levy following
reappraisal the collector is to use the property's assessed value from the previous year which
is the base amount and is to increase the portion of the assessed value of the property used
to calculate ad valorem taxes by adding an amount equal to 1/4 of the amount of the increase
in the assessed value resulting from reappraisal of the base amount. Provides that the
resulting amount constitutes the property's taxable value and is to be used solely for purposes
of calculating the ad valorem taxes for the taxable year.
Second Year Following Reappraisal
Collector increases the portion of the assessed value of property used to calculate ad valorem
taxes by adding an amount equal to ½ of the amount of the increase in the assessed value as
a result of the reappraisal to the base amount. Resulting amount constitutes the property
taxable value and is used solely for purposes of ad valorem taxes for that taxable year.
Third Year Following Reappraisal
Collector increases the portion of the assessed value of property used to calculate ad valorem
taxes by adding an amount equal to 3/4 of the amount of the increase in the assessed value
as a result of the reappraisal to the base amount. Resulting amount constitutes the property
taxable value and is used solely for purposes of ad valorem taxes for that taxable year.
Fourth Year Following Reappraisal
Collector calculates ad valorem taxes based on the property's full assessed value.
Proposed constitutional amendment provides that the phase-in of additional ad valorem tax
liability following reappraisal ceases to apply upon the transfer or conveyance of ownership
of the property.
Proposed constitutional amendment prohibits reappraisal by an assessor until after the phase-
in of the increase in the amount of the property's assessed value is complete.
Proposed constitutional amendment provides that the increase in assessed valuation of
property phased in shall be included as taxable property for purposes of any subsequent
reappraisals and valuation for millage adjustment purposes under present constitution.
Further provides that the decrease in the total amount of ad valorem tax collected by a taxing
authority as a result of the phase-in of assessed valuation shall be absorbed by the taxing
authority and shall not create any additional tax liability for other taxpayers in the taxing
district as a result of any subsequent reappraisal and valuation or millage adjustment.
Proposed constitutional amendment provides that implementation of the phase-in of increase
in assessed valuation shall neither trigger nor be cause for a reappraisal of property or an
adjustment of millages pursuant to present constitution. Further provides that proposed
constitutional amendment shall not apply to the extent the increase was attributable to
construction on or improvements to the property.
Specifies submission of the amendment to the voters at the statewide election to be held on
November 6, 2018. (Amends Const. Art. VII, §18(A) and (F))