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H0715...............................................by REVENUE AND TAXATION SCHOOL FACILITY SUPPORT FUND - Amends and adds to existing law to create an Idaho School Facility Support Fund for purposes of distributing funds from a 1/2% increase in the sales and use tax to school districts for facilities. 02/16 House intro - 1st rdg - to printing 02/17 Rpt prt - to Rev/Tax
H0715|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 715 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO PUBLIC SCHOOL FACILITY FUNDING; AMENDING CHAPTER 9, TITLE 33, 3 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-905A, IDAHO CODE, TO CRE- 4 ATE THE IDAHO SCHOOL FACILITY SUPPORT FUND; AMENDING CHAPTER 9, TITLE 33, 5 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-905B, IDAHO CODE, TO PRO- 6 VIDE THE PURPOSES OF THE IDAHO SCHOOL FACILITY SUPPORT FUND; AMENDING SEC- 7 TION 63-3638, IDAHO CODE, TO PROVIDE A DISTRIBUTION OF SALES AND USE TAX 8 TO THE CREDIT OF THE SCHOOL FACILITY SUPPORT FUND AND TO MAKE TECHNICAL 9 CORRECTIONS; AND AMENDING CHAPTER 36, TITLE 63, IDAHO CODE, BY THE ADDI- 10 TION OF A NEW SECTION 63-3640, IDAHO CODE, TO IMPOSE A SURCHARGE TAX OF 11 ONE-HALF PERCENT UPON THE SALES AND USE TAX AND TO PROVIDE DISTRIBUTION OF 12 THE SURCHARGE PROCEEDS. 13 Be It Enacted by the Legislature of the State of Idaho: 14 SECTION 1. That Chapter 9, Title 33, Idaho Code, be, and the same is 15 hereby amended by the addition thereto of a NEW SECTION , to be 16 known and designated as Section 33-905A, Idaho Code, and to read as follows: 17 33-905A. IDAHO SCHOOL FACILITY SUPPORT FUND. (1) The state of Idaho, rec- 18 ognizing the significant school facility needs documented to exist throughout 19 the state, establishes the Idaho school facility support fund in the state 20 treasury. The fund shall have paid into it such appropriations or revenues as 21 may be provided by law. Pending payments out of the fund, the moneys in the 22 fund shall be invested by the state treasurer in the same manner as provided 23 under section 67-1210, Idaho Code, with respect to other idle moneys in the 24 state treasury. Interest earned on the investments shall be returned to the 25 fund. 26 (2) The moneys in the fund are hereby appropriated to and shall be 27 expended by the state board of education as specified in this section. By not 28 later than August 31 of each year, moneys in the fund shall be distributed to 29 each of the several school districts as follows: 30 (a) Fifty percent (50%) shall be distributed in the same ratio that the 31 average daily attendance of that district bears to the total average daily 32 attendance of the state during the previous school year; and 33 (b) Fifty percent (50%) shall be distributed in the same ratio that the 34 payment from the public school income fund to the district for the preced- 35 ing year was to the total payments to all school districts for the preced- 36 ing 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. IDAHO SCHOOL FACILITY SUPPORT FUND -- PURPOSES. Moneys in the 41 Idaho school facility support fund are available for use upon their receipt by 2 1 a school district. If the district has existing bonded indebtedness, not less 2 than one-third (1/3) of the annual receipts shall be applied to the reduction 3 of that indebtedness. The related property tax levy shall be adjusted to 4 reflect the amount of receipts applied to the outstanding indebtedness either 5 by reducing the current year's levy or by reducing the duration of the levy. 6 The district may use the available funds to: acquire, purchase or improve a 7 school site or school sites; build a schoolhouse or schoolhouses or other 8 building or buildings; demolish or remove school buildings; add to or remodel 9 any existing building; furnish and equip any building or buildings, including 10 all lighting, heating, ventilation and sanitation facilities and appliances 11 necessary to maintain and operate the buildings of the district. In addition, 12 the moneys in the fund may be used in the following manner: 13 (1) A school district may accumulate the revenue received pursuant to 14 this section in an account established for that purpose to be used by the dis- 15 trict to accomplish any purpose specified in this section. 16 (2) A school district may apply the revenue received pursuant to this 17 section toward further retirement of any existing bonded indebtedness of the 18 district. 19 (3) (a) By not later than December 1, each school district shall report 20 to the state department of education the projects on which moneys received 21 from the school district facility support fund were expended. The state 22 department of education shall transmit a summary of such reports to the 23 legislature by not later than January 15 of the following year. 24 (b) By not later than December 1, each school district shall report to 25 the state department of education the planned uses for the moneys received 26 from the school district facility support fund. The state department of 27 education shall transmit a summary of the reports to the legislature by 28 not later than January 15 of the following year. 29 SECTION 3. That Section 63-3638, Idaho Code, be, and the same is hereby 30 amended to read as follows: 31 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap- 32 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall 33 be distributed by the tax commission as follows: 34 (a) An amount of money shall be distributed to the state refund account 35 sufficient to pay current refund claims. All refunds authorized under this 36 chapter by the commission shall be paid through the state refund account, and 37 those moneys are continuously appropriated. 