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H0468...............................................by REVENUE AND TAXATION
SALES TAX - Amends existing law to provide for distribution of six percent
of the sales tax collections to cities, counties and special purpose taxing
districts according to a revised formula.
02/01 House intro - 1st rdg - to printing
02/02 Rpt prt - to Rev/Tax
02/15 Rpt out - rec d/p - to 2nd rdg
02/16 2nd rdg - to 3rd rdg
02/22 3rd rdg - PASSED - 50-18-2
AYES -- Alltus, Barraclough, Bieter, Black, Boe, Bruneel, Callister,
Campbell, Cheirrett, Clark, Crow, Deal, Ellsworth, Field(13), Gagner,
Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Jones, Judd,
Kellogg, Kendell, Kunz, Lake, Linford, Loertscher, Mader, McKague,
Meyer, Montgomery, Mortensen, Moss, Moyle, Pischner, Pomeroy,
Reynolds, Ridinger, Ringo, Robison, Sali, Sellman, Shepherd, Smith,
Smylie, Stoicheff, Stone, Tilman, Trail(Miller)
NAYS -- Barrett, Bell, Chase, Cuddy, Denney, Field(20), Geddes,
Gould, Hornbeck, Jaquet, Kempton, Marley, Pearce, Schaefer,
Stevenson, Wheeler, Wood, Mr Speaker
Absent and excused -- Taylor, Zimmermann
Floor Sponsors - Kellogg, Lake, Gagner, Hansen(29)
Title apvd - to Senate
02/23 Senate intro - 1st rdg - to Loc Gov
03/02 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/28 3rd rdg - PASSED - 33-2-0
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh,
Parry, Richardson, Riggs, Risch, Sandy, Sorensen, Stegner, Stennett,
Thorne, Wheeler, Whitworth, Williams
NAYS--Branch, Schroeder
Absent and excused--None
Floor Sponsors - Andreason, Hawkins
Title apvd - to House
03/29 To enrol
03/30 Rpt enrol - Sp signed - Pres signed
03/31 To Governor
04/05 Governor signed
Session Law Chapter 207
Effective: 07/01/00
H0468
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 468
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO SALES TAX DISTRIBUTIONS; AMENDING SECTION 63-316, IDAHO CODE, TO
3 PROVIDE A CORRECT CODE REFERENCE; AMENDING SECTION 63-3638, IDAHO CODE, TO
4 REVISE THE FORMULA BY WHICH SIX PERCENT OF SALES TAX COLLECTIONS ARE
5 APPROPRIATED TO THE SEVERAL COUNTIES FOR DISTRIBUTION TO CITIES, COUNTIES
6 AND SPECIAL PURPOSE TAXING DISTRICTS AND TO MAKE TECHNICAL CORRECTIONS;
7 AMENDING SECTION 67-6211, IDAHO CODE, TO PROVIDE A CORRECT CODE REFERENCE;
8 AND PROVIDING AN EFFECTIVE DATE.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 63-316, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 63-316. ADJUSTMENT OF ASSESSED VALUE -- COMPLETION OF ASSESSMENT PROGRAM
13 BY STATE TAX COMMISSION -- PAYMENT OF COSTS. (1) Whenever the state tax com-
14 mission, after a hearing, determines that any county assessor or the county
15 commissioners in assessing property in the county subject to taxation have
16 failed to abide by, adhere to and conform with the laws of the state of Idaho
17 and the rules of the state tax commission in determining market value for
18 assessment purposes, the state tax commission shall order the county assessor
19 and county commissioners of such county to make the necessary changes or cor-
20 rections in such assessments and if the county assessor and the county commis-
21 sioners refuse or neglect to comply with such order, the state tax commission
22 is authorized to and shall forthwith adjust or change the property roll in
23 such county.
24 (2) In lieu of the hearings and actions permitted in subsection (1) of
25 this section, the state tax commission shall monitor each county's implementa-
26 tion of the continuing appraisal required in section 63-314, Idaho Code, and
27 may require each county to file such reports of its progress at implementation
28 of such continuing appraisals as the commission may find necessary. In the
29 event that the commission finds that any county is failing to meet the
30 requirements of section 63-314, Idaho Code, the commission may order that
31 county's indexing or appraisal or reappraisal programs be conducted under the
32 exclusive and complete control of the state tax commission and the results of
33 such programs shall be binding upon the county officers of the county for
34 which ordered. Payments for the actual cost of such programs shall be made
35 from the sales tax distribution created in section 63-3638, Idaho Code, and
36 the amount of such payments shall be withheld from the payments otherwise made
37 under the provisions of section 63-3638(e) (8)(c) and (g) (8)(d), Idaho Code,
38 to the county for which indexing, appraisal or reappraisal has been ordered,
39 and this subsection shall constitute the necessary appropriation to accomplish
40 such payments, any other provision of law notwithstanding.
