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H0099.................................................................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; to provide for when the section is not
applicable to a school district; and to provide additional uses for moneys in
the Budget Stabilization Fund.
01/23 House intro - 1st rdg - to printing
01/24 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 99
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 district or chartered school district supplemen-
18 tal, plant facilities and bond funds, the following procedure shall apply.
19 The state tax commission shall subtract the taxable value of timber land in
20 each school district as shown on the abstract of the property roll of the cur-
21 rent tax year from taxable value of timber land in each school district as
22 shown on the abstract of the 1999 property roll. If the difference is greater
23 than zero, it shall be known as the timber replacement value. The state tax
24 commission shall, by the first Monday of September, inform the county commis-
25 sioners of every county in which each affected school district is located of
26 the timber replacement value. The county commissioners shall add the timber
27 replacement value to the taxable value of all property in the school district
28 and shall use the resulting amount to compute each tax levy pursuant to sec-
29 tion 63-803, Idaho Code. After the state tax commission approves the levies,
30 it shall multiply the timber replacement value for each school district by the
31 appropriate levy. The state tax commission shall, by the fourth Monday in
32 November, certify the resulting dollar amount to the state department of edu-
33 cation for distribution to affected school districts. Distributions calculated
34 as provided in this section shall be made to school districts in two (2) equal
35 installments on the due dates as specified in section 63-903, Idaho Code, for
36 the timber replacement value.
37 (2) Replacement shall be made by warrants drawn by the state controller
38 against the budget stabilization fund established in section 57-814, Idaho
39 Code, and for that purpose money in the fund is hereby appropriated.
40 (3) Once the taxable value, as defined in section 63-803(4), Idaho Code,
41 for assessment purposes of the school district reaches the December 31, 1999,
42 actual market value for assessment purposes, less property exempt from taxa-
43 tion pursuant to section 63-602EE, Idaho Code, the provisions of this section
2
1 shall no longer apply.
2 SECTION 2. That Section 63-803, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 63-803. CERTIFICATION OF BUDGETS IN DOLLARS. (1) Whenever any taxing dis-
5 trict is required by law to certify to any county treasurer, county auditor,
6 county assessor, county commissioners or to any other county officer, any
7 property tax levy, upon property located within said district, such certifica-
8 tion shall, notwithstanding any other provision of the law applicable to any
9 such district, be made at the time and in the manner hereinafter provided.
10 (2) The county auditor shall inform each of the taxing districts within
11 his county of the taxable value of that district as soon as such value is
12 known to the auditor, whether the value comes from the appraisal and assess-
13 ment of real and personal property, or from allocation of the taxable value of
14 operating property, or from other sources.
15 (3) Using the taxable value of the district, the council, trustees, board
16 or other governing body of any taxing district shall certify the total amount
17 required from a property tax upon property within the district to raise the
18 amount of money fixed by their budget as previously prepared or approved. The
19 amount of money so determined shall be certified in dollars to the appropriate
20 county commissioners. Any taxing unit, except regional airport authorities,
21 located in more than one (1) county shall divide its dollar budget for certi-
22 fication to the separate counties by multiplying the amount of such budget by
23 a fraction, the numerator of which shall be the total taxable value of all
24 property in such taxing unit within the county to which such certification is
25 to be made, and the denominator of which shall be the total taxable value of
26 property in such taxing unit in all such counties. Budget certification to the
27 participating counties of regional airport authorities shall be made in the
28 manner prescribed in section 21-807(10), Idaho Code. Taxable value shall be
29 certified by the county auditor of each affected county to such taxing unit
30 and such certification shall be used in this formula. The certification to the
31 county commissioners required in this section shall be made not later than the
32 Thursday prior to the second Monday in September, unless, upon application
33 therefor, the county commissioners grant an extension of not more than seven
34 (7) working days. After receipt of this certification, the county commission-
35 ers shall make a tax levy as a percent of taxable value of all property in the
36 taxing district, which when applied to the tax rolls, will meet the budget
37 requirements certified by such taxing districts.
