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H0552...............................................by REVENUE AND TAXATION SALES TAX INCREASED - Amends and repeals existing law to increase the sales and use tax to six percent; to delete the authority for school districts to levy for maintenance and operation purposes; and to provide a formula to replace those moneys from the increase in the sales and use tax. 02/11 House intro - 1st rdg - to printing 02/14 Rpt prt - to Rev/Tax
H0552|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature Second Regular Session - 2000IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 552 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO THE EDUCATIONAL SUPPORT PROGRAM AND TAXATION POLICIES; AMENDING 3 SECTION 63-3619, IDAHO CODE, TO INCREASE THE SALES TAX RATE TO SIX PERCENT 4 AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 63-3621, IDAHO CODE, 5 TO INCREASE THE USE TAX RATE TO SIX PERCENT; AMENDING SECTION 33-802, 6 IDAHO CODE, TO STRIKE REFERENCE TO SCHOOL DISTRICT LEVIES THAT MAY BE 7 IMPOSED WITHOUT VOTER APPROVAL AND TO REVISE THE LOCAL DISTRICT CONTRIBU- 8 TION; AMENDING SECTION 33-1002, IDAHO CODE, TO REVISE HOW THE EDUCATIONAL 9 SUPPORT PROGRAM IS CALCULATED; AMENDING SECTION 33-1003, IDAHO CODE, TO 10 STRIKE REFERENCE TO AN OBSOLETE PROVISION; AMENDING SECTION 33-1002D, 11 IDAHO CODE, TO REVISE HOW PROPERTY TAX REPLACEMENT IS CALCULATED; REPEAL- 12 ING SECTION 33-1002D, IDAHO CODE; AMENDING SECTION 63-3638, IDAHO CODE, TO 13 PROVIDE FOR REMITTANCE OF MONEYS TO THE PUBLIC SCHOOL INCOME FUND TO BE 14 UTILIZED FOR PROPERTY TAX REPLACEMENT AND TO CORRECT A CODIFIER'S ERROR; 15 AMENDING SECTIONS 63-316 AND 67-6211, IDAHO CODE, TO PROVIDE A CORRECT 16 CITATION; DECLARING AN EMERGENCY AND PROVIDING EFFECTIVE DATES. 17 Be It Enacted by the Legislature of the State of Idaho: 18 SECTION 1. That Section 63-3619, Idaho Code, be, and the same is hereby 19 amended to read as follows: 20 63-3619. IMPOSITION AND RATE OF THE SALES TAX. An excise tax is hereby 21 imposed upon each sale at retail at the rate offive per centsix percent 22 (56%) of the sales price of all retail sales subject to taxation under this 23 chapter and such amount shall be computed monthly on all sales at retail 24 within the preceding month. 25 (a) The tax shall apply to, be computed on, and collected for all credit, 26instalmentinstallment, conditional or similar sales at the time of the sale 27 or, in the case of rentals, at the time the rental is charged. 28 (b) The tax hereby imposed shall be collected by the retailer from the 29 consumer. 30 (c) The state tax commission shall provide schedules for collection of 31 the tax on sales which involve a fraction of a dollar. The retailer shall cal- 32 culate the tax upon the entire amount of the purchases of the consumer made at 33 a particular time and not separately upon each item purchased. The retailer 34 may retain any amount collected under the bracket system prescribed which is 35 in excess of the amount of tax for which he is liable to the state during the 36 period as compensation for the work of collecting the tax. 37 (d) It is unlawful for any retailer to advertise or hold out or state to 38 the public or to any customer, directly or indirectly, that the tax or any 39 part thereof will be assumed or absorbed by the retailer or that it will not 40 be added to the selling price of the property sold or that if added it or any 41 part thereof will be refunded. Any person violating any provision of this sec- 42 tion is guilty of a misdemeanor. 43 (e) The tax commission may by rule provide that the amount collected by 2 1 the retailer from the customer in reimbursement of the tax be displayed sepa- 2 rately from the list price, the price advertised on the premises, the marked 3 price, or other price on the sales slip or other proof of sale. 4 (f) The taxes imposed by this chapter shall apply to the sales to con- 5 tractors purchasing for use in the performance of contracts with the United 6 States. 7 SECTION 2. That Section 63-3621, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 63-3621. IMPOSITION AND RATE OF THE USE TAX -- EXEMPTIONS. An excise tax 10 is hereby imposed on the storage, use, or other consumption in this state of 11 tangible personal property acquired on or after July 1, 1965, for storage, 12 use, or other consumption in this state at the rate offivesix percent (56%) 13 of the value of the property, and a recent sales price shall be presumptive 14 evidence of the value of the property unless the property is wireless telecom- 15 munications equipment, in which case a recent sales price shall be conclusive 16 evidence of the value of the property. 17 (a) Every person storing, using, or otherwise consuming, in this state, 18 tangible personal property is liable for the tax. His liability is not extin- 19 guished until the tax has been paid to this state except that a receipt from a 20 retailer maintaining a place of business in this state or engaged in business 21 in this state given to the purchaser is sufficient to relieve the purchaser 22 from further liability for the tax to which the receipt refers. A retailer 23 shall not be considered to have stored, used or consumed wireless telecommuni- 24 cations equipment by virtue of giving, selling or otherwise transferring such 25 equipment at a discount as an inducement to a consumer to commence or continue 26 a contract for telecommunications service. 27 (b) Every retailer engaged in business in this state, and making sales of 28 tangible personal property for the storage, use, or other consumption in this 29 state, not exempted under section 63-3622, Idaho Code, shall, at the time of 30 making the sales or, if storage, use or other consumption of the tangible per- 31 sonal property is not then taxable hereunder, at the time the storage, use or 32 other consumption becomes taxable, collect the tax from the purchaser and give 33 to the purchaser a receipt therefor in the manner and form prescribed by the 34 state tax commission. 35 (c) The provisions of this section shall not apply when the retailer pays 36 sales tax on the transaction and collects reimbursement for such sales tax 37 from the customer. 38 (d) Every retailer engaged in business in this state or maintaining a 39 place of business in this state shall register with the state tax commission 40 and give the name and address of all agents operating in this state, the loca- 41 tion of all distributions or sales houses or offices or other places of busi- 42 ness in this state, and such other information as the state tax commission may 43 require. 44 (e) For the purpose of the proper administration of this act and to pre- 45 vent evasion of the use tax and the duty to collect the use tax, it shall be 46 presumed that tangible personal property sold by any person for delivery in 47 this state is sold for storage, use, or other consumption in this state. The 48 burden of proving the sale is tax exempt is upon the person who makes the sale 49 unless he obtains from the purchaser a resale certificate to the effect that 50 the property is purchased for resale or rental. It shall be presumed that 51 sales made to a person who has completed a resale certificate for the seller's 52 records are not taxable and the seller need not collect sales or use taxes 53 unless the tangible personal property purchased is taxable to the purchaser as 3 1 a matter of law in the particular instance claimed on the resale certificate. 