41 SECTION 2. That Section 63-3638, Idaho Code, be, and the same is hereby
42 amended to read as follows:
2
1 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
2 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
3 be distributed by the tax commission as follows:
4 (a1) An amount of money shall be distributed to the state refund account
5 sufficient to pay current refund claims. All refunds authorized under this
6 chapter by the commission shall be paid through the state refund account, and
7 those moneys are continuously appropriated.
8 (b2) Five hundred thousand dollars ($500,000) per year is continuously
9 appropriated and shall be distributed to the permanent building account, pro-
10 vided by section 57-1108, Idaho Code.
11 (c3) Four million eight hundred thousand dollars ($4,800,000) per year is
12 continuously appropriated and shall be distributed to the water pollution con-
13 trol account established by section 39-3605, Idaho Code.
14 (d4) (1) An amount equal to the sum required to be certified by the
15 chairman of the Idaho housing and finance association to the state tax commis-
16 sion pursuant to section 67-6211, Idaho Code, in each year is continuously
17 appropriated and shall be paid to any capital reserve fund, established by the
18 Idaho housing and finance association pursuant to section 67-6211, Idaho Code.
19 Such amounts, if any, as may be appropriated hereunder to the capital reserve
20 fund of the Idaho housing and finance association shall be repaid for distri-
21 bution under the provisions of this section, subject to the provisions of sec-
22 tion 67-6215, Idaho Code, by the Idaho housing and finance association, as
23 soon as possible, from any moneys available therefor and in excess of the
24 amounts which the association determines will keep it self-supporting.
25 (25) An amount equal to the sum required by the provisions of section
26 63-709, Idaho Code, is continuously appropriated and shall be paid as provided
27 by section 63-709, Idaho Code.
28 (36) An amount required by the provisions of chapter 53, title 33, Idaho
29 Code.
30 (e) Six percent (6%) is hereby appropriated and shall be paid to the
31 county treasurer of each county in amounts to be determined as follows:
32 (1) Each taxing district other than school districts shall be entitled to
33 a base share of sales tax moneys equal to the amount distributed to that
34 district for the fourth calendar quarter of 1979. The computation shall
35 not include any distributions made to the credit of either the former
36 county school levy or the state water pollution control levy. The percent-
37 age so determined for each taxing district shall be applied each quarter
38 to the above percentage of sales tax. The resulting sums shall be paid to
39 the county treasurer of each county for distribution to each taxing dis-
40 trict, except school districts, which received sales tax moneys in 1979.
41 Whenever a taxing district is dissolved, the dissolved district's share of
42 sales moneys shall be credited continuously to the county current expense
43 fund.
44 (2) Whenever the amount of nonschool district sales tax moneys distrib-
45 uted exceeds in any quarter the total amount of moneys distributed to non-
46 school districts for the base quarter, which is the fourth calendar quar-
47 ter of 1979, by ten percent (10%), or more, the excess of the base quarter
48 shall be paid to the county treasurer of each county for distribution to
49 each taxing district in the county, except school districts, in the fol-
50 lowing manner.
51 The state tax commission shall compute the percentage that the aver-
52 age amount of taxes collected from assessments for the years 1965, 1966
53 and 1967 on the personal property described as business inventory in sub-
54 sections (1) and (2) of section 63-602W, Idaho Code, for each county bears
55 to the average total amount of taxes collected from assessments for said
3
1 years on the personal property described as business inventory in subsec-
2 tions (1) and (2) of section 63-602W, Idaho Code, for all counties in the
3 state. The percentage so determined for each county shall be applied to
4 the sales tax distributed under this subsection and the resulting sum
5 shall be paid to the county treasurer of each county for distribution to
6 each taxing district, except school districts, in the county as follows:
7 (i) Each year the county commissioners in each county shall take
8 the tax charge, applicable to the current property roll equalized by
9 county commissioners sitting as a board of equalization, of each tax-
10 ing district within the county, except school districts, and divide
11 it by the total current tax charges applicable to the current prop-
12 erty roll of all taxing districts, except school districts, within
13 said county and the resulting percentages shall be applied to the
14 county's proportionate share of said sales tax account and the
15 resulting amount shall be distributed to each taxing district in the
16 county periodically but not less frequently than quarterly by the
17 county auditor and applied by such taxing districts in the same man-
18 ner and in the same proportions as revenues from property taxation.
