2005 Legislation
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HOUSE BILL NO. 99 – Taxing dist, budget increase/electn

HOUSE BILL NO. 99

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Bill Status



H0099...............................................by REVENUE AND TAXATION
TAXING DISTRICTS - Amends existing law to provide that any taxing district
may submit to the electors within the district the question of whether the
budget from property tax revenues may be increased beyond the amount
authorized, but not beyond the levy authorized by statute; to provide that
the additional amount must be approved by sixty-six and two-thirds percent
or more of the voters voting on the question at an election called for that
purpose; and to provide a maximum amount of budget when a nonschool
district consolidates with another nonschool district or dissolves and a
new district performing similar governmental functions as the dissolved
district forms with the same boundaries within three years.
                                                                        
02/02    House intro - 1st rdg - to printing
02/03    Rpt prt - to Rev/Tax
03/07    Rpt out - rec d/p - to 2nd rdg
03/08    2nd rdg - to 3rd rdg
03/09    3rd rdg - PASSED - 65-3-2
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bell,
      Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark,
      Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Jaquet, Jones,
      Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin,
      McKague, Miller, Moyle, Nielsen, Nonini, Pasley-Stuart, Raybould,
      Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smylie,
      Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
      NAYS -- Henderson, Mitchell, Pence
      Absent and excused -- Bedke, Smith(24)
    Floor Sponsor - Moyle
    Title apvd - to Senate
03/10    Senate intro - 1st rdg - to Loc Gov
03/16    Rpt out - rec d/p - to 2nd rdg
03/17    2nd rdg - to 3rd rdg
03/21    3rd rdg - PASSED - 29-0-5, 1 vacancy
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Cameron,
      Compton, Corder, Darrington, Davis, Gannon, Geddes, Goedde, Hill,
      Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Marley, McGee,
      McKenzie, Pearce, Richardson, Schroeder, Stegner, Stennett, Sweet
      NAYS -- None
      Absent and excused -- Burtenshaw, Coiner, Malepeai, Werk, Williams,
      (District 21 seat vacant)
    Floor Sponsor - Bunderson
    Title apvd - to House
03/22    To enrol
03/23    Rpt enrol - Sp signed
03/24    Pres signed - To Governor
03/28    Governor signed
         Session Law Chapter 178
         Effective: 01/01/05

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 99
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO AN ELECTION ON PROPERTY  TAX  RELATED  MATTERS;  AMENDING  SECTION
  3        63-802,  IDAHO CODE, TO PROVIDE THAT ANY TAXING DISTRICT MAY SUBMIT TO THE
  4        ELECTORS WITHIN THE DISTRICT THE QUESTION OF WHETHER THE BUDGET FROM PROP-
  5        ERTY TAX REVENUES MAY BE INCREASED BEYOND THE AMOUNT AUTHORIZED,  BUT  NOT
  6        BEYOND  THE  LEVY  AUTHORIZED  BY  STATUTE, TO PROVIDE THAT THE ADDITIONAL
  7        AMOUNT MUST BE APPROVED BY SIXTY-SIX AND TWO-THIRDS PERCENT OR MORE OF THE
  8        VOTERS VOTING ON THE QUESTION AT AN ELECTION CALLED FOR THAT  PURPOSE  AND
  9        TO  PROVIDE  THAT WHEN A NONSCHOOL DISTRICT CONSOLIDATES WITH ANOTHER NON-
 10        SCHOOL DISTRICT OR DISSOLVES AND A NEW DISTRICT PERFORMING   SIMILAR  GOV-
 11        ERNMENTAL  FUNCTIONS  AS THE DISSOLVED DISTRICT FORMS WITH THE SAME BOUND-
 12        ARIES WITHIN THREE YEARS, THE MAXIMUM AMOUNT OF A BUDGET OF  THE  DISTRICT
 13        FROM  PROPERTY  TAX  REVENUES  SHALL  NOT  BE  GREATER THAN THE SUM OF THE
 14        AMOUNTS THAT WOULD HAVE BEEN AUTHORIZED FOR THE DISTRICT ITSELF OR FOR THE
 15        DISTRICTS THAT WERE CONSOLIDATED OR DISSOLVED AND INCORPORATED INTO A  NEW
 16        DISTRICT; AMENDING SECTION 31-1420, IDAHO CODE, TO DELETE LANGUAGE REGARD-
 17        ING  AN  ELECTION BY VOTERS IN A FIRE PROTECTION DISTRICT TO HAVE THE DIS-
 18        TRICT REACH A CERTAIN LEVY AMOUNT; DECLARING AN  EMERGENCY  AND  PROVIDING
 19        RETROACTIVE APPLICATION.
                                                                        
