2001 Legislation
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HOUSE BILL NO. 284 – School dist, M&O levies reduced

HOUSE BILL NO. 284

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Daily Data Tracking History



H0284...............................................by REVENUE AND TAXATION
SCHOOL DISTRICTS - Amends existing law to reduce the maximum maintenance
and operation levies for school districts by one-tenth of one percent
during tax year 2001 and thereafter; and to increase the property tax
replacement by one-tenth of one percent.
                                                                        
02/16    House intro - 1st rdg - to printing
02/19    Rpt prt - to Rev/Tax
03/14    Rpt out - rec d/p - to 2nd rdg
03/15    2nd rdg - to 3rd rdg
03/16    3rd rdg - PASSED - 40-25-5
      AYES -- Barraclough, Barrett, Bedke, Bell, Bolz, Bruneel, Callister,
      Chase, Cuddy, Denney, Ellis, Ellsworth, Eskridge, Field(20), Gagner,
      Gould, Hadley, Hammond, Harwood, Hornbeck, Jaquet, Langford,
      Loertscher, Mader, McKague, Moyle, Pearce, Raybould, Roberts, Sali,
      Schaefer, Shepherd, Smylie, Stevenson, Stone, Swan(Block), Tilman,
      Trail, Wood, Young
      NAYS -- Bieter, Black, Boe, Bradford, Collins, Crow, Deal, Higgins,
      Jones, Kellogg, Kendell, Kunz, Lake, Marley, Meyer, Montgomery,
      Mortensen, Moss, Pischner, Pomeroy, Ridinger, Robison, Sellman,
      Smith, Mr. Speaker
      Absent and excused -- Campbell, Clark, Field(13), Henbest, Wheeler
    Floor Sponsor -- Barrett
    Title apvd - to Senate
03/19    Senate intro - 1st rdg - to Loc Gov

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 284
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PUBLIC SCHOOL LEVIES AND PROPERTY TAX REPLACEMENT;  AMENDING  SEC-
  3        TION  33-802,  IDAHO CODE, TO REDUCE THE MAXIMUM MAINTENANCE AND OPERATION
  4        LEVIES FOR SCHOOL DISTRICTS BY ONE-TENTH OF ONE PERCENT  DURING  TAX  YEAR
  5        2001  AND  THEREAFTER  AND  TO  CORRECT A CODE REFERENCE; AMENDING SECTION
  6        33-1002D, IDAHO CODE, TO REVISE PROPERTY TAX REPLACEMENT FORMULAS; DECLAR-
  7        ING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION 1.  That Section 33-802, Idaho Code, be, and the  same  is  hereby
 10    amended to read as follows:
                                                                        
 11        33-802.  SCHOOL LEVIES. Any tax levied for school purposes shall be a lien
 12    on  the  property against which the tax is levied. The board of trustees shall
 13    determine the levies upon each dollar of taxable property in the district  for
 14    the ensuing fiscal year as follows:
 15        1.  Bond, Interest and Judgment Obligation Levies. Such levies as shall be
 16    required  to  satisfy  all  maturing bond, bond interest, and judgment obliga-
 17    tions.
 18        2.  Maximum School Maintenance and Operation Levies. Such levies for main-
 19    taining and operating the schools of the  district  and  for  the  payment  of
 20    tuition  and transportation, that do not exceed an amount equal to four-tenths
 21    of one percent (.4%) during tax year 1994, and do not exceed an  amount  equal
 22    to  three-tenths  of one percent (.3%) during tax year 1995, and do not exceed
 23    an amount equal to two-tenths of one percent (.2%) during tax  year  2001  and
 24    thereafter, applied to the actual or adjusted market value for assessment pur-
 25    poses of the district as such valuation existed on December 31 of the previous
 26    year,  but  allowances necessary as a credit for prepaid taxes, as provided in
 27    section 63-1607, Idaho Code, shall not be included in such maximum levies.
 28        3.  Authorized School Maintenance and Operation Levies.  Such  levies  for
 29    maintaining  and  operating the schools of the district and for the payment of
 30    tuition and transportation that do  not  exceed  one  hundred  eleven  percent
 31    (111%)  of  the  local district's contribution authorized in subsection 23. of
 32    section 33-1002, Idaho Code. Implementation of the provisions of this  subsec-
 33    tion  shall  be authorized only after approval by a majority of the district's
 34    electors voting on the question. Levies otherwise authorized by law shall  not
 35    require an election.
 36        4.  Supplemental  Maintenance  and  Operation Levies. No levy in excess of
 37    the levy permitted by subsection 2. or 3. of this section shall be made  by  a
 38    noncharter  school  district  unless  such  a supplemental levy in a specified
 39    amount and for a specified time not to exceed two (2) years  be  first  autho-
 40    rized  through  an  election held pursuant to chapter 4, title 33, Idaho Code,
 41    and approved by a majority of the district electors voting in such election. A
 42    levy approved pursuant to this subsection may be reduced by a majority vote of
 43    the board of trustees in the second year.
                                                                        
