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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
]]]] 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 for5 assessment purposes as such valuation existed on December 31 of the previ-6 ous calendar year shall not exceed seventy-five million dollars7 ($75,000,000) in any fiscal year. If the amount school districts would8 otherwise be entitled to receive pursuant to the preceding provisions of9 this subsection exceeds seventy-five million dollars ($75,000,000), then10 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 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