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H0275...............................................by REVENUE AND TAXATION AUDITORIUM/COMMUNITY CENTER DISTRICTS - Amends existing law relating to auditorium or community center districts to authorize either a facility construction or marketing option for the type of district which may be created; to govern procedures for a property owner who petitions to be excluded from a district; and to specify limits on the hotel/motel room sales tax rate. 02/17 House intro - 1st rdg - to printing 02/18 Rpt prt - to Rev/Tax
H0275|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 275 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO AUDITORIUM OR COMMUNITY CENTER DISTRICTS; AMENDING SECTION 3 67-4902, IDAHO CODE, TO PROVIDE ADDITIONAL OPTIONS FOR THE TYPE OF DIS- 4 TRICT WHICH MAY BE CREATED; AMENDING SECTION 67-4904, IDAHO CODE, TO 5 REQUIRE THE PETITION TO SPECIFY THE TYPE OF DISTRICT TO BE CREATED; AMEND- 6 ING SECTION 67-4907, IDAHO CODE, TO GOVERN PROCEDURES FOR A PROPERTY OWNER 7 WHO PETITIONS TO BE EXCLUDED FROM A DISTRICT; AND AMENDING SECTION 8 67-4917B, IDAHO CODE, TO SPECIFY LIMITS UPON THE HOTEL/MOTEL ROOM SALES 9 TAX RATE AND TO MAKE A TECHNICAL CORRECTION. 10 Be It Enacted by the Legislature of the State of Idaho: 11 SECTION 1. That Section 67-4902, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 67-4902. DEFINITIONS. An auditorium or community center district is one 14 to build, operate, maintain, market and manage for public, commercial and/or 15 industrial purposes by any available means public auditoriums, exhibition 16 halls, convention centers, sports arenas and facilities of a similar nature, 17and for that purpose any such district shall have the power18 or to construct, maintain, manage, market and operate such 19 facilities , or both, depending on the option(s) described in the peti- 20 tion . 21 A district maybe entirely within or entirely without, or partly22within and partly without one (1) or more municipalities or counties, and the23district mayconsist ofnoncontiguous tracts or parcels of prop-24ertyone (1) or more counties . 25 The word "board" as used in this chapter shall mean the board of directors 26 of a district. 27 A "qualified elector" of a district, within the meaning of and entitled to 28 vote under this chapter, is a person who resides in the district and is other- 29 wise qualified under section 34-104, Idaho Code. 30 Wherever the term "publication" is used in this chapter it means publica- 31 tion twice, the first time not less than twelve (12) days prior to an elec- 32 tion, and the second time not less than five (5) days prior to an election, as 33 provided in section 34-1406, Idaho Code. 34 SECTION 2. That Section 67-4904, Idaho Code, be, and the same is hereby 35 amended to read as follows: 36 67-4904. PETITION -- CONTENTS -- AMENDMENTS. The organization of a dis- 37 trict shall be initiated by a petition filed in the office of the clerk of the 38 court vested with jurisdiction, in a county in which the major part of the 39 real property in the proposed district is situated. The petition shall be 40 signed by not less than ten percent (10%) of the qualified electors who reside 41 within the boundaries of the proposed district, and not less than ten (10) of 2 1 whom shall reside in each election precinct which is wholly or partially 2 within the boundaries of any such proposed district. 3 The petition shall set forth: 4 (1) The name of the proposed district consisting of a chosen name preced- 5 ing the words, "auditorium or community center district." 6 (2) A general description of either the facilities to be 7 constructed or of the marketing programs or of both 8within and for the districtwhere approval is sought for 9 both. In the case where facilities are to be constructed, the petition shall 10 state where the building plans and feasibility study or studies are available 11 for review . 12 (3) The estimated cost of either the proposed facilities or 13 of the marketing programs or of both where 14 approval is sought for both . 15 (4) A general description of the boundaries of the district or the terri- 16 tory to be included therein, with such certainty as to enable a property owner 17 to determine whether or not his property is within the district. 18 (5) A prayer for the organization of the district. 