Article 9 Section 19 - Limitation on annual increases in local ad valorem tax levies; exceptions
19. Limitation on annual increases in local ad
valorem tax levies; exceptions
Section 19. (1) The maximum amount of ad valorem taxes levied
by any county, city, town or community college district shall not exceed an
amount two per cent greater than the amount levied in the preceding year.
(2) The limitation prescribed by subsection (1) does not apply to:
(a) Ad valorem taxes or special assessments levied to pay the principal
of and the interest and redemption charges on bonded indebtedness or other
lawful long-term obligations issued or incurred for a specific purpose.
(b) Ad valorem taxes or assessments levied by or for property
improvement assessment districts, improvement districts and other special
purpose districts other than counties, cities, towns and community college
(c) Ad valorem taxes levied by counties for support of school
(3) This section applies to all tax years beginning after December 31,
(4) The limitation prescribed by subsection (1) shall be increased each
year to the maximum permissible limit, whether or not the political
subdivision actually levies ad valorem taxes to such amounts, except that
beginning in 2007 the limitation prescribed by subsection (1) shall be
computed from the actual tax levy of the county, city, town or community
college district in 2005.
(5) The voters, in the manner prescribed by law, may elect to allow ad
valorem taxation in excess of the limitation prescribed by this section.
(6) The limitation prescribed by subsection (1) of this section shall
be increased by the amount of ad valorem taxes levied against property not
subject to taxation in the prior year and shall be decreased by the amount of
ad valorem taxes levied against property subject to taxation in the prior year
and not subject to taxation in the current year. Such amounts of ad valorem
taxes shall be computed using the rate applied to property not subject to this
(7) The legislature shall provide by law for the implementation of this