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S1321..........................................................by SCHROEDER COMMUNITY COLLEGES - Amends existing law to phase out, over the next four years, the authorization for property tax levies to support community colleges. 01/23 Senate intro - 1st rdg - to printing 01/26 Rpt prt - to Loc Gov
S1321|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE SENATE SENATE BILL NO. 1321 BY SCHROEDER 1 AN ACT 2 RELATING TO COMMUNITY COLLEGES; AMENDING SECTION 33-2110A, IDAHO CODE, TO 3 PHASE OUT THE PROPERTY TAX LEVY FOR TUITION PAYMENTS FOR OUT-OF-DISTRICT 4 IDAHO STUDENTS ENROLLED IN COMMUNITY COLLEGES AND TO MAKE TECHNICAL COR- 5 RECTIONS; AND AMENDING SECTION 33-2111, IDAHO CODE, TO PHASE OUT THE PROP- 6 ERTY TAX LEVY FOR MAINTENANCE AND OPERATION OF COMMUNITY COLLEGES. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 33-2110A, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 33-2110A. TUITION OF OUT - OF - DISTRICT IDAHO STU- 11 DENTS, COUNTY TAXES AND OTHER FINANCIAL SUPPORT. (1) Any student residing in 12 the area of a county outside of a community college district or in a county 13 without a community college district, who has been a resident of the county 14 and state as defined by section 33-2110B, Idaho Code, immediately prior to the 15 date of his first enrollment in a community college, which residence may not 16 be acquired while attending and enrolled in a community college, may enroll in 17 any community college in the state, and the county of his residence shall pay 18 that portion of his tuition as hereinafter set out. The tuition which shall be 19 paid by the resident county shall be that portion of the tuition uniformly 20 established by a community college district for all out - of - 21 district students, both in state as well as out of state, pursuant to 22 section 33-2110, Idaho Code, after deducting therefrom the amount of tuition 23 paid by a resident student at the community college; however, the liability of 24 the resident county shall not exceed two-thirds (2/3) the total tuition and 25 fees charged and in no instance shall it exceed five hundred dollars ($500) 26 each semester for a two (2) semester year for a full-time student. The student 27 shall pay the tuition and fees charged a student resident in the district, and 28 the balance, if any, of the nonresident student tuition above the maximum lia- 29 bility of the county of his residence. No county shall be liable for out 30 - of - district tuition unless the board of county commis- 31 sioners of that county has first verified to the community college in writing 32 the fact that the student is a resident of the county. Upon verification, the 33 county shall thereafter be liable for the out - of - 34 district tuition so long as the student is duly enrolled and attending 35 the college subject to the following limitations: 36 (a) Liability shall be for six (6) semesters or the term of the curricu- 37 lum for which the student is enrolled, whichever is lesser. 38 (b) Liability shall terminate if the student's domiciliary residence 39 changes and that change continues for twelve (12) months. 40 (2) The nonresident tuition shall be established annually not later than 41 August 1st and shall be forthwith filed with the state board of education, 42 together with a statement supporting the computation thereof. Each community 43 college, by September 30 and March 1 of each year, shall bill the county of 2 1 residence of each nonresident student enrolled at the commencement of each 2 semester, and each board of county commissioners shall allow and order paid 3 any bill for tuition at the first regular meeting following receipt of the 4 bill, but not exceeding forty-five (45) days after receipt. Upon failure of a 5 county to pay the tuition, a community college district may commence action in 6 the district court of the state of Idaho for the county to collect the same. 7 (3) For the payment of tuition of nonresident students as herein pro- 8 vided, there shall be allocated in each county without a community college 9 district to a county community college fund, and paid to the county treasurer 10 to be held in that fund, fiftyper centpercent 11 (50%) of all moneys apportioned to the county out of liquor funds of the state 12 of Idaho as set forth in chapter 4, title 23, Idaho Code, and that amount 13 shall be deducted from the amount that would otherwise be allocated to the 14 county; and if liquor funds are not sufficient to pay the tuition, commencing 15 for the calendar year 1966, the board of county commissioners shall levy upon 16 the taxable property within each county without a community college district, 17 and, in a county with such a district, upon the taxable property within the 18 county lying outside of the community college district, an ad valorem tax not 19 to exceed six hundredthsper centpercent (.06%) of 20 market value for assessment purposes for 1998, forty-five thousandths 21 percent (.045%) of market value for assessment purposes for 1999, three hun- 22 dredths percent (.03%) of market value for assessment purposes for 2000, fif- 23 teen thousandths percent (.015%) of market value for assessment purposes for 24 2001, and thereafter, no levy shall be authorized , to be certified as 25 set out in section 33-2111, Idaho Code. The proceeds of the levy shall be 26 placed in the county community college fund. Apportionment of liquor funds 27 herein provided shall commence for the fiscal quarter ending September 30, 28 1965, and accruing during that quarter. 