HOUSE BILL NO. 507
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H0507...............................................by REVENUE AND TAXATION
PROPERTY TAX RATIO STUDY - Adds to existing law to provide a moratorium on
the ratio study required to be performed by the State Tax Commission by
Section 63-315, Idaho Code, on taxes imposed on property shown on the 2006
tax roll only; and to direct the State Tax Commission to perform a study on
the state's tax system and to provide recommendations and a report to the
legislature in 2007.
01/30 House intro - 1st rdg - to printing
01/31 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 507
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE ANNUAL RATIO STUDY ON PROPERTY TAXES AND TAXATION POLICY; PRO-
3 VIDING A MORATORIUM ON THE RATIO STUDY REQUIRED TO BE PERFORMED BY THE
4 STATE TAX COMMISSION BY SECTION 63-315, IDAHO CODE, ON TAXES IMPOSED ON
5 PROPERTY SHOWN ON THE 2006 TAX ROLL ONLY; DIRECTING THE STATE TAX COMMIS-
6 SION TO PERFORM A STUDY ON THE STATE'S TAX SYSTEM AND TO PROVIDE RECOMMEN-
7 DATIONS AND A REPORT TO THE LEGISLATURE IN 2007; AND DECLARING AN EMER-
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. The provisions of Section 63-315, Idaho Code, requiring the
11 State Tax Commission to annually ascertain the ratio between the market value
12 for assessment purposes of real property and the assessed valuation of real
13 property in each county and from that ratio to ascertain the adjusted value of
14 all property in each county, shall not apply to values established on the 2006
15 tax rolls only. There shall instead be a moratorium upon the ratio study for
16 2006 values only, and the provisions of Section 63-315, Idaho Code, shall be
17 inoperative except that the executive officer of the State Tax Commission
18 shall provide, on or before the first Monday of April of each year, the infor-
19 mation required to be provided to the Department of Education by the provi-
20 sions of Section 63-315, Idaho Code.
21 SECTION 2. The Idaho State Tax Commission is directed to conduct a com-
22 prehensive review of Idaho's current tax structure, including a review of
23 existing income and sales tax exemptions to determine whether they match the
24 existing economic composition of the state. In performing this study, the
25 State Tax Commission shall perform an in-depth analysis of major policy recom-
26 mendations including:
27 (1) Removal of school maintenance and operation from the property tax;
28 (2) Effectiveness of the existing budget limitation contained in Section
29 63-802, Idaho Code, including the three percent cap, new construction, and
30 foregone balances;
31 (3) Consideration of alternative budget limitations such as the consumer
32 price index or population growth;
33 (4) Impact of a one percent initiative on local governments;
34 (5) Efficiency of current tax collections; and
35 (6) Analysis of market based valuation requirements.
36 Additionally, the State Tax Commission shall investigate measures other
37 states have taken to effectively control the growth of property tax and shall
38 report its findings pursuant to this section to the Legislature no later than
39 January 10, 2007.
40 SECTION 3. An emergency existing therefor, which emergency is hereby
41 declared to exist, this act shall be in full force and effect on and after its
42 passage and approval.
STATEMENT OF PURPOSE
The purpose of this legislation is to provide a moratorium
that the ratio between the market value and the assessed value of
real property shall not apply to values established for 2006.
The legislation also directs the Idaho State Tax Commission
to conduct a comprehensive review of Idaho's current tax
structure, perform an in-depth analysis of major policy
recommendations, investigate measures other states have taken to
effectively control the growth of property taxes, and to report
findings to the legislature.
Name: Rep. Janice McGeachin
STATEMENT OF PURPOSE/FISCAL NOTE H 507