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Cities Now Required to Pass Annual Resolution to Accrue Forgone — AIC Shares Model Resolution

Posted By Justin Ruen, Tuesday, June 30, 2020

One of the most significant pieces of legislation on property taxes to take effect this year requires cities to pass an annual resolution, starting July 1, 2020, to accrue forgone for the year that the city is filing the L-2 property tax levy form.

AIC has developed a model forgone accrual resolution that you can find as a link at the bottom of this post.  We extend our appreciation to the City of Twin Falls for sharing their resolution with us. 

House Bill 354 requires cities to pass a resolution every year to accrue forgone property tax levying authority to be used in a future year.  If the city fails to pass the resolution, that year’s forgone amount would be forfeited permanently, but the city would still retain previous forgone levying authority already accrued. 

House Bill 354 would eliminate the current process for disclaiming forgone, so cities would not need to pass a resolution to disclaim forgone in the future, it would just be done by not passing a resolution to accrue forgone.

The process to pass the forgone accrual resolution includes notice published in the official newspaper twice, at least seven days apart and there must be a public hearing.  The process for the forgone resolution is the same as, and can be done together with, the city’s budget notice and hearing. 

Once passed by the city council, the resolution must be filed with the county with the L-2 property tax levy form.  The forgone reserved can only be for the year that the city is filing the L-2 levy form, and you can’t accrue multiple years of forgone in one resolution.  The resolution must specify the exact dollar amount of forgone being reserved. 

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