1. Budget changes Senate Bill 2288 and the changes it brought
Sarah Heinle Accountant Cass County Auditor’s Office
Senate Bill 2288 and the changes it brought
Why were these changes made
What do we need as Counties
Common mistakes we see

2. Senate bill 2288
Moves the effective date of annexation changes for tax purposes from February 1 to January
This is to allow the county to provide taxing boundary information to centrally assessed owners in a more-timely manner.
Moves the reporting date for boundary information for the county from March 1 to February
Moves the reporting deadline by centrally assessed companies to county auditors from March 15 to February

3. Senate bill 2288
Moves railroad reporting to the tax department from May 1 to April
Moves reporting by other centrally assessed companies from May 1 to April
Increases penalty for late reporting on centrally assessed property from 10% to 20% of assessed value (state adds 20% to the assessed value of the property)
Moves State Board of Equalization annual meeting from first Tuesday in August to second Tuesday in July

4. Senate bill 2288
Requires governing body of each municipality to prepare a preliminary budget
Requires the auditor of each municipality to provide the county auditor with a copy of preliminary budget by August 10th
Requires each municipality to set a public hearing date no earlier than September seventh and no later than October seventh and to provide a notice of the hearing date to the county auditor.
County Auditor is required to mail an estimated tax statement for all taxed properties that are projected to have at least $100 of consolidated taxes by August

5. Why the change
The old law provided for each taxing district who levied in excess of the “Zero increase number of mills” to provide a notice for each taxable property that increased in value by 10% and $3,000 in value informing them the percentage they were going to exceed the zero increase number of mills and the time and place of the public hearing on the budget.
The notice was sent out by each individual city, county, school district, or city park district who levied over $100,000 and who exceeded their “Zero increase number of mills”. 
The entity also had to publish a notice in the newspaper giving the same information.
The notice was hard to understand; an entity could be reducing their mill levy but still have to report that they were increasing their levy.

6. Why The change

7. What do we need as counties
First of all, we need your preliminary budgets by August 10th
That budget should be accurate in both your revenue and expenditure categories
Your preliminary budget should be complete, states “The governing body of each municipality, annually on or before August tenth, shall make an itemized statement known as the preliminary budget statement showing the amounts of money which, in the opinion of the governing body, will be required for the proper maintenance, expansion, or improvement of the municipality during the year.”

8. What do we need as counties
also requires that the city set a public budget hearing date no earlier than September seventh and no later than October seventh and to provide that information to the county auditor.
The final budget is still due October 10th but it cannot be higher than the preliminary budget.

9. What do we need as counties
So, what happens if you don’t file a preliminary budget statement and hearing notice with the county auditor?
NDCC states that “A taxing district that fails to provide the information required under this subsection on or before August tenth may not impose a property tax levy in a greater amount of dollars than was imposed by the taxing district in the prior year.”
The city will still be responsible for filing a final budget with the county before we can actually levy the taxes.

10. Common mistakes we see
Failure to complete the bank balances

11. Common mistakes we see
Failure to complete the bank balances

12. Common mistakes we see
Failure to carry numbers forward

13. Common mistakes we see
Failure to carry numbers forward

14. Common mistakes we see
Failure to carry numbers forward

15. Common mistakes we see
Not Calculating the reserves for funds and delinquent taxes.
56,480*.75=42,360

16. Questions