2000 Legislation
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HOUSE BILL NO. 552 – Sales tax incr, school M&O levies

HOUSE BILL NO. 552

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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

Bill Text


 H0552
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                              IN 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 of  five  per  cent  six  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,
 26    instalment  installment,  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 of five six 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-
 34    taining  and  operating  the  schools  of  the district and for the payment of
 35    tuition and transportation, that do not exceed an amount equal to  four-tenths
 36    of  one  percent (.4%) during tax year 1994, and do not exceed an amount equal
 37    to three-tenths of one percent (.3%) during  tax  year  1995  and  thereafter,
 38    applied  to the actual or adjusted market value for assessment purposes of the
 39    district as such valuation existed on December 31 of the  previous  year,  but
 40    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 for
 44    maintaining and operating the schools of the district and for the  payment  of
 45    tuition  and  transportation  that  do  not  exceed one hundred eleven percent
 46    (111%) of the local district's contribution authorized  in  subsection  2.  of
 47    section  33-1002, Idaho Code. Implementation of the provisions of this subsec-
 48    tion shall be authorized only after approval by a majority of  the  district's
 49    electors  voting on the question. Levies otherwise authorized by law shall not
 50    require an election Specially 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 by subsection 2. or 3. of this 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 educational  foundation  support  program,  which  is  applied  to  the
 17    adjusted  market  value  for assessment purposes, as such valuation existed on
 18    December 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 year 1994-95 1999-2000 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 year 1994-95 1999-2000 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.
 39        5.  For the fiscal year which commences on July 1, 1986, and for each suc-
 40    ceeding  fiscal  year,  any  school  district  whose adjusted market value for
 41    assessment purposes decreases forty percent (40%) or more  from  the  previous
 42    year's adjusted market value for assessment purposes as such valuation existed
 43    on  December  31, is eligible to receive an adjustment to its educational sup-
 44    port program entitlement, subject to qualifications as follows:
 45        a.  The adjusted market value for assessment purposes has decreased  forty
 46        percent  (40%)  or more from the previous year's adjusted market value for
 47        assessment purposes as such valuation existed on December 31; and
 48        b.  The school levy to be certified for the general maintenance and opera-
 49        tion fund shall be no less than four-tenths of one percent (.4%); and
 50        c.  An eligible school district has made application to the state  depart-
 51        ment  of  education for an adjustment to entitlement from the state educa-
 52        tional support program on or before June 1 of the fiscal year. Such appli-
 53        cation must document the need for additional funds and must include a dis-
 54        trict 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 to
  4    replace a portion of the authorized sSchool maintenance and operation property
  5    tax levy with state sales tax receipts revenues 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 year 1998.
 15        (1) (a)  In the case of a school district that had a property tax computa-
 16        tion ratio of not less than four-tenths of one percent (.4%) in  tax  year
 17        1994,  that school district shall receive from the appropriations made for
 18        that purpose, an amount equal to the greater of the district's  actual  or
 19        adjusted market value for assessment purposes as such valuation existed on
 20        December  31  of the previous calendar year multiplied by one-tenth of one
 21        percent (.1%).
 22        (b)  In the case of a school district that had a property tax  computation
 23        ratio of less than four-tenths of one percent (.4%) in tax year 1994,  the
 24        greater  of  the  1992,  1993 or 1994 property tax computation ratio  less
 25        three-tenths of one percent (.3%) shall be designated the district's  base
 26        multiplier.  In  no  case shall the base multiplier be less than zero (0).
 27        Four-tenths of one percent (.4%) less the greater of the district's  1992,
 28        1993 or 1994 property tax  computation  ratio   shall  be  designated  the
 29        district's  adjustment  factor.  In no case shall the adjustment factor be
 30        greater than one-tenth of one percent (.1%) or less than  zero  (0).  Each
 31        school district's actual multiplier shall be the base multiplier plus one-
 32        fifth (1/5) of the adjustment factor in tax year 1995, the base multiplier
 33        plus  two-fifths (2/5) of the adjustment factor in tax year 1996, the base
 34        multiplier plus three-fifths (3/5) of the adjustment factor  in  tax  year
 35        1997,  the base multiplier plus four-fifths (4/5) of the adjustment factor
 36        in tax year 1998, and the base multiplier plus the  adjustment  factor  in
 37        tax  year  1999  and  beyond. Each school district shall receive, from the
 38        appropriations made for that purpose, an amount equal  to  the  district's
 39        actual  or adjusted market value for assessment purposes as such valuation
 40        existed on December 31 of the previous calendar  year  multiplied  by  the
 41        district's actual multiplier.
 42        (2) (a)  Participation in this property tax reduction program is voluntary
 43        for a charter district. If a charter district participates, in addition to
 44        the provisions of subsection (1) of this section it shall not have a prop-
 45        erty  tax  computation  ratio   that  is above three-tenths of one percent
 46        (.3%) or the district's property tax computation ratio  in tax year  1994,
 47        less one-tenth of one percent (.1%), whichever is greater.
 48        (b)  If  in any year the charter district's property tax computation ratio
 49        used to calculate its maintenance and operation budget is increased  above
 50        the limit specified in this subsection the district  shall not be eligible
 51        for  the  distribution pursuant to subsection (1) of this section for that
 52        year.
 53        (3)  Limitations imposed upon a school district's property tax computation
 54    ratio under the provisions of this section do not apply to any  levy  approved
                                                                        
                                           12
                                                                        
  1    by electors of the school district as provided by law.
  2        (4)  Distributions calculated as provided in this section shall be made to
  3    school  districts of this state in two (2) equal installments on the due dates
  4    as specified in section 63-903(1), Idaho Code, for the  property  taxes  being
  5    replaced.
  6        (5)  For  purposes of section 33-1002, Idaho Code, moneys distributed pur-
  7    suant to this section shall not be included in determining total  state  funds
  8    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,
 55    allterrain all-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 / Fiscal Impact



               
                 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