Legislative Session number- 84

Bill Name: SF0318

"Truth and Fairness in Taxation Act" (TAFTA) or "State/Local Fiscal Relations:
Truth in Taxation Act", recognizing the implications of addressing the state
budget deficit without increasing general tax rates by preventing local property
tax rate increases; freezing the benefit ratio used for city apportionment of
levies to rural service districts; prohibiting local government units from
incurring new debt by issuing obligations or entering into installment or lease
purchase contracts or agreements after a certain date, exceptions; imposing
certain levy limits for taxes payable in 2006, providing exceptions for debt
service, annexation and school district statutory operating debt; freezing local
match requirements; suspending local salary or budget increase appeals authority
and proposed property tax notice (truth in taxation) and hearing requirements;
freezing the fiscal disparities (revenue distribution) requirements in the
metropolitan and tax relief areas; requiring levy reductions or adjustments
under certain conditions; prohibiting unfunded pension liabilities of local
police and fire relief associations from exceeding levies; requiring township
boards of supervisors to adjust levies before the freeze termination year,
authorizing reduction of expenditures to adjust for levy reductions; prohibiting
local government units, special taxing districts or state agencies from imposing
new or increasing the rates or amounts of existing fees; requiring and providing
for the state to make payments to cities, counties and school districts for
reimbursement for property tax and fee increases attributable to reductions in
state aids and appropriating money to the commissioner of revenue for the
reimbursements; savings clause; providing for termination of the freeze
(ra)