19 No petition with the requisite signatures shall be declared null and void 20 on account of allegeddefectsclerical errors or 21 nonmaterial errors in the description of the territory , but the court 22 may at any time permit the petition to be amended to conform to the facts by 23 correcting any clerical errors or errors in the description of 24 the territory, or in any other particular. Similar petitions or 25 duplicate copies of the same petition for the organization of the same dis- 26 trict may be filed and shall together be regarded as one (1) petition. All 27 such petitions filed prior to the hearing on the first petition filed, shall 28 be considered by the court the same as though filed with the first petition 29 placed on file. 30 SECTION 3. That Section 67-4907, Idaho Code, be, and the same is hereby 31 amended to read as follows: 32 67-4907. HEARINGS ON PETITIONS -- ELECTION FOR ORGANIZATION AND OFFICERS. 33 On the day fixed for such hearing or at an adjournment thereof the court shall 34 ascertain from the tax rolls of the county or counties in which the district 35 is located or into which it extends, the total number of taxpayers within the 36 proposed district, who pay a general tax on real property owned by him or her 37 within the district. 38 If the court finds that no petition has been signed and presented in con- 39 formity with this chapter, or that the material facts are not as set forth in 40 the petition filed, it shall dismiss said proceedings and adjudge the costs 41 against the signers of the petition in such proportion as it shall deem just 42 and equitable. No appeal or writ of error shall lie from an order dismissing 43 said proceedings; but nothing herein shall be construed to prevent the filing 44 of a subsequent petition or petitions for similar improvements or for a simi- 45 lar district, and the right so to renew such proceedings is hereby expressly 46 granted and authorized. 47 Any time after the filing of the petition for the organization of a dis- 48 trict and before the day fixed for the hearing thereon, the owner or owners of 49any realtaxable property within the proposed dis- 50 trict may file a petition with the district court stating reasons why said 51 property should not be included therein, why hislandprop- 52 erty or any part thereof will not be benefiteddirectly or indi-53rectlyby the facilities or marketing programs of the pro- 3 1 posed district, or should not be embraced in said district and made liable to 2 taxation therefor, and praying that said property be excluded therefrom. Such 3 petition shall be duly verified and shall describe the property sought to be 4 excluded. The court shall conduct a hearing on said petition and shall hear 5 all objections to the inclusion in the district ofany lands described6in said petitionsaid property . In case any owner of7real estatetaxable property included in said proposed 8 district shallsatisfy the courtestablish by a preponder- 9 ance of evidence that hisreal estateproperty 10 , or any part thereof, has been wrongfully included therein or will not 11 be benefited thereby then the court shall exclude suchreal estate as12will not be benefitedproperty from the district . 13 Upon said hearing, if it shall appear that a petition for the organization 14 of a district has been signed and presented as hereinabove provided, in con- 15 formity with this chapter, and that the allegations of the petition are true, 16 the court shall, by order duly entered of record, direct that the question of 17 the organization of the district shall be submitted to the qualified electors 18 of the district at an election to be held, subject to the provisions of sec- 19 tion 34-106, Idaho Code, for that purpose, and such order shall appoint three 20 (3) qualified electors of the district as judges of said election. The clerk 21 of the court having jurisdiction shall give published notice of the time and 22 place of an election to be held in the district. 23 Such election shall be held and conducted in the same manner as general 24 elections in this state. 25 At any time after the filing of the petition herein referred to and before 26 the day fixed for hearing, nominees for the board of directors of the district 27 may be nominated by the filing of a petition designating the name or names of 28 the nominee or nominees, signed by at least five (5) qualified electors of the 29 district. If upon the hearing as herein provided the court shall order an 30 election for the creation of the district, the court shall also ascertain the 31 names of persons nominated by the board of directors, and shall order that the 32 names of persons whom the court finds to have been properly nominated shall be 33 listed upon a ballot submitted to the electors at such election. In the event 34 the court makes its order providing for such election, it shall prescribe the 35 form of the question , which shall specify the maximum permissible tax 36 rate, and ballot relating to the election of the directors, provided 37 that all matters may be contained upon one (1) ballot to be submitted to the 38 voters. 