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H0144...............................................by REVENUE AND TAXATION WATER POLLUTION CONTROL ACCOUNT - Amends existing law to strike the provisions for an automatic diversion from the sales tax to the Water Pollution Control Account. 02/02 House intro - 1st rdg - to printing 02/03 Rpt prt - to Rev/Tax
H0144|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 144 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO DISTRIBUTIONS FROM THE SALES TAX; AMENDING SECTION 63-316, IDAHO 3 CODE, TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 63-3638, IDAHO CODE, 4 TO STRIKE A DISTRIBUTION FROM THE SALES TAX DIRECTLY TO THE WATER POLLU- 5 TION CONTROL ACCOUNT AND TO MAKE TECHNICAL CORRECTIONS; AND AMENDING SEC- 6 TION 67-6211, IDAHO CODE, TO MAKE A TECHNICAL CORRECTION. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 63-316, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 63-316. ADJUSTMENT OF ASSESSED VALUE -- COMPLETION OF ASSESSMENT PROGRAM 11 BY STATE TAX COMMISSION -- PAYMENT OF COSTS. (1) Whenever the state tax com- 12 mission, after a hearing, determines that any county assessor or the county 13 commissioners in assessing property in the county subject to taxation have 14 failed to abide by, adhere to and conform with the laws of the state of Idaho 15 and the rules of the state tax commission in determining market value for 16 assessment purposes, the state tax commission shall order the county assessor 17 and county commissioners of such county to make the necessary changes or cor- 18 rections in such assessments and if the county assessor and the county commis- 19 sioners refuse or neglect to comply with such order, the state tax commission 20 is authorized to and shall forthwith adjust or change the property roll in 21 such county. 22 (2) In lieu of the hearings and actions permitted in subsection (1) of 23 this section, the state tax commission shall monitor each county's implementa- 24 tion of the continuing appraisal required in section 63-314, Idaho Code, and 25 may require each county to file such reports of its progress at implementation 26 of such continuing appraisals as the commission may find necessary. In the 27 event that the commission finds that any county is failing to meet the 28 requirements of section 63-314, Idaho Code, the commission may order that 29 county's indexing or appraisal or reappraisal programs be conducted under the 30 exclusive and complete control of the state tax commission and the results of 31 such programs shall be binding upon the county officers of the county for 32 which ordered. Payments for the actual cost of such programs shall be made 33 from the sales tax distribution created in section 63-3638, Idaho Code, and 34 the amount of such payments shall be withheld from the payments otherwise made 35 under the provisions of section 63-3638(ed ) and 36 (gf ), Idaho Code, to the county for which indexing, 37 appraisal or reappraisal has been ordered, and this subsection shall consti- 38 tute the necessary appropriation to accomplish such payments, any other provi- 39 sion of law notwithstanding. 40 SECTION 2. That Section 63-3638, Idaho Code, be, and the same is hereby 41 amended to read as follows: 2 1 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap- 2 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall 3 be distributed by the tax commission as follows: 4 (a) An amount of money shall be distributed to the state refund account 5 sufficient to pay current refund claims. All refunds authorized under this 6 chapter by the commission shall be paid through the state refund account, and 7 those moneys are continuously appropriated. 8 (b) Five hundred thousand dollars ($500,000) per year is continuously 9 appropriated and shall be distributed to the permanent building account, pro- 10 vided by section 57-1108, Idaho Code. 11 (c)Four million eight hundred thousand dollars ($4,800,000) per12year is continuously appropriated and shall be distributed to the water pollu-13tion control account established by section 39-3605, Idaho Code.14(d)(1) An amount equal to the sum required to be certified by the 15 chairman of the Idaho housing and finance association to the state tax 16 commission pursuant to section 67-6211, Idaho Code, in each year is con- 17 tinuously appropriated and shall be paid to any capital reserve fund, 18 established by the Idaho housing and finance association pursuant to sec- 19 tion 67-6211, Idaho Code. Such amounts, if any, as may be appropriated 20 hereunder to the capital reserve fund of the Idaho housing and finance 21 association shall be repaid for distribution under the provisions of this 22 section, subject to the provisions of section 67-6215, Idaho Code, by the 23 Idaho housing and finance association, as soon as possible, from any 24 moneys available therefor and in excess of the amounts which the associa- 25 tion determines will keep it self-supporting. 