38 (b) Five hundred thousand dollars ($500,000) per year is continuously 39 appropriated and shall be distributed to the permanent building account, pro- 40 vided by section 57-1108, Idaho Code. 41 (c) Four million eight hundred thousand dollars ($4,800,000) per year is 42 continuously appropriated and shall be distributed to the water pollution con- 43 trol account established by section 39-3605, Idaho Code. 44 (d) (1) An amount equal to the sum required to be certified by the chair- 45 man of the Idaho housing and finance association to the state tax commis- 46 sion pursuant to section 67-6211, Idaho Code, in each year is continuously 47 appropriated and shall be paid to any capital reserve fund, established by 48 the Idaho housing and finance association pursuant to section 67-6211, 49 Idaho Code. Such amounts, if any, as may be appropriated hereunder to the 50 capital reserve fund of the Idaho housing and finance association shall be 51 repaid for distribution under the provisions of this section, subject to 52 the provisions of section 67-6215, Idaho Code, by the Idaho housing and 53 finance association, as soon as possible, from any moneys available there- 3 1 for and in excess of the amounts which the association determines will 2 keep it self-supporting. 3 (2) An amount equal to the sum required by the provisions of section 4 63-709, Idaho Code, is continuously appropriated and shall be paid as pro- 5 vided by section 63-709, Idaho Code. 6 (3) An amount required by the provisions of section 33-1002D, Idaho Code. 7 (e) Sixper centpercent (6%) is hereby appro- 8 priated and shall be paid to the county treasurer of each county in amounts to 9 be determined as follows: 10 (1) Each taxing district other than school districts shall be entitled to 11 a base share of sales tax moneys equal to the amount distributed to that 12 district for the fourth calendar quarter of 1979. The computation shall 13 not include any distributions made to the credit of either the former 14 county school levy or the state water pollution control levy. The percent- 15 age so determined for each taxing district shall be applied each quarter 16 to the above percentage of sales tax. The resulting sums shall be paid to 17 the county treasurer of each county for distribution to each taxing dis- 18 trict, except school districts, which received sales tax moneys in 1979. 19 Whenever a taxing district is dissolved, the dissolved district's share of 20 sales moneys shall be credited continuously to the county current expense 21 fund. 22 (2) Whenever the amount of nonschool district sales tax moneys distrib- 23 uted exceeds in any quarter the total amount of moneys distributed to non- 24 school districts for the base quarter, which is the fourth calendar quar- 25 ter of 1979, by tenper centpercent (10%), or 26 more, the excess of the base quarter shall be paid to the county treasurer 27 of each county for distribution to each taxing district in the county, 28 except school districts, in the following manner. 29 The state tax commission shall compute the percentage that the aver- 30 age amount of taxes collected from assessments for the years 1965, 1966 31 and 1967 on the personal property described as business inventory in sub- 32 sections (1) and (2) of section 63-602W, Idaho Code, for each county bears 33 to the average total amount of taxes collected from assessments for said 34 years on the personal property described as business inventory in subsec- 35 tions (1) and (2) of section 63-602W, Idaho Code, for all counties in the 36 state. The percentage so determined for each county shall be applied to 37 the sales tax distributed under this subsection and the resulting sum 38 shall be paid to the county treasurer of each county for distribution to 39 each taxing district, except school districts, in the county as follows: 40 (i) Each year the county commissioners in each county shall take 41 the tax charge, applicable to the current property roll equalized by 42 county commissioners sitting as a board of equalization, of each tax- 43 ing district within the county, except school districts, and divide 44 it by the total current tax charges applicable to the current prop- 45 erty roll of all taxing districts, except school districts, within 46 said county and the resulting percentages shall be applied to the 47 county's proportionate share of said sales tax account and the 48 resulting amount shall be distributed to each taxing district in the 49 county periodically but not less frequently than quarterly by the 50 county auditor and applied by such taxing districts in the same man- 51 ner and in the same proportions as revenues from property taxation. 52 (ii) The moneys set aside and appropriated to the county treasurer 53 out of the sales tax account above may be considered by the counties 54 and other taxing districts and budgeted against at the same time, in 55 the same manner and in the same year as revenues from taxation on all 4 1 classes of personal property which these moneys replace. 