1998 Legislation
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HOUSE BILL NO. 595 – Public school indebtedness reductn

HOUSE BILL NO. 595

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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

Bill Text


H0595


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                             IN 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)  Six   per cent   percent  (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 ten  per cent   percent   (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-quarters  per cent    percent  
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)  Fifty    per cent   percent  (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)  Fifty  per cent   percent  (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-


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 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 / Fiscal Impact


    





                          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