SENATE BILL NO. 1468
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S1468......................................................by STATE AFFAIRS
TAXING DISTRICT BUDGET NOTICE - Repeals, adds to and amends existing law to
repeal the three percent property tax cap effective January 1, 2008; to
require notice of proposed property tax budget increases of taxing
districts beyond a certain level; to provide requirements for notice; to
define a term; to provide alternatives to newspaper notice; to provide for
State Tax Commission rules; to limit legal actions to certain time periods
after the adoption of a taxing district's budget to which the notice
related; and to require that property tax notices supply an estimate for
the property of last year's assessed market value for assessment purposes,
this year's assessed market value for assessment purposes, last year's
actual taxes and this year's estimated taxes.
03/23 Senate intro - 1st rdg - to printing
03/24 Rpt prt - to Loc Gov
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE SENATE
SENATE BILL NO. 1468
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAXES; REPEALING SECTION 63-802, IDAHO CODE, RELATING TO
3 LIMITATION OF BUDGET REQUESTS OF TAXING DISTRICTS; AMENDING CHAPTER 8,
4 TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 63-802B, IDAHO
5 CODE, TO REQUIRE NOTICE OF PROPOSED PROPERTY TAX BUDGET INCREASES OF TAX-
6 ING DISTRICTS BEYOND A CERTAIN LEVEL, TO PROVIDE REQUIREMENTS FOR THE
7 NOTICE, TO DEFINE A TERM, TO PROVIDE ALTERNATIVES TO NEWSPAPER NOTICE, TO
8 PROVIDE FOR STATE TAX COMMISSION RULES AND TO LIMIT LEGAL ACTIONS TO CER-
9 TAIN TIME PERIODS AFTER THE ADOPTION OF A TAXING DISTRICT'S BUDGET TO
10 WHICH THE NOTICE RELATED AND THE REGULARITY OF SUCH NOTICE SHALL BE CON-
11 CLUSIVELY PRESUMED; AMENDING SECTION 63-308, IDAHO CODE, TO PROVIDE ADDI-
12 TIONAL INFORMATION TO BE INCLUDED ON VALUATION ASSESSMENT NOTICES FUR-
13 NISHED TO PROPERTY TAXPAYERS; AND PROVIDING EFFECTIVE DATES.
14 Be It Enacted by the Legislature of the State of Idaho:
15 SECTION 1. That Section 63-802, Idaho Code, be, and the same is hereby
17 SECTION 2. That Chapter 8, Title 63, Idaho Code, be, and the same is
18 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
19 ignated as Section 63-802B, Idaho Code, and to read as follows:
20 63-802B. TRUTH IN TAXATION -- NOTICE OF INCREASES IN PROPERTY TAXES. (1)
21 No taxing district shall certify to the board of county commissioners or to
22 the state tax commission an amount of property tax revenues to finance its
23 annual budget that exceeds by more than three percent (3%) of the amount of
24 property tax revenues certified to finance that district's annual budget for
25 the tax year preceding the current tax year until the taxing district shall
26 advertise its intent to adopt such a budget in a newspaper qualified for pub-
27 lication of legal notices by that taxing district under section 60-106, Idaho
29 (2) The notice shall be published in a prominent location in the main
30 news section of the newspaper once each week for the two (2) weeks preceding
31 the date, if any, of the budget hearing set pursuant to section 63-802A, Idaho
32 Code, or if no budget hearing is required, the adoption of the final budget.
33 (3) The notice shall include:
34 (a) A prominent bold typeface heading in type larger than the text of the
35 notice, the words: "NOTICE OF TAX INCREASE, ....(name of taxing dis-
36 trict)....". The taxing district shall supply an estimate in the notice
37 for typical homes with a $100,000 taxable value, typical farms with a
38 $150,000 taxable value, and typical businesses with $200,000 taxable
39 value, all valued during the past tax year, with the following estimates:
40 last year's taxable value, this year's estimated taxable value, last
41 year's actual taxes and this year's estimated taxes. The taxing district
42 may consult with the state tax commission in obtaining necessary estimates
1 for the purposes of this notice;
2 (b) The fact that the taxing district has proposed to increase the amount
3 of property tax revenue to fund its annual budget and the percentage of
4 the increase over the prior year's budget;
5 (c) The total amount of property tax revenue certified and approved by
6 the district under section 63-803, Idaho Code, for the prior year and the
7 total amount proposed to be so certified for the current year; and
8 (d) The time and place of the district's budget hearing, if a hearing is
9 required, that the hearings shall be open to the public, and, whether or
10 not a hearing is required, the means by which any person may submit writ-
11 ten comments on the budget at or before the time of the hearing.
