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

Senate bill 2288 Moves the effective date of annexation changes for tax purposes from February 1 to January 1. 40-51.2-16 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 1 57-05-06 Moves the reporting deadline by centrally assessed companies to county auditors from March 15 to February 15. 57-06-21

Senate bill 2288 Moves railroad reporting to the tax department from May 1 to April 1. 57-05- 08 Moves reporting by other centrally assessed companies from May 1 to April 15. 57-06-06 Increases penalty for late reporting on centrally assessed property from 10% to 20% of assessed value. 57-06-09 (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. 57-06-11

Senate bill 2288 Requires governing body of each municipality to prepare a preliminary budget. 40-40-04 Requires the auditor of each municipality to provide the county auditor with a copy of preliminary budget by August 10th. 40-40-06 57-15-02.2 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 31. 57-15-02.2

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.

Why The change

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, 40-40-06 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.”

What do we need as counties 40-40-06 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.

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 57-15-02.2 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.

Common mistakes we see Failure to complete the bank balances

Common mistakes we see Failure to complete the bank balances

Common mistakes we see Failure to carry numbers forward

Common mistakes we see Failure to carry numbers forward

Common mistakes we see Failure to carry numbers forward

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

Questions