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H0490...............................................by REVENUE AND TAXATION
AUDITORIUM DISTRICTS - LEVYING AUTHORITY - Amends existing law to revise
the contents for a petition to organize an auditorium district, to reduce
the population for auditorium districts that shall have no power to levy
and collect property taxes and to reduce the population for auditorium
districts that have the power and authority to collect property taxes.
01/21 House intro - 1st rdg - to printing
01/22 Rpt prt - to Rev/Tax
02/03 Rpt out - rec d/p - to 2nd rdg
02/04 2nd rdg - to 3rd rdg
02/05 3rd rdg - PASSED - 65-2-3
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
Black(15), Black(23), Bruneel, Callister, Campbell, Chase, Clark,
Crane, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20),
Gagner, Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck, Jaquet,
Jones(9), Jones(20), Judd, Kellogg, Kendell, Kjellander, Kunz, Lake,
Linford, Loertscher, Mader, Marley, McKague, Meyer, Miller,
Mortensen, Pischner, Pomeroy, Reynolds, Richman, Ridinger, Robison,
Sali, Schaefer, Stevenson, Stoicheff, Stone, Stubbs, Tilman, Tippets,
Trail, Watson, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- Boe, Taylor
Absent and excused -- Jones(22), Kempton, Newcomb
Floor Sponsor - Crow
Title apvd - to Senate
02/06 Senate intro - 1st rdg - to Loc Gov
02/12 Rpt out - rec d/p - to 2nd rdg
02/13 2nd rdg - to 3rd rdg
02/20 3rd rdg - PASSED - 34-0-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett,
Sweeney, Thorne, Wheeler, Whitworth
NAYS--None
Absent and excused--Twiggs
Floor Sponsor - Thorne
Title apvd - to House
02/23 To enrol
02/24 Rpt enrol - Sp signed
02/25 Pres signed
02/26 To Governor
03/02 Governor signed
Session Law Chapter 21
Effective: 07/01/98
H0490|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 490 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO AUDITORIUM DISTRICTS; AMENDING SECTION 67-4902, IDAHO CODE, TO 3 REVISE DEFINITIONS AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 4 67-4904, IDAHO CODE, TO REVISE THE CONTENTS FOR A PETITION; AMENDING SEC- 5 TION 67-4907, IDAHO CODE, TO REDUCE THE POPULATION FOR DISTRICTS THAT 6 SHALL HAVE NO POWER TO LEVY AND COLLECT AD VALOREM TAXES; AMENDING SECTION 7 67-4912, IDAHO CODE, TO REVISE POWERS OF THE BOARD AND TO MAKE TECHNICAL 8 CORRECTIONS; AND AMENDING SECTION 67-4913, IDAHO CODE, TO REDUCE THE POPU- 9 LATION FOR DISTRICTS THAT HAVE THE POWER AND AUTHORITY TO COLLECT AD VALO- 10 REM TAXES, TO PROVIDE CLARIFICATION AND TO MAKE TECHNICAL CORRECTIONS. 11 Be It Enacted by the Legislature of the State of Idaho: 12 SECTION 1. That Section 67-4902, Idaho Code, be, and the same is hereby 13 amended to read as follows: 14 67-4902. DEFINITIONS. An auditorium or community center district is one 15 to build, operate, maintain , market and manage for public, com- 16 mercial and/or industrial purposes by any available means public auditoriums, 17 exhibition halls, convention centers, sports arenas and facilities of a simi- 18 lar nature, and for that purpose any such district shall have the power to 19 construct, maintain, manage , market and operate such facilities. 20 A district may be entirely within or entirely without, or partly within 21 and partly without one (1) or more municipalities or counties, 22 and the district may consist of noncontiguous tracts or parcels of property. 23 The word "board" as used in this chapter shall mean the board of directors 24 of a district. 25 A "qualified elector" of a district, within the meaning of and entitled to 26 vote under this chapter, is a person who resides in the district and is other- 27 wise qualified under section 34-104, Idaho Code. 28 Wherever the term "publication" is used in this chapter it means publica- 29 tion twice, the first time not less than twelve (12) days prior to an elec- 30 tion, and the second time not less than five (5) days prior to an election, as 31 provided in section 34-1406, Idaho Code. 32 SECTION 2. That Section 67-4904, Idaho Code, be, and the same is hereby 33 amended to read as follows: 34 67-4904. PETITION -- CONTENTS -- AMENDMENTS. The organization of a dis- 35 trict shall be initiated by a petition filed in the office of the clerk of the 36 court vested with jurisdiction, in a county in which the major part of the 37 real property in the proposed district is situated. The petition shall be 38 signed by not less than ten percent (10%) of the qualified electors who reside 39 within the boundaries of the proposed district, and not less than ten (10) of 40 whom shall reside in each election precinct which is wholly or partially 41 within the boundaries of any such proposed district. 