2 A seller may accept a resale certificate from a purchaser prior to the 3 time of sale, at the time of sale, or at any reasonable time after the sale 4 when necessary to establish the privilege of the exemption. The resale certif- 5 icate relieves the person selling the property from the burden of proof only 6 if taken from a person who is engaged in the business of selling or renting 7 tangible personal property and who holds the permit provided for by section 8 63-3620, Idaho Code, or who is a retailer not engaged in business in this 9 state, and who, at the time of purchasing the tangible personal property, 10 intends to sell or rent it in the regular course of business or is unable to 11 ascertain at the time of purchase whether the property will be sold or will be 12 used for some other purpose. Other than as provided elsewhere in this section, 13 when a resale certificate, properly executed, is presented to the seller, the 14 seller has no duty or obligation to collect sales or use taxes in regard to 15 any sales transaction so documented regardless of whether the purchaser prop- 16 erly or improperly claimed an exemption. A seller so relieved of the obliga- 17 tion to collect tax is also relieved of any liability to the purchaser for 18 failure to collect tax or for making any report or disclosure of information 19 required or permitted under this chapter. 20 The resale certificate shall bear the name and address of the purchaser, 21 shall be signed by the purchaser or his agent, shall indicate the number of 22 the permit issued to the purchaser, or that the purchaser is an out-of-state 23 retailer, and shall indicate the general character of the tangible personal 24 property sold by the purchaser in the regular course of business. The certifi- 25 cate shall be substantially in such form as the state tax commission may pre- 26 scribe. 27 (f) If a purchaser who gives a resale certificate makes any storage or 28 use of the property other than retention, demonstration or display while hold- 29 ing it for sale in the regular course of business, the storage or use is tax- 30 able as of the time the property is first so stored or used. 31 (g) Any person violating any provision of this section is guilty of a 32 misdemeanor and punishable by a fine not in excess of one hundred dollars 33 ($100), and each violation shall constitute a separate offense. 34 (h) It shall be presumed that tangible personal property shipped or 35 brought to this state by the purchaser was purchased from a retailer, for 36 storage, use or other consumption in this state. 37 (i) It shall be presumed that tangible personal property delivered out- 38 side this state to a purchaser known by the retailer to be a resident of this 39 state was purchased from a retailer for storage, use, or other consumption in 40 this state. This presumption may be controverted by evidence satisfactory to 41 the state tax commission that the property was not purchased for storage, use, 42 or other consumption in this state. 43 (j) When the tangible personal property subject to use tax has been sub- 44 jected to a general retail sales or use tax by another state of the United 45 States in an amount equal to or greater than the amount of the Idaho tax, and 46 evidence can be given of such payment, the property will not be subject to 47 Idaho use tax. If the amount paid the other state was less, the property will 48 be subject to use tax to the extent that the Idaho tax exceeds the tax paid to 49 the other state. For the purposes of this subsection, a registration certifi- 50 cate or title issued by another state or subdivision thereof for a vehicle or 51 trailer or a vessel as defined in section 67-7003, Idaho Code, shall be suffi- 52 cient evidence of payment of a general retail sales or use tax. 53 (k) The use tax herein imposed shall not apply to the use by a nonresi- 54 dent of this state of a motor vehicle which is registered or licensed under 55 the laws of the state of his residence and is not used in this state more than 4 1 a cumulative period of time totaling ninety (90) days in any consecutive 2 twelve (12) months, and which is not required to be registered or licensed 3 under the laws of this state. 4 (l) The use tax herein imposed shall not apply to the use of household 5 goods and personal effects by a resident of this state, if such articles were 6 acquired by such person in another state while a resident of that state and 7 primarily for use outside this state and if such use was actual and substan- 8 tial, but if an article was acquired less than three (3) months prior to the 9 time he entered this state, it will be presumed that the article was acquired 10 for use in this state and that its use outside this state was not actual and 11 substantial. For purposes of this subsection, "resident" shall be as defined 12 in section 63-3013 or 63-3013A, Idaho Code. 13 (m) The use tax herein imposed shall not apply to the storage, use or 14 other consumption of tangible personal property which is or will be incorpo- 15 rated into real property and which has been donated to and has become the 16 property of: 17 (1) A nonprofit organization as defined in section 63-3622O, Idaho Code; 18 or 19 (2) The state of Idaho; or 20 (3) Any political subdivision of the state. 21 This exemption applies whether the tangible personal property is incorporated 22 in real property by the donee, a contractor or subcontractor of the donee, or 23 any other person. 24 SECTION 3. That Section 33-802, Idaho Code, be, and the same is hereby 25 amended to read as follows: 26 33-802. SCHOOL LEVIES. Any tax levied for school purposes shall be a lien 27 on the property against which the tax is levied. The board of trustees shall 28 determine the levies upon each dollar of taxable property in the district for 29 the ensuing fiscal year as follows: 30 1. Bond, Interest and Judgment Obligation Levies. Such levies as shall be 31 required to satisfy all maturing bond, bond interest, and judgment obliga- 32 tions. 33 2.Maximum School Maintenance and Operation Levies. Such levies for main-34taining andoperating the schools of the district and for the payment of35tuition and transportation, that do not exceed an amount equal to four-tenths36of one percent (.4%) during tax year 1994, and do not exceed an amount equal37to three-tenths of one percent (.3%) during tax year 1995 and thereafter,38applied to the actual or adjusted market value for assessment purposes of the39district as such valuation existed on December 31 of the previous year, but40 Credit Against Prepaid Taxes. Aallowances necessary as a credit for prepaid 41 taxes, as provided in section 63-1607, Idaho Code, shall not be included in 42 such maximum levies. 