 20    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 21        SECTION  1.  That  Section  63-802, Idaho Code, be, and the same is hereby
 22    amended to read as follows:
                                                                        
 23        63-802.  LIMITATION ON BUDGET REQUESTS -- LIMITATION  ON  TAX  CHARGES  --
 24    EXCEPTIONS.  (1)  Except as provided in subsection (3) of this section for tax
 25    year 1995, and each year thereafter, no taxing district shall certify a budget
 26    request for an amount of property tax revenues to  finance  an  annual  budget
 27    that exceeds the greater of:
 28        (a)  The  dollar  amount of property taxes certified for its annual budget
 29        for any one (1) of the three (3) tax years preceding the current tax year,
 30        whichever is greater, which amount may be increased by a growth factor  of
 31        not  to  exceed  three  percent (3%) plus the amount of revenue that would
 32        have been generated by applying the levy of the previous year, not includ-
 33        ing any levy described in subsection (4) of this section, to any  increase
 34        in  market  value  subject  to taxation resulting from new construction or
 35        change of land use classification as evidenced by the value shown  on  the
 36        new  construction  roll  compiled pursuant to section 63-301A, Idaho Code;
 37        and by the value of annexation during the previous calendar year, as  cer-
 38        tified by the state tax commission for market values of operating property
 39        of public utilities and by the county assessor; or
 40        (b)  The  dollar  amount of property taxes certified for its annual budget
 41        during the last year in which a levy was made; or
 42        (c)  The dollar amount of the actual budget request, if  the  taxing  dis-
 43        trict  is  newly created except as may be provided in subsection (1)(h) of
                                                                        
                                           2
                                                                        
  1        this section; or
  2        (d)  In the case of school districts, the restriction imposed  in  section
  3        33-802, Idaho Code; or
  4        (e)  In  the  case of a nonschool district for which less than the maximum
  5        allowable increase in the dollar amount of property  taxes  is   certified
  6        for  annual  budget  purposes in any one (1) year, such a district may, in
  7        any following year, recover the foregone increase by certifying, in  addi-
  8        tion  to  any increase otherwise allowed, an amount not to exceed one hun-
  9        dred percent (100%) of the increase originally foregone.  Said  additional
 10        amount  shall be included in future calculations for increases as allowed;
 11        or
 12        (f)  In the case of cities, if the immediately preceding year's levy  sub-
 13        ject  to  the limitation provided by this section, is less than 0.004, the
 14        city may increase its budget by an amount not  to  exceed  the  difference
 15        between  0.004 and actual prior year's levy multiplied by the prior year's
 16        market value for  assessment  purposes.  The  additional  amount  must  be
 17        approved by sixty percent (60%) of the voters voting on the question at an
 18        election  called  for that purpose and held on the date in May or November
 19        provided by law, and may  be included in the annual budget of the city for
 20        purposes of this section; or
 21        (g)  A library taxing district may submit to the electors within the  dis-
 22        trict the question of whether the budget from property tax revenues may be
 23        increased beyond the amount authorized in this section, but not beyond the
 24        levy  authorized in section 33-2724, Idaho Code by statute. The additional
 25        amount must be approved by sixty-six and two-thirds percent  (66 2/3%)  or
 26        more  of  the voters voting on the question at an election called for that
 27        purpose and held on the May or November dates provided by section  34-106,
 28        Idaho  Code.  If approved by the required minimum sixty-six and two-thirds
 29        percent (66 2/3%) of the voters voting at the  election,  the  new  budget
 30        amount shall be the base budget for the purposes of this section; or
 31        (h)  When  a  nonschool  district consolidates with another nonschool dis-
 32        trict or dissolves and a  new  district  performing  similar  governmental
 33        functions  as the dissolved district forms with the same boundaries within
 34        three (3) years, the maximum amount of a budget of the district from prop-
 35        erty tax revenues shall not be greater than the sum of  the  amounts  that
 36        would  have been authorized by this section for the district itself or for
 37        the districts that were consolidated or dissolved and incorporated into  a
 38        new district; or
 39        (i)  In the instance or case of cooperative service agencies, the restric-
 40        tions imposed in sections 33-315 through 33-318, Idaho Code.
 41        (2)  In  the case of fire districts, during the year immediately following
 42    the election of a public utility or public utilities to consent to be provided
 43    fire protection pursuant to section 31-1422, Idaho Code, the maximum amount of
 44    property tax revenues permitted in subsection  (1)  of  this  section  may  be
 45    increased  by  an amount equal to the current year's taxable value of the con-
 46    senting public utility or public utilities multiplied by that portion  of  the
 47    prior year's levy subject to the limitation provided by subsection (1) of this
 48    section.
 49        (3)  No  board  of  county  commissioners  shall set a levy, nor shall the
 50    state tax commission approve a levy for annual budget purposes  which  exceeds
 51    the  limitation imposed in subsection (1) of this section, unless authority to
 52    exceed such  limitation  has  been  approved  by  a  majority  of  the  taxing
 53    district's electors voting on the question at an election called for that pur-
 54    pose  and  held pursuant to section 34-106, Idaho Code, provided however, that
 55    such voter approval shall be for a period of not to exceed two (2) years.
                                                                        
