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Published on Friday, February 2, 2018

Bill giving cities greater flexibility with sales tax and levy lid lifts in House Rules Committee

HB 2006 passed out of the House Appropriations Committee on January 24 and is waiting on further action by the House Rules Committee. The bill removes the non-supplanting clause for the 0.1 percent voter approved mental health sales and use tax. By removing the non-supplanting clause, cities that have instituted the mental health sales tax would be able to use this funding stream to existing programs or programs that were implemented using this funding source.

The bill also removes the non-supplanting requirement for property tax levy lid lifts and expands eligibility for the local option $0.50 county criminal justice voter-approved property tax levy to all counties.

The bill passed out of the House during the 2017 session but the bill did not pass out of the Senate during the protracted legislative session.

AWC supports the increased revenue flexibility for cities.

Categories: Budget & finance