38 (4) For the purpose of this section, "taxable value" shall mean the por-
39 tion of the equalized assessed value, including timber replacement value pur-
40 suant to section 63-803A, Idaho Code, less any exemptions and the value that
41 exceeds the value of the base assessment roll for the portion of any taxing
42 district within a revenue allocation area of an urban renewal district,
43 located within each taxing district which certifies a budget to be raised from
44 a property tax levy. When the county auditor is notified of revenues suffi-
45 cient to cover expenses as provided in section 50-2903(5), Idaho Code, taxable
46 value shall also include the value that exceeds the value of the base assess-
47 ment roll for the portion of any taxing district within a revenue allocation
48 area. For each taxing district, taxable value shall include the value from the
49 property and operating property rolls for the current year and subsequent and
50 missed property rolls for the prior year or the best estimate of the subse-
51 quent and missed property rolls for the current year.
52 SECTION 3. That Section 57-814, Idaho Code, be, and the same is hereby
3
1 amended to read as follows:
2 57-814. BUDGET STABILIZATION FUND. (1) There is hereby created in the
3 state treasury the budget stabilization fund for the purpose of meeting gen-
4 eral fund revenue shortfalls, to provide state guaranteed school support pur-
5 suant to section 63-803A, Idaho Code, and to meet expenses incurred as the
6 result of a major disaster declared by the governor. All moneys in the budget
7 reserve account at the date of approval of this act shall be transferred to
8 the budget stabilization fund. Interest earnings from the investment of moneys
9 in this fund by the state treasurer shall be credited to the permanent build-
10 ing account subject to the provisions of section 67-1210, Idaho Code.
11 (2) Subject to the requirements of section 63-3203, Idaho Code, the state
12 controller shall annually transfer moneys from the general fund to the budget
13 stabilization fund subject to the following criteria:
14 (a) If the state controller certifies that the receipts to the general
15 fund for the fiscal year just ending have exceeded the receipts of the
16 previous fiscal year by more than four percent (4%), then the state con-
17 troller shall transfer all general fund collections in excess of said four
18 percent (4%) increase to the budget stabilization fund, up to a maximum of
19 one percent (1%) of the actual general fund collections of the fiscal year
20 just ending. The state controller shall make the transfers in four (4)
21 equal amounts during September, December, March and June of the next fis-
22 cal year.
23 (b) The amount of moneys in the budget stabilization fund shall not
24 exceed five percent (5%) of the total general fund receipts for the fiscal
25 year just ending.
26 (c) The state controller shall transfer moneys in the budget stabiliza-
27 tion fund in excess of the limit imposed in subsection (2)(b) of this sec-
28 tion to the general fund.
29 (3) If a majority of the membership of each house of the legislature
30 adopt a concurrent resolution requesting the amount of the transfer specified
31 in subsection (2) of this section be reduced, the state controller shall
32 reduce the amount of the transfer.
33 (4) Appropriations of moneys from the budget stabilization fund in any
34 year shall be limited to fifty percent (50%) after the fund balance has
35 reached five percent (5%).
36 SECTION 4. An emergency existing therefor, which emergency is hereby
37 declared to exist, this act shall be in full force and effect on and after its
38 passage and approval, and retroactively to January 1, 2003.
STATEMENT OF PURPOSE
RS 12531C1
As a result of a new public policy created by the passage of HB 513,
there is 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 the 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, and all supplement 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.
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 about $276,976 in the
last year of the phase in of Section 63 1705, Idaho Code, based on
current levies. About 8 timber dependent school districts will be
affected.
Contact:
Name: Tom Trail
Phone: 332 1202
Name: Shirley Ringo
Phone: 334 1000
STATEMENT OF PURPOSE/FISCAL NOTE H 99