H 845AnnexationReform Act of 2011SL2011-396What it doesn’t doDoes not changethe urbanization standards for land to qualify for annexation.Does not allowthe Board of Commissioners or annexed residents to request a referendum election on annexation.Does not requireBoard of Commissioner approval for cross-county annexations.Does not requirecities to reimburse counties for the loss of sales tax due to an annexation.What it doesRequires that when municipalities initiate an annexation, they must extend water and sewer lines to the structure within 3½ years for all requesting property owners (if 50% request).Allows annexed property owners to overturn anannexation if ownersof 60 percentof annexed propertiessign a petition. Municipality may not reinitiate for 3 years.The annexation process must begin with a resolution of consideration identifying the proposed area as under consideration for annexation; that is, there is no longer an option to begin with the resolution of intent and delay the effective date. Annexations must take effect on June 30.Two new types of voluntary contiguous petition annexations are established that allow annexation with less than a 100% petition. For one of these types, the city retains discretion on whether to annex but for the other the municipality isrequiredto annex under specified circumstances.
Taxes and Bonds
H595 Reorganization/Leg Oversight Commissions Rep. Barnhart SL 2011-291S666 Cap Motor Fuel Tax at Current Rate Sen. Forrester Senate - FinanceH 315 Taxpayer Information Act Rep.FolwellHouse – FinanceH 188Taxpayer Bill of Rights Rep.BlustHouse - JudiciaryS 413 Ordinance first reading vote Sen.ClodfelterHouse – RulesS 426 Modify/Clarify Public Finance Statutes Sen.ClodfelterHouse –FinanceS629 Privilege Tax for Unregulated Utilities Sen.HartsellSenate – Finance
How The Budget Affects Municipalities
Does not change the structure of state-collected municipal revenues.Eliminates Powell Bill funding for the seven municipalities that do not maintains any of their own public streets. These towns’ accumulated funds must be spent by June 30, 2012.Creates two Powell Bill distributions per year (Oct and Jan), thereby limiting the accumulation of funds to 5 years of distributions rather than the current 10. DOT can allow some small towns 10 years if their yearly amounts are too small to pay for projects.Reduces all public transportation grant programs by 6 percent.Eliminates funding for the inmate work crews that were supervised by Department of Corrections (DOC) employees and are made available at no cost to towns for various general labor activities. DOC likely will require that town employees receive supervision training and that towns provide inmate transportation.Reduces the Fire Protection Grant Fundby10 percent,except those currentlyreceiving $1,000 orless.Pays for the local government support functions of the Department of Revenue and the State Treasurer out of local sales tax revenues, reducing those revenues by two-tenths of 1 percent, but providing greater flexibility to add positions to support local government.