39 At such election the voters shall vote for or against the organization of 40 the district, and for five (5) qualified electors, who shall constitute the 41 board of directors of the district, if organized, one (1) director to act 42 until the first biennial election, two (2) until the second, and two (2) until 43 the third biennial election. 44 The judges of election shall certify the returns of the election to the 45 district court having jurisdiction. If a majority of the votes cast at said 46 election are in favor of the organization, the district court shall declare 47 the district organized and give it a corporate name by which, in all proceed- 48 ings, it shall thereafter be known, and designated the first board of direc- 49 tors elected, and thereupon the district shall be a governmental subdivision 50 of the state of Idaho and a body corporate with all the powers of a public or 51 quasi-municipal corporation except that districts formed prior to January 1, 52 1987, or districts with twenty-five thousand (25,000) or more population shall 53 have no power to levy and collect ad valorem taxes. 54If an order be entered establishing the district, such order shall55be deemed final and no appeal or writ of error shall lie therefrom, and the4 1entry of such order shall finally and conclusively establish the regular orga-2nization of the said district against all persons except the state of Idaho,3in an action in the nature of a writ of quo warranto, commenced by the attor-4ney general within thirty (30) days after said decree declaring such district5organized as herein provided, and not otherwise.The organization of 6saidany district established before January 7 1, 1999, shall not be directly or collaterally questioned in any suit, 8 action or proceeding except as herein expressly authorized. 9 SECTION 4. That Section 67-4917B, Idaho Code, be, and the same is hereby 10 amended to read as follows: 11 67-4917B. HOTEL/MOTEL ROOM SALES TAX. The board shall have power and 12 authority to levy a sales tax of not to exceedfive per cent13 four percent (54 %) of the receipts 14 derived by hotels and motels within the district from the furnishing of hotel 15 and motel rooms, except no tax shall be imposed where residence therein is 16 maintained continuously under the terms of a lease or similar agreement for a 17 period in excess of thirty (30) days, and except that no tax shall be charged 18 on the sale of rooms by the Idaho Ronald McDonald House ; provided that 19 such sales tax shall not exceed one percent (1%) if the petition proposed only 20 a marketing program(s) . The levy and collection of said sales tax shall 21 not be subject to the limitations or other provisions of sections 67-4913, 22 67-4914, 67-4915 and 67-4916, Idaho Code. The revenues received by the dis- 23 trict from such sales tax shall be deposited in the depository of the dis- 24 trict. Promptly following the adoption by the board of the resolution to levy 25 such tax, the secretary of the board shall certify to the state tax commission 26 that such levy has been adopted and shall state the effective date thereof and 27 shall transmit to the commission a certified copy of such resolution. The 28 effective date of any such levy shall not be earlier than the first day of the 29 month not less than sixty (60) days following certification of such levy to 30 the commission.
STATEMENT OF PURPOSE
RS08997
The purpose of this legislation is to correct ambiguities in the auditorium district law
(Chapter 49, Title 67, Idaho Code). In recent court proceedings in Idaho Falls, a district judge
determined, among other things, that an auditorium district could do anything authorized by
the auditorium district law, including imposmg a 5% hotel tax, even if the petition signed and
approved by the voters was designed just to authorize a marketing program with a limited 1%
or 2% hotel tax.
The legislation makes it clear that the purpose of the district can be to construct
facilities, or to implement a marketing program, or both, but that any new auditorium district
petition must spell out what is to be authorized. A district which will be limited to a
marketing program is also limited to a 1% hotel tax. A district authorized to construct
facilities is authorized to implement a hotel tax of up to 4% (down from 5% but in keepmg
with the tax currently in effect for the Boise Auditorium District).
The bill provides more detail as to what needs to be stated m the petition, the standard
to be applied where a taxpayer seeks to opt out, and the ability to seek judicial review.
FISCAL IMPACT
None.
CONTACT
Name: Representative Dolores Crow
Phone: 332-1125
Name: David Kerrick
Phone: 459-4574
STATEMENTOFPURPOSE/FISCAL NOTE H 275