CSSB 182- Estimated cost to Cities and Counties at a 6% rollback rate

Summary

Below is a table showing the Comptroller's estimates concerning the cost of the

committee substitute for SB 182. The committee substitute will lower the rollback rate for cities

and counties from 8% to 6% and require them to hold a tax ratification election to get voter

approval if they adopt tax rate that exceeds the 6% rollback rate. All other types of taxing units,

including school districts, hospital districts, junior colleges, and special districts like Municipal

Utility District will continue to operate under the 8% rollback rate and petition process for a

rollback election in current law.

The data provided from the Comptroller's Office was estimated under the assumptions outlined

below:

First, no tax rate adopted by a city or county that exceeded the 65 rollback rate would

be sustained in a subsequent tax ratification election.

Second, cities and counties will follow similar procedures in setting their tax rates as

they have through the 2013 tax year (this is the base year for the Comptroller's

estimates regarding tax rates)

Third, the tax rate data for the 2013 tax year is accurate and representative of all taxing

units

Comptroller's Estimate of cost to Cities and Counties under a 6% rollback rate

Fiscal year Gain/(Loss) to Cities Gain/(Loss) to Counties Gain/(Loss) to State

2016 ($48,615,000) ($58,883,000) $0

2017 ($51,620,000) ($61,991,000) $0

2018 ($54,201,000) ($65,091,000) $0

2019 ($56,911,000) ($68,345,000) $0

2020 ($59,756,000) ($71,762,000) $0