12 (4) As used in this section, the term "amount of property tax revenues"
13 means the amount determined without regard to amounts applicable to voter
14 approved levies.
15 (5) Alternatively to the required newspaper notice, a taxing district may
16 substitute a single mailing notice to all district residents, providing that
17 the same information is given and providing that the notice shall be mailed at
18 least fourteen (14) days before the budget hearing set pursuant to section
19 63-802A, Idaho Code, or if no budget hearing is required, the adoption of the
20 final budget.
21 (6) The state tax commission may by rule establish additional require-
22 ments relating to content or form of the notice required by this section.
23 (7) No direct or collateral action attacking or otherwise questioning the
24 validity of any notice under this section shall be brought in any court by any
25 person for any cause whatsoever, after the expiration of thirty (30) days from
26 the adoption of the budget to which the notice related and the regularity of
27 such notice shall be conclusively presumed.
28 SECTION 3. That Section 63-308, Idaho Code, be, and the same is hereby
29 amended to read as follows:
30 63-308. VALUATION ASSESSMENT NOTICE TO BE FURNISHED TAXPAYER. (1) The
31 valuation assessment notice required under the provisions of this chapter
32 shall be delivered to the taxpayer, or to his agent or representative, or
33 mailed to the taxpayer, or to his agent or representative at his last known
34 post office address no later than the first Monday in June. The original valu-
35 ation assessment notice so mailed or delivered must contain notices of all
36 meetings of the board of equalization prescribed by this title for the pur-
37 poses of equalizing assessments of property, and for granting exemptions from
38 taxation. The notice shall, in clear terms, inform the taxpayer of the
39 assessed market value for assessment purposes of his property for the current
40 year, and his right to appeal to the county board of equalization. The notice,
41 at a minimum, shall show last year's assessed market value for assessment pur-
42 poses of the property, this year's assessed market value for assessment pur-
43 poses, last year's actual taxes and this year's estimated taxes. The state tax
44 commission may require that other data or information be shown on the form.
45 (2) In case any changes or corrections are made by the assessor from the
46 original valuation assessment notice, the assessor shall immediately deliver
47 or mail a corrected valuation assessment notice to the taxpayer, or his agent
48 or representative.
49 (3) If the taxpayer is one other than the equitable titleholder, such as
50 an escrowee, trustee of trust deed or other third party, the taxpayer shall
51 deliver to the equitable titleholder a true copy of the valuation assessment
52 notice on or before the second Monday in June.
53 (4) For property entered and assessed on the subsequent property roll
1 pursuant to section 63-311, Idaho Code, the valuation assessment notice shall
2 be delivered to the taxpayer, his agent or representative, or mailed to the
3 taxpayer, or to his agent or representative at his last known post office
4 address as soon as possible after it is prepared, but not later than the
5 fourth Monday in November.
6 (5) For property entered and assessed on the missed property roll pursu-
7 ant to section 63-311, Idaho Code, the valuation assessment notice shall be
8 delivered to the taxpayer, his agent or representative, or mailed to the tax-
9 payer, or to his agent or representative at his last known post office address
10 as soon as possible after it is prepared, but not later than the first Monday
11 of January of the following year.
12 SECTION 4. Section 1 of this act shall be in full force and effect on and
13 after January 1, 2008. Sections 2 and 3 of this act shall be in full force and
14 effect on and after January 1, 2007.
STATEMENT OF PURPOSE
The purpose of this legislation is to replace Idaho Code, Section
63-802 with a new section and to amend Idaho Code, Section 63-308.
Newly enacted Idaho Code, Section 63-302B would require a taxing
district to provide notice, by newspaper or mail, if the property
tax revenue portion of its annual budget increases by more than
three percent from the prior tax year. The amendment to Idaho
Code, Section 63-308 would require additional information on the
valuation notice sent to taxpayers.
Enactment of this legislation would have a neutral impact on the
state's general fund. Publication of notice in a newspaper of
general circulation would have a minimal cost to taxing districts.
Providing additional information on valuation assessment sent to
taxpayers would have a minimal cost to the counties.
Name: Senator Curt McKenzie
Senator Gerry Sweet
Senator Russ Fulcher
STATEMENT OF PURPOSE/FISCAL NOTE S 1468