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H0490..............................................................by TRAIL
SCHOOL SUPPORT - Adds to and amends existing law relating to school support
to provide for a replacement calculation for school districts that have
timber lands contained within their boundaries; to provide for remittance
of moneys from the Budget Stabilization Fund; and to provide for when not
applicable to a school district.
01/28 House intro - 1st rdg - to printing
01/29 Rpt prt - to Approp
02/25 Rpt out - ref'd to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 490
BY TRAIL
1 AN ACT
2 RELATING TO STATE SCHOOL SUPPORT; AMENDING CHAPTER 8, TITLE 63, IDAHO CODE, BY
3 THE ADDITION OF A NEW SECTION 63-803A, IDAHO CODE, TO PROVIDE FOR A
4 REPLACEMENT CALCULATION FOR SCHOOL DISTRICTS THAT HAVE TIMBER LANDS CON-
5 TAINED WITHIN THEIR BOUNDARIES, TO PROVIDE FOR REMITTANCE OF MONEYS FROM
6 THE BUDGET STABILIZATION FUND AND TO PROVIDE WHEN THE SECTION DOES NOT
7 APPLY TO A SCHOOL DISTRICT; AMENDING SECTION 63-803, IDAHO CODE, TO
8 INCLUDE TIMBER REPLACEMENT VALUE IN THE DEFINITION OF TAXABLE VALUE;
9 AMENDING SECTION 57-814, IDAHO CODE, TO PROVIDE ADDITIONAL USES FOR MONEYS
10 IN THE BUDGET STABILIZATION FUND; DECLARING AN EMERGENCY AND PROVIDING
11 RETROACTIVE APPLICATION.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. That Chapter 8, Title 63, Idaho Code, be, and the same is
14 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
15 ignated as Section 63-803A, Idaho Code, and to read as follows:
16 63-803A. STATE GUARANTEED SCHOOL SUPPORT. (1) For the purpose of calcu-
17 lating tax levies for school districts or chartered school districts, the
18 following procedure shall apply. The state tax commission shall subtract the
19 taxable value of timber land in each school district as shown on the abstract
20 of the property roll of the current tax year from taxable value of timber land
21 in each school district as shown on the abstract of the 1999 property roll. If
22 the difference is greater than zero, it shall be known as the timber replace-
23 ment value. The state tax commission shall, by the first Monday of September,
24 inform the county commissioners of every county in which each affected school
25 district is located of the timber replacement value. The county commissioners
26 shall add the timber replacement value to the taxable value of all property in
27 the school district and shall use the resulting amount to compute each tax
28 levy pursuant to section 63-803, Idaho Code. After the state tax commission
29 approves the levies, it shall multiply the timber replacement value for each
30 school district by the appropriate levy. The state tax commission shall, by
31 the fourth Monday in November, certify the resulting dollar amount to the
32 state department of education for distribution to affected school districts.
33 Distributions calculated as provided in this section shall be made to school
34 districts in two (2) equal installments on the due dates as specified in sec-
35 tion 63-903, Idaho Code, for the timber replacement value.
36 (2) Replacement shall be made by warrants drawn by the state controller
37 against the budget stabilization fund established in section 57-814, Idaho
38 Code, and for that purpose money in the fund is hereby appropriated.
39 (3) Once the taxable value, as defined in section 63-803(4), Idaho Code,
40 for assessment purposes of the school district reaches the December 31, 1999,
41 actual market value for assessment purposes, less property exempt from taxa-
42 tion pursuant to section 63-602EE, Idaho Code, the provisions of this section
43 shall no longer apply.
2
1 SECTION 2. That Section 63-803, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 63-803. CERTIFICATION OF BUDGETS IN DOLLARS. (1) Whenever any taxing dis-
4 trict is required by law to certify to any county treasurer, county auditor,
5 county assessor, county commissioners or to any other county officer, any
6 property tax levy, upon property located within said district, such certifica-
7 tion shall, notwithstanding any other provision of the law applicable to any
8 such district, be made at the time and in the manner hereinafter provided.
9 (2) The county auditor shall inform each of the taxing districts within
10 his county of the taxable value of that district as soon as such value is
11 known to the auditor, whether the value comes from the appraisal and assess-
12 ment of real and personal property, or from allocation of the taxable value of
13 operating property, or from other sources.