                                           2
                                                                        
  1        5.  Charter District Supplemental Maintenance and Operation. Levies pursu-
  2    ant to the respective charter of any such  charter  district  shall  be  first
  3    authorized  through  an  election  held pursuant to chapter 4, title 33, Idaho
  4    Code, and approved by a majority of the district electors voting in such elec-
  5    tion.
  6        6.  The Local District Contribution. The local school  district  contribu-
  7    tion  levy is the amount utilized for calculating local district participation
  8    in the educational  foundation program, which is applied to the adjusted  mar-
  9    ket value for assessment purposes, as such valuation existed on December 31 of
 10    the previous year.
 11        7.  The  board  of  trustees of any school district that has, for at least
 12    seven (7) consecutive years, been authorized through an election held pursuant
 13    to chapter 4, title 33, Idaho Code, to certify a supplemental  levy  that  has
 14    annually  been equal to or greater than twenty percent (20%) of the total gen-
 15    eral maintenance and operation fund, may submit the question of an  indefinite
 16    term  supplemental  levy to the electors of the school district. Such question
 17    shall clearly state the dollar amount that will be certified annually and that
 18    the levy will be for an indefinite number  of  years.  The  question  must  be
 19    approved  by  a majority of the district electors voting on the question in an
 20    election held pursuant to chapter 4, title 33, Idaho Code. The  levy  approved
 21    pursuant  to this subsection may be reduced by a majority vote of the board of
 22    trustees during any fiscal year.
                                                                        
 23        SECTION 2.  That Section 33-1002D, Idaho Code, be, and the same is  hereby
 24    amended to read as follows:
                                                                        
 25        33-1002D.  PROPERTY  TAX  REPLACEMENT.  The  purpose of this section is to
 26    replace a portion of the authorized school maintenance and operation  property
 27    tax  levy  with  state  sales  tax receipts. As used in this section, the term
 28    "property tax computation ratio" shall mean a ratio determined by dividing the
 29    district's certified property tax maintenance  and  operation  budget  by  the
 30    actual or adjusted market value for assessment purposes as such values existed
 31    on December 31 of the previous calendar year.
 32        (1) (a)  In the case of a school district that had a property tax computa-
 33        tion  ratio  of not less than four-tenths of one percent (.4%) in tax year
 34        1994, that school district shall receive from the appropriations made  for
 35        that  purpose,  an amount equal to the greater of the district's actual or
 36        adjusted market value for assessment purposes as such valuation existed on
 37        December 31 of the previous calendar year multiplied by  onetwo-tenths  of
 38        one percent (.12%).
 39        (b)  In  the case of a school district that had a property tax computation
 40        ratio of less than four-tenths of one percent (.4%) in tax year 1994,  the
 41        greater of the 1992, 1993 or 1994 property  tax  computation  ratio   less
 42        threetwo-tenths  of  one percent (.32%) shall be designated the district's
 43        base multiplier. In no case shall the base multiplier be  less  than  zero
 44        (0).  Four-tenths  of one percent (.4%) less the greater of the district's
 45        1992, 1993 or 1994 property tax computation ratio shall be designated  the
 46        district's  adjustment  factor.  In no case shall the adjustment factor be
 47        greater than onetwo-tenths of one percent (.12%) or less  than  zero  (0).
 48        Each school district's actual multiplier shall be the base multiplier plus
 49        one-fifth (1/5) of the adjustment factor in tax year 1995, the base multi-
 50        plier plus two-fifths (2/5) of the adjustment factor in tax year 1996, the
 51        base  multiplier  plus  three-fifths (3/5) of the adjustment factor in tax
 52        year 1997, the base multiplier plus four-fifths (4/5)  of  the  adjustment
 53        factor  in tax year 1998, and the base multiplier plus the adjustment fac-
                                                                        