26 (2) An amount equal to the sum required by the provisions of section 27 63-709, Idaho Code, is continuously appropriated and shall be paid as pro- 28 vided by section 63-709, Idaho Code. 29 (ed ) Six percent (6%) is hereby appropriated 30 and shall be paid to the county treasurer of each county in amounts to be 31 determined as follows: 32 (1) Each taxing district other than school districts shall be entitled to 33 a base share of sales tax moneys equal to the amount distributed to that 34 district for the fourth calendar quarter of 1979. The computation shall 35 not include any distributions made to the credit of either the former 36 county school levy or the state water pollution control levy. The percent- 37 age so determined for each taxing district shall be applied each quarter 38 to the above percentage of sales tax. The resulting sums shall be paid to 39 the county treasurer of each county for distribution to each taxing dis- 40 trict, except school districts, which received sales tax moneys in 1979. 41 Whenever a taxing district is dissolved, the dissolved district's share of 42 sales moneys shall be credited continuously to the county current expense 43 fund. 44 (2) Whenever the amount of nonschool district sales tax moneys distrib- 45 uted exceeds in any quarter the total amount of moneys distributed to non- 46 school districts for the base quarter, which is the fourth calendar quar- 47 ter of 1979, by ten percent (10%), or more, the excess of the base quarter 48 shall be paid to the county treasurer of each county for distribution to 49 each taxing district in the county, except school districts, in the fol- 50 lowing manner. 51 The state tax commission shall compute the percentage that the aver- 52 age amount of taxes collected from assessments for the years 1965, 1966 53 and 1967 on the personal property described as business inventory in sub- 54 sections (1) and (2) of section 63-602W, Idaho Code, for each county bears 55 to the average total amount of taxes collected from assessments for said 3 1 years on the personal property described as business inventory in subsec- 2 tions (1) and (2) of section 63-602W, Idaho Code, for all counties in the 3 state. The percentage so determined for each county shall be applied to 4 the sales tax distributed under this subsection and the resulting sum 5 shall be paid to the county treasurer of each county for distribution to 6 each taxing district, except school districts, in the county as follows: 7 (i) Each year the county commissioners in each county shall take 8 the tax charge, applicable to the current property roll equalized by 9 county commissioners sitting as a board of equalization, of each tax- 10 ing district within the county, except school districts, and divide 11 it by the total current tax charges applicable to the current prop- 12 erty roll of all taxing districts, except school districts, within 13 said county and the resulting percentages shall be applied to the 14 county's proportionate share of said sales tax account and the 15 resulting amount shall be distributed to each taxing district in the 16 county periodically but not less frequently than quarterly by the 17 county auditor and applied by such taxing districts in the same man- 18 ner and in the same proportions as revenues from property taxation. 19 (ii) The moneys set aside and appropriated to the county treasurer 20 out of the sales tax account above may be considered by the counties 21 and other taxing districts and budgeted against at the same time, in 22 the same manner and in the same year as revenues from taxation on all 23 classes of personal property which these moneys replace. 24 (3) All moneys distributed pursuant to subsection (ed 25 ) shall be subject to the redistribution provisions of section 26 40-801, Idaho Code, where applicable. 27 (fe ) One dollar ($1.00) on each application for 28 certificate of title to a motor vehicle, or initial application for registra- 29 tion processed by the county assessor or the Idaho transportation department 30 excepting those applications in which any sales or use taxes due have been 31 previously collected by a retailer, shall be a fee for the services of the 32 assessor of the county or the Idaho transportation department in collecting 33 such taxes, and shall be paid into the current expense fund of the county or 34 state highway account established in section 40-702, Idaho Code. 35 (gf ) Seven and three-quarters percent (7.75%) 36 is continuously appropriated and shall be distributed to the revenue sharing 37 account which is created in the state operating fund, and the moneys in the 38 revenue sharing account will be paid by the tax commission as follows: 39 (1) One-half (1/2) shall be paid to the various cities as follows: 40 (i) Fifty percent (50%) of such amount shall be paid to the various 41 cities, and each city shall be entitled to an amount in the propor- 42 tion that the population of that city bears to the population of all 43 cities within the state; and 44 (ii) Fifty percent (50%) of such amount shall be paid to the various 45 cities, and each city shall be entitled to an amount in the propor- 46 tion that the preceding year's market value for assessment purposes 47 for that city bears to the preceding year's market value for assess- 48 ment purposes for all cities within the state. 