2 1 The petition shall set forth: 2 (1) The name of the proposed district consisting of a chosen name preced- 3 ing the words, "auditorium or community center district." 4 (2) A general description of the facilities to be constructed or 5 marketing programs or both within and for the district. 6 (3) The estimated cost of the proposed facilities or marketing pro- 7 grams or both . 8 (4) A general description of the boundaries of the district or the terri- 9 tory to be included therein, with such certainty as to enable a property owner 10 to determine whether or not his property is within the district. 11 (5) A prayer for the organization of the district. 12 No petition with the requisite signatures shall be declared null and void 13 on account of alleged defects, but the court may at any time permit the peti- 14 tion to be amended to conform to the facts by correcting any errors in the 15 description of the territory, or in any other particular. Similar petitions or 16 duplicate copies of the same petition for the organization of the same dis- 17 trict may be filed and shall together be regarded as one (1) petition. All 18 such petitions filed prior to the hearing on the first petition filed, shall 19 be considered by the court the same as though filed with the first petition 20 placed on file. 21 SECTION 3. That Section 67-4907, Idaho Code, be, and the same is hereby 22 amended to read as follows: 23 67-4907. HEARINGS ON PETITIONS -- ELECTION FOR ORGANIZATION AND OFFICERS. 24 On the day fixed for such hearing or at an adjournment thereof the court shall 25 ascertain from the tax rolls of the county or counties in which the district 26 is located or into which it extends, the total number of taxpayers within the 27 proposed district, who pay a general tax on real property owned by him or her 28 within the district. 29 If the court finds that no petition has been signed and presented in con- 30 formity with this chapter, or that the material facts are not as set forth in 31 the petition filed, it shall dismiss said proceedings and adjudge the costs 32 against the signers of the petition in such proportion as it shall deem just 33 and equitable. No appeal or writ of error shall lie from an order dismissing 34 said proceedings; but nothing herein shall be construed to prevent the filing 35 of a subsequent petition or petitions for similar improvements or for a simi- 36 lar district, and the right so to renew such proceedings is hereby expressly 37 granted and authorized. 38 Any time after the filing of the petition for the organization of a dis- 39 trict and before the day fixed for the hearing thereon, the owner or owners of 40 any real property within the proposed district may file a petition with the 41 district court stating reasons why said property should not be 42 included therein, why his land or any part thereof will not be benefited 43 directly or indirectly by the proposed district, or should not be embraced in 44 said district and made liable to taxation therefor, and praying that said 45 property be excluded therefrom. Such petition shall be duly verified and shall 46 describe the property sought to be excluded. The court shall conduct a hearing 47 on said petition and shall hear all objections to the inclusion in the dis- 48 trict of any lands described in said petition. In case any owner of real 49 estate included in said proposed district shall satisfy the court that his 50 real estate, or any part thereof, has been wrongfully included therein or will 51 not be benefited thereby then the court shall exclude such real estate as will 52 not be benefited. 53 Upon said hearing, if it shall appear that a petition for the organization 3 1 of a district has been signed and presented as hereinabove provided, in con- 2 formity with this chapter, and that the allegations of the petition are true, 3 the court shall, by order duly entered of record, direct that the question of 4 the organization of the district shall be submitted to the qualified electors 5 of the district at an election to be held, subject to the provisions of sec- 6 tion 34-106, Idaho Code, for that purpose, and such order shall appoint three 7 (3) qualified electors of the district as judges of said election. The clerk 8 of the court having jurisdiction shall give published notice of the time and 9 place of an election to be held in the district. 10 Such election shall be held and conducted in the same manner as general 11 elections in this state. 