North Dakota League of Cities- City Auditor Workshop 2016 Linda Leadbetter State Supervisor of Assessments Office of State Tax Commissioner

Levies & Reporting Elected governing boards determine levy Non-elected board submits a REQUEST for a levy Reports of all revenues, expenditures, fund balances, and complete budget submitted to the governing body prior to approval of tax levy (N.D.C.C. 40-05-01(77))

Levies & Reporting Any entity authorized to levy or have a levy on its behalf must file a financial report with the county auditor Preceding calendar year Including ending fund balances (N.D.C.C. 57-15-30.2)

Budgets and Mill Levies A levy can be considered the calculated need for funding Total appropriation $175,000 Less: Estimated cash balance $40,000 Estimated revenue $20,000 $ 60,000 Amount required from levy $115,000

Budgets and Mill Levies To determine mills required for this request: $115,000 divided by 1,502,211 total taxable value for the entity = .07655 or referred to as 76.55 mills consolidated levy includes mills of all jurisdictions attached to a property

Budgets and Mill Levies Effective for taxable years after 2014 Levy Limitation Schedule Statute providing the levy, uses, and limit Reference statute requiring special approval Levy number repealed Balance of special fund transferred to general fund & close special fund

Levy Limitation Schedule http://www.nd.gov/tax/data/upfiles/media/levy-limitations.pdf?20160815120610

Property tax levy increase notice & public hearing Required by N.D.C.C. 57-15-02.1 A taxing district may not impose a property tax levy in a greater number of mills than the zero increase number of mills, unless the district complies with specific notice and hearing requirements

Property tax levy increase notice & public hearing Taxing district includes: City County School district City park district Does not include districts with the prior year levy and proposed levy of less than one hundred thousand dollars

Property tax levy increase notice & public hearing   2014 2015 Taxable Value 21,502,211 25,850,401 Minus new growth 189,353 Taxable Value excl. new growth 25,661,048 2014 Mill Levy 100.05 Zero Increase Number of Mills 83.84 (2,151,296 /25,661,08 TV) x 1,000 Tax 2,151,296 2,016,498 Proposed Mill Levy 81.50 % Increase Exceeding Zero Increase Number of Mills (must be included in published notice of hearing) -2.79% (81.50 mills / 83.84 mills) minus 1

Property tax levy increase notice & public hearing Current year ESTIMATED taxable value for the district – less new growth “New growth” means the taxable value of any property that was not taxable in the prior year As reported by assessors to the county director of tax equalization New construction, property annexed into the district

Property tax levy increase notice & public hearing Notice published in the official newspaper at least seven days before the public hearing Language, size of publication, heading, boldface print, etc.: N.D.C.C. 57-15-02.1(1) Coordinate with newspaper

Property tax levy increase notice & public hearing Any property owner that was required to receive a notice of increase of assessment, must receive notice of the hearing by mail Mailed at least seven days before the public hearing

Property tax levy increase notice & public hearing Meeting may not be scheduled to begin earlier than 6:00 p.m. If the governing body does not make a final decision on imposing a property tax levy at the public hearing required, the governing body shall announce at that public hearing the scheduled time and place of the next public meeting

Maximum Levy Worksheet Base year calculation Combined total of levies consolidated for 2015 Allows for a certain level of funding to be maintained Provides for increase or decrease in calculation for new property values or values that are removed from the taxing district

Maximum Levy Worksheet Current year taxable value calculated against maximum levy authority A city that levied more than 105 mills in 2015 may levy the same number of mills for 2016 2017: 105 mills plus 75% of combined mills exceeding 105 for 2015; 2018: plus 50%; 2019 plus 25% (N.D.C.C. 57-15-08)

Levy Certification Use care in submitting levy certification Be certain to only request active levies Estimate your mills 2015 General Fund increase Cities requesting a large amount to receive the maximum Saw an increase from 38 mills to 105 in some cities

Linda Leadbetter, State Supervisor of Assessments lleadbett@nd.gov nd.gov/tax