49 (2) One-half (1/2) shall be paid to the state's general account or to the 50 various counties as follows: 51 (i) One million three hundred twenty thousand dollars ($1,320,000) 52 shall be distributed one forty-fourth (1/44) to each of the various 53 counties; and 54 (ii) The balance of such amount shall be paid to the various coun- 55 ties, and each county shall be entitled to an amount in the propor- 4 1 tion that the population of that county bears to the population of 2 the state. 3 (hg ) Any moneys remaining over and above those 4 necessary to meet and reserve for payments under other subsections of this 5 section shall be distributed to the general account. 6 SECTION 3. That Section 67-6211, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 67-6211. ADDITIONAL DEFINITIONS AND CAPITAL RESERVE FUND PROCEDURES. As 9 used in this section, the following words and phrases shall have the following 10 meanings unless the context shall indicate another or different meaning or 11 intent: 12 (a) "Maximum capital reserve fund requirement" shall mean the amount set 13 forth in the association's resolution or indenture authorizing the bonds or 14 other obligations secured by a capital reserve fund, or, if no amount is 15 stated in such resolution or indenture, then, as of any particular date of 16 computation, an amount of money equal to the greatest of the respective 17 amounts, for the then current or any future fiscal year of the association, of 18 annual debt service of the association, such annual debt service for any fis- 19 cal year being the amount of money equal to the aggregate of: 20 (1) All interest payable during such fiscal year on all bonds secured by 21 such capital reserve fund of the association outstanding on said date of 22 computation, plus 23 (2) The principal amount of all bonds of the association secured by such 24 capital reserve fund, outstanding on said date of computation which 25 matures during such fiscal year, plus 26 (3) The amount of all annual sinking fund payments payable during such 27 fiscal year with respect to any bonds of the association secured by such 28 capital reserve fund, outstanding on said date of computation. 29 (b) "Annual sinking fund payment" shall mean the amount of money speci- 30 fied in the resolution authorizing term bonds as payable into a sinking fund 31 during a particular fiscal year for the retirement of term bonds which mature 32 after such fiscal year, but shall not include any amount payable by reason 33 only of the maturity of a bond. 34 (c) "Available operating revenues" shall mean all amounts received on 35 account of rentals and fees and other charges imposed by the association, if 36 any, and income or interest earned or added to funds of the association due to 37 the investment thereof and not required under the terms or provisions of any 38 covenant or agreement with holders of any bonds or notes of the association to 39 be applied to any purposes other than payment of expenses of the association. 40 (d) "Amortized value," when used with respect to securities purchased at 41 a premium above or a discount below par, shall mean the value as of any given 42 date obtained by dividing the total premiums or discount at which such securi- 43 ties were purchased by the number of interest payments remaining to maturity 44 on such securities after such purchase, and by multiplying the amount so cal- 45 culated by the number of interest payment dates having passed since the date 46 of such purchase; and 47 (1) In the case of securities purchased at a premium, by deducting the 48 product thus obtained from the purchase price, and 49 (2) In the case of securities purchased at a discount, by adding the 50 product thus obtained to the purchase price. 51 (e) The association shall create and establish one (1) or more special 52 funds (herein referred to as "capital reserve funds"), and shall credit each 53 such capital reserve fund: 5 1 (1) Any proceeds of sale of notes or bonds, to the extent provided in the 2 resolution or resolutions of the association authorizing the issuance 3 thereof, 4 (2) Any funds directed to be transferred by the association to such fund, 5 and 6 (3) Any other moneys which may be made available to the association for 7 the purpose of such fund from any other source or sources. 