AI-assisted research summary: County tax levies take priority over city or town levies, but cities and towns may levy the tax within the limits and rate rules stated here.
The levy of the tax by a county shall preclude, to the extent of the county tax, any city or town within such county from levying the tax, but a city or town shall at any time have the right to levy the tax at a rate equal to the difference between the county tax and the maximum rate authorized in this chapter. For cities and towns having territory in more than one (1) county, “cities and towns” means that part of their territory in which they are not precluded by a county tax. Cities and towns having territory in more than one (1) county may levy the tax throughout the entire city or town at a rate equal to the difference between the lowest operative rate of any county in which the city is located and the maximum rate authorized in this chapter; provided, that if such rate levied should cause the total tax rate levied within any one (1) county in which the city or town is located to exceed the maximum rate authorized by this part, then only so much of the city or town levy as equals the difference between the county tax and the maximum rate authorized by this part shall become effective in the territory of the city or town located in such county. Nothing in this subdivision (a)(2) shall in any manner affect the priority of any county levy; provided, that nothing in this part shall permit any rate above the maximum rate authorized by this part to become effective. If an ordinance levying the tax authorized by this part is adopted by a city or town prior to adoption of the tax by the county in which the city or town is located, the effectiveness of the ordinance shall be suspended for a period of forty (40) days beyond the date on which it would otherwise be effective under the charter of the city or town. If during this forty-day period, the county legislative body adopts a resolution to levy the tax at least equal to the rate provided in such ordinance, the effectiveness of the ordinance shall be further suspended until it is determined whether the county tax is to be operative, as provided in § 67-6-706. If the county tax becomes operative by approval of the voters as provided in § 67-6-706, the ordinance shall be null and void, but if the county tax does not become operative, the ordinance shall become effective on the same date that the county tax is determined to be nonoperative, and the election required by § 67-6-706 shall be held. After initial adoption of the tax by a county or a city or town therein, the tax rate may be increased by a city, town or county under the same procedure. If the tax levied by a county legislative body is finally determined to be nonoperative, such action shall not preclude subsequent action by the county to adopt the tax at a rate at least equal to the city or town tax rate, in which event the city or town tax shall cease to be effective; provided, that the city or town shall receive from the county tax the same amounts as would have been received from the city or town tax until the end of the current fiscal year of the city or town.