After the Governor vetoed HB 2745 on Thursday, HB 2043 passed the Legislature late Friday evening and would still allow voters (through a protest petition signed by 10% of voters) to effectively veto a budget with property taxes increased beyond the CPI (inflation index), or 3%, whichever is lower, with some exceptions. Some concerns with this legislation include:
- Cumulative Revenue Erosion: Because the 3% cap acts as a bottleneck during years of high inflation (it was 8.0% in 2022), property tax revenue could quickly fall behind actual costs, creating a permanent ever-growing revenue gap.
- While “bonds” generally are exempt, lease payments related to PBC revenue bonds and COPs entered into after July 1, 2026, could fall under the property tax limit. These are essential tools for financing non-utility infrastructure like city halls, fire stations, police stations, and swimming pools.
To discuss specific projects or concerns, contact your Ranson Financial Municipal Advisor.