43 3.Authorized School Maintenance and Operation Levies. Such levies for44maintaining and operating the schools of the district and for the payment of45tuition and transportation that do not exceed one hundred eleven percent46(111%) of the local district's contribution authorized in subsection 2. of47section 33-1002, Idaho Code. Implementation of the provisions of this subsec-48tion shall be authorized only after approval by a majority of the district's49electors voting on the question. Levies otherwise authorized by law shall not50require an electionSpecially Chartered School Districts -- Levies for Mainte- 51 nance and Operation. Specially chartered school districts shall be entitled to 52 levy for maintenance and operation purposes as authorized by their charters, 53 except as provided in section 33-1002D, Idaho Code. 5 1 4. Supplemental Maintenance and Operation Levies. No levy in excess of 2 the levy permitted bysubsection 2. or 3. ofthis section shall be made by a 3 noncharter school district unless such a supplemental levy in a specified 4 amount and for a specified time not to exceed two (2) years be first autho- 5 rized through an election held pursuant to chapter 4, title 33, Idaho Code, 6 and approved by a majority of the district electors voting in such election. A 7 levy approved pursuant to this subsection may be reduced by a majority vote of 8 the board of trustees in the second year. 9 5. Charter District Supplemental Maintenance and Operation. Levies pursu- 10 ant to the respective charter of any such charter district shall be first 11 authorized through an election held pursuant to chapter 4, title 33, Idaho 12 Code, and approved by a majority of the district electors voting in such elec- 13 tion. 14 6. The Local District Contribution. The local school district contribu- 15 tion levy is the amount utilized for calculating local district participation 16 in the educationalfoundationsupport program, which is applied to the17adjusted market value for assessment purposes, as such valuation existed on18December 31 of the previous year. For all participating school districts, 19 this amount shall be computed annually as specified in section 33-1002, Idaho 20 Code. 21 7. The board of trustees of any school district that has, for at least 22 seven (7) consecutive years, been authorized through an election held pursuant 23 to chapter 4, title 33, Idaho Code, to certify a supplemental levy that has 24 annually been equal to or greater than twenty percent (20%) of the total gen- 25 eral maintenance and operation fund, may submit the question of an indefinite 26 term supplemental levy to the electors of the school district. Such question 27 shall clearly state the dollar amount that will be certified annually and that 28 the levy will be for an indefinite number of years. The question must be 29 approved by a majority of the district electors voting on the question in an 30 election held pursuant to chapter 4, title 33, Idaho Code. The levy approved 31 pursuant to this subsection may be reduced by a majority vote of the board of 32 trustees during any fiscal year. 33 SECTION 4. That Section 33-1002, Idaho Code, be, and the same is hereby 34 amended to read as follows: 35 33-1002. EDUCATIONAL SUPPORT PROGRAM. In order to be eligible to receive 36 moneys pursuant to the educational support program, a school district, includ- 37 ing a specially chartered district, shall reduce its revenue from property tax 38 for maintenance and operation as provided in sections 33-802 and 33-1002D, 39 Idaho Code. If in any year a school district, including a specially chartered 40 district has not reduced its property tax revenue for maintenance and opera- 41 tion by the amount provided in section 33-1002D, Idaho Code, it shall be inel- 42 igible to participate in the educational support program for that year. The 43 educational support program is calculated as follows: 44 1. State Educational Support Funds. Add the state appropriation, includ- 45 ing the moneys available in the public school income fund, including replace- 46 ment funds as calculated in section 33-1002D, Idaho Code, or moneys which have 47 come from another source, together with all miscellaneous revenues to deter- 48 mine the total state funds. 49 2. From the total state funds subtract the following amounts needed for 50 state support of special programs provided by a school district: 51 a. Pupil tuition-equivalency allowances as provided in section 33-1002B, 52 Idaho Code; 53 b. Transportation support program as provided in section 33-1006, Idaho 6 1 Code; 2 c. Feasibility studies allowance as provided in section 33-1007A, Idaho 3 Code; 4 d. The approved costs for border district allowance, provided in section 5 33-1403, Idaho Code, as determined by the state superintendent of public 6 instruction; 7 e. The approved costs for exceptional child approved contract allowance, 8 provided in subsection 2. of section 33-2004, Idaho Code, as determined by 9 the state superintendent of public instruction; 10 f. Certain expectant and delivered mothers allowance as provided in sec- 11 tion 33-2006, Idaho Code; 12 g. Salary based apportionment calculated as provided in sections 33-1004 13 through 33-1004F, Idaho Code; 14 h. Unemployment insurance benefit payments according to the provisions of 15 section 72-1349A, Idaho Code; 16 i. For programs to provide basic curricula necessary to enable students 17 to enter academic or professional-technical postsecondary education pro- 18 grams, an allocation of $300 per support unit for the 1994-95 school year 19 only; 20 j. For provision of teacher supplies to facilitate classroom instruction, 21 an allocation of $200 per support unit for the 1994-95 school year only; 22 k. For expenditure as provided by the public school technology program, 23 $10,400,000 for the 1994-95 school year; 24 l. For additional school innovation pilot project grants based on recom- 25 mendations of the Idaho school reform committee, $2,000,000 for the 26 1994-95 school year; and 27 m. For the support of provisions that provide a safe environment condu- 28 cive to student learning and maintain classroom discipline, an allocation 29 of $300 per support unit; 30 n. Any additional amounts as required by statute to effect administrative 31 adjustments or as specifically required by the provisions of any bill of 32 appropriation; 33 to secure the state educational support funds. 34 3. Local Districts' Contribution Calculation. Without including any 35 allowance as a credit for prepaid taxes as provided by section 63-1607, Idaho 36 Code, the local districts' contribution shall be four-tenths percent (.4%) 37 during fiscal year1994-951999-2000 and zero percent (0%) during fiscal year 38 2000-2001 and each year thereafter, of the total state adjusted market value 39 for assessment purposes for the previous year with such value being determined 40 by the provisions of section 63-315, Idaho Code, and four-tenths percent (.4%) 41 during fiscal year1994-951999-2000 and zero percent (0%) during fiscal year 42 2000-2001 and each year thereafter, of the cooperative electrical associa- 43 tions' property values that have been derived from the taxes paid in lieu of 44 ad valorem taxes for the previous year as provided in section 63-3502, Idaho 45 Code. 46 4. Educational Support Program Distribution Funds. Add the local dis- 47 tricts' contribution, subsection 3. of this section, and the state educational 48 support program funds, subsection 1. of this section, together to secure the 49 total educational support program distribution funds. 50 5. Average Daily Attendance. The total state average daily attendance 51 shall be the sum of the average daily attendance of all of the school dis- 52 tricts of the state. The state board of education shall establish rules set- 53 ting forth the procedure to determine average daily attendance and the time 54 for, and method of, submission of such report. Average daily attendance calcu- 55 lation shall be carried out to the nearest hundredth. Computation of average 7 1 daily attendance shall also be governed by the provisions of section 33-1003A, 2 Idaho Code. 3 6. Support Units. The total state support units shall be determined by 4 using the tables set out hereafter called computation of kindergarten support 5 units, computation of elementary support units, computation of secondary sup- 6 port units, computation of exceptional education support units, and computa- 7 tion of alternative school secondary support units. The sum of all of the 8 total support units of all school districts of the state shall be the total 9 state support units. 