2006 Legislation
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HOUSE BILL NO. 507 – Property tax ratio study/moratorium

HOUSE BILL NO. 507

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              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-
  8        GENCY.
                                                                        
  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 / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15810

     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.


  
                           FISCAL NOTE

None



Contact
Name:  Rep. Janice McGeachin  
Phone: 332-1000  




STATEMENT OF PURPOSE/FISCAL NOTE                         H 507