                                           3
                                                                        
  1        tor in tax year 1999 and beyond. Each school district shall receive,  from
  2        the  appropriations  made  for  that  purpose,  an  amount  equal  to  the
  3        district's actual or adjusted market value for assessment purposes as such
  4        valuation  existed on December 31 of the previous calendar year multiplied
  5        by the district's actual multiplier.
  6        (2) (a)  Participation in this property tax reduction program is voluntary
  7        for a charter district. If a charter district participates, in addition to
  8        the provisions  of subsection (1) of this section  it  shall  not  have  a
  9        property  tax computation ratio  that is above threetwo-tenths of one per-
 10        cent (.32%) or the district's property tax computation ratio  in tax  year
 11        1994, less one-tenth of one percent (.1%), whichever is greater.
 12        (b)  If  in any year the charter district's property tax computation ratio
 13        used to calculate its maintenance and operation budget is increased  above
 14        the limit specified in this subsection the district  shall not be eligible
 15        for  the  distribution pursuant to subsection (1) of this section for that
 16        year.
 17        (3)  Limitations imposed upon a school district's property tax computation
 18    ratio under the provisions of this section do not apply to any  levy  approved
 19    by electors of the school district as provided by law.
 20        (4)  Distributions calculated as provided in this section shall be made to
 21    school  districts of this state in two (2) equal installments on the due dates
 22    as specified in section 63-903(1), Idaho Code, for the  property  taxes  being
 23    replaced.
 24        (5)  For  purposes of section 33-1002, Idaho Code, moneys distributed pur-
 25    suant to this section shall not be included in determining total state funds.
                                                                        
 26        SECTION 3.  An emergency existing  therefor,  which  emergency  is  hereby
 27    declared to exist, this act shall be in full force and effect on and after its
 28    passage and approval, and retroactively to January 1, 2001.

Statement of Purpose / Fiscal Impact


                     STATEMENT OF PURPOSE
                               
                           RS 10861
                               
In 1995, the Idaho Legislature passed and the Governor signed
H156, the bill that, in part, lowered the public school property tax
M&O budget limit from 0.4 percent of the property tax value base to
0.3 percent. Revenue losses to school districts have been replaced
from the General Fund.

This bill lowers the public school property tax M&O budget limit
from the current 0.3 percent of the property tax value base to 0.2
percent beginning in tax year 2001. Accordingly, this bill revises the
property tax replacement formulas.

According to the Idaho State Tax Commission, approximately 38
percent of the taxable property values are classified as rural.

                         FISCAL IMPACT
                               
The fiscal impact of the bill is estimated at $63.5 million from
the General Fund in FY2002. Historically, this impact has increased by
an average of 8.6 percent per year since 1995.

Contacts:
    Representatives Barrett, Langford, Chase, Wood, Wheeler, Pearce,
    McKague, Loertscher, Harwood, Young, Hornbeck, Roberts
      Phone:  332 1000



STATEMENT OF PURPOSE/FISCAL NOTE               H 28