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H0303...............................................by REVENUE AND TAXATION SCHOOL PLANT FACILITIES - Amends existing law to increase the levy maximum and allowable length of the school plant facilities reserve fund levy which may be approved by electors. 02/24 House intro - 1st rdg - to printing 02/25 Rpt prt - to Rev/Tax
H0303|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 303 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO SCHOOL PLANT FACILITIES RESERVE FUND LEVY; AMENDING SECTION 3 33-804, IDAHO CODE, TO INCREASE LEVY MAXIMUM AND ALLOWABLE LENGTH OF 4 SCHOOL PLANT FACILITIES RESERVE FUND LEVY WHICH MAY BE APPROVED BY ELEC- 5 TORS AND TO PROVIDE A DATE WHEN THE ELECTION SHALL BE HELD; REPEALING SEC- 6 TION 33-804, IDAHO CODE; AMENDING CHAPTER 8, TITLE 33, IDAHO CODE, BY THE 7 ADDITION OF A NEW SECTION 33-804, IDAHO CODE, TO PROVIDE PROCEDURES FOR 8 ENACTING A SCHOOL PLANT FACILITIES RESERVE FUND LEVY; DECLARING AN EMER- 9 GENCY AND PROVIDING EFFECTIVE DATES. 10 Be It Enacted by the Legislature of the State of Idaho: 11 SECTION 1. That Section 33-804, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 33-804. SCHOOL PLANT FACILITIES RESERVE FUND LEVY. In any school district 14 in which a school plant facilities reserve fund has been created, either by 15 resolution of the board of trustees or by apportionment to new districts 16 according to the provisions of section 33-901, Idaho Code, to provide funds 17 therefor the board of trustees shall submit to the qualified school electors 18 of the district the question of a levy not to exceed four-tenths of one per- 19 cent (.4%) of market value for assessment purposes in each year, as such valu- 20 ation existed on December 31 of the previous year, for a period not to exceed 21 ten (10) years. 22 The question of a levy to be submitted to the electors of the district and 23 the notice of such election shall state the dollar amount proposed to be col- 24 lected each year during the period of years in each of which the collection is 25 proposed to be made, the percentage of votes in favor of the proposal which 26 are needed to approve the proposed dollar amount to be collected, and the pur- 27 poses for which such funds shall be used. Said notice shall be given, the 28 election shall be conducted and the returns canvassed as provided in chapter 29 4, title 33, Idaho Code , provided that the election shall be held on one 30 (1) of the dates authorized in section 34-106, Idaho Code ; and the dol- 31 lar amount to be collected shall be approved only if: 32 1. Fifty-five percent (55%) of the electors voting in such election are 33 in favor thereof if the levy will result in a total levy for school plant 34 facilities and bonded indebtedness of less thantwothree 35 -tenths of one percent (.23 %) of market value 36 for assessment purposes as such valuation existed on December 31 of the year 37 immediately preceding the election; 38 2. Sixty percent (60%) of the electors voting in such election are in 39 favor thereof if the levy will result in a total levy for school plant facili- 40 ties and bonded indebtedness oftwo-tenths of one percent (.2%) or more41and less thanthree-tenths of one percent (.3%) or more and less 42 than four-tenths of one percent (.4%) of market value for assessment 43 purposes as such valuation existed on December 31 of the year immediately pre- 2 1 ceding the election; or 2 3. Two-thirds (2/3) of the electors voting in such election are in favor 3 thereof if the levy will result in a total levy for school plant facilities 4 and bonded indebtedness ofthreefour -tenths of one 5 percent (.34 %) or more of market value for assess- 6 ment purposes as such valuation existed on December 31 of the year immediately 7 preceding the election. 8 If the question be approved, the board of trustees may make a levy, not to 9 exceed four-tenths of one percent (.4%) of market value for assessment pur- 10 poses as such valuation existed on December 31 of the previous year, in each 11 year for which the collection was approved, sufficient to collect the dollar 12 amount approved and may again submit the question at the expiration of the 13 period of such levy, for the dollar amount to be collected during each year, 14 and the number of years which the board may at that time determine. Or, during 15 the period approved at any such election, if such period be less than16tentwenty (12 0) years or the 17 levy be less than four-tenths of one percent (.4%) of market value for assess- 18 ment purposes as such valuation existed on December 31 of the previous year, 19 the board of trustees may submit to the qualified school electors in the same 20 manner as before, the question whether the number of years, or the levy, or 21 both, be increased, but not to exceed the maximum herein authorized. If such 22 increase or increases be approved by the electors, the terms of such levy 23 shall be in lieu of those approved in the first instance, but disapproval 24 shall not affect any terms theretofore in effect. 25 Any bonded indebtedness incurred in accordance with the provisions of sec- 26 tion 33-1103, Idaho Code, subsequent to the approval of a plant facilities 27 reserve fund levy shall not affect the terms of that levy for any time during 28 which such levy is in effect. 29 SECTION 2. That Section 33-804, Idaho Code, be, and the same is hereby 30 repealed. 31 SECTION 3. That Chapter 8, Title 33, Idaho Code, be, and the same is 32 hereby amended by the addition thereto of a NEW SECTION , to be 33 known and designated as Section 33-804, Idaho Code, and to read as follows: 34 33-804. SCHOOL PLANT FACILITIES RESERVE FUND LEVY. In any school district 35 in which a school plant facilities reserve fund has been created, either by 36 resolution of the board of trustees or by apportionment to new districts 37 according to the provisions of section 33-901, Idaho Code, to provide funds 38 therefor the board of trustees shall submit to the qualified school electors 39 of the district the question of a levy not to exceed four-tenths of one per- 40 cent (.4%) of market value for assessment purposes in each year, as such valu- 41 ation existed on December 31 of the previous year, for a period not to exceed 42 ten (10) years. 