2005 Legislation
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HOUSE BILL NO. 104 – Taxing dist, boundaries, wind power

HOUSE BILL NO. 104

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H0104...................................................by LOCAL GOVERNMENT
TAXING DISTRICTS - WIND POWER - Amends existing law to allow the boundaries
of highway districts, cemetery districts, fire protection districts and
flood control districts to be adjusted if a property used to produce
electricity utilizing wind contains more than five electrical generating
towers and is located within five miles of the boundary of the respective
districts.
                                                                        
02/03    House intro - 1st rdg - to printing
02/04    Rpt prt - to Loc Gov

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 104
                                                                        
                               BY LOCAL GOVERNMENT COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO TAXING DISTRICTS AND OPERATING PROPERTY USED FOR ELECTRICAL GENER-
  3        ATION; AMENDING SECTION 40-1706, IDAHO CODE, TO PROVIDE  A  PROCEDURE  FOR
  4        ADJUSTMENT  OF HIGHWAY DISTRICT BOUNDARIES WHEN OPERATING PROPERTY USED TO
  5        PRODUCE ELECTRICITY UTILIZING WIND IS CONSTRUCTED WITHIN FIVE MILES  OF  A
  6        BOUNDARY;  AMENDING SECTION 27-107, IDAHO CODE, TO ALLOW THE BOUNDARY OF A
  7        CEMETERY DISTRICT TO BE CHANGED IF DECLARED IN THE PUBLIC INTEREST BY  THE
  8        BOARD  OF  COUNTY  COMMISSIONERS;  AMENDING SECTION 27-121, IDAHO CODE, TO
  9        PROVIDE A PROCEDURE FOR CEMