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H0595...............................................by REVENUE AND TAXATION PUBLIC SCHOOL INDEBTEDNESS REDUCTION FUND - Adds to and amends existing law to create the Public School Indebtedness Reduction Fund, to describe the purposes of the fund and to distribute moneys. 02/02 House intro - 1st rdg - to printing 02/03 Rpt prt - to Rev/Tax
H0595|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 595 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO PUBLIC SCHOOL DISTRICT INDEBTEDNESS; AMENDING CHAPTER 9, TITLE 33, 3 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-905A, IDAHO CODE, TO CRE- 4 ATE THE PUBLIC SCHOOL INDEBTEDNESS REDUCTION FUND AND TO SPECIFY THE DIS- 5 TRIBUTION FROM THE FUND; AMENDING CHAPTER 9, TITLE 33, IDAHO CODE, BY THE 6 ADDITION OF A NEW SECTION 33-905B, IDAHO CODE, TO PROVIDE THE PURPOSE OF 7 MONEYS FROM THE PUBLIC SCHOOL INDEBTEDNESS REDUCTION FUND; AMENDING SEC- 8 TION 63-3638, IDAHO CODE, TO DISTRIBUTE MONEYS FROM THE SALES TAX DISTRI- 9 BUTION TO THE PUBLIC SCHOOL INDEBTEDNESS REDUCTION FUND AND TO MAKE TECH- 10 NICAL CORRECTIONS; AND PROVIDING AN EFFECTIVE DATE. 11 Be It Enacted by the Legislature of the State of Idaho: 12 SECTION 1. That Chapter 9, Title 33, Idaho Code, be, and the same is 13 hereby amended by the addition thereto of a NEW SECTION , to be 14 known and designated as Section 33-905A, Idaho Code, and to read as follows: 15 33-905A. PUBLIC SCHOOL INDEBTEDNESS REDUCTION FUND. (1) The state of 16 Idaho, recognizing the significant school facility needs documented to exist 17 throughout the state, establishes the public school indebtedness reduction 18 fund in the state treasury. The fund shall have paid into it such appropria- 19 tions or revenues as may be provided by law. Pending payments out of the fund, 20 the moneys in the fund shall be invested by the state treasurer in the same 21 manner as provided in section 67-1210, Idaho Code, with respect to other idle 22 moneys in the state treasury. Interest earned on the investments shall be 23 returned to the fund. 24 (2) The moneys in the fund are hereby appropriated to and shall be 25 expended by the state board of education as specified in this section. By no 26 later than August 31 of each year, moneys in the fund shall be distributed to 27 each of the school districts as follows: 28 (a) The fund shall first be distributed to school districts with bonded 29 indebtedness or plant facility debt in the ratio that the total of the 30 bonded indebtedness and plant facility debt of the district bears to the 31 total of bonded indebtedness and plant facility debt of all school dis- 32 tricts in the state. 33 (b) Any moneys remaining shall then be distributed to school districts in 34 the same ratio that the average daily attendance (ADA) of the district 35 bears to the total average daily attendance of the state during the previ- 36 ous school year. 37 SECTION 2. That Chapter 9, Title 33, Idaho Code, be, and the same is 38 hereby amended by the addition thereto of a NEW SECTION , to be 39 known and designated as Section 33-905B, Idaho Code, and to read as follows: 40 33-905B. PUBLIC SCHOOL INDEBTEDNESS REDUCTION FUND -- PURPOSE. Moneys in 41 the public school indebtedness reduction fund are available for use upon their 2 1 receipt in a school district. The district shall use the available funds 2 toward retirement of any existing indebtedness of the district. 3 SECTION 3. That Section 63-3638, Idaho Code, be, and the same is hereby 4 amended to read as follows: 5 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap- 6 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall 7 be distributed by the tax commission as follows: 8 (a) An amount of money shall be distributed to the state refund account 9 sufficient to pay current refund claims. All refunds authorized under this 10 chapter by the commission shall be paid through the state refund account, and 11 those moneys are continuously appropriated. 12 (b) Five hundred thousand dollars ($500,000) per year is continuously 13 appropriated and shall be distributed to the permanent building account, pro- 14 vided by section 57-1108, Idaho Code. 15 (c) Four million eight hundred thousand dollars ($4,800,000) per year is 16 continuously appropriated and shall be distributed to the water pollution con- 17 trol account established by section 39-3605, Idaho Code. 18 (d) (1) An amount equal to the sum required to be certified by the chair- 19 man of the Idaho housing and finance association to the state tax commis- 20 sion pursuant to section 67-6211, Idaho Code, in each year is continuously 21 appropriated and shall be paid to any capital reserve fund, established by 22 the Idaho housing and finance association pursuant to section 67-6211, 23 Idaho Code. Such amounts, if any, as may be appropriated hereunder to the 24 capital reserve fund of the Idaho housing and finance association shall be 25 repaid for distribution under the provisions of this section, subject to 26 the provisions of section 67-6215, Idaho Code, by the Idaho housing and 27 finance association, as soon as possible, from any moneys available there- 28 for and in excess of the amounts which the association determines will 29 keep it self-supporting. 30 (2) An amount equal to the sum required by the provisions of section 31 63-709, Idaho Code, is continuously appropriated and shall be paid as pro- 32 vided by section 63-709, Idaho Code. 33 (3) An amount required by the provisions of section 33-1002D, Idaho Code. 34 (e) Sixper centpercent (6%) is hereby appro- 35 priated and shall be paid to the county treasurer of each county in amounts to 36 be determined as follows: 37 (1) Each taxing district other than school districts shall be entitled to 38 a base share of sales tax moneys equal to the amount distributed to that 39 district for the fourth calendar quarter of 1979. The computation shall 40 not include any distributions made to the credit of either the former 41 county school levy or the state water pollution control levy. The percent- 42 age so determined for each taxing district shall be applied each quarter 43 to the above percentage of sales tax. The resulting sums shall be paid to 44 the county treasurer of each county for distribution to each taxing dis- 45 trict, except school districts, which received sales tax moneys in 1979. 