43 The question of a levy to be submitted to the electors of the district and 44 the notice of such election shall state the dollar amount proposed to be col- 45 lected each year during the period of years in each of which the collection is 46 proposed to be made, the percentage of votes in favor of the proposal which 47 are needed to approve the proposed dollar amount to be collected, and the pur- 48 poses for which such funds shall be used. Said notice shall be given, the 49 election shall be conducted and the returns canvassed as provided in chapter 50 4, title 33, Idaho Code; and the dollar amount to be collected shall be 51 approved only if: 52 (1) Fifty-five percent (55%) of the electors voting in such election are 3 1 in favor thereof if the levy will result in a total levy for school plant 2 facilities and bonded indebtedness of less than two-tenths of one percent 3 (.2%) of market value for assessment purposes as such valuation existed on 4 December 31 of the year immediately preceding the election; 5 (2) Sixty percent (60%) of the electors voting in such election are in 6 favor thereof if the levy will result in a total levy for school plant facili- 7 ties and bonded indebtedness of two-tenths of one percent (.2%) or more and 8 less than three-tenths of one percent (.3%) of market value for assessment 9 purposes as such valuation existed on December 31 of the year immediately pre- 10 ceding the election; or 11 (3) Two-thirds (2/3) of the electors voting in such election are in favor 12 thereof if the levy will result in a total levy for school plant facilities 13 and bonded indebtedness of three-tenths of one percent (.3%) or more of mar- 14 ket value for assessment purposes as such valuation existed on December 31 of 15 the year immediately preceding the election. 16 If the question be approved, the board of trustees may make a levy, not to 17 exceed four-tenths of one percent (.4%) of market value for assessment pur- 18 poses as such valuation existed on December 31 of the previous year, in each 19 year for which the collection was approved, sufficient to collect the dollar 20 amount approved and may again submit the question at the expiration of the 21 period of such levy, for the dollar amount to be collected during each year, 22 and the number of years which the board may at that time determine. Or, during 23 the period approved at any such election, if such period be less than ten (10) 24 years or the levy be less than four-tenths of one percent (.4%) of market 25 value for assessment purposes as such valuation existed on December 31 of the 26 previous year, the board of trustees may submit to the qualified school elec- 27 tors in the same manner as before, the question whether the number of years, 28 or the levy, or both, be increased, but not to exceed the maximum herein 29 authorized. If such increase or increases be approved by the electors, the 30 terms of such levy shall be in lieu of those approved in the first instance, 31 but disapproval shall not affect any terms theretofore in effect. 32 Any bonded indebtedness incurred in accordance with the provisions of sec- 33 tion 33-1103, Idaho Code, subsequent to the approval of a plant facilities 34 reserve fund levy shall not affect the terms of that levy for any time during 35 which such levy is in effect. 36 SECTION 4. An emergency existing therefor, which emergency is hereby 37 declared to exist, Section 1 of this act shall be in full force and effect on 38 and after its passage and approval; and Sections 2 and 3 of this act shall be 39 in full force and effect on and after December 31, 2002.
STATEMENT OF PURPOSE
RS 08914C2
Enacted in 1963, the School Plant Facilities Reserve Fund Act (Idaho
Code Section 33-901) enables local school districts to establish a school
plant facilities reserve fund to obtain "loans from commercial lending
institutions...to pay for the construction of school plant facilities.
Monies in a local schooL district's plant facilities reserve fund are
obtained by assessing a School Plant Facilities Reserve Fund Levy (Idaho
Code Section 33-804), but only after voter approval.
The School Plant Facilities Reserve Fund Levy (SPFL) is limited in
length and size by the School Budget and Tax Levy Act (Idaho Code Chapter
8). Currently the maximum length of the SPFL is 10 years. Its maximum size
depends on the district's bonded indebtedness and the approval percentage
of voters. Eor example, if 60% of the local voters approve, the district
may levy a combined SPFL and bond indebtedness levy of no more than .3% of
its assessed valuation.
Commercial lending institutions operating in Idaho make school
facility loans based on the SPFL. These institutions are able to provide
longer terms to school districts to fund critically needed facility
improvements. This legislation would increase the capacity of local school
districts to fund needed improvements by making two modifications to the
existing school plant facility statute (Idaho Code Section 33-804): (1)
extend the maximum length of the levy from 10 to 20 years, and (2) raise
the maximum allowable size of the levy by .001 (.1%).
Any SPFL must be authorized by the necessary percentage of local
voters. To promote voter participation, this legislation would limit SPFL
elections to the four (4) consolidated election dates (Idaho Code Section
34-106).
To allow the legislature to evaluate the effectiveness of these
changes a "sunset clause" is provided. Without further action the two
changes would revert to the current limits at the end of 2002.
FISCAL IMPACT
There is no fiscal impact to the state government. There will be a
fiscal impact to property owners in school districts that choose to
increase their SPFL. Any increase is subject to approval by voters in the
district. An increase in the length of the levy will in many cases decrease
the annual tax impact on the local property owner by spreading the cost
over a longer period. If voters approve the .001 (.1%) increase in the
maximum levy allowed by this legislation, the local tax impact would equate
to approximately $4.80 per month on a residential property valued at
$100,000.
CONTACT: Representative Dolores Crow (332-1125)
STATEMENT OF PURPOSE/FISCAL NOTE Bill H 303