Print Friendly HOUSE BILL NO. 660 – Library dist, levy
HOUSE BILL NO. 660
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H0660...............................................by REVENUE AND TAXATION
LIBRARY DISTRICTS - Amends existing law to provide that the dollar amount
of property taxes for a newly consolidated library district's budget shall
not exceed one-tenth percent of the market value for assessment purposes;
to increase the allowable levy for the maintenance and operation portion of
the budget to a maximum of one-tenth percent of market value for assessment
purposes; to place a limit on initial indebtedness not to exceed one-tenth
percent on each dollar of market value for assessment purposes; and to
provide that a school-community library district may levy an annual tax not
to exceed one-tenth percent of market value for assessment purposes.
02/11 House intro - 1st rdg - to printing
02/12 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 660
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PUBLIC LIBRARY DISTRICTS; AMENDING SECTION 33-2710, IDAHO CODE, TO
3 PROVIDE THAT THE DOLLAR AMOUNT OF PROPERTY TAXES FOR A NEWLY CONSOLIDATED
4 DISTRICT'S BUDGET SHALL NOT EXCEED ONE-TENTH PERCENT OF THE MARKET VALUE
5 FOR ASSESSMENT PURPOSES; AMENDING SECTION 33-2724, IDAHO CODE, TO INCREASE
6 THE ALLOWABLE LEVY FOR THE MAINTENANCE AND OPERATION PORTION OF THE BUDGET
7 TO A MAXIMUM OF ONE-TENTH PERCENT OF MARKET VALUE FOR ASSESSMENT PURPOSES
8 AND TO PLACE A LIMIT ON INITIAL INDEBTEDNESS NOT TO EXCEED ONE-TENTH PER-
9 CENT ON EACH DOLLAR OF MARKET VALUE FOR ASSESSMENT PURPOSES; AND AMENDING
10 SECTION 33-2739, IDAHO CODE, TO PROVIDE THAT A SCHOOL-COMMUNITY LIBRARY
11 DISTRICT MAY LEVY AN ANNUAL TAX NOT TO EXCEED ONE-TENTH PERCENT OF MARKET
12 VALUE FOR ASSESSMENT PURPOSES AND TO MAKE TECHNICAL CORRECTIONS.
13 Be It Enacted by the Legislature of the State of Idaho:
14 SECTION 1. That Section 33-2710, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 33-2710. DETERMINATION OF THE PROPERTY PORTION OF THE BUDGET FOR CONSOLI-
17 DATED LIBRARIES -- DISTRICT AND DISTRICT -- DISTRICT AND CITY. (1) When two
18 (2) district libraries have agreed to consolidate, the property tax portion of
19 the new consolidated district's first budget will be determined in the follow-
20 ing manner.
21 The property tax portion of each district's most recent annual certified
22 budget will be added together. The resulting figure will be considered the
23 dollar amount of property taxes on which to base the first annual budget for
24 the new consolidated district. The provisions of section 63-802, Idaho Code,
25 shall be applied to this dollar amount.
26 (2) When a tax supported city library has voted to consolidate with a
27 district library, the property tax portion of the new consolidated district's
28 first annual budget will be determined in the following manner.
29 The city library budget figure will be defined as the budget for library
30 services, whether from the general fund and/or the library fund, in the city's
31 annual certified budget in effect on the date the election was held, less
32 fines, fees, and any other identifiable revenues from nontax sources, and any
33 grants made directly to the city library board. The city library budget figure
34 will be added to the property tax portion of the public library district's
35 annual certified budget in effect on the date the election was held. The
36 resulting figure will be considered the dollar amount of property taxes on
37 which to base the first annual budget for the new consolidated district. The
38 provisions of section 63-802, Idaho Code, shall be applied to this dollar
40 If the city has established a dedicated library fund in effect on the date
41 the election was held, those dollars will be removed from the city budget in
42 the fiscal year in which the newly consolidated district begins to levy to
43 provide library services.
1 (3) In any consolidation, the dollar amount of property taxes for the new
2 consolidated district's budget shall not exceed six hundredths one-tenth per-
3 cent (.10 6%) of the market value for assessment purposes of all taxable prop-
4 erty within the district.
5 (4) In any consolidation, the existing bonded debt of any district or
6 districts shall not become the obligation of the proposed consolidated library
7 district. The debt shall remain an obligation of the property which incurred
8 the indebtedness.
9 SECTION 2. That Section 33-2724, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 33-2724. TAXES FOR THE SUPPORT OF LIBRARY DISTRICT -- TAX ANTICIPATION
12 LOANS -- CARRY OVER AUTHORITY -- CAPITAL ASSETS REPLACEMENT AND REPAIR FUND.
13 (1) Any tax levied for library district purposes shall be a lien upon the
14 property against which the tax is levied. The board of trustees shall deter-
15 mine and levy a tax upon each dollar of assessed valuation of property within
16 the district for the ensuing fiscal year as shall be required to satisfy all
17 maturing bond, bond interest, and judgment obligations. For the maintenance
18 and operation of the library district, the board of trustees may also levy
19 upon the taxable property within the district a tax not to exceed six hun-
20 dredths one-tenth percent (.10 6%) of market value for assessment purposes.