8 (f) All moneys held in or credited to each such capital reserve fund, 9 except as hereinafter provided, shall be used, as required, solely for the 10 payment of the principal of bonds or of the sinking fund payments hereinafter 11 mentioned with respect to such bonds, the purchase or redemption of bonds, the 12 payment of interest on bonds or the payment of any redemption premium required 13 to be paid when such bonds are redeemed prior to maturity; provided, however: 14 (1) That moneys in any such fund shall not be withdrawn therefrom at any 15 time in such amount as would reduce the amount of such fund to less than 16 the maximum capital reserve fund requirement, except for the purposes of 17 making payment, when due, with respect to such bonds, of principal or 18 redemption price of, interest and the sinking fund payments, as the same 19 become due, and for the payment of which other moneys of the association 20 are not available. 21 (2) Any income or interest earned by, or increment to, any capital 22 reserve fund due to the investment thereof may be transferred by the asso- 23 ciation to other funds or accounts of the association to the extent it 24 does not reduce the amount of such capital reserve fund below the maximum 25 capital reserve fund requirement. 26 (g) Within sixty (60) days after the close of the association's fiscal 27 year, the chairman of the association shall certify to the state tax commis- 28 sion the amount, if any, required to maintain the capital reserve funds estab- 29 lished pursuant to this section at the maximum capital reserve fund require- 30 ment, but only for any capital reserve fund of the association which is 31 required by a resolution of the association to be maintained by a continuing 32 appropriation from the sales tax account. The chairman of the association 33 shall not be entitled to so certify to the state tax commission for any capi- 34 tal reserve fund of the association for bonds issued by the association after 35 January 1, 1996. 36 (h) The association shall not issue bonds at any time if upon issuance 37 there will be created a capital reserve fund and the amount in the capital 38 reserve fund securing such bonds will be less than the maximum capital reserve 39 fund requirement, unless the association, at the time of issuance of such 40 bonds, shall deposit in such fund, from the proceeds of the bonds so to be 41 issued, or sources other than the state sales tax fund, an amount which, 42 together with the amount then in such fund, will not be less than the maximum 43 capital reserve fund requirement. 44 (i) Moneys in a capital reserve fund not required for immediate use or 45 disbursement may be invested in obligations of the state or the United States 46 of America or obligations the principal of and interest on which are guaran- 47 teed by the state or the United States of America or obligations of agencies 48 of the United States of America or any obligations which may from time to time 49 be legally purchased by banks under title 26, Idaho Code, as investment of 50 funds belonging to them or in their control. In computing the amount of a cap- 51 ital reserve fund for the purposes of this section, securities in which all or 52 a portion of such fund are invested shall be valued at par if purchased at par 53 or, if purchased at other than par, at amortized value. 54 (j) The association shall create and establish such other fund or funds 55 as may be necessary or desirable for its corporate purposes. 6 1 (k) In the event of the dissolution of the association, any funds or 2 assets of the association remaining after paying its bonds, notes or other 3 obligations shall revert to the state. 4 (l) The total principal amount of the association's outstanding bonds 5 secured by a capital reserve fund entitled to appropriation from the state 6 sales tax account pursuant to section 67-6211(g), Idaho Code, and section 7 63-3638(dc )(1), Idaho Code, shall not exceed the sum 8 of eighty-nine million dollars ($89,000,000).
STATEMENT OF PURPOSE
RS08673
This legislation removes the $4.8 million fixed statutory
distribution from the sales tax to the Water Pollution Control
Account that has been in place since 1984. Over the years the needs
for water quality program funding have grown. This legislation allows
sales tax moneys to flow to the General Fund where needs can be
addressed from a larger pool of revenues and weighed equally against
other state funded programs.
FISCAL NOTE
The elimination of the $4.8 million distribution from the sales tax
results in an increase of $4.8 million to the State General Fund.
This would be off set by a general fund appropriation to the Division
of Environmental Quality with a commensurate reduction in the
appropriation from the Water Pollution Control Account.
Contact: Rep. Clark
Phone#: 334-1000
STATEMENT OF PURPOSE/ FISCAL NOTE Bill No. H 144