View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
H0285...............................................by REVENUE AND TAXATION
SCHOOL DISTRICTS - MAINTENANCE AND OPERATION LEVIES - Amends existing law
to reduce the maximum maintenance and operation levies for school districts
by five-hundredths of one percent during tax year 2001 and thereafter; and
to adjust the property tax replacement formulas accordingly.
02/16 House intro - 1st rdg - to printing
02/19 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 285
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 FIVE-HUNDREDTHS OF ONE PERCENT DURING TAX
5 YEAR 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 twenty-five hundredths of one percent (.25%) during tax
24 year 2001 and thereafter, applied to the actual or adjusted market value for
25 assessment purposes of the district as such valuation existed on December 31
26 of the previous year, but allowances necessary as a credit for prepaid taxes,
27 as provided in section 63-1607, Idaho Code, shall not be included in such max-
28 imum levies.
29 3. Authorized School Maintenance and Operation Levies. Such levies for
30 maintaining and operating the schools of the district and for the payment of
31 tuition and transportation that do not exceed one hundred eleven percent
32 (111%) of the local district's contribution authorized in subsection 23. of
33 section 33-1002, Idaho Code. Implementation of the provisions of this subsec-
34 tion shall be authorized only after approval by a majority of the district's
35 electors voting on the question. Levies otherwise authorized by law shall not
36 require an election.
37 4. Supplemental Maintenance and Operation Levies. No levy in excess of
38 the levy permitted by subsection 2. or 3. of this section shall be made by a
39 noncharter school district unless such a supplemental levy in a specified
40 amount and for a specified time not to exceed two (2) years be first autho-
41 rized through an election held pursuant to chapter 4, title 33, Idaho Code,
42 and approved by a majority of the district electors voting in such election. A
43 levy approved pursuant to this subsection may be reduced by a majority vote of
2
1 the board of trustees in the second year.
2 5. Charter District Supplemental Maintenance and Operation. Levies pursu-
3 ant to the respective charter of any such charter district shall be first
4 authorized through an election held pursuant to chapter 4, title 33, Idaho
5 Code, and approved by a majority of the district electors voting in such elec-
6 tion.
7 6. The Local District Contribution. The local school district contribu-
8 tion levy is the amount utilized for calculating local district participation
9 in the educational foundation program, which is applied to the adjusted mar-
10 ket value for assessment purposes, as such valuation existed on December 31 of
11 the previous year.
12 7. The board of trustees of any school district that has, for at least
13 seven (7) consecutive years, been authorized through an election held pursuant
14 to chapter 4, title 33, Idaho Code, to certify a supplemental levy that has
15 annually been equal to or greater than twenty percent (20%) of the total gen-
16 eral maintenance and operation fund, may submit the question of an indefinite
17 term supplemental levy to the electors of the school district. Such question
18 shall clearly state the dollar amount that will be certified annually and that
19 the levy will be for an indefinite number of years. The question must be
20 approved by a majority of the district electors voting on the question in an
21 election held pursuant to chapter 4, title 33, Idaho Code. The levy approved
22 pursuant to this subsection may be reduced by a majority vote of the board of
23 trustees during any fiscal year.
24 SECTION 2. That Section 33-1002D, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 33-1002D. PROPERTY TAX REPLACEMENT. The purpose of this section is to
27 replace a portion of the authorized school maintenance and operation property
28 tax levy with state sales tax receipts. As used in this section, the term
29 "property tax computation ratio" shall mean a ratio determined by dividing the
30 district's certified property tax maintenance and operation budget by the
31 actual or adjusted market value for assessment purposes as such values existed
32 on December 31 of the previous calendar year.
33 (1) (a) In the case of a school district that had a property tax computa-
34 tion ratio of not less than four-tenths of one percent (.4%) in tax year
35 1994, that school district shall receive from the appropriations made for
36 that purpose, an amount equal to the greater of the district's actual or
37 adjusted market value for assessment purposes as such valuation existed on
38 December 31 of the previous calendar year multiplied by one-tenth fifteen-
39 hundredths of one percent (.15%).
40 (b) In the case of a school district that had a property tax computation
41 ratio of less than four-tenths of one percent (.4%) in tax year 1994, the
42 greater of the 1992, 1993 or 1994 property tax computation ratio less
43 three-tenths twenty-five hundredths of one percent (.325%) shall be desig-
44 nated the district's base multiplier. In no case shall the base multiplier
45 be less than zero (0). Four-tenths of one percent (.4%) less the greater
46 of the district's 1992, 1993 or 1994 property tax computation ratio shall
47 be designated the district's adjustment factor. In no case shall the
48 adjustment factor be greater than one-tenth fifteen hundredths of one per-
49 cent (.15%) or less than zero (0). Each school district's actual multi-
50 plier shall be the base multiplier plus one-fifth (1/5) of the adjustment
51 factor in tax year 1995, the base multiplier plus two-fifths (2/5) of the
52 adjustment factor in tax year 1996, the base multiplier plus three-fifths
53 (3/5) of the adjustment factor in tax year 1997, the base multiplier plus
3
1 four-fifths (4/5) of the adjustment factor in tax year 1998, and the base
2 multiplier plus the adjustment factor in tax year 1999 and beyond. Each
3 school district shall receive, from the appropriations made for that pur-
4 pose, an amount equal to the district's actual or adjusted market value
5 for assessment purposes as such valuation existed on December 31 of the
6 previous calendar year multiplied by the district's actual multiplier.
7 (2) (a) Participation in this property tax reduction program is voluntary
8 for a charter district. If a charter district participates, in addition to
9 the provisions of subsection (1) of this section it shall not have a prop-
10 erty tax computation ratio that is above three-tenths twenty-five hun-
11 dredths of one percent (.325%) or the district's property tax computation
12 ratio in tax year 1994, less one-tenth of one percent (.1%), whichever is
13 greater.
14 (b) If in any year the charter district's property tax computation ratio
15 used to calculate its maintenance and operation budget is increased above
16 the limit specified in this subsection the district shall not be eligible
17 for the distribution pursuant to subsection (1) of this section for that
18 year.
19 (3) Limitations imposed upon a school district's property tax computation
20 ratio under the provisions of this section do not apply to any levy approved
21 by electors of the school district as provided by law.
22 (4) Distributions calculated as provided in this section shall be made to
23 school districts of this state in two (2) equal installments on the due dates
24 as specified in section 63-903(1), Idaho Code, for the property taxes being
25 replaced.
26 (5) For purposes of section 33-1002, Idaho Code, moneys distributed pur-
27 suant to this section shall not be included in determining total state funds.
28 SECTION 3. An emergency existing therefor, which emergency is hereby
29 declared to exist, this act shall be in full force and effect on and after its
30 passage and approval, and retroactively to January 1, 2001.
STATEMENT OF PURPOSE
RS 10913
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 0.25 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 $31.7 million from
the General Fund in FY2002. Historically, this impact has
increased an average of 8.6 percent per year since 1995.
Contacts:
Representatives Barrett, Langford, Wheeler, Pearce,
McKague,
Loertscher, Harwood, Young, Hornbeck, Roberts, Chase, Wood
Phone: 332 1000
STATEMENT OF PURPOSE/FISCAL NOTE H 28