| based on data from the United States Department of Commerce, | Census Bureau and Bureau of Economic Analysis. |
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| | 2.__Property tax levy limit.__Except as otherwise provided in | this section, a municipality may not in any year adopt a property | tax levy that exceeds the property tax levy limit established in | this subsection. |
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| A.__The property tax levy limit for the first fiscal year | for which this section is effective is the property tax levy | for the municipality for the immediately preceding fiscal | year multiplied by one plus the growth limitation factor | pursuant to subsection 3. |
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| B.__The property tax levy limit for subsequent fiscal years | is the property tax levy limit for the preceding year | multiplied by the growth limitation factor pursuant to | subsection 3. |
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| C.__If a previous year's property tax levy reflects the | effect of extraordinary, nonrecurring events, the | municipality may submit a written notice to the State Tax | Assessor requesting an adjustment in its property tax levy | limit. |
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| | 3.__Growth limitation factor.__The growth limitation factor is | calculated as follows. |
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| A.__For__fiscal years when the State Tax Assessor has | determined that the state and local tax burden ranks in the | highest 1/3 of all states, the growth limitation factor is | average real personal income growth but no more than 2.75%, | plus the property growth factor. |
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| B.__For fiscal years when the state and local tax burden | ranks in the middle 1/3 of all states, as determined by the | State Tax Assessor, the growth limitation factor is the | average real personal income growth plus forecasted | inflation plus the property growth factor. |
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| | 4.__Adjustment for new state funding.__If__the State provides | net new funding to a municipality for existing services funded in | whole or in part by the property tax levy, other than required | state mandate funds pursuant to section 5685 that do not displace | current property tax expenditures, the municipality shall lower | its property tax levy limit in that year in an amount equal to | the net new funds.__For purposes of this subsection, "net new | funds" means the amount of funds received by the municipality | from the State in that fiscal year, with respect to services | funded in whole or in part by the property tax levy, |
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