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H0538...............................................by REVENUE AND TAXATION
PROPERTY TAX REPLACEMENT - Amends existing law to provide that moneys for
replacement of property tax revenues for the agricultural equipment tax
exemption shall be paid from the Sales Tax Account instead of the Refund
Fund.
01/23 House intro - 1st rdg - to printing
01/26 Rpt prt - to Rev/Tax
02/10 Rpt out - rec d/p - to 2nd rdg
02/11 2nd rdg - to 3rd rdg
02/16 3rd rdg - PASSED - 68-2-0
AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
Crow, Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Henbest,
Jaquet, Jones, Kellogg(Nonini), Kulczyk, Lake, Langford, Langhorst,
Martinez, McGeachin, McKague, Meyer, Miller, Moyle, Nielsen,
Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Roberts, Robison,
Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen,
Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills,
Wood, Mr. Speaker
NAYS -- Mitchell, Naccarato
Absent and excused -- None
Floor Sponsor - Moyle
Title apvd - to Senate
02/17 Senate intro - 1st rdg - to Loc Gov
02/26 Rpt out - rec d/p - to 2nd rdg
02/27 2nd rdg - to 3rd rdg
03/10 3rd rdg - PASSED - 35-0-0
AYES -- Andreason(Andreason), Bailey, Brandt, Bunderson, Burkett,
Burtenshaw, Calabretta, Cameron, Compton, Darrington, Davis, Gannon,
Geddes, Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge,
Malepeai, Marley, McKenzie, McWilliams, Noble, Noh, Pearce,
Richardson, Schroeder, Sorensen, Stegner, Stennett, Sweet, Werk,
Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Ingram
Title apvd - to House
03/11 To enrol
03/12 Rpt enrol - Sp signed
03/15 Pres signed
03/16 To Governor
03/19 Governor signed
Session Law Chapter 104
Effective: 07/01/04 Sections 1 & 2;
08/01/05 Section 3
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 538
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO STATE REPLACEMENT OF PROPERTY TAX REVENUES ON AGRICULTURAL EQUIP-
3 MENT; AMENDING SECTION 63-3067, IDAHO CODE, TO DELETE THE DISTRIBUTION OF
4 REPLACEMENT REVENUE FROM THE STATE REFUND ACCOUNT; AMENDING SECTION
5 63-3638, IDAHO CODE, AS AMENDED BY SECTION 4, CHAPTER 318, LAWS OF 2003,
6 TO PROVIDE FOR DISTRIBUTION OF REPLACEMENT REVENUES FROM SALES TAX REVE-
7 NUE; AMENDING SECTION 63-3638, IDAHO CODE, AS ADDED BY SECTION 9, CHAPTER
8 318, LAWS OF 2003, TO PROVIDE FOR DISTRIBUTION OF REPLACEMENT REVENUES
9 FROM SALES TAX REVENUE; AND PROVIDING EFFECTIVE DATES.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 63-3067, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 63-3067. REVENUE RECEIVED -- STATE REFUND ACCOUNT. (1) A sum equal to the
14 amount withheld under section 63-3035A, Idaho Code, shall be distributed fifty
15 percent (50%) to the public school income fund to be utilized to facilitate
16 and provide substance abuse programs in the public school system, and fifty
17 percent (50%) shall be distributed to the counties to be utilized for county
18 juvenile probation services. These funds shall be distributed quarterly to the
19 counties based upon the percentage the population of the county bears to the
20 population of the state as a whole.
21 (2) All moneys except as provided in subsection (1) of this section, and
22 except as hereinafter provided, received by the state of Idaho under this act
23 shall be deposited by the state tax commission, as received by it, with the
24 state treasurer and shall be placed in and become a part of the general
25 account under the custody of the state treasurer. Providing however, that an
26 amount equal to twenty percent (20%) of the amount deposited with the state
27 treasurer shall be placed in the "state refund account" which is hereby cre-
28 ated for the purpose of repaying overpayments, for the purpose of remitting to
29 counties and taxing districts for personal property exempt from taxation pur-
30 suant to section 63-602EE, Idaho Code, as provided in subsection (3) of this
31 section, for the purpose of depositing in the trust accounts specified in sec-
32 tion 63-3067A, Idaho Code, such amounts as may be designated by individuals
33 for the purpose of depositing in the Idaho ag in the classroom account an
34 amount as may be designated by the individual receiving a refund for such
35 overpayment, and for the purpose of paying any other erroneous receipts ille-
36 gally assessed or collected, penalties collected without authority and taxes
37 and licenses unjustly assessed, collected or which are excessive in amount.