19 (ii) The moneys set aside and appropriated to the county treasurer
20 out of the sales tax account above may be considered by the counties
21 and other taxing districts and budgeted against at the same time, in
22 the same manner and in the same year as revenues from taxation on all
23 classes of personal property which these moneys replace.
24 (3) All moneys distributed pursuant to subsection (e) shall be subject to
25 the redistribution provisions of section 40-801, Idaho Code, where appli-
26 cable.
27 (f7) One dollar ($1.00) on each application for certificate of title or
28 initial application for registration of a motor vehicle, snowmobile,
29 allterrain all-terrain vehicle or other vehicle processed by the county asses-
30 sor or the Idaho transportation department excepting those applications in
31 which any sales or use taxes due have been previously collected by a retailer,
32 shall be a fee for the services of the assessor of the county or the Idaho
33 transportation department in collecting such taxes, and shall be paid into the
34 current expense fund of the county or state highway account established in
35 section 40-702, Idaho Code.
36 (g8) Seven Thirteen and three-quarters percent (713.75%) is continuously
37 appropriated and shall be distributed to the revenue sharing account which is
38 created in the state operating fund treasury, and the moneys in the revenue
39 sharing account will be paid by the tax commission as follows:
40 (1a) One-half (1/2) Twenty-eight and two-tenths percent (28.2%) shall be
41 paid to the various cities as follows:
42 (i) Fifty percent (50%) of such amount shall be paid to the various
43 cities, and each city shall be entitled to an amount in the propor-
44 tion that the population of that city bears to the population of all
45 cities within the state; and
46 (ii) Fifty percent (50%) of such amount shall be paid to the various
47 cities, and each city shall be entitled to an amount in the propor-
48 tion that the preceding year's market value for assessment purposes
49 for that city bears to the preceding year's market value for assess-
50 ment purposes for all cities within the state.
51 (2b) One-half (1/2) Twenty-eight and two-tenths percent (28.2%) shall be
52 paid to the state's general account or to the various counties as follows:
53 (i) One million three hundred twenty thousand dollars ($1,320,000)
54 shall be distributed one forty-fourth (1/44) to each of the various
55 counties; and
4
1 (ii) The balance of such amount shall be paid to the various coun-
2 ties, and each county shall be entitled to an amount in the propor-
3 tion that the population of that county bears to the population of
4 the state;
5 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
6 ated in this subsection (8) shall be paid to the several counties for dis-
7 tribution to the cities and counties as follows:
8 (i) Each city and county which received a payment under the provi-
9 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
10 calendar year 1999, shall be entitled to a like amount during suc-
11 ceeding calendar quarters.
12 (ii) If the dollar amount of money available under this subsection
13 (8)(c) in any quarter does not equal the amount paid in the fourth
14 quarter of calendar year 1999, each city's and county's payment shall
15 be reduced proportionately.
16 (iii) If the dollar amount of money available under this subsection
17 (8)(c) in any quarter exceeds the amount paid in the fourth quarter
18 of calendar year 1999, each city and county shall be entitled to a
19 proportionately increased payment, but such increase shall not exceed
20 one hundred five percent (105%) of the total payment made in the
21 fourth quarter of calendar year 1999.
22 (iv) If the dollar amount of money available under this subsection
23 (8)(c) in any quarter exceeds one hundred five percent (105%) of the
24 total payment made in the fourth quarter of calendar year 1999, any
25 amount over and above such one hundred five percent (105%) shall be
26 paid fifty percent (50%) to the various cities in the proportion that
27 the population of the city bears to the population of all cities
28 within the state, and fifty percent (50%) to the various counties in
29 the proportion that the population of a county bears to the popula-
30 tion of the state; and
31 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
32 this subsection (8) shall be paid to the several counties for distribution
33 to special purpose taxing districts as follows:
34 (i) Each such district which received a payment under the provi-
35 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
36 calendar year 1999, shall be entitled to a like amount during suc-
37 ceeding calendar quarters.
38 (ii) If the dollar amount of money available under this subsection
39 (8)(d) in any quarter exceeds the amount distributed under paragraph
40 (i) of this subsection (8)(d), each special purpose taxing district
41 shall be entitled to a share of the excess based on the proportion
42 each such district's current property tax budget bears to the sum of
43 the current property tax budgets of all such districts in the state.