10 COMPUTATION OF KINDERGARTEN SUPPORT UNITS 11 Average Daily 12 Attendance Attendance Divisor Units Allowed 13 41 or more .... 40....................... 1 or more as computed 14 31 - 40.99 ADA.... -....................... 1 15 26 - 30.99 ADA.... -....................... .85 16 21 - 25.99 ADA.... -....................... .75 17 16 - 20.99 ADA.... -....................... .6 18 8 - 15.99 ADA.... -....................... .5 19 1 - 7.99 ADA.... -....................... count as elementary 20 COMPUTATION OF ELEMENTARY SUPPORT UNITS 21 Average Daily 22 Attendance Attendance Divisor Minimum Units Allowed 23 300 or more ADA........................................ 15 24 ..23...grades 4,5 & 6.... 25 ..22...grades 1,2 & 3....1994-95 26 ..21...grades 1,2 & 3....1995-96 27 ..20...grades 1,2 & 3....1996-97 28 and each year thereafter. 29 160 to 299.99 ADA... 20..................... 8.4 30 110 to 159.99 ADA... 19..................... 6.8 31 71.1 to 109.99 ADA... 16..................... 4.7 32 51.7 to 71.0 ADA... 15..................... 4.0 33 33.6 to 51.6 ADA... 13..................... 2.8 34 16.6 to 33.5 ADA... 12..................... 1.4 35 1.0 to 16.5 ADA... n/a.................... 1.0 36 COMPUTATION OF SECONDARY SUPPORT UNITS 37 Average Daily 38 Attendance Attendance Divisor Minimum Units Allowed 39 750 or more .... 18.5..................... 47 40 400 - 749.99 ADA.... 16....................... 28 41 300 - 399.99 ADA.... 14.5..................... 22 42 200 - 299.99 ADA.... 13.5..................... 17 43 100 - 199.99 ADA.... 12....................... 9 44 99.99 or fewer Units allowed as follows: 45 Grades 7-12 ......................... 8 46 Grades 9-12 ......................... 6 47 Grades 7- 9 ......................... 1 per 14 ADA 48 Grades 7- 8 ......................... 1 per 16 ADA 49 COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS 50 Average Daily 51 Attendance Attendance Divisor Minimum Units Allowed 52 14 or more .... 14.5..................... 1 or more as computed 8 1 12 - 13.99.... -....................... 1 2 8 - 11.99.... -....................... .75 3 4 - 7.99.... -....................... .5 4 1 - 3.99.... -....................... .25 5 COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS 6 Pupils in Attendance Attendance Divisor Minimum Units Allowed 7 12 or more.......... 12...................... 1 or more as computed 8 In applying these tables to any given separate attendance unit, no school 9 district shall receive less total money than it would receive if it had a 10 lesser average daily attendance in such separate attendance unit. In applying 11 the kindergarten table to a kindergarten program of less days than a full 12 school year, the support unit allowance shall be in ratio to the number of 13 days of a full school year. The tables for exceptional education and alterna- 14 tive school secondary support units shall be applicable only for programs 15 approved by the state department of education following rules established by 16 the state board of education. Moneys generated from computation of support 17 units for alternative schools shall be utilized for alternative school pro- 18 grams. School district administrative and facility costs may be included as 19 part of the alternative school expenditures. 20 7. State Distribution Factor per Support Unit. Divide educational support 21 program distribution funds, after subtracting the amounts necessary to pay the 22 obligations specified in subsection 2. of this section, by the total state 23 support units to secure the state distribution factor per support unit. 24 8. District Share of State Funds for Educational Support Program. Ascer- 25 tain a district's share of state funds for the educational support program as 26 follows: 27 a. District Contribution Calculation. Without including any allowance as 28 a credit for prepaid taxes, as provided in section 63-1607, Idaho Code, 29 the district contribution calculation shall be the rate determined under 30 subsection 3. of this section. 31 b. District Support Units. The number of support units for each school 32 district in the state shall be determined as follows: 33 (1) Divide the actual average daily attendance, excluding students 34 approved for inclusion in the exceptional child educational program, 35 for the administrative schools and each of the separate schools by 36 the appropriate divisor from the tables of support units in this sec- 37 tion, then add the quotients to obtain the district's support units 38 allowance for regular students, kindergarten through grade 12 includ- 39 ing alternative school secondary students. Calculations in applica- 40 tion of this subsection shall be carried out to the nearest tenth. 41 (2) Divide the combined totals of the average daily attendance of 42 all preschool, handicapped, kindergarten, elementary, secondary and 43 juvenile detention center students approved for inclusion in the 44 exceptional child program of the district by the appropriate divisor 45 from the table for computation of exceptional education support units 46 to obtain the number of support units allowed for the district's 47 approved exceptional child program. Calculations for this subsection 48 shall be carried out to the nearest tenth when more than one (1) unit 49 is allowed. 50 (3) The total number of support units of the district shall be the 51 sum of the total support units for regular students, subsection 52 8.b.(1) of this section, and the support units allowance for the 53 approved exceptional child program, subsection 8.b.(2) of this sec- 9 1 tion. 2 c. Total District Allowance Educational Program. Multiply the district's 3 total number of support units, carried out to the nearest tenth, by the 4 state distribution factor per support unit and to this product add the 5 approved amount of programs of the district provided in subsection 2. of 6 this section to secure the district's total allowance for the educational 7 support program. 8 d. District Share. To secure the district's share of state apportionment, 9 subtract the amount of the local district contribution calculation, sub- 10 section 3. of this section, from the amount of the total district allow- 11 ance, subsection 8.c. of this section. 12 e. Adjustment of District Share. The contract salary of every noncertifi- 13 cated teacher shall be subtracted from the district's share as calculated 14 from the provisions of subsection 8.d. of this section. 15 SECTION 5. That Section 33-1003, Idaho Code, be, and the same is hereby 16 amended to read as follows: 17 33-1003. SPECIAL APPLICATIONS OF EDUCATIONAL SUPPORT PROGRAM. 1. Decrease 18 in Average Daily Attendance. -- Any school district which has a decrease in 19 total average daily attendance of one percent (1%) of its average daily atten- 20 dance in the then current school year from the total average daily attendance 21 used for determining the allowance in the educational support program for the 22 school year immediately preceding, the allowance of funds from the educational 23 support program may be based on the average daily attendance of the school 24 year immediately preceding, less one percent (1%). When this provision is 25 applied, the decrease in average daily attendance shall be proportionately 26 distributed among the various categories of support units that are appropriate 27 for the district. 