Do taxing districts need voter approval to use banked capacity?
No. Taxing districts are limited in the amount their levies may increase each year. As long as the district stays within the limit, no voter approval is required. Banked capacity is simply unused levy authority that is within the district’s levy limit. If a district uses its banked capacity, how will that affect my taxes? The effect on the tax bill for an individual property depends on a number of factors, including the value of the property. The amount of tax paid to the district using the banked capacity may rise, but there could be corresponding reductions in the levies of other districts. This is because state law limits overall property tax rates applied to individual properties. The amount of property tax that you will pay depends on the value of your property in relationship to the total assessed value of property in the tax district.
Related Questions
- Since our property tax bills will no longer have "primary" and "secondary" designations, how will the money be distributed to the taxing districts?
- Is the matter of building a transit system such as light rail something that would come before the voters? Is voter approval necessary?
- How does the Treasurer add value to the taxing districts and other governmental entities?