21 These levies shall be certified to the board of county commissioners of each
22 county in which the district may lie, not later than the second Monday in Sep-
23 tember of each year.
24 (2) In the first year after establishment, the board of a district may,
25 for the purpose of organization and to finance general preliminary expenses of
26 the district and before making a tax levy, incur an indebtedness not exceeding
27 in the aggregate a sum equal to six hundredths one-tenth percent (.10 6%) on
28 each one dollar ($1.00) of market value for assessment purposes of all taxable
29 property within the district. To repay the organization indebtedness incurred,
30 the board shall have authority to levy and collect an additional tax not to
31 exceed two hundredths percent (.02%) per annum on each one dollar ($1.00) of
32 market value for assessment purposes of all taxable property within the dis-
33 trict. This additional levy shall not be used for any purpose other than
34 repayment of the organizational indebtedness and interest thereon. This addi-
35 tional levy may be imposed for three (3) years.
36 (3) Library districts may accumulate fund balances at the end of a fiscal
37 year and carry over these fund balances into the ensuing fiscal year, suffi-
38 cient to achieve or maintain library district operations on a cash basis. A
39 fund balance is the excess of the assets of a fund over its liabilities and
41 (4) The board of trustees of a library district may establish a capital
42 assets replacement and repair fund within the library district budget for
43 which district moneys may be budgeted and carried over from year to year. Dis-
44 bursements from the fund may be made as the board may determine to maintain,
45 repair, or replace the capital assets of the district to remodel or repair any
46 existing library building; to furnish and equip any existing library building;
47 and to purchase or replace major appliances and vehicles necessary to maintain
48 and operate the services of the district. Moneys from the capital assets
49 replacement and repair fund may not be used for the purchase of land or to
50 build new library facilities or to build additions to current library facili-
51 ties. Moneys in the fund may be invested in the manner provided in section
52 57-127, Idaho Code. In any year in which there is a capital assets replacement
53 and repair fund in a library district, the amount held in the fund shall be
1 reported in the library district's budget hearing announcement, along with a
2 list of capital items which may eventually be replaced or repaired with moneys
3 from the fund. The fund shall be included in the annual report filed with the
4 state library board and in the audit required in section 33-2726, Idaho Code.
5 SECTION 3. That Section 33-2739, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 33-2739. SCHOOL-COMMUNITY LIBRARY DISTRICTS -- BOARD OF TRUSTEES --
8 POWERS AND DUTIES -- FISCAL YEAR. (1) The board of trustees of the school-
9 community library district shall perform the duties required of, and have the
10 power and authority granted to library district trustees pursuant to this
11 chapter, including the authority to levy upon the taxable property in the
12 school-community library district an annual tax not to exceed six hundredths
13 per cent one-tenth percent (.10 6%) of market value for assessment purposes for
14 establishing and maintaining public library services. The school-community
15 library district board shall have exclusive control of the school-community
16 library district fund and shall cause to be made a full and complete audit of
17 the books and accounts of the district as provided for in section 33-2726,
18 Idaho Code.
19 (2) To bring the fiscal year of school-community library districts into
20 conformity with the fiscal year of library districts, fiscal year 1994 for
21 school-community library districts shall be defined as beginning on July 1,
22 1993, and ending on September 30, 1994. To fund school-community library dis-
23 trict operations from July 1, 1993, through September 30, 1994:
24 (a) The four (4) existing school-community library districts are autho-
25 rized to budget for the fifteen (15) month period;
26 (b) The county commissioners of the relevant counties are authorized to
27 set the levy for the fifteen (15) month period for the four (4) existing
28 school-community library districts;
29 (c) The state tax commission is authorized to approve the levy for the
30 fifteen (15) month period for the four (4) existing school-community
31 library districts;
32 (d) The relevant counties are authorized to collect ad valorem property
33 taxes for the fifteen (15) month period for the relevant existing school-
34 community library districts within each county's boundaries;
35 (e) For the fifteen (15) month period only, the maximum allowable levy
36 for school-community library districts shall be seven and one-half hun-
37 dredths percent (.075%) of market value for assessment purposes.
38 This subsection (2) shall be void and of no further force and effect on and
39 after September 30, 1994.
40 (3) On and after fiscal year 1995, school-community library districts
41 shall have a fiscal year of October 1 through September 30.
STATEMENT OF PURPOSE
This proposal would amend Section 33-2724 Idaho Code,
allowing library districts to align their levy rates with
Idaho's city library levy rate authority. City libraries now
are allowed to levy up to .10 percent, or one dollar per one
thousand dollars of appraised value. Library districts are
allowed to levy no more than six one hundredths (.06%)
percent or sixty cents per one thousand dollars. This
increase in levy authorization will facilitate library
districts in meeting the same maintenance and operating
expenses, demands and costs comparable to city libraries.
This amendment would allow library districts to take the
allowable annual increase in budget as needed up to the new
maximum but still within the 3% growth cap limit. A
permanent override would still require a 2/3rd vote as
required in Section 63-802 Idaho Code.
There would be no impact upon state general fund revenues.
Any fiscal effect would be local and vary with each city and
district. State statute presently requires merging districts
and cities to average assessment rates and apply the
NAME: John Watts
AGENCY: Idaho Library Association
STATEMENT OF PURPOSE H 660