28 2. Application of Support Program to Separate Schools in District. 29 a. Separate Elementary School. -- Any separate elementary school shall be 30 allowed to participate in the educational support program as though the 31 school were the only elementary school operated by the district. 32 b. Hardship Elementary School. -- Upon application of the board of 33 trustees of a school district, the state board of education is empowered 34 to determine that a given elementary school or elementary schools within 35 the school district, not otherwise qualifying, are entitled to be counted 36 as a separate elementary school as defined in section 33-1001, Idaho Code, 37 when, in the discretion of the state board of education, special condi- 38 tions exist warranting the retention of the school as a separate atten- 39 dance unit and the retention results in a substantial increase in cost per 40 pupil in average daily attendance above the average cost per pupil in 41 average daily attendance of the remainder of the district's elementary 42 grade school pupils. 43 c. Separate Secondary School. -- Any separate secondary school shall be 44 allowed to participate in the educational support program as though the 45 school were the only secondary school operated by the district. 46 d. Minimum Pupils Required. -- Any elementary school having less than ten 47 (10) pupils in average daily attendance shall not be allowed to partici- 48 pate in the state or county support program unless the school has been 49 approved for operation by the state board of education. 50 3. Remote Schools. -- The board of trustees of any Idaho school district 51 which operates and maintains a school which is remote and isolated from the 52 other schools of the state because of geographical or topographical conditions 53 may petition the state board of education to recognize and approve the school 10 1 as a remote and necessary school. The petition shall be in form and content 2 approved by the state board of education and shall provide such information as 3 the state board of education may require. Petitions for the recognition of a 4 school as a remote and necessary school shall be filed annually at least 5 ninety (90) days prior to the date of the annual meeting of the board of 6 trustees as established in section 33-510, Idaho Code. 7 Within forty-five (45) days after the receipt of a petition for the recog- 8 nition of a remote and necessary school, the state board of education shall 9 either approve or disapprove the petition and notify the board of trustees of 10 its decision. Schools which the state board of education approves as being 11 necessary and remote shall be allowed adequate funding within the support pro- 12 gram for an acceptable educational program for the students of the school. In 13 the case of a remote and necessary secondary school, grades 7-12, the educa- 14 tional program shall be deemed acceptable when, in the opinion of the state 15 board of education, the accreditation standard relating to staff size, estab- 16 lished in accordance with section 33-119, Idaho Code, has been met. The final 17 determination of an acceptable program and adequate funding in the case of a 18 remote and necessary elementary school shall be made by the state board of 19 education. 20 4. Support Program When District Boundaries are Changed. 21 a. In new districts formed by the division of a district, the support 22 program computed for the district divided in its last year of operation, 23 shall be apportioned to the new districts created by the division, in the 24 proportion that the average daily attendance of pupils, elementary and 25 secondary combined, residing in the area of each new district so created, 26 is to the average daily attendance of all pupils, elementary and secondary 27 combined, in the district divided in its last year of operation before the 28 division. 29 b. When boundaries of districts are changed by excision or annexation of 30 territory, the support program of any district from which territory is 31 excised for the last year of operation before such excision shall be 32 divided, and apportioned among the districts involved, as prescribed in 33 subsection 4a.hereof.34 c. In new districts formed by consolidation of former districts, the sup- 35 port program allowance for a seven (7) year period following the formation 36 of the new district, shall not be less than the combined support program 37 allowances of the component districts in the last year of operation 38 before consolidation. 395. For the fiscal year which commences on July 1, 1986, and for each suc-40ceeding fiscal year, any school district whose adjusted market value for41assessment purposes decreases forty percent (40%) or more from the previous42year's adjusted market value for assessment purposes as such valuation existed43on December 31, is eligible to receive an adjustment to its educational sup-44port program entitlement, subject to qualifications as follows:45a. The adjusted market value for assessment purposes has decreased forty46percent (40%) or more from the previous year's adjusted market value for47assessment purposes as such valuation existed on December 31; and48b. The school levy to be certified for the general maintenance and opera-49tion fund shall be no less than four-tenths of one percent (.4%); and50c. An eligible school district has made application to the state depart-51ment of education for an adjustment to entitlement from the state educa-52tional support program on or before June 1 of the fiscal year. Such appli-53cation must document the need for additional funds and must include a dis-54trict plan to minimize impact of a reduced local tax base.11 1 SECTION 6. That Section 33-1002D, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 33-1002D. PROPERTY TAX REPLACEMENT.The purpose of this section is to4replace a portion of the authorized sSchool maintenance and operation property 5 taxlevy with state sales tax receiptsrevenues shall be replaced as provided 6 in this section. To participate in property tax replacement as provided in 7 this section, specially chartered school districts shall reduce their property 8 tax computation ratios for maintenance and operation by subtracting .003 from 9 their 1999 property tax computation ratio, provided the result is not less 10 than zero (0). As used in this section, the term "property tax computation 11 ratio" shall mean a ratio determined by dividing the district's 1999 certified 12 property tax maintenance and operation budget by the greater of the actual or 13 adjusted market value for assessment purposes as such values existed on Decem- 14 ber 31,of the previous calendar year1998. 