2 (3) All moneys distributed pursuant to subsection (e) shall be subject to 3 the redistribution provisions of section 40-801, Idaho Code, where appli- 4 cable. 5 (f) One dollar ($1.00) on each application for certificate of title to a 6 motor vehicle, or initial application for registration processed by the county 7 assessor or the Idaho transportation department excepting those applications 8 in which any sales or use taxes due have been previously collected by a 9 retailer, shall be a fee for the services of the assessor of the county or the 10 Idaho transportation department in collecting such taxes, and shall be paid 11 into the current expense fund of the county or state highway account estab- 12 lished in section 40-702, Idaho Code. 13 (g) Seven and three-quartersper centpercent 14 (7.75%) is continuously appropriated and shall be distributed to the revenue 15 sharing account which is created in the state operating fund, and the moneys 16 in the revenue sharing account will be paid by the tax commission as follows: 17 (1) One-half (1/2) shall be paid to the various cities as follows: 18 (i) Fiftyper centpercent (50%) of such 19 amount shall be paid to the various cities, and each city shall be 20 entitled to an amount in the proportion that the population of that 21 city bears to the population of all cities within the state; and 22 (ii) Fiftyper centpercent (50%) of such 23 amount shall be paid to the various cities, and each city shall be 24 entitled to an amount in the proportion that the preceding year's 25 market value for assessment purposes for that city bears to the pre- 26 ceding year's market value for assessment purposes for all cities 27 within the state. 28 (2) One-half (1/2) shall be paid to the state's general account or to the 29 various counties as follows: 30 (i) One million three hundred twenty thousand dollars ($1,320,000) 31 shall be distributed one forty-fourth (1/44) to each of the various 32 counties; and 33 (ii) The balance of such amount shall be paid to the various coun- 34 ties, and each county shall be entitled to an amount in the propor- 35 tion that the population of that county bears to the population of 36 the state. 37 (h) All proceeds of the sales and use surcharge imposed by the pro- 38 visions of section 63-3640, Idaho Code, are hereby appropriated and shall be 39 deposited to the credit of the school facility support fund created in section 40 33-905A, Idaho Code, to be expended for the purposes of the account. 41 (i) Any moneys remaining over and above those necessary to meet 42 and reserve for payments under other subsections of this section shall be dis- 43 tributed to the general account. 44 SECTION 4. That Chapter 36, Title 63, Idaho Code, be, and the same is 45 hereby amended by the addition thereto of a NEW SECTION , to be 46 known and designated as Section 63-3640, Idaho Code, and to read as follows: 47 63-3640. IMPOSITION AND RATE OF TAX. Commencing July 1, 1998, in addition 48 to the tax imposed by section 63-3619, Idaho Code, and section 63-3621, Idaho 49 Code, there is hereby imposed a tax of one-half percent (.5%) upon the same 50 sales and same uses as are taxed by the provisions of sections 63-3619 and 51 63-3621, Idaho Code. The additional tax shall be collected at the same time 52 and in the same manner as the taxes imposed by sections 63-3619 and 63-3621, 53 Idaho Code, and shall be subject to all of the collection, enforcement and 5 1 administrative requirements of chapter 36, title 63, Idaho Code. The state tax 2 commission is authorized and directed to prepare proper forms, schedules and 3 instructions for the administration of the provisions of this section and col- 4 lection of taxes hereby imposed. The provisions of section 63-3519, Idaho 5 Code, notwithstanding, the state tax commission is hereby authorized and 6 directed to provide schedules for collection of the tax on sales which involve 7 a fraction of a dollar. 8 The moneys collected under this section shall be deposited as provided in 9 section 63-3638, Idaho Code, to the Idaho school district facility fund.
STATEMENT OF PURPOSE
RS07600C1
School Facilities Funding: Idaho Code 33-905. This bill
would establish a one-half percent (.5%) sales tax increase
dedicated to school facility needs. Revenues generated would
be deposited in the School District Building Account and
distributed to each district, calculating fifty percent
(50%) of the distribution based on the previous year's
average daily attendance. The additional fifty percent (50%)
of the distribution will be paid through the public school
income fund using the public school income fund distribution
ratio from the previous year. One-third of the funds would
be applied to reduce bonded indebtedness. Remaining funds
would be used to construct facilities, purchase portable
classrooms and acquire property for future sites.
FISCAL NOTE
Increasing the sales tax by one-half percent (.5%) will
generate approximately sixty million dollars ($60,000,000).
CONTACT
PERSON:
Jerry Pelton Deputy Superintendent/Finance and
Support Services Department of Education (208)
332-6853
STATEMENT OF PURPOSE/FISCAL NOTE
H 715