46 Whenever a taxing district is dissolved, the dissolved district's share of 47 sales moneys shall be credited continuously to the county current expense 48 fund. 49 (2) Whenever the amount of nonschool district sales tax moneys distrib- 50 uted exceeds in any quarter the total amount of moneys distributed to non- 51 school districts for the base quarter, which is the fourth calendar quar- 52 ter of 1979, by tenper centpercent (10%), or 53 more, the excess of the base quarter shall be paid to the county treasurer 3 1 of each county for distribution to each taxing district in the county, 2 except school districts, in the following manner. 3 The state tax commission shall compute the percentage that the aver- 4 age amount of taxes collected from assessments for the years 1965, 1966 5 and 1967 on the personal property described as business inventory in sub- 6 sections (1) and (2) of section 63-602W, Idaho Code, for each county 7 bears to the average total amount of taxes collected from assessments for 8 said years on the personal property described as business inventory in 9 subsections (1) and (2) of section 63-602W, Idaho Code, for all counties 10 in the state. The percentage so determined for each county shall be 11 applied to the sales tax distributed under this subsection and the result- 12 ing sum shall be paid to the county treasurer of each county for distribu- 13 tion to each taxing district, except school districts, in the county as 14 follows: 15 (i) Each year the county commissioners in each county shall take 16 the tax charge, applicable to the current property roll equalized by 17 county commissioners sitting as a board of equalization, of each tax- 18 ing district within the county, except school districts, and divide 19 it by the total current tax charges applicable to the current prop- 20 erty roll of all taxing districts, except school districts, within 21 said county and the resulting percentages shall be applied to the 22 county's proportionate share of said sales tax account and the 23 resulting amount shall be distributed to each taxing district in the 24 county periodically but not less frequently than quarterly by the 25 county auditor and applied by such taxing districts in the same man- 26 ner and in the same proportions as revenues from property taxation. 27 (ii) The moneys set aside and appropriated to the county treasurer 28 out of the sales tax account above may be considered by the counties 29 and other taxing districts and budgeted against at the same time, in 30 the same manner and in the same year as revenues from taxation on all 31 classes of personal property which these moneys replace. 32 (3) All moneys distributed pursuant to subsection (e) shall be subject to 33 the redistribution provisions of section 40-801, Idaho Code, where appli- 34 cable. 35 (f) One dollar ($1.00) on each application for certificate of title to a 36 motor vehicle, or initial application for registration processed by the county 37 assessor or the Idaho transportation department excepting those applications 38 in which any sales or use taxes due have been previously collected by a 39 retailer, shall be a fee for the services of the assessor of the county or the 40 Idaho transportation department in collecting such taxes, and shall be paid 41 into the current expense fund of the county or state highway account estab- 42 lished in section 40-702, Idaho Code. 43 (g) Seven and three-quartersper centpercent 44 (7.75%) is continuously appropriated and shall be distributed to the revenue 45 sharing account which is created in the state operating fund, and the moneys 46 in the revenue sharing account will be paid by the tax commission as follows: 47 (1) One-half (1/2) shall be paid to the various cities as follows: 48 (i) Fiftyper centpercent (50%) of such 49 amount shall be paid to the various cities, and each city shall be 50 entitled to an amount in the proportion that the population of that 51 city bears to the population of all cities within the state; and 52 (ii) Fiftyper centpercent (50%) of such 53 amount shall be paid to the various cities, and each city shall be 54 entitled to an amount in the proportion that the preceding year's 55 market value for assessment purposes for that city bears to the pre- 4 1 ceding year's market value for assessment purposes for all cities 2 within the state. 3 (2) One-half (1/2) shall be paid to the state's general account or to the 4 various counties as follows: 5 (i) One million three hundred twenty thousand dollars ($1,320,000) 6 shall be distributed one forty-fourth (1/44) to each of the various 7 counties; and 8 (ii) The balance of such amount shall be paid to the various coun- 9 ties, and each county shall be entitled to an amount in the propor- 10 tion that the population of that county bears to the population of 11 the state. 12 (h) Fifteen million dollars ($15,000,000) per year is continuously 13 appropriated and shall be distributed to the public school indebtedness reduc- 14 tion fund established in section 33-905A, Idaho Code. 15 (i) Any moneys remaining over and above those necessary to meet 16 and reserve for payments under other subsections of this section shall be dis- 17 tributed to the general account. 18 SECTION 4. This act shall be in full force and effect on and after July 19 1, 1999.
STATEMENT OF PURPOSE
RS 0763lC1
The purpose of this legislation is to amend Chapter 9,
Title 33; by creating two (2) new sections; 33-905A Public
School Indebtedness Reduction Fund and 33-905B. Public
School Indebtedness Reduction Fund to Idaho Code; it adds
language to create a Public Indebtedness Reduction Fund in
the state treasury. The money in the fund shall be
distributed to the school districts with bonded
indebtedness or plant facility debt. This legislation
amends Title 3-3638.
FISCAL NOTE
The sales tax revenue going to the General Fund will
be reduced by $15 million on an annual basis.
CONTACT: Representative Jim Clark
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE
Bill No. H 595