38 Whenever necessary for the purpose of making prompt payment of refunds, the
39 board of examiners, upon request from the state tax commission, and after
40 review, may authorize the state tax commission to transfer any additional spe-
41 cific amount from income tax collections to the "state refund account." There
42 is appropriated out of the state refund account so much thereof as may be nec-
43 essary for the payment of the refunds herein provided. Claims for, and payment
2
1 of refunds under the provisions of this section shall be made in the same man-
2 ner as other claims against the state of Idaho.
3 (3) The state tax commission shall calculate the amount that each county
4 assessed in taxes in tax year 2000 on property that is exempt from taxation
5 pursuant to section 63-602EE, Idaho Code, and shall remit to the county trea-
6 surer for distribution to each taxing district in the county one hundred six
7 percent (106%) of the amount calculated as follows:
8 The county commissioners in each county shall certify to the state tax
9 commission by July 1, 2001, the year 2000 tax charge, applicable to the prop-
10 erty exempt from taxation pursuant to section 63-602EE, Idaho Code, provided
11 that such property was categorized in year 2000 as farm machinery, tools and
12 equipment pursuant to rules of the state tax commission, for the portion of
13 each taxing district or unit within the county. For nonschool districts the
14 state tax commission shall distribute one-fourth (1/4) of this amount certi-
15 fied quarterly to each county beginning in October 2001. For school districts
16 the state tax commission shall distribute one-fourth (1/4) of the amount cer-
17 tified quarterly to each school district beginning in October 2001. For non-
18 school districts, the county auditor shall distribute to each district
19 within thirty (30) calendar days from receipt of moneys from the tax commis-
20 sion. Moneys received by each taxing district for replacement shall be uti-
21 lized in the same manner and in the same proportions as revenues from property
22 taxation. The moneys remitted to the county treasurer for replacement of prop-
23 erty exempt from taxation pursuant to section 63-602EE, Idaho Code, may be
24 considered by the counties and other taxing districts and budgeted at the same
25 time, in the same manner and in the same year as revenues from taxation on
26 personal property which these moneys replace. If taxing districts are consoli-
27 dated, the resulting district is entitled to an amount equal to the sum of the
28 amounts which were received in the last calendar quarter by each district pur-
29 suant to this subsection prior to the consolidation. If a taxing district is
30 dissolved or disincorporated, the state tax commission shall continuously dis-
31 tribute to the board of county commissioners an amount equal to the last
32 quarter's distribution prior to dissolution or disincorporation. The board of
33 county commissioners shall determine any redistribution of moneys so received.
34 If a taxing district annexes territory, the distribution of moneys received
35 pursuant to this subsection shall be unaffected. Taxing districts formed after
36 January 1, 2001, are not entitled to a payment under the provisions of this
37 subsection. School districts shall receive an amount determined by multiplying
38 the sum of the year 2000 school district levy plus .001 times the market value
39 on December 31, 2000, in the district of the property exempt from taxation
40 pursuant to section 63-602EE, Idaho Code. For school districts, beginning
41 January 1, 2002, only the portion of property tax replacement received to
42 replace property exempt from taxation pursuant to section 63-602EE, Idaho
43 Code, based on the year 2000 tax charges for maintenance and operation as lim-
44 ited by sections 33-802 2. and 33-1002D, Idaho Code, on property exempt from
45 taxation pursuant to section 63-602EE, Idaho Code, shall not be subtracted
46 from maximum school district maintenance and operation property taxes permit-
47 ted in accordance with section 33-802 2., Idaho Code. For purposes of the lim-
48 itation provided by section 63-802, Idaho Code, moneys received pursuant to
49 this subsection as property tax replacement for property exempt from taxation
50 pursuant to section 63-602EE, Idaho Code, shall be treated as property tax
51 revenues.