                                           3
                                                                        
  1        (4)  The amount of property tax revenues to finance an annual budget  does
  2    not  include revenues from nonproperty tax sources, and does not include reve-
  3    nue from levies that are voter approved for bonds, override levies or  supple-
  4    mental  levies,  plant  facilities  reserve fund levies, school emergency fund
  5    levies or for levies applicable to newly annexed property or for levies appli-
  6    cable to new construction as evidenced by the value of property subject to the
  7    occupancy tax pursuant to section 63-317, Idaho Code, for  the  preceding  tax
  8    year.
                                                                        
  9        SECTION  2.  That  Section 31-1420, Idaho Code, be, and the same is hereby
 10    amended to read as follows:
                                                                        
 11        31-1420.  LEVY. (1) Each year, immediately prior to the annual county levy
 12    of taxes, the board of commissioners of each fire protection  district,  orga-
 13    nized  and  existing under this act, may levy a tax upon all the taxable prop-
 14    erty within the boundaries of such district sufficient to defray the  cost  of
 15    equipping  and  maintaining  the  district  of  twenty-four hundredths percent
 16    (.24%) of market value for assessment purposes, to be used for the purposes of
 17    this act and for no other purpose.  The  levy  shall  be  made  by  resolution
 18    entered  upon the minutes of the board of commissioners of the fire protection
 19    district, and it shall be the duty of the secretary of the  district,  immedi-
 20    ately  after entry of the resolution in the minutes, to transmit to the county
 21    auditor, county assessor and state board of equalization certified  copies  of
 22    the  resolution providing for such levy. Said taxes shall be collected as pro-
 23    vided by section 63-812, Idaho Code.
 24        (2)  If two (2) or more fire protection districts consolidate into one (1)
 25    district, the provisions of section 63-802, Idaho Code,  shall  apply  to  the
 26    consolidated district's budget request as if the former district which, in the
 27    year  of  the consolidation, has the higher levy subject to the limitations of
 28    section 63-802, Idaho Code, had annexed the other district  or  districts.  In
 29    addition,  the  consolidated  district  shall  receive the benefit of foregone
 30    increases accumulated by the  former  districts  under  section  63-802(1)(a),
 31    Idaho Code.
 32        (3)  Notwithstanding  the  provisions  of section 63-802, Idaho Code, fire
 33    protection districts adversely impacted by abnormally low levies at  the  time
 34    of  enactment  of  section  63-2220A,  Idaho  Code,  and recodified as section
 35    63-802, Idaho Code, may seek voter approval to reach a  fire  protection  dis-
 36    trict  levy  of  twenty-four  hundredths  percent  (.24%)  of market value for
 37    assessment purposes to be used for the purposes of this act and for  no  other
 38    purpose.  The  additional budget amount must be approved by sixty-six and two-
 39    thirds percent (66 2/3%) of the voters on the question at an  election  called
 40    for that purpose and held on the dates provided by section 34-106, Idaho Code.
 41    If  approved  by  the  voters, the additional budget amount may be included in
 42    each succeeding annual budget.
                                                                        
 43        SECTION 3.  An emergency existing  therefor,  which  emergency  is  hereby
 44    declared to exist, this act shall be in full force and effect on and after its
 45    passage and approval, and retroactively to January 1, 2005.

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE

                             RS 14742

This legislation would amend Section 62-802, Idaho Code, so that
any taxing district may call an election for the purpose of
asking the voters to approve, by a sixty-six and two-thirds
percent (66 %) or more, a budget increase from property tax
revenues beyond the amount authorized by statute.  In addition,
when a non-school district consolidates with another non-school
district or dissolves and a new district performing similar
governmental functions as the dissolved forms with the same
boundaries within three (3) years, the maximum of the budget of
the district from property tax revenues shall not be greater than
the sum of the amounts that would have been authorized for the
district itself or for the districts that were consolidated or
dissolved and incorporated into a new district.  Also, this
legislation deletes language regarding an election by voters in a
fire protection district to have the district reach a certain
levy amount.  The legislation declares an emergency and includes
a retroactive date.


                           FISCAL NOTE

There is no fiscal impact.


Contact
Name:  Rep. Mike Moyle 
Phone: (208) 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                    H 99