2.__Transition; extraordinary events.__The appropriation limit established in subsection 1 must become effective for a county for its first full fiscal year following the effective date of this section.

A.__For purposes of determining the assessment limit for the first fiscal year for which this section is effective, the limit must be set at the amount assessed by the county on its member municipalities during the prior fiscal year multiplied by the following sum: one plus the income growth factor set forth in subsection 3 plus the annual property growth factor for its member municipalities set forth in subsection 1.

B.__In the event the prior year's assessment reflects the effect of extraordinary, nonrecurring events, the county may submit a written notice to the State Tax Assessor requesting an adjustment in the assessment calculation, which adjustment must be determined in a reasonable amount of time.

3.__Income growth factor.__The income growth factor applicable to fiscal years following the effective date of this section is the base growth factor, which for purposes of this section means the average real personal income growth rate as defined in Title 5, section 1665, subsection 1, which rate may not exceed 2.75%.__ For fiscal years commencing after such time as the state tax burden ranks in the middle 1/3 of all states, the growth factor must become the personal income growth factor as defined in Title 5, section 1664.__For purposes of this section, "state tax burden" has the same meaning as set forth in Title 5, section 1664.__For any fiscal year thereafter, if the State Tax Assessor determines pursuant to Title 5, section 1664 that the state tax burden has increased to the highest 1/3 of all states, the growth factor for the following fiscal year must be the base growth factor.__In all other fiscal years when the state tax burden ranks in the middle 1/3 of all states, the growth factor must be the personal income growth factor.

4.__Adjustment for new state funding.__In addition to subsection 3, if the State provides net new funds to a county for existing services funded in whole or in part by assessments, other than required state mandate funds pursuant to section 5685 that do not displace current assessment-based expenditures, the county must lower its assessment limit in that year in an amount equal to the net new funds.__For purposes of