14 (3) Using the taxable value of the district, the council, trustees, board
15 or other governing body of any taxing district shall certify the total amount
16 required from a property tax upon property within the district to raise the
17 amount of money fixed by their budget as previously prepared or approved. The
18 amount of money so determined shall be certified in dollars to the appropriate
19 county commissioners. Any taxing unit, except regional airport authorities,
20 located in more than one (1) county shall divide its dollar budget for certi-
21 fication to the separate counties by multiplying the amount of such budget by
22 a fraction, the numerator of which shall be the total taxable value of all
23 property in such taxing unit within the county to which such certification is
24 to be made, and the denominator of which shall be the total taxable value of
25 property in such taxing unit in all such counties. Budget certification to the
26 participating counties of regional airport authorities shall be made in the
27 manner prescribed in section 21-807(10), Idaho Code. Taxable value shall be
28 certified by the county auditor of each affected county to such taxing unit
29 and such certification shall be used in this formula. The certification to the
30 county commissioners required in this section shall be made not later than the
31 second Monday in September, unless, upon application therefor, the county com-
32 missioners grant an extension of not more than one (1) week. After receipt of
33 this certification, the county commissioners shall make a tax levy as a per-
34 cent of taxable value of all property in the taxing district, which when
35 applied to the tax rolls, will meet the budget requirements certified by such
36 taxing districts.
37 (4) For the purpose of this section, "taxable value" shall mean the por-
38 tion of the equalized assessed value, including timber replacement value pur-
39 suant to section 63-803A, Idaho Code, less any exemptions and the value that
40 exceeds the value of the base assessment roll for the portion of any taxing
41 district within a revenue allocation area of an urban renewal district,
42 located within each taxing district which certifies a budget to be raised from
43 a property tax levy. For each taxing district, taxable value shall include the
44 value from the property and operating property rolls for the current year and
45 subsequent and missed property rolls for the prior year or the best estimate
46 of the subsequent and missed property rolls for the current year.
47 SECTION 3. That Section 57-814, Idaho Code, be, and the same is hereby
48 amended to read as follows:
49 57-814. BUDGET STABILIZATION FUND. (1) There is hereby created in the
50 state treasury the budget stabilization fund for the purpose of meeting gen-
51 eral fund revenue shortfalls, to provide state guaranteed school support pur-
52 suant to section 63-803A, Idaho Code, and to meet expenses incurred as the
3
1 result of a major disaster declared by the governor. All moneys in the budget
2 reserve account at the date of approval of this act shall be transferred to
3 the budget stabilization fund. Interest earnings from the investment of moneys
4 in this fund by the state treasurer shall be credited to the permanent build-
5 ing account subject to the provisions of section 67-1210, Idaho Code.
6 (2) Subject to the requirements of section 63-3203, Idaho Code, the state
7 controller shall annually transfer moneys from the general fund to the budget
8 stabilization fund subject to the following criteria:
9 (a) If the state controller certifies that the receipts to the general
10 fund for the fiscal year just ending have exceeded the receipts of the
11 previous fiscal year by more than four percent (4%), then the state con-
12 troller shall transfer all general fund collections in excess of said four
13 percent (4%) increase to the budget stabilization fund, up to a maximum of
14 one percent (1%) of the actual general fund collections of the fiscal year
15 just ending. The state controller shall make the transfers in four (4)
16 equal amounts during September, December, March and June of the next fis-
17 cal year.
18 (b) The amount of moneys in the budget stabilization fund shall not
19 exceed five percent (5%) of the total general fund receipts for the fiscal
20 year just ending.
21 (c) The state controller shall transfer moneys in the budget stabiliza-
22 tion fund in excess of the limit imposed in subsection (2)(b) of this sec-
23 tion to the general fund.
24 (3) If a majority of the membership of each house of the legislature
25 adopt a concurrent resolution requesting the amount of the transfer specified
26 in subsection (2) of this section be reduced, the state controller shall
27 reduce the amount of the transfer.
28 (4) Appropriations of moneys from the budget stabilization fund in any
29 year shall be limited to fifty percent (50%) after the fund balance has
30 reached five percent (5%).
31 SECTION 4. An emergency existing therefor, which emergency is hereby
32 declared to exist, this act shall be in full force and effect on and after its
33 passage and approval, and retroactively to January 1, 2002.
STATEMENT OF PURPOSE
RS 11485C1
As a result of a new public policy created by the passage of
HB 513, there will be a significant tax shift in many school
districts, placing additional tax burdens on property owners in
the districts. The impact of HB 513 occurs when the net value of
timberland declines and creates a total decline of taxable value
in the school districts.
The purpose of this legislation is to provide a hold
harmless provision for those taxpayers in the impacted school
districts. The hold harmless provision would impact only existing
plant facility levies, existing bond indebtedness, all supplement
levies and all maintenance and operations levies. The market value
for assessment purposes on December 31, 1999, would be established
as the state guaranteed value of the district, until each time that
the market value reaches or surpasses the December 31, 1999, value.
The state’s guarantee will come from the state’s Budget
Stabilization Account, in the manner described in the text of the
bill.
FISCAL IMPACT
The fiscal impact of this legislation is based on statistics
provided by the State Department of Education and reviewed by the
Idaho Tax Commission. The fiscal impact is projected to be
approximately $300,000 in the last year of the phase-in of
Section 63-1705, Idaho Code, based on current levies. About 10
timber dependent school districts will be affected.
Contact:
Name: Rep. Tom Trail Rep. Gary Young
Rep. Mary Lou Shepherd
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 490