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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 - 2006IN 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 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