12 At any time after the filing of the petition herein referred to and before 13 the day fixed for hearing, nominees for the board of directors of the district 14 may be nominated by the filing of a petition designating the name or names of 15 the nominee or nominees, signed by at least five (5) qualified electors of the 16 district. If upon the hearing as herein provided the court shall order an 17 election for the creation of the district, the court shall also ascertain the 18 names of persons nominated by the board of directors, and shall order that the 19 names of persons whom the court finds to have been properly nominated shall be 20 listed upon a ballot submitted to the electors at such election. In the event 21 the court makes its order providing for such election, it shall prescribe the 22 form of the question and ballot relating to the election of the directors, 23 provided that all matters may be contained upon one (1) ballot to be submitted 24 to the voters. 25 At such election the voters shall vote for or against the organization of 26 the district, and for five (5) qualified electors, who shall constitute the 27 board of directors of the district, if organized, one (1) director to act 28 until the first biennial election, two (2) until the second, and two (2) until 29 the third biennial election. 30 The judges of election shall certify the returns of the election to the 31 district court having jurisdiction. If a majority of the votes cast at said 32 election are in favor of the organization, the district court shall declare 33 the district organized and give it a corporate name by which, in all proceed- 34 ings, it shall thereafter be known, and designated the first board of direc- 35 tors elected, and thereupon the district shall be a governmental subdivision 36 of the state of Idaho and a body corporate with all the powers of a public or 37 quasi-municipal corporation except that districts formed prior to January 1, 38 1987, or districts withone hundredtwenty-five 39 thousand (10025 ,000) or more population shall have 40 no power to levy and collect ad valorem taxes. 41 If an order be entered establishing the district, such order shall be 42 deemed final and no appeal or writ of error shall lie therefrom, and the entry 43 of such order shall finally and conclusively establish the regular organiza- 44 tion of the said district against all persons except the state of Idaho, in an 45 action in the nature of a writ of quo warranto, commenced by the attorney gen- 46 eral within thirty (30) days after said decree declaring such district orga- 47 nized as herein provided, and not otherwise. The organization of said district 48 shall not be directly or collaterally questioned in any suit, action or pro- 49 ceeding except as herein expressly authorized. 50 SECTION 4. That Section 67-4912, Idaho Code, be, and the same is hereby 51 amended to read as follows: 52 67-4912. GENERAL POWERS OF BOARD. For and on behalf of the district the 53 board shall have the following powers: 4 1 (a) To have perpetual existence; 2 (b) To have and use a corporate seal; 3 (c) To sue and be sued, and be a party to suits, actions, and proceed- 4 ings; 5 (d) Except as otherwise provided in this act, to enter into contracts and 6 agreements, cooperative and otherwise, affecting the affairs of the district, 7 including contracts with the United States of America and any of its agencies 8 or instrumentalities, and contracts with corporations, public or private, 9 municipalities, or governmental subdivisions, and to cooperate with any one 10 (1) or more of them in building, erecting , marketing 11 or constructing facilities within the district. Except in cases in which a 12 district will receive aid from a governmental agency, a notice shall be pub- 13 lished for bids on all construction contracts for work or material, or both, 14 involving an expense of five thousand dollars ($5,000) or more. The district 15 may reject any and all bids, and if it shall appear that the district can per- 16 form the work or secure material for less than the lowest bid, it may proceed 17 so to do; 18 (e) To borrow money and incur indebtedness and evidence the same by cer- 19 tificate, notes or debentures, and to issue bonds, in accordance with the pro- 20 visions of this act; 21 (f) To acquire, dispose of and encumber real and personal property, and 22 any interest therein, including leases and easements within said district; 23 (g) To refund any bonded indebtedness of the district without any elec- 24 tion; provided, however, that the obligations of the district shall not be 25 increased by any refund of bonded indebtedness. Otherwise the terms and condi- 26 tions of refunding bonds shall be substantially the same as those of an origi- 27 nal issue of bonds; 28 (h) To have the management, control and supervision of all the business 29 and affairs of the district, and the construction, installation, operation and 30 maintenance of district facilities therein or therefor; 31 (i) To hire and retain agents, employees, engineers and attorneys; 