44 The state tax commission shall calculate district current property
45 tax budgets to include any unrecovered foregone amounts as determined
46 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
47 district is situated in more than one (1) county, the tax commission
48 shall determine the portion attributable to the special purpose tax-
49 ing district from each county in which it is situated.
50 (iii) If special purpose taxing districts are consolidated, the
51 resulting district is entitled to a base amount equal to the sum of
52 the base amounts which were received in the last calendar quarter by
53 each district prior to the consolidation.
54 (iv) If a special purpose taxing district is dissolved or
55 disincorporated, the state tax commission shall continuously distrib-
5
1 ute to the board of county commissioners an amount equal to the last
2 quarter's distribution prior to dissolution or disincorporation. The
3 board of county commissioners shall determine any redistribution of
4 moneys so received.
5 (v) Taxing districts formed after January 1, 2001, are not entitled
6 to a payment under the provisions of this subsection (8)(d).
7 (vi) For purposes of this subsection (8)(d), a special purpose tax-
8 ing district is any taxing district which is not a city, a county or
9 a school district.
10 (h9) Any moneys remaining over and above those necessary to meet and
11 reserve for payments under other subsections of this section shall be distrib-
12 uted to the general account.
13 SECTION 3. That Section 67-6211, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 67-6211. ADDITIONAL DEFINITIONS AND CAPITAL RESERVE FUND PROCEDURES. As
16 used in this section, the following words and phrases shall have the following
17 meanings unless the context shall indicate another or different meaning or
18 intent:
19 (a) "Maximum capital reserve fund requirement" shall mean the amount set
20 forth in the association's resolution or indenture authorizing the bonds or
21 other obligations secured by a capital reserve fund, or, if no amount is
22 stated in such resolution or indenture, then, as of any particular date of
23 computation, an amount of money equal to the greatest of the respective
24 amounts, for the then current or any future fiscal year of the association, of
25 annual debt service of the association, such annual debt service for any fis-
26 cal year being the amount of money equal to the aggregate of:
27 (1) All interest payable during such fiscal year on all bonds secured by
28 such capital reserve fund of the association outstanding on said date of
29 computation, plus
30 (2) The principal amount of all bonds of the association secured by such
31 capital reserve fund, outstanding on said date of computation which
32 matures during such fiscal year, plus
33 (3) The amount of all annual sinking fund payments payable during such
34 fiscal year with respect to any bonds of the association secured by such
35 capital reserve fund, outstanding on said date of computation.
36 (b) "Annual sinking fund payment" shall mean the amount of money speci-
37 fied in the resolution authorizing term bonds as payable into a sinking fund
38 during a particular fiscal year for the retirement of term bonds which mature
39 after such fiscal year, but shall not include any amount payable by reason
40 only of the maturity of a bond.
41 (c) "Available operating revenues" shall mean all amounts received on
42 account of rentals and fees and other charges imposed by the association, if
43 any, and income or interest earned or added to funds of the association due to
44 the investment thereof and not required under the terms or provisions of any
45 covenant or agreement with holders of any bonds or notes of the association to
46 be applied to any purposes other than payment of expenses of the association.
47 (d) "Amortized value," when used with respect to securities purchased at
48 a premium above or a discount below par, shall mean the value as of any given
49 date obtained by dividing the total premiums or discount at which such securi-
50 ties were purchased by the number of interest payments remaining to maturity
51 on such securities after such purchase, and by multiplying the amount so cal-
52 culated by the number of interest payment dates having passed since the date
53 of such purchase; and
6
1 (1) In the case of securities purchased at a premium, by deducting the
2 product thus obtained from the purchase price, and
3 (2) In the case of securities purchased at a discount, by adding the
4 product thus obtained to the purchase price.
5 (e) The association shall create and establish one (1) or more special
6 funds (herein referred to as "capital reserve funds"), and shall credit each
7 such capital reserve fund:
8 (1) Any proceeds of sale of notes or bonds, to the extent provided in the
9 resolution or resolutions of the association authorizing the issuance
10 thereof,
11 (2) Any funds directed to be transferred by the association to such fund,
12 and
13 (3) Any other moneys which may be made available to the association for
14 the purpose of such fund from any other source or sources.
