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HB 2011
HB 2011: bonds; levy; net of cash
(Click for bill language and additional information)

Sponsor: Rep. Ugenti-Rita

Summary: Current statute requires a city or town to annually levy a tax on all taxable property within its jurisdiction to pay the annual principal and interest on any issued bonds. The annual levy may not exceed the net amount necessary to make the annual payments of principal and interest, projected payments of principal and interest on new debt planned for the ensuing year, a reasonable delinquency factor, including an amount necessary to correct prior year errors in the levy and any expenses and fees necessary to comply with federal income tax laws. HB2011 amends the statute to also require that, after principal and interest have been paid and other requirements listed have been met for the current tax year, that next year’s tax levy must be net of any remaining cash from the prior year’s levy.

League Position: OPPOSE - The League has several concerns related to how the net of cash policy might create significant rate fluctuations and possible issues with bond ratings.

UPDATES

1/9/2017: HB2011 passed out of House Ways and Means Committee by a vote of 6-2. The bill now proceeds to the Rules Committee.

1/31/2017: HB2011 passed the House COW.

2/1/2017: HB2011 passed the House Third Read by a vote of 35-25. The bill was transmitted to the Senate.

3/1/2017: HB2011 passed the Senate Finance Committee by a vote of 4-3.

3/22/2017: HB2011 passed the Senate COW.

4/11/2017: HB2011 passed the Senate Third Read by a vote of 25-5. The bill was transmitted back to the House.

4/24/2017: HB2011 passed the House Final Read by a vote of 39-11-9-0-1. The bill was transmitted to the Governor.

4/28/2017: HB2011 was signed by the Governor.