52 (4) Any unencumbered balance remaining in the state refund account on
53 June 30 of each and every year in excess of the sum of one million five hun-
54 dred thousand dollars ($1,500,000) shall be transferred to the general fund
55 and the state controller is hereby authorized and directed on such dates to
3
1 make such transfers unless the board of examiners, which is hereby authorized
2 to do so, changes the date of transfer or sum to be transferred.
3 SECTION 2. That Section 63-3638, Idaho Code, as amended by Section 4,
4 Chapter 318, Laws of 2003, be, and the same is hereby amended to read as fol-
5 lows:
6 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
7 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
8 be distributed by the tax commission as follows:
9 (1) An amount of money shall be distributed to the state refund account
10 sufficient to pay current refund claims. All refunds authorized under this
11 chapter by the commission shall be paid through the state refund account, and
12 those moneys are continuously appropriated.
13 (2) Five million dollars ($5,000,000) per year is continuously appropri-
14 ated and shall be distributed to the permanent building fund, provided by sec-
15 tion 57-1108, Idaho Code.
16 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
17 continuously appropriated and shall be distributed to the water pollution con-
18 trol account established by section 39-3605, Idaho Code.
19 (4) An amount equal to the sum required to be certified by the chairman
20 of the Idaho housing and finance association to the state tax commission pur-
21 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
22 ated and shall be paid to any capital reserve fund, established by the Idaho
23 housing and finance association pursuant to section 67-6211, Idaho Code. Such
24 amounts, if any, as may be appropriated hereunder to the capital reserve fund
25 of the Idaho housing and finance association shall be repaid for distribution
26 under the provisions of this section, subject to the provisions of section
27 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
28 possible, from any moneys available therefor and in excess of the amounts
29 which the association determines will keep it self-supporting.
30 (5) An amount equal to the sum required by the provisions of section
31 63-709, Idaho Code, is continuously appropriated and shall be paid as provided
32 by section 63-709, Idaho Code.
33 (6) An amount required by the provisions of chapter 53, title 33, Idaho
34 Code.
35 (7) An amount required by the provisions of chapter 87, title 67, Idaho
36 Code.
37 (8) One dollar ($1.00) on each application for certificate of title or
38 initial application for registration of a motor vehicle, snowmobile, all-
39 terrain vehicle or other vehicle processed by the county assessor or the Idaho
40 transportation department excepting those applications in which any sales or
41 use taxes due have been previously collected by a retailer, shall be a fee for
42 the services of the assessor of the county or the Idaho transportation depart-
43 ment in collecting such taxes, and shall be paid into the current expense fund
44 of the county or state highway account established in section 40-702, Idaho
45 Code.
46 (9) Eleven and five-tenths percent (11.5%) is continuously appropriated
47 and shall be distributed to the revenue sharing account which is created in
48 the state treasury, and the moneys in the revenue sharing account will be paid
49 in installments each calendar quarter by the tax commission as follows:
50 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
51 ious cities as follows:
52 (i) Fifty percent (50%) of such amount shall be paid to the various
53 cities, and each city shall be entitled to an amount in the propor-
4
1 tion that the population of that city bears to the population of all
2 cities within the state; and
3 (ii) Fifty percent (50%) of such amount shall be paid to the various
4 cities, and each city shall be entitled to an amount in the propor-
5 tion that the preceding year's market value for assessment purposes
6 for that city bears to the preceding year's market value for assess-
7 ment purposes for all cities within the state.
8 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
9 ious counties as follows:
10 (i) One million three hundred twenty thousand dollars ($1,320,000)
11 annually shall be distributed one forty-fourth (1/44) to each of the
12 various counties; and
13 (ii) The balance of such amount shall be paid to the various coun-
14 ties, and each county shall be entitled to an amount in the propor-
15 tion that the population of that county bears to the population of
16 the state;
17 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
18 ated in this subsection (9) shall be paid to the several counties for dis-
19 tribution to the cities and counties as follows:
20 (i) Each city and county which received a payment under the provi-
21 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
22 calendar year 1999, shall be entitled to a like amount during suc-
23 ceeding calendar quarters.