15(1) (a) In the case of a school district that had a property tax computa-16tion ratio of not less than four-tenths of one percent (.4%) in tax year171994, that school district shall receive from the appropriations made for18that purpose, an amount equal to the greater of the district's actual or19adjusted market value for assessment purposes as such valuation existed on20December 31 of the previous calendar year multiplied by one-tenth of one21percent (.1%).22(b) In the case of a school district that had a property tax computation23ratio of less than four-tenths of one percent (.4%) in tax year 1994, the24greater of the 1992, 1993 or 1994 property tax computation ratio less25three-tenths of one percent (.3%) shall be designated the district's base26multiplier. In no case shall the base multiplier be less than zero (0).27Four-tenths of one percent (.4%) less the greater of the district's 1992,281993 or 1994 property tax computation ratio shall be designated the29district's adjustment factor. In no case shall the adjustment factor be30greater than one-tenth of one percent (.1%) or less than zero (0). Each31school district's actual multiplier shall be the base multiplier plus one-32fifth (1/5) of the adjustment factor in tax year 1995, the base multiplier33plus two-fifths (2/5) of the adjustment factor in tax year 1996, the base34multiplier plus three-fifths (3/5) of the adjustment factor in tax year351997, the base multiplier plus four-fifths (4/5) of the adjustment factor36in tax year 1998, and the base multiplier plus the adjustment factor in37tax year 1999 and beyond. Each school district shall receive, from the38appropriations made for that purpose, an amount equal to the district's39actual or adjusted market value for assessment purposes as such valuation40existed on December 31 of the previous calendar year multiplied by the41district's actual multiplier.42(2) (a) Participation in this property tax reduction program is voluntary43for a charter district. If a charter district participates, in addition to44the provisions of subsection (1) of this section it shall not have a prop-45erty tax computation ratio that is above three-tenths of one percent46(.3%) or the district's property tax computation ratio in tax year 1994,47less one-tenth of one percent (.1%), whichever is greater.48(b) If in any year the charter district's property tax computation ratio49used to calculate its maintenance and operation budget is increased above50the limit specified in this subsection the district shall not be eligible51for the distribution pursuant to subsection (1) of this section for that52year.53(3) Limitations imposed upon a school district's property tax computation54ratio under the provisions of this section do not apply to any levy approved12 1by electors of the school district as provided by law.2(4) Distributions calculated as provided in this section shall be made to3school districts of this state in two (2) equal installments on the due dates4as specified in section 63-903(1), Idaho Code, for the property taxes being5replaced.6(5) For purposes of section 33-1002, Idaho Code, moneys distributed pur-7suant to this section shall not be included in determining total state funds8 Property tax replacement funds shall be deposited into the public school 9 income fund as provided in section 63-3638, Idaho Code, and utilized as pro- 10 vided in section 33-1002, Idaho Code. For tax year 2000 and thereafter, the 11 property tax replacement shall be calculated by multiplying .004 times the 12 greater of each school district's actual or adjusted market value as such 13 values are determined under section 63-315, Idaho Code, on December 31 of the 14 previous year. 15 SECTION 7. That Section 33-1002D, Idaho Code, be, and the same is hereby 16 repealed. 17 SECTION 8. That Section 63-3638, Idaho Code, be, and the same is hereby 18 amended to read as follows: 19 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap- 20 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall 21 be distributed by the tax commission as follows: 22 (a) An amount of money shall be distributed to the state refund account 23 sufficient to pay current refund claims. All refunds authorized under this 24 chapter by the commission shall be paid through the state refund account, and 25 those moneys are continuously appropriated. 26 (b) An amount equal to one-sixth (1/6) of all moneys collected under this 27 chapter, less the amount provided in subsection (a) of this section shall be 28 deposited into the public school income fund and utilized as provided in sec- 29 tion 33-1002, Idaho Code. 30 (c) Five hundred thousand dollars ($500,000) per year is continuously 31 appropriated and shall be distributed to the permanent building account, pro- 32 vided by section 57-1108, Idaho Code. 33 (cd) Four million eight hundred thousand dollars ($4,800,000) per year is 34 continuously appropriated and shall be distributed to the water pollution con- 35 trol account established by section 39-3605, Idaho Code. 36 (de) (1) An amount equal to the sum required to be certified by the 37 chairman of the Idaho housing and finance association to the state tax 38 commission pursuant to section 67-6211, Idaho Code, in each year is con- 39 tinuously appropriated and shall be paid to any capital reserve fund, 40 established by the Idaho housing and finance association pursuant to sec- 41 tion 67-6211, Idaho Code. Such amounts, if any, as may be appropriated 42 hereunder to the capital reserve fund of the Idaho housing and finance 43 association shall be repaid for distribution under the provisions of this 44 section, subject to the provisions of section 67-6215, Idaho Code, by the 45 Idaho housing and finance association, as soon as possible, from any 46 moneys available therefor and in excess of the amounts which the associa- 47 tion determines will keep it self-supporting. 48 (2) An amount equal to the sum required by the provisions of section 49 63-709, Idaho Code, is continuously appropriated and shall be paid as pro- 50 vided by section 63-709, Idaho Code. 51 (3) An amount required by the provisions of chapter 53, title 33, Idaho 52 Code. 13 1 (ef) Six percent (6%) is hereby appropriated and shall be paid to the 2 county treasurer of each county in amounts to be determined as follows: 3 (1) Each taxing district other than school districts shall be entitled to 4 a base share of sales tax moneys equal to the amount distributed to that 5 district for the fourth calendar quarter of 1979. The computation shall 6 not include any distributions made to the credit of either the former 7 county school levy or the state water pollution control levy. The percent- 8 age so determined for each taxing district shall be applied each quarter 9 to the above percentage of sales tax. The resulting sums shall be paid to 10 the county treasurer of each county for distribution to each taxing dis- 11 trict, except school districts, which received sales tax moneys in 1979. 12 Whenever a taxing district is dissolved, the dissolved district's share of 13 sales moneys shall be credited continuously to the county current expense 14 fund. 15 (2) Whenever the amount of nonschool district sales tax moneys distrib- 16 uted exceeds in any quarter the total amount of moneys distributed to non- 17 school districts for the base quarter, which is the fourth calendar quar- 18 ter of 1979, by ten percent (10%), or more, the excess of the base quarter 19 shall be paid to the county treasurer of each county for distribution to 20 each taxing district in the county, except school districts, in the fol- 21 lowing manner. 