2004 Legislation
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HOUSE BILL NO. 476 – School dist, property tax replacemt

HOUSE BILL NO. 476

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Bill Status



H0476..................................................by ROBISON AND CUDDY
SCHOOL DISTRICTS - Amends existing law to strike the maximum amount
restrictions relating to appropriations from the state to school districts
associated with the replacement of a portion of authorized school
maintenance and operation property tax levies with state sales tax
receipts.
                                                                        
01/19    House intro - 1st rdg - to printing
01/20    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 476
                                                                        
                                    BY ROBISON AND CUDDY
                                                                        
  1                                        AN ACT
  2    RELATING TO PROPERTY TAX REPLACEMENT; AMENDING SECTION 33-1002D,  IDAHO  CODE,
  3        TO  STRIKE MAXIMUM AMOUNT RESTRICTIONS RELATING TO APPROPRIATIONS FROM THE
  4        STATE TO SCHOOL DISTRICTS ASSOCIATED WITH THE REPLACEMENT OF A PORTION  OF
  5        AUTHORIZED SCHOOL MAINTENANCE AND OPERATION PROPERTY TAX LEVIES WITH STATE
  6        SALES  TAX  RECEIPTS; DECLARING AN EMERGENCY AND PROVIDING FOR RETROACTIVE
  7        APPLICATION.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION 1.  That Section 33-1002D, Idaho Code, be, and the same is  hereby
 10    amended to read as follows:
                                                                        
 11        33-1002D.  PROPERTY  TAX  REPLACEMENT.  The  purpose of this section is to
 12    replace a portion of the authorized school maintenance and operation  property
 13    tax  levy  with  state  sales  tax receipts. As used in this section, the term
 14    "property tax computation ratio" shall mean a ratio determined by dividing the
 15    district's certified property tax maintenance  and  operation  budget  by  the
 16    actual or adjusted market value for assessment purposes as such values existed
 17    on December 31 of the previous calendar year.
 18        (1)  (a) In the case of a school district that had a property tax computa-
 19        tion  ratio  of not less than four-tenths of one percent (.4%) in tax year
 20        1994, that school district shall receive from the appropriations made  for
 21        that  purpose,  an amount equal to the greater of the district's actual or
 22        adjusted market value for assessment purposes as such valuation existed on
 23        December 31 of the previous calendar year multiplied by one-tenth  of  one
 24        percent (.1%).
 25        (b)  In  the case of a school district that had a property tax computation
 26        ratio of less than four-tenths of one percent (.4%) in tax year 1994,  the
 27        greater of the 1992, 1993 or 1994 property  tax  computation  ratio   less
 28        three-tenths  of one percent (.3%) shall be designated the district's base
 29        multiplier. In no case shall the base multiplier be less  than  zero  (0).
 30        Four-tenths of one percent (.4%) less the greater of the district's  1992,
 31        1993  or  1994  property  tax  computation  ratio  shall be designated the
 32        district's adjustment factor. In no case shall the  adjustment  factor  be
 33        greater  than  one-tenth  of one percent (.1%) or less than zero (0). Each
 34        school district's actual multiplier shall be the base multiplier plus one-
 35        fifth (1/5) of the adjustment factor in tax year 1995, the base multiplier
 36        plus two-fifths (2/5) of the adjustment factor in tax year 1996, the  base
 37        multiplier  plus  three-fifths  (3/5) of the adjustment factor in tax year
 38        1997, the base multiplier plus four-fifths (4/5) of the adjustment  factor
 39        in  tax  year  1998, and the base multiplier plus the adjustment factor in
 40        tax year 1999 and beyond. Each school district  shall  receive,  from  the
 41        appropriations  made  for  that purpose, an amount equal to the district's
 42        actual or adjusted market value for assessment purposes as such  valuation
 43        existed  on  December  31  of the previous calendar year multiplied by the
                                                                        
                                           2
                                                                        
  1        district's actual multiplier.
  2        (c)  The preceding provisions of this subsection  notwithstanding,  appro-
  3        priations  from  the state for the value of one-tenth of one percent (.1%)
  4        of the greater of the district's  actual  or  adjusted  market  value  for
  5        assessment purposes as such valuation existed on December 31 of the previ-
  6        ous   calendar   year   shall  not  exceed  seventy-five  million  dollars
  7        ($75,000,000) in any fiscal year. If the  amount  school  districts  would
  8        otherwise   be entitled to receive pursuant to the preceding provisions of
  9        this subsection exceeds seventy-five million dollars  ($75,000,000),  then
 10        each  school district shall receive its share of seventy-five million dol-
 11        lars ($75,000,000) based on the formulas contained in this section.
 12        (2)  (a) Participation in this property tax reduction program is voluntary
 13        for a charter district. If a charter district participates, in addition to
 14        the provisions of subsection (1) of this section it shall not have a prop-
 15        erty tax computation ratio  that is  above  three-tenths  of  one  percent
 16        (.3%)  or the district's property tax computation ratio  in tax year 1994,
 17        less one-tenth of one percent (.1%), whichever is greater.
 18        (b)  If in any year the charter district's property tax computation  ratio
 19        used  to calculate its maintenance and operation budget is increased above
 20        the limit specified in this subsection the district  shall not be eligible
 21        for the distribution pursuant to subsection (1) of this section  for  that
 22        year.
 23        (3)  Limitations imposed upon a school district's property tax computation
 24    ratio  under  the provisions of this section do not apply to any levy approved
 25    by electors of the school district as provided by law.
 26        (4)  Distributions calculated as provided in this section shall be made to
 27    school districts of this state in two (2) equal installments on the due  dates
 28    as  specified  in  section 63-903(1), Idaho Code, for the property taxes being
 29    replaced.
 30        (5)  For purposes of section 33-1002, Idaho Code, moneys distributed  pur-
 31    suant to this section shall not be included in determining total state funds.
                                                                        
 32        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 33    declared to exist, this act shall be in full force and effect on and after its
 34    passage and approval, and retroactively to January 1, 2004.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 13658
     This legislation would restore the 1995 property tax law to
its original form.  It would provide full dollar for dollar
replacement with state funds for property taxes school districts
are no longer permitted to collect with the 1995 law.  It would
remove the $75 million cap on replacement that was adopted in the
school appropriation legislation in 2003.  The 1995 law reduced
the basic levy schools were authorized to collect for operations
from $4 per $1000 in taxable value to $3 per $1000 in taxable
value.  If the law is not restored, schools will receive less and
less each year of the amount needed to provide full replacement
for the reduced levying authority.
                          FISCAL IMPACT
     This legislation would require an additional $1.6 million of
general fund money for property tax replacement for the 2004
property tax year and the 2005 state fiscal year.  The fiscal
impact of not passing this legislation could be the collection of
additional property taxes with additional school override levies.

Contact
Name: Representatives Cuddy, Jaquet, Robison, Mitchell, Sayler,   
      Douglas, Shepherd.
      Senators Stennett, Kennedy, Werk 
Phone: 332-1000




STATEMENT OF PURPOSE/FISCAL NOTE                        H 476