24 (ii) If the dollar amount of money available under this subsection
25 (9)(c) in any quarter does not equal the amount paid in the fourth
26 quarter of calendar year 1999, each city's and county's payment shall
27 be reduced proportionately.
28 (iii) If the dollar amount of money available under this subsection
29 (9)(c) in any quarter exceeds the amount paid in the fourth quarter
30 of calendar year 1999, each city and county shall be entitled to a
31 proportionately increased payment, but such increase shall not exceed
32 one hundred five percent (105%) of the total payment made in the
33 fourth quarter of calendar year 1999.
34 (iv) If the dollar amount of money available under this subsection
35 (9)(c) in any quarter exceeds one hundred five percent (105%) of the
36 total payment made in the fourth quarter of calendar year 1999, any
37 amount over and above such one hundred five percent (105%) shall be
38 paid fifty percent (50%) to the various cities in the proportion that
39 the population of the city bears to the population of all cities
40 within the state, and fifty percent (50%) to the various counties in
41 the proportion that the population of a county bears to the popula-
42 tion of the state; and
43 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
44 this subsection (9) shall be paid to the several counties for distribution
45 to special purpose taxing districts as follows:
46 (i) Each such district which received a payment under the provi-
47 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
48 calendar year 1999, shall be entitled to a like amount during suc-
49 ceeding calendar quarters.
50 (ii) If the dollar amount of money available under this subsection
51 (9)(d) in any quarter does not equal the amount paid in the fourth
52 quarter of calendar year 1999, each special purpose taxing district's
53 payment shall be reduced proportionately.
54 (iii) If the dollar amount of money available under this subsection
55 (9)(d) in any quarter exceeds the amount distributed under paragraph
5
1 (i) of this subsection (9)(d), each special purpose taxing district
2 shall be entitled to a share of the excess based on the proportion
3 each such district's current property tax budget bears to the sum of
4 the current property tax budgets of all such districts in the state.
5 The state tax commission shall calculate district current property
6 tax budgets to include any unrecovered foregone amounts as determined
7 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
8 district is situated in more than one (1) county, the tax commission
9 shall determine the portion attributable to the special purpose tax-
10 ing district from each county in which it is situated.
11 (iv) If special purpose taxing districts are consolidated, the
12 resulting district is entitled to a base amount equal to the sum of
13 the base amounts which were received in the last calendar quarter by
14 each district prior to the consolidation.
15 (v) If a special purpose taxing district is dissolved or
16 disincorporated, the state tax commission shall continuously distrib-
17 ute to the board of county commissioners an amount equal to the last
18 quarter's distribution prior to dissolution or disincorporation. The
19 board of county commissioners shall determine any redistribution of
20 moneys so received.
21 (vi) Taxing districts formed after January 1, 2001, are not entitled
22 to a payment under the provisions of this subsection (9)(d).
23 (vii) For purposes of this subsection (9)(d), a special purpose tax-
24 ing district is any taxing district which is not a city, a county or
25 a school district.