15 (f) All moneys held in or credited to each such capital reserve fund,
16 except as hereinafter provided, shall be used, as required, solely for the
17 payment of the principal of bonds or of the sinking fund payments hereinafter
18 mentioned with respect to such bonds, the purchase or redemption of bonds, the
19 payment of interest on bonds or the payment of any redemption premium required
20 to be paid when such bonds are redeemed prior to maturity; provided, however:
21 (1) That moneys in any such fund shall not be withdrawn therefrom at any
22 time in such amount as would reduce the amount of such fund to less than
23 the maximum capital reserve fund requirement, except for the purposes of
24 making payment, when due, with respect to such bonds, of principal or
25 redemption price of, interest and the sinking fund payments, as the same
26 become due, and for the payment of which other moneys of the association
27 are not available.
28 (2) Any income or interest earned by, or increment to, any capital
29 reserve fund due to the investment thereof may be transferred by the asso-
30 ciation to other funds or accounts of the association to the extent it
31 does not reduce the amount of such capital reserve fund below the maximum
32 capital reserve fund requirement.
33 (g) Within sixty (60) days after the close of the association's fiscal
34 year, the chairman of the association shall certify to the state tax commis-
35 sion the amount, if any, required to maintain the capital reserve funds estab-
36 lished pursuant to this section at the maximum capital reserve fund require-
37 ment, but only for any capital reserve fund of the association which is
38 required by a resolution of the association to be maintained by a continuing
39 appropriation from the sales tax account. The chairman of the association
40 shall not be entitled to so certify to the state tax commission for any capi-
41 tal reserve fund of the association for bonds issued by the association after
42 January 1, 1996.
43 (h) The association shall not issue bonds at any time if upon issuance
44 there will be created a capital reserve fund and the amount in the capital
45 reserve fund securing such bonds will be less than the maximum capital reserve
46 fund requirement, unless the association, at the time of issuance of such
47 bonds, shall deposit in such fund, from the proceeds of the bonds so to be
48 issued, or sources other than the state sales tax fund, an amount which,
49 together with the amount then in such fund, will not be less than the maximum
50 capital reserve fund requirement.
51 (i) Moneys in a capital reserve fund not required for immediate use or
52 disbursement may be invested in obligations of the state or the United States
53 of America or obligations the principal of and interest on which are guaran-
54 teed by the state or the United States of America or obligations of agencies
55 of the United States of America or any obligations which may from time to time
7
1 be legally purchased by banks under title 26, Idaho Code, as investment of
2 funds belonging to them or in their control. In computing the amount of a cap-
3 ital reserve fund for the purposes of this section, securities in which all or
4 a portion of such fund are invested shall be valued at par if purchased at par
5 or, if purchased at other than par, at amortized value.
6 (j) The association shall create and establish such other fund or funds
7 as may be necessary or desirable for its corporate purposes.
8 (k) In the event of the dissolution of the association, any funds or
9 assets of the association remaining after paying its bonds, notes or other
10 obligations shall revert to the state.
11 (l) The total principal amount of the association's outstanding bonds
12 secured by a capital reserve fund entitled to appropriation from the state
13 sales tax account pursuant to section 67-6211(g), Idaho Code, and section
14 63-3638(d)(1)(4), Idaho Code, shall not exceed the sum of eighty-nine million
15 dollars ($89,000,000).
16 SECTION 4. This act shall be in full force and effect on and after July
17 1, 2000.
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STATEMENT OF PURPOSE
RS 09647
This legislation revises the formula by which six percent of sales tax collections are appropriated
to the counties, cities, and special purpose taxing districts. Currently, taxing districts, other than
schools, get. a base share equal to the amount of sales tax distributed in the fourth quarter of
1979. The remainder is distributed based on business inventory taxes collected in 1965, 1966,
and 1967. A Legislative council interim committee on Revenue Sharing studied this issue in the
summer of 1998. With this legislation, a new base is calculated so that no jurisdiction receives
less than they currently receive. Then a "new excess" distribution is made depending on
population for cities and counties, and on property tax budgets for special purpose taxing
districts.
FISCAL NOTE
There is no impact on the total revenue sharing dollars flowing from the sales tax to cities,
counties, and special purpose taxing districts. However, it does change the distribution formula
for additional sales tax collections beginning in fiscal year 2001.
CONTACT: Representative Hilde Kellogg, 332-1000
Representative Dennis Lake, 332-1000
Representative Lee Gagner, 332-1000
Senator John Andreason, 332-1405
Representative Reed Hansen 332-1000
STATEMENT OF PURPOSE/ FISCAL NOTE H 468