This provision primarily affects the residential assessment rate because most nonresidential rates are set in the constitution and therefore cannot be changed, either up or down, without voter approval. It means that the residential assessment rate will never be higher than it currently is, unless voters approve a change. For school districts, allowable growth is inflation plus the percentage change in student enrollment. For other local governments, allowable growth is inflation plus the percentage change in the actual value of all real property. Revenues in excess of these limits must be refunded, unless voters agree otherwise.
Businesses pay taxes on personal property.
The General Assembly has taken a significant interest in the issue of property taxes imposed on business personal property, passing three bills to reduce or end this tax in the past two years. The proportion of taxes from business personal property varies widely across the state. Moffat, Morgan, and Crowley counties are most reliant on its revenue. The property tax raises policy issues. For taxpayers, the property tax has been a traditional source of revenue for public services because it is directly related to services provided at the local level.