Committee narrative has been adopted as part of the FY 2016 budget to direct the State Department of Assessments and Taxation (SDAT) to establish a State and Local Advisory Council to discuss issues of mutual interest with local governments and provide guidance on the implementation of recommendations from the 2014 Assessment Workgroup (AWG). The AWG was established through the Budget Reconciliation and Financing Act of 2014 (SB 172) to examine issues related to the assessment process for real and personal property, tax credits, and tax exemptions.

As described in the House committee narrative, the Council would be composed of 13 members, 8 from local government and 5 from state government, to assure progress on the implementation of the AWG recommendations. The language adopted by the Senate Budget and Taxation Committee also directs SDAT to introduce legislation during the 2016 session of the General Assembly that responds to the recommendations from the AWG report. This slight difference will need to be resolved in a conference committee.

MACo is pleased that this language has been adopted and believes the Advisory Council would improve communication amongst state and local partners and provide a forum to discuss business process changes, the leveraging of technology with state and local partners to improve the assessment process, and other matters raised by the partners. Local government looks forward to working with SDAT on these important matters.

The House also adopted language to direct SDAT to perform a business process analysis in an effort to realize additional efficiencies within its assessment and administrative processes. This item will also need to addressed in conference as the Senate Budget and Taxation Committee rejected this language.

Additional information on the creation of the advisory council and the AWG can be found on Conduit Street.