22 The state tax commission shall compute the percentage that the aver- 23 age amount of taxes collected from assessments for the years 1965, 1966 24 and 1967 on the personal property described as business inventory in sub- 25 sections (1) and (2) of section 63-602W, Idaho Code, for each county bears 26 to the average total amount of taxes collected from assessments for said 27 years on the personal property described as business inventory in subsec- 28 tions (1) and (2) of section 63-602W, Idaho Code, for all counties in the 29 state. The percentage so determined for each county shall be applied to 30 the sales tax distributed under this subsection and the resulting sum 31 shall be paid to the county treasurer of each county for distribution to 32 each taxing district, except school districts, in the county as follows: 33 (i) Each year the county commissioners in each county shall take 34 the tax charge, applicable to the current property roll equalized by 35 county commissioners sitting as a board of equalization, of each tax- 36 ing district within the county, except school districts, and divide 37 it by the total current tax charges applicable to the current prop- 38 erty roll of all taxing districts, except school districts, within 39 said county and the resulting percentages shall be applied to the 40 county's proportionate share of said sales tax account and the 41 resulting amount shall be distributed to each taxing district in the 42 county periodically but not less frequently than quarterly by the 43 county auditor and applied by such taxing districts in the same man- 44 ner and in the same proportions as revenues from property taxation. 45 (ii) The moneys set aside and appropriated to the county treasurer 46 out of the sales tax account above may be considered by the counties 47 and other taxing districts and budgeted against at the same time, in 48 the same manner and in the same year as revenues from taxation on all 49 classes of personal property which these moneys replace. 50 (3) All moneys distributed pursuant to subsection (ef) shall be subject 51 to the redistribution provisions of section 40-801, Idaho Code, where 52 applicable. 53 (fg) One dollar ($1.00) on each application for certificate of title or 54 initial application for registration of a motor vehicle, snowmobile, 55allterrainall-terrain vehicle or other vehicle processed by the county asses- 14 1 sor or the Idaho transportation department excepting those applications in 2 which any sales or use taxes due have been previously collected by a retailer, 3 shall be a fee for the services of the assessor of the county or the Idaho 4 transportation department in collecting such taxes, and shall be paid into the 5 current expense fund of the county or state highway account established in 6 section 40-702, Idaho Code. 7 (gh) Seven and three-quarters percent (7.75%) is continuously appropri- 8 ated and shall be distributed to the revenue sharing account which is created 9 in the state operating fund, and the moneys in the revenue sharing account 10 will be paid by the tax commission as follows: 11 (1) One-half (1/2) shall be paid to the various cities as follows: 12 (i) Fifty percent (50%) of such amount shall be paid to the various 13 cities, and each city shall be entitled to an amount in the propor- 14 tion that the population of that city bears to the population of all 15 cities within the state; and 16 (ii) Fifty percent (50%) of such amount shall be paid to the various 17 cities, and each city shall be entitled to an amount in the propor- 18 tion that the preceding year's market value for assessment purposes 19 for that city bears to the preceding year's market value for assess- 20 ment purposes for all cities within the state. 21 (2) One-half (1/2) shall be paid to the state's general account or to the 22 various counties as follows: 23 (i) One million three hundred twenty thousand dollars ($1,320,000) 24 shall be distributed one forty-fourth (1/44) to each of the various 25 counties; and 26 (ii) The balance of such amount shall be paid to the various coun- 27 ties, and each county shall be entitled to an amount in the propor- 28 tion that the population of that county bears to the population of 29 the state. 30 (hi) Any moneys remaining over and above those necessary to meet and 31 reserve for payments under other subsections of this section shall be distrib- 32 uted to the general account. 33 SECTION 9. That Section 63-316, Idaho Code, be, and the same is hereby 34 amended to read as follows: 35 63-316. ADJUSTMENT OF ASSESSED VALUE -- COMPLETION OF ASSESSMENT PROGRAM 36 BY STATE TAX COMMISSION -- PAYMENT OF COSTS. (1) Whenever the state tax com- 37 mission, after a hearing, determines that any county assessor or the county 38 commissioners in assessing property in the county subject to taxation have 39 failed to abide by, adhere to and conform with the laws of the state of Idaho 40 and the rules of the state tax commission in determining market value for 41 assessment purposes, the state tax commission shall order the county assessor 42 and county commissioners of such county to make the necessary changes or cor- 43 rections in such assessments and if the county assessor and the county commis- 44 sioners refuse or neglect to comply with such order, the state tax commission 45 is authorized to and shall forthwith adjust or change the property roll in 46 such county. 47 (2) In lieu of the hearings and actions permitted in subsection (1) of 48 this section, the state tax commission shall monitor each county's implementa- 49 tion of the continuing appraisal required in section 63-314, Idaho Code, and 50 may require each county to file such reports of its progress at implementation 51 of such continuing appraisals as the commission may find necessary. In the 52 event that the commission finds that any county is failing to meet the 53 requirements of section 63-314, Idaho Code, the commission may order that 15 1 county's indexing or appraisal or reappraisal programs be conducted under the 2 exclusive and complete control of the state tax commission and the results of 3 such programs shall be binding upon the county officers of the county for 4 which ordered. Payments for the actual cost of such programs shall be made 5 from the sales tax distribution created in section 63-3638, Idaho Code, and 6 the amount of such payments shall be withheld from the payments otherwise made 7 under the provisions of section 63-3638(ef) and (gh), Idaho Code, to the 8 county for which indexing, appraisal or reappraisal has been ordered, and this 9 subsection shall constitute the necessary appropriation to accomplish such 10 payments, any other provision of law notwithstanding. 11 SECTION 10. That Section 67-6211, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 67-6211. ADDITIONAL DEFINITIONS AND CAPITAL RESERVE FUND PROCEDURES. As 14 used in this section, the following words and phrases shall have the following 15 meanings unless the context shall indicate another or different meaning or 16 intent: 17 (a) "Maximum capital reserve fund requirement" shall mean the amount set 18 forth in the association's resolution or indenture authorizing the bonds or 19 other obligations secured by a capital reserve fund, or, if no amount is 20 stated in such resolution or indenture, then, as of any particular date of 21 computation, an amount of money equal to the greatest of the respective 22 amounts, for the then current or any future fiscal year of the association, of 23 annual debt service of the association, such annual debt service for any fis- 24 cal year being the amount of money equal to the aggregate of: 25 (1) All interest payable during such fiscal year on all bonds secured by 26 such capital reserve fund of the association outstanding on said date of 27 computation, plus 28 (2) The principal amount of all bonds of the association secured by such 29 capital reserve fund, outstanding on said date of computation which 30 matures during such fiscal year, plus 31 (3) The amount of all annual sinking fund payments payable during such 32 fiscal year with respect to any bonds of the association secured by such 33 capital reserve fund, outstanding on said date of computation. 