29 (4) Based upon the enrollment established by the first semester's tuition 30 bills received by September 30, the board of county commissioners shall estab- 31 lish immediately a total community college annual tuition budget for two (2) 32 semesters which shall be equal to twice the amount of the tuition bills plus a 33 contingency factor of tenper centpercent (10%). 34 This budget shall be adjusted after March 1 based on any change of enrollment 35 shown by the second semester tuition bills. If enrollment is from none to not 36 more than four (4) students, a minimum budget of five (5) students at five 37 hundred dollars ($500) each shall be established. In the event all tuition 38 bills received have been paid, notwithstanding any other provision hereof, (a) 39 any liquor funds received, which in the quarter when received to any extent 40 are in excess of the budget, to the extent of that excess shall not be paid 41 over to the county treasurer to be held in the community college fund, and (b) 42 any funds received from the levy on taxable property, which when received to 43 any extent are in excess of the budget after the application of liquor funds 44 thereto, to the extent of that excess shall not be paid over to the community 45 college fund. Excess liquor funds shall be paid pursuant to law as if this 46 section were not applicable and excess funds shall be paid to the general fund 47 of the county. In the event the total liquor fund payable hereunder to the 48 county community college fund together with the receipts from the levy on tax- 49 able property for each fiscal year are insufficient to pay tuition bills, 50 which deficiency is caused by a levy of less than the maximum allowed hereun- 51 der, or by enrollment in excess of the budget herein provided, the budget for 52 each following year shall be increased to the maximum allowed by the maximum 53 tax levy authorized to pay any deficiency at the earliest time. If the defi- 54 ciency is due to the lack of funds in a fiscal year when the maximum levy 55 authorized shall have been made, for the next fiscal year thereafter the num- 3 1 ber of students from that county shall be limited by the board of county com- 2 missioners to the extent necessary to pay the deficiency not later than the 3 end of the following year. Provided nevertheless, for the two (2) semesters 4 commencing September, 196598 the board of county 5 commissioners shall limit the community college budget and total students to 6 estimated liquor funds available on quarterly disbursements . 7through June 30, 1966.Any limitation of students authorized 8 shall be accomplished (a) on the basis of student grades and financial need, 9 and (b) by each community college notifying the county of residence of each 10 student's application and the county shall accept or reject the application at 11 least five (5) days prior to the tuition billing dates set out herein. A com- 12 munity college shall nevertheless have a right to require any student residing 13 outside the district to pay nonresident tuition if the county of his residence 14 is more than twenty-fiveper centpercent (25%) in 15 arrears of a total county tuition bill for one (1) year as of the beginning of 16 the subsequent semester, but tuition shall be refunded to such students when 17 paid by the county. 18 SECTION 2. That Section 33-2111, Idaho Code, be, and the same is hereby 19 amended to read as follows: 20 33-2111. TAXES AND OTHER FINANCIAL SUPPORT FOR COMMUNITY COLLEGES. For 21 the maintenance and operation of each community college, in addition to the 22 income from tuition paid by students as hereinbefore provided, the board of 23 trustees may levy upon the taxable property within the district a tax not to 24 exceed sixteen hundredths percent (.16%) of the market value for assessment 25 purposes on all taxable property within the district for 1998, twelve 26 hundredths percent (.12%) of the market value for assessment purposes on all 27 taxable property within the district for 1999, eight hundredths percent (.08%) 28 of the market value for assessment purposes on all taxable property within the 29 district for 2000, four hundredths percent (.04%) of the market value for 30 assessment purpose on all taxable property within the district for 2001, and 31 thereafter no levy shall be authorized . 32 The tax levy determined by the board of trustees, within said limit, shall 33 be certified to the board of county commissioners in each county in which the 34 district may lie, not later than the second Monday in September of each year. 35 No levy in excess ofsixteen hundredths percent (.16%) of the market36value for assessment purposes on all taxable property within the district37the levy authorized in this section shall be made unless 38 a supplemental levy in a specified amount be first authorized through an elec- 39 tion held, as provided in sections 33-401 through 33-406, Idaho Code, as if 40 the community college district were a school district and approved by a major- 41 ity of the district electors voting in such election.
STATEMENT OF PURPOSE
RS 07732
The purpose of this legislation is to amend Section 33-2110A, Idaho
Code, to provide property tax relief by phasing out all property taxes used
for maintenance and operation of community colleges in Idaho.
FISCAL IMPACT
During FY 98 $10.1 million was raised through property taxes for
community colleges in Idaho. $9.2 million came from the counties of
Jerome, Twin Falls and Kootenai and $900,00 from county tuition billings.
During a 5 year period, these property taxes would be assumed by the
State General Fund.
Contact: Gary J. Schroeder
332-1 322
S 1321