32 (j) To construct and maintain works and establish and maintain facilities 33 across or along any public street or highway, and in, upon or over any vacant 34 public lands, which public lands are now, or may become, the property of the 35 state of Idaho, and to construct works and establish and maintain facilities 36 across any stream of water orwater coursewatercourse 37 ; provided, however, that the district shall promptly restore any such 38 street or highway to its former state of usefulness as nearly as may be, and 39 shall not use the same in such manner as to completely or unnecessarily impair 40 the usefulness thereof; 41 (k) To fix and from time to time to increase or decrease rates, tolls or 42 charges for services or facilities furnished by the district, and to pledge 43 such revenue for the payment of any indebtedness of the district. The board 44 shall fix rates, tolls and charges; 45 (l) To petition to enlarge the district by obtaining the consent of not 46 less than tenper centpercent (10%) of the quali- 47 fied electors of any area to be so included, and then to follow the procedure 48 set forth herein for creating said district; 49 (m) To promote any functions for said district, provided that said board 50 shall not engage in operations that are inconsistent with the purpose of said 51 district; and it shall be the policy of the board not to compete with existing 52 facilities and services in the district, wherever practicable; 53 (n) To adopt and amend by-laws not in conflict with the constitution and 54 laws of the state for carrying on the business, objects and affairs of the 55 board and of the districts; 5 1 (o) To have and exercise all rights and powers necessary or incidental to 2 or implied from the specific powers granted herein, except that districts 3 formed prior to January 1, 1987, or districts withone hundred4 twenty-five thousand (10025 ,000) or 5 more population shall have no power to levy and collect ad valorem taxes. Such 6 specific powers shall not be considered as a limitation upon any power neces- 7 sary or appropriate to carry out the purposes and intent of this act. 8 SECTION 5. That Section 67-4913, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 67-4913. TAXES. In addition to the other means providing revenue for such 11 districts as herein provided, in those districts formed after January 1, 1987, 12 or in those districts withone hundredtwenty-five 13 thousand (10025 ,000) or fewer population, the board 14 shall have power and authority to levy and collect ad valorem taxes on and 15 against all taxable property within the district , provided said 16 ad valorem taxes shall not exceed a levy of four-hundredthsper cent17percent (.04%) of market value for assessment purposes for 18 all levies provided in sections 67-4913, 67-4914, 67-4915, 67-4916 and 19 67-4917, Idaho Code. Districts with a population of more than twenty- 20 five thousand (25,000) persons shall not have the power and authority to levy 21 and collect ad valorem taxes on and against all taxable property within the 22 district.
STATEMENT OF PURPOSE
RS 07566C1
The proposal relates to funding of auditorium or
community center districts. The proposal will prohibit the
use of ad valorem taxation in those districts which have a
population base of more than 25,000.
Current law permits auditorium or community center
districts formed after January 1, 1987, or which have less
than 100,000 population within the district, to fund the
district operations by ad valorem taxes not to exceed .04% of
market value for assessment purposes, or by the imposition of
a hotel/motel room sales tax of not to exceed 5% of the room
rental receipts. Districts formed prior to January 1, 1987, or
which have a population of more than 100,000 population may
not levy ad valorem taxes; the hotel/motel sales tax is the
only funding mechanism allowed for those districts. This
proposal will remove the power of districts with population in
excess of 25,000 inhabitants to impose ad valorem taxes to
fund the auditorium district.
Removal of ad valorem taxes as the funding mechanism for
proposed districts with a population base in excess of 25,000
will greatly aid in gaining public approval for the formation
of new districts in such cities as Idaho Falls, Pocatello,
Twin Falls, Nampa, Caldwell, Lewiston, and Coeur d'Alene and
aid in their economic growth.
The proposal also clarifies current law by explicitly
authorizing the use of district funds for the purpose of
marketing the district's auditorium, convention center or
other community center.
FISCAL NOTE
There is no fiscal impact to the state, and the
districts formed must be self-supporting units.
CONTACT:
Rep. Dolores Crow
STATEMENT OF PURPOSE/FISCAL NOTE
Bill No. H490