34 (b) "Annual sinking fund payment" shall mean the amount of money speci- 35 fied in the resolution authorizing term bonds as payable into a sinking fund 36 during a particular fiscal year for the retirement of term bonds which mature 37 after such fiscal year, but shall not include any amount payable by reason 38 only of the maturity of a bond. 39 (c) "Available operating revenues" shall mean all amounts received on 40 account of rentals and fees and other charges imposed by the association, if 41 any, and income or interest earned or added to funds of the association due to 42 the investment thereof and not required under the terms or provisions of any 43 covenant or agreement with holders of any bonds or notes of the association to 44 be applied to any purposes other than payment of expenses of the association. 45 (d) "Amortized value," when used with respect to securities purchased at 46 a premium above or a discount below par, shall mean the value as of any given 47 date obtained by dividing the total premiums or discount at which such securi- 48 ties were purchased by the number of interest payments remaining to maturity 49 on such securities after such purchase, and by multiplying the amount so cal- 50 culated by the number of interest payment dates having passed since the date 51 of such purchase; and 52 (1) In the case of securities purchased at a premium, by deducting the 53 product thus obtained from the purchase price, and 16 1 (2) In the case of securities purchased at a discount, by adding the 2 product thus obtained to the purchase price. 3 (e) The association shall create and establish one (1) or more special 4 funds (herein referred to as "capital reserve funds"), and shall credit each 5 such capital reserve fund: 6 (1) Any proceeds of sale of notes or bonds, to the extent provided in the 7 resolution or resolutions of the association authorizing the issuance 8 thereof, 9 (2) Any funds directed to be transferred by the association to such fund, 10 and 11 (3) Any other moneys which may be made available to the association for 12 the purpose of such fund from any other source or sources. 13 (f) All moneys held in or credited to each such capital reserve fund, 14 except as hereinafter provided, shall be used, as required, solely for the 15 payment of the principal of bonds or of the sinking fund payments hereinafter 16 mentioned with respect to such bonds, the purchase or redemption of bonds, the 17 payment of interest on bonds or the payment of any redemption premium required 18 to be paid when such bonds are redeemed prior to maturity; provided, however: 19 (1) That moneys in any such fund shall not be withdrawn therefrom at any 20 time in such amount as would reduce the amount of such fund to less than 21 the maximum capital reserve fund requirement, except for the purposes of 22 making payment, when due, with respect to such bonds, of principal or 23 redemption price of, interest and the sinking fund payments, as the same 24 become due, and for the payment of which other moneys of the association 25 are not available. 26 (2) Any income or interest earned by, or increment to, any capital 27 reserve fund due to the investment thereof may be transferred by the asso- 28 ciation to other funds or accounts of the association to the extent it 29 does not reduce the amount of such capital reserve fund below the maximum 30 capital reserve fund requirement. 31 (g) Within sixty (60) days after the close of the association's fiscal 32 year, the chairman of the association shall certify to the state tax commis- 33 sion the amount, if any, required to maintain the capital reserve funds estab- 34 lished pursuant to this section at the maximum capital reserve fund require- 35 ment, but only for any capital reserve fund of the association which is 36 required by a resolution of the association to be maintained by a continuing 37 appropriation from the sales tax account. The chairman of the association 38 shall not be entitled to so certify to the state tax commission for any capi- 39 tal reserve fund of the association for bonds issued by the association after 40 January 1, 1996. 41 (h) The association shall not issue bonds at any time if upon issuance 42 there will be created a capital reserve fund and the amount in the capital 43 reserve fund securing such bonds will be less than the maximum capital reserve 44 fund requirement, unless the association, at the time of issuance of such 45 bonds, shall deposit in such fund, from the proceeds of the bonds so to be 46 issued, or sources other than the state sales tax fund, an amount which, 47 together with the amount then in such fund, will not be less than the maximum 48 capital reserve fund requirement. 49 (i) Moneys in a capital reserve fund not required for immediate use or 50 disbursement may be invested in obligations of the state or the United States 51 of America or obligations the principal of and interest on which are guaran- 52 teed by the state or the United States of America or obligations of agencies 53 of the United States of America or any obligations which may from time to time 54 be legally purchased by banks under title 26, Idaho Code, as investment of 55 funds belonging to them or in their control. In computing the amount of a cap- 17 1 ital reserve fund for the purposes of this section, securities in which all or 2 a portion of such fund are invested shall be valued at par if purchased at par 3 or, if purchased at other than par, at amortized value. 4 (j) The association shall create and establish such other fund or funds 5 as may be necessary or desirable for its corporate purposes. 6 (k) In the event of the dissolution of the association, any funds or 7 assets of the association remaining after paying its bonds, notes or other 8 obligations shall revert to the state. 9 (l) The total principal amount of the association's outstanding bonds 10 secured by a capital reserve fund entitled to appropriation from the state 11 sales tax account pursuant to section 67-6211(g), Idaho Code, and section 12 63-3638(de)(1), Idaho Code, shall not exceed the sum of eighty-nine million 13 dollars ($89,000,000). 14 SECTION 11. An emergency existing therefor, which emergency is hereby 15 declared to exist, Sections 1, 2, 8, 9 and 10 of this act shall be in full 16 force and effect on and after its passage and approval. Sections 3, 4, 5 and 6 17 shall be in full force and effect on and after January 1, 2000 and Section 7 18 shall be in full force and effect on and after January 1, 2003.
STATEMENT OF PURPOSE RS09311 This one-cent sales tax increase will be credited toward the .003 property tax levy assessed by school districts for school maintenance and operations. The proceeds from the one-cent sales tax increase would be added to the amount currently provided by the state of Idaho as property tax relief. This one-cent supplement and the existing state assistance will provide approximately 85% of the school maintenance and operations funding. The remainder between the state funding and .004 multiplied by the assessed valuation will be the responsibility of each school district. FISCAL NOTE School maintenance and operation property taxes now amount to approximately $210,000,000. A one-cent per year sales tax increase will produce approximately $140,000,000 per year. This will reduce the property tax for school maintenance and operations to approximately $70,000,000 per year, state wide. CONTACT: Rep. Charles Cuddy Phone: 332-1000 STATEMENT OF PURPOSE/ FISCAL IMPACT H 552