26 (10) Amounts calculated in accordance with section 2, chapter 356, Laws of
27 2001, for annual distribution to counties and other taxing districts beginning
28 in October 2001 for replacement of property tax on farm machinery and equip-
29 ment exempted pursuant to section 63-602EE, Idaho Code. For nonschool dis-
30 tricts, the state tax commission shall distribute one-fourth (1/4) of this
31 amount certified quarterly to each county. For school districts, the state tax
32 commission shall distribute one-fourth (1/4) of the amount certified quarterly
33 to each school district. For nonschool districts, the county auditor shall
34 distribute to each district within thirty (30) calendar days from receipt of
35 moneys from the tax commission. Moneys received by each taxing district for
36 replacement shall be utilized in the same manner and in the same proportions
37 as revenues from property taxation. The moneys remitted to the county trea-
38 surer for replacement of property exempt from taxation pursuant to section
39 63-602EE, Idaho Code, may be considered by the counties and other taxing dis-
40 tricts and budgeted at the same time, in the same manner and in the same year
41 as revenues from taxation on personal property which these moneys replace. If
42 taxing districts are consolidated, the resulting district is entitled to an
43 amount equal to the sum of the amounts which were received in the last calen-
44 dar quarter by each district pursuant to this subsection prior to the consoli-
45 dation. If a taxing district is dissolved or disincorporated, the state tax
46 commission shall continuously distribute to the board of county commissioners
47 an amount equal to the last quarter's distribution prior to dissolution or
48 disincorporation. The board of county commissioners shall determine any redis-
49 tribution of moneys so received. If a taxing district annexes territory, the
50 distribution of moneys received pursuant to this subsection shall be unaf-
51 fected. Taxing districts formed after January 1, 2001, are not entitled to a
52 payment under the provisions of this subsection. School districts shall
53 receive an amount determined by multiplying the sum of the year 2000 school
54 district levy plus .001 times the market value on December 31, 2000, in the
55 district of the property exempt from taxation pursuant to section 63-602EE,
6
1 Idaho Code. For school districts, beginning January 1, 2002, only the portion
2 of property tax replacement received to replace property exempt from taxation
3 pursuant to section 63-602EE, Idaho Code, based on the tax year 2000 tax
4 charges for maintenance and operation as limited by sections 33-802 2. and
5 33-1002D, Idaho Code, shall not be subtracted from the maximum school district
6 maintenance and operation property taxes permitted in accordance with section
7 33-802 2., Idaho Code. For purposes of the limitation provided by section
8 63-802, Idaho Code, moneys received pursuant to this section as property tax
9 replacement for property exempt from taxation pursuant to section 63-602EE,
10 Idaho Code, shall be treated as property tax revenues.
11 (11) Any moneys remaining over and above those necessary to meet and
12 reserve for payments under other subsections of this section shall be distrib-
13 uted to the general fund.
14 SECTION 3. That Section 63-3638, Idaho Code, be, as added by Section 9,
15 Chapter 318, Laws of 2003, and the same is hereby amended to read as follows:
16 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
17 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
18 be distributed by the tax commission as follows:
19 (1) An amount of money shall be distributed to the state refund account
20 sufficient to pay current refund claims. All refunds authorized under this
21 chapter by the commission shall be paid through the state refund account, and
22 those moneys are continuously appropriated.
23 (2) Five million dollars ($5,000,000) per year is continuously appropri-
24 ated and shall be distributed to the permanent building fund, provided by sec-
25 tion 57-1108, Idaho Code.
26 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
27 continuously appropriated and shall be distributed to the water pollution con-
28 trol account established by section 39-3605, Idaho Code.
29 (4) An amount equal to the sum required to be certified by the chairman
30 of the Idaho housing and finance association to the state tax commission pur-
31 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
32 ated and shall be paid to any capital reserve fund, established by the Idaho
33 housing and finance association pursuant to section 67-6211, Idaho Code. Such
34 amounts, if any, as may be appropriated hereunder to the capital reserve fund
35 of the Idaho housing and finance association shall be repaid for distribution
36 under the provisions of this section, subject to the provisions of section
37 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
38 possible, from any moneys available therefor and in excess of the amounts
39 which the association determines will keep it self-supporting.
40 (5) An amount equal to the sum required by the provisions of section
41 63-709, Idaho Code, is continuously appropriated and shall be paid as provided
42 by section 63-709, Idaho Code.
43 (6) An amount required by the provisions of chapter 53, title 33, Idaho
44 Code.
45 (7) An amount required by the provisions of chapter 87, title 67, Idaho
46 Code.
47 (8) One dollar ($1.00) on each application for certificate of title or
48 initial application for registration of a motor vehicle, snowmobile, all-
49 terrain vehicle or other vehicle processed by the county assessor or the Idaho
50 transportation department excepting those applications in which any sales or
51 use taxes due have been previously collected by a retailer, shall be a fee for
52 the services of the assessor of the county or the Idaho transportation depart-
53 ment in collecting such taxes, and shall be paid into the current expense fund
7
1 of the county or state highway account established in section 40-702, Idaho
2 Code.
3 (9) Thirteen and three-quarters percent (13.75%) is continuously appro-
4 priated and shall be distributed to the revenue sharing account which is cre-
5 ated in the state treasury, and the moneys in the revenue sharing account will
6 be paid in installments each calendar quarter by the tax commission as fol-
7 lows:
8 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
9 ious cities as follows:
10 (i) Fifty percent (50%) of such amount shall be paid to the various
11 cities, and each city shall be entitled to an amount in the propor-
12 tion that the population of that city bears to the population of all
13 cities within the state; and
14 (ii) Fifty percent (50%) of such amount shall be paid to the various
15 cities, and each city shall be entitled to an amount in the propor-
16 tion that the preceding year's market value for assessment purposes
17 for that city bears to the preceding year's market value for assess-
18 ment purposes for all cities within the state.
19 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
20 ious counties as follows:
21 (i) One million three hundred twenty thousand dollars ($1,320,000)
22 annually shall be distributed one forty-fourth (1/44) to each of the
23 various counties; and
24 (ii) The balance of such amount shall be paid to the various coun-
25 ties, and each county shall be entitled to an amount in the propor-
26 tion that the population of that county bears to the population of
27 the state;
28 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
29 ated in this subsection (9) shall be paid to the several counties for dis-
30 tribution to the cities and counties as follows:
31 (i) Each city and county which received a payment under the provi-
32 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
33 calendar year 1999, shall be entitled to a like amount during suc-
34 ceeding calendar quarters.
35 (ii) If the dollar amount of money available under this subsection
36 (9)(c) in any quarter does not equal the amount paid in the fourth
37 quarter of calendar year 1999, each city's and county's payment shall
38 be reduced proportionately.
39 (iii) If the dollar amount of money available under this subsection
40 (9)(c) in any quarter exceeds the amount paid in the fourth quarter
41 of calendar year 1999, each city and county shall be entitled to a
42 proportionately increased payment, but such increase shall not exceed
43 one hundred five percent (105%) of the total payment made in the
44 fourth quarter of calendar year 1999.
45 (iv) If the dollar amount of money available under this subsection
46 (9)(c) in any quarter exceeds one hundred five percent (105%) of the
47 total payment made in the fourth quarter of calendar year 1999, any
48 amount over and above such one hundred five percent (105%) shall be
49 paid fifty percent (50%) to the various cities in the proportion that
50 the population of the city bears to the population of all cities
51 within the state, and fifty percent (50%) to the various counties in
52 the proportion that the population of a county bears to the popula-
53 tion of the state; and
54 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
55 this subsection (9) shall be paid to the several counties for distribution
8
1 to special purpose taxing districts as follows:
2 (i) Each such district which received a payment under the provi-
3 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
4 calendar year 1999, shall be entitled to a like amount during suc-
5 ceeding calendar quarters.
6 (ii) If the dollar amount of money available under this subsection
7 (9)(d) in any quarter does not equal the amount paid in the fourth
8 quarter of calendar year 1999, each special purpose taxing district's
9 payment shall be reduced proportionately.
10 (iii) If the dollar amount of money available under this subsection
11 (9)(d) in any quarter exceeds the amount distributed under paragraph
12 (i) of this subsection (9)(d), each special purpose taxing district
13 shall be entitled to a share of the excess based on the proportion
14 each such district's current property tax budget bears to the sum of
15 the current property tax budgets of all such districts in the state.
16 The state tax commission shall calculate district current property
17 tax budgets to include any unrecovered foregone amounts as determined
18 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
19 district is situated in more than one (1) county, the tax commission
20 shall determine the portion attributable to the special purpose tax-
21 ing district from each county in which it is situated.
22 (iv) If special purpose taxing districts are consolidated, the
23 resulting district is entitled to a base amount equal to the sum of
24 the base amounts which were received in the last calendar quarter by
25 each district prior to the consolidation.
26 (v) If a special purpose taxing district is dissolved or
27 disincorporated, the state tax commission shall continuously distrib-
28 ute to the board of county commissioners an amount equal to the last
29 quarter's distribution prior to dissolution or disincorporation. The
30 board of county commissioners shall determine any redistribution of
31 moneys so received.
32 (vi) Taxing districts formed after January 1, 2001, are not entitled
33 to a payment under the provisions of this subsection (9)(d).
34 (vii) For purposes of this subsection (9)(d), a special purpose tax-
35 ing district is any taxing district which is not a city, a county or
36 a school district.
37 (10) Amounts calculated in accordance with section 2, chapter 356, Laws of
38 2001, for annual distribution to counties and other taxing districts beginning
39 in October 2001 for replacement of property tax on farm machinery and equip-
40 ment exempted pursuant to section 63-602EE, Idaho Code. For nonschool dis-
41 tricts, the state tax commission shall distribute one-fourth (1/4) of this
42 amount certified quarterly to each county. For school districts, the state tax
43 commission shall distribute one-fourth (1/4) of the amount certified quarterly
44 to each school district. For nonschool districts, the county auditor shall
45 distribute to each district within thirty (30) calendar days from receipt of
46 moneys from the tax commission. Moneys received by each taxing district for
47 replacement shall be utilized in the same manner and in the same proportions
48 as revenues from property taxation. The moneys remitted to the county trea-
49 surer for replacement of property exempt from taxation pursuant to section
50 63-602EE, Idaho Code, may be considered by the counties and other taxing dis-
51 tricts and budgeted at the same time, in the same manner and in the same year
52 as revenues from taxation on personal property which these moneys replace. If
53 taxing districts are consolidated, the resulting district is entitled to an
54 amount equal to the sum of the amounts which were received in the last calen-
55 dar quarter by each district pursuant to this subsection prior to the consoli-
9
1 dation. If a taxing district is dissolved or disincorporated, the state tax
2 commission shall continuously distribute to the board of county commissioners
3 an amount equal to the last quarter's distribution prior to dissolution or
4 disincorporation. The board of county commissioners shall determine any redis-
5 tribution of moneys so received. If a taxing district annexes territory, the
6 distribution of moneys received pursuant to this subsection shall be unaf-
7 fected. Taxing districts formed after January 1, 2001, are not entitled to a
8 payment under the provisions of this subsection. School districts shall
9 receive an amount determined by multiplying the sum of the year 2000 school
10 district levy plus .001 times the market value on December 31, 2000, in the
11 district of the property exempt from taxation pursuant to section 63-602EE,
12 Idaho Code. For school districts, beginning January 1, 2002, only the portion
13 of property tax replacement received to replace property exempt from taxation
14 pursuant to section 63-602EE, Idaho Code, based on the tax year 2000 tax
15 charges for maintenance and operation as limited by sections 33-802 2. and
16 33-1002D, Idaho Code, shall not be subtracted from the maximum school district
17 maintenance and operation property taxes permitted in accordance with section
18 33-802 2., Idaho Code. For purposes of the limitation provided by section
19 63-802, Idaho Code, moneys received pursuant to this section as property tax
20 replacement for property exempt from taxation pursuant to section 63-602EE,
21 Idaho Code, shall be treated as property tax revenues.
22 (11) Any moneys remaining over and above those necessary to meet and
23 reserve for payments under other subsections of this section shall be distrib-
24 uted to the general fund.
25 SECTION 4. Sections 1 and 2 of this act shall be in full force and effect
26 on and after July 1, 2004. Section 3 of this act shall be in full force and
27 effect on and after August 1, 2005.
STATEMENT OF PURPOSE
RS 13576
Each fiscal year the state distributes to counties, cities,
school districts and other local taxing districts, an amount of
state funds intended to replace revenues lost when agricultural
equipment was exempted from property tax in 2001. Under current
law, the funds are paid from the state refund account, which is
used to pay income tax refunds. This overstates refunds paid each
year and depletes the refund account. This bill will change the
distribution to provide that it be paid from the revenue received
under the Sales Tax Act.
FISCAL NOTE
None. Local governments will receive the same amount of state
General Fund revenue. Cost of the agricultural equipment
exemption is and will continue to be a fixed amount of $13.4
million per year.
Contact
Name: Dan John / Ted Spangler
Agency: State Tax Commission
Phone: 334-7530
STATEMENT OF PURPOSE/FISCAL NOTE H 538