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H0125...............................................by REVENUE AND TAXATION FIRE DISTRICTS - BUDGET - Amends existing law to provide that fire districts may increase their budget if their levy is below a certain figure; and to provide for an election. 01/27 House intro - 1st rdg - to printing 01/29 Rpt prt - to Rev/Tax
H0125|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 125 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO LIMITATION ON BUDGET REQUESTS BY TAXING DISTRICTS; AMENDING SEC- 3 TION 63-802, IDAHO CODE, TO PROVIDE THAT FIRE DISTRICTS MAY INCREASE THEIR 4 BUDGET IF THEIR LEVY IS BELOW A CERTAIN FIGURE AND TO PROVIDE FOR AN ELEC- 5 TION; DECLARING AN EMERGENCY AND PROVIDING FOR RETROACTIVE APPLICATION. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Section 63-802, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 63-802. LIMITATION ON BUDGET REQUESTS -- LIMITATION ON TAX CHARGES -- 10 EXCEPTIONS. (1) Except as provided in subsection (2) of this section for tax 11 year 1995, and each year thereafter, no taxing district shall certify a budget 12 request for an amount of property tax revenues to finance an annual budget 13 that exceeds the greater of: 14 (a) The dollar amount of property taxes certified for its annual budget 15 for any one (1) of the three (3) tax years preceding the current tax year, 16 whichever is greater, which amount may be increased by a growth factor of 17 not to exceed three percent (3%) plus the amount of revenue that would 18 have been generated by applying the levy of the previous year, not includ- 19 ing any levy described in subsection (3) of this section, to any increase 20 in market value subject to taxation resulting from new construction or 21 change of land use classification as evidenced by the value shown on the 22 new construction roll compiled pursuant to section 63-301A, Idaho Code; 23 and by the value of annexation during the previous calendar year, as cer- 24 tified by the state tax commission for market values of operating property 25 of public utilities and by the county assessor; or 26 (b) The dollar amount of property taxes certified for its annual budget 27 during the last year in which a levy was made; or 28 (c) The dollar amount of the actual budget request, if the taxing dis- 29 trict is newly created; or 30 (d) In the case of school districts, the restriction imposed in section 31 33-802, Idaho Code; or 32 (e) In the case of a nonschool district for which less than the maximum 33 allowable increase in the dollar amount of property taxes is certified 34 for annual budget purposes in any one (1) year, such a district may, in 35 any following year, recover the foregone increase by certifying, in addi- 36 tion to any increase otherwise allowed, an amount not to exceed one hun- 37 dred percent (100%) of the increase originally foregone. Said additional 38 amount shall be included in future calculations for increases as allowed; 39 or 40 (f) In the case of cities, if the immediately preceding year's levy sub- 41 ject to the limitation provided by this section, is less than 0.004, the 42 city may increase its budget by an amount not to exceed the difference 43 between 0.004 and actual prior year's levy multiplied by the prior year's 2 1 market value for assessment purposes. The additional amount must be 2 approved by sixty percent (60%) of the voters voting on the question at an 3 election called for that purpose and held on the date in May or November 4 provided by law, and may be included in the annual budget of the city for 5 purposes of this section ; 6 (g) In the case of fire districts, if the immediately preceding year's 7 levy pursuant to section 31-1420, Idaho Code, and subject to the limita- 8 tion provided by this section is less than 0.0016 or 0.0024, the fire 9 district may increase the portion of its budget subject to the limitation 10 provided in this section, by an amount not to exceed the difference 11 between 0.0016 or 0.0024, as applicable, and the actual prior year's levy, 12 multiplied by the prior year's market value for assessment purposes. The 13 additional budget amount must by approved by sixty percent (60%) of the 14 voters voting on the question at an election called for that purpose and 15 held on the date in May or November provided by law. If approved by 16 voters the additional budget amount may be included in each succeeding 17 annual budget . 18 (2) No board of county commissioners shall set a levy, nor shall the 19 state tax commission approve a levy for annual budget purposes which exceeds 20 the limitation imposed in subsection (1) of this section, unless authority to 21 exceed such limitation has been approved by a majority of the taxing 22 district's electors voting on the question at an election called for that pur- 23 pose and held pursuant to section 34-106, Idaho Code, provided however, that 24 such voter approval shall be for a period of not to exceed two (2) years. 25 (3) The amount of property tax revenues to finance an annual budget does 26 not include revenues from nonproperty tax sources, and does not include reve- 27 nue from levies that are voter approved for bonds, override levies or supple- 28 mental levies, plant facilities reserve fund levies, school emergency fund 29 levies or for levies applicable to newly annexed property or for levies appli- 30 cable to new construction as evidenced by the value of property subject to the 31 occupancy tax pursuant to section 63-317, Idaho Code, for the preceding tax 32 year. 33 SECTION 2. An emergency existing therefor, which emergency is hereby 34 declared to exist, this act shall be in full force and effect on and after its 35 passage and approval, and retroactively to January 1, 1999.
STATEMENT OF PURPOSE
RS 08710
At the time 63-802, Idaho Code(Limitation on Budget Requests - 3%
(Cap), was passed by the Idaho Legislature, some fire districts
operating under provisions of Section 31-1420, Idaho Code, were
operating at extremely low tax levies. Today some of those fire
districts are in danger of not being able to meet operational
requirements for their fire district. This legislation will allow
those districts the opportunity to bring their levies to a required
operational level without exceeding the original provisions of
Section 31-1420, Idaho Code.
FISCAL NOTE
No fiscal impact to the State. There will be a fiscal impact for
property owners in the district, but approval of a levy increase
will require 60% approval of voters who vote on the question.
CONTACT: Rep. Jim Kempton
208/332-1000
STATEMENT OF PURPOSE/ FISCAL NOTE Bill No. H 125