SB 474
Creating Truth in Taxation Act
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
Senate Bill 474, the "Truth in Taxation Act," aims to increase transparency in local property tax rates. It establishes a ‘revenue neutral rate’ for each taxing subdivision, calculated based on the previous year’s revenue and assessed valuation. The bill requires counties to notify taxpayers about proposed tax rates exceeding this neutral rate, providing detailed information including proposed budgets and tax impacts. It also mandates public hearings and requires a majority vote from the governing body to exceed the revenue neutral rate, with potential refunds for over-collected taxes.
Key provisions
- Calculates a ‘revenue neutral rate’ based on previous year’s property tax revenue and assessed valuation.
- Requires counties to notify taxpayers of proposed tax rates exceeding the revenue neutral rate.
- Mandates public hearings for any proposed tax rate increase.
- Requires a majority vote of the governing body to approve tax rates exceeding the revenue neutral rate.
- Establishes a process for refunding over-collected property taxes.
- Excludes school districts from the requirements of the bill.
- Sets a revenue threshold (under $5,000) below which the bill does not apply.
- Directs the county clerk to include the revenue neutral rate on budget notices.
Who is affected
- Taxpayers
- County Clerks
- County Governing Bodies
- Taxing Subdivisions (counties, municipalities, etc.)
- Property Owners
Notable changes
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