(a) For the purposes of this article, the following definitions apply unless the context clearly indicates or requires a different meaning.
Base Tax Year. The tax year immediately before the budgeted tax year.
Budgeted Tax Year. The tax year beginning July 1 from which real property tax revenues are to help finance the proposed legislative and executive budgets.
Class of Property. A class of real property established in accordance with § 8-7.1(c).
Estimated Uncontrollable Cost Adjustment. A factor representing costs that the city is mandated or obligated to pay.
Initial Tax Rate. The preliminary tax rate for a class of property as determined in subsection (b).
Net Taxable Real Property. The fair market value of property determined pursuant to this chapter that the director certifies as the tax base as provided by ordinance less exemptions as provided by ordinance and, in all cases where appeals from the director’s assessment are then unsettled, less 50 percent of the value in dispute.
Tax Rate. The dollar amount of tax levied under this chapter per $1,000 of net taxable real property, computed to the nearest cent.
(b) The council shall annually set the tax rate or rates in accordance with this subsection for the classes of real property established in accordance with § 8-7.1(c). A resolution setting the tax rate or rates must be adopted by the council during the same meeting at which the applicable legislative and executive budget bills are passed on third reading. The tax rate or rates must be set according to the following procedures. The procedures provide for initial tax rates for the net taxable real property within each class of property to be established by the director. The initial tax rates are established in a way that the average real property tax liability within each class of property does not change in the budgeted tax year compared to the base tax except for the estimated uncontrollable cost adjustment only.
(1) The director shall establish the initial tax rates for all taxable classes of property using the following method:
(A) The director shall establish the estimated change in the operating uncontrollable costs of the city, expressed as a percentage of the base tax year’s total net tax liability of all classes;
(B) The director shall determine the average tax liability for each class of property for the base tax year as follows: sum the net tax liability for the base tax year of all parcels within the class, then divide the result by the total number of tax parcels in the class;
(C) The director shall then determine the average tax liability for each class of property for the budgeted tax year as follows: adjust the figure determined under paragraph (B) by the estimated uncontrollable cost adjustment;
(D) The director shall then determine the amount to be raised by the initial tax rate for each class of property for the budgeted tax year as follows: multiply the figure determined under paragraph (C) for each class of property by the total number of tax parcels in the class for the budgeted tax year; and
(E) The director shall then determine the initial tax rate per $1,000 of net taxable real property in each class of property for the budgeted tax year as follows: divide the figure determined under paragraph (D) for each class of property by the assessed valuation of net taxable real property within each class of property for the budgeted tax year, then multiply the result by 1,000, then round the result to the nearest cent.
(2) The mayor may propose to the council that the initial tax rates be adopted or be increased or decreased for any class of property. The tax rates proposed by the mayor must be set forth in the form of a resolution transmitted to the council at the same time that other revenue measures for the budgeted tax year are transmitted.
(3) Upon receipt of the mayor’s proposed tax rate resolution, the council may adopt the initial tax rates, the mayor’s proposed tax rates, or propose new rates.
(c) (1) The council shall advertise its intention to set the tax rate or rates and the date, time, and place of a public hearing in accordance with law. The date of the public hearing must be not less than 10 days after the advertisement is first published and must set forth the proposed tax rate or rates to be considered by the council.
(2) After the public hearing provided for in subdivision (1), the council shall readvertise and reconvene to adopt a resolution setting the tax rate or rates for the tax year for which property tax revenues are to be raised. The advertisement must state the rate or rates proposed to be set and the date, time, and place of the meeting scheduled for setting the rate or rates. The date, time, and place of the meeting must also be announced at the public hearing required by subdivision (1).
(3) If, after adopting an increase or decrease in the tax rates as provided by subdivisions (1) and (2), the council determines that it requires a further increase or decrease in tax rates, the council shall readvertise and follow the requirements of subdivisions (1) and (2).
(d) The council shall notify the director of the tax rate or rates set for a tax year before the commencement of that tax year. Upon receipt of the notification, the director shall use the rate or rates in the levying of property taxes as provided by this chapter.
(e) The director shall, on or before February 1 preceding the tax year, furnish the council with a calculation certified by the director as being as nearly accurate as possible of the net taxable real property within the city, separately stated for each class established in accordance with § 8-7.1(c) plus such additional data relating to the property tax base as may be necessary. The director shall include the amount of all tax credits granted under Article 13 for the current tax year and the amount of all tax credit denials appealed during the current tax year as part of the information required by this subsection.
(f) Insofar as the validity of any tax rate is concerned, the provisions of subsection (e) as to dates are directory; provided that all other provisions of this section are mandatory.
(h) Notwithstanding any provision to the contrary, rates for property classified as residential A must be assigned to two tiers based on the valuation of the property. The tiers are as follows:
(1) Residential A Tier 1 tax rate: applied to the net taxable value of the property up to $1,000,000; and
(2) Residential A Tier 2 tax rate: applied to the net taxable value of the property in excess of $1,000,000.
(i) Notwithstanding any provision to the contrary, rates for property classified as transient vacation must be assigned to two tiers based on the valuation of the property. The tiers are as follows:
(1) Transient vacation Tier 1 tax rate: applied to the net taxable value of the property up to $800,000; and
(2) Transient vacation Tier 2 tax rate: applied to the net taxable value of the property in excess of $800,000.
(Sec. 8-11.1, R.O. 1978 (1987 Supp. to 1983 Ed.)) (1990 Code, Ch. 8, Art. 11, § 8-11.1) (Am. Ords. 92-75, 96-15, 01-60, 02-45, 02-68, 03-28, 06-10, 10-9, 17-12, 23-5)