Proposed TFTAA Will Seriously Limit Local Control & Taxing Authority
Avenu Insight’s special counsel Ben Fay, of Jarvis Fay Doporto & Gibson, LLP has prepared an analysis of the Tax Fairness, Transparency and Accountability Act of 2018 (TFTAA), assessing the potential implications for local government tax policy, and specifically for current and future UUT ordinances.
The TFTAA includes several changes to current tax policy, including broadening the definition of what constitutes a “tax,” requiring that all local taxes be approved by a supermajority (two-thirds) vote by eliminating the distinction between special and general taxes, requiring all fees to be approved by a two-thirds vote of city council, and subjecting new fees to a referendum if a petition is signed by 5% of voters. Although the proposal would not operate retroactively, any local tax enacted in 2018 will be void unless it complies fully with the terms outlined in the proposition.
The TFTAA is likely to qualify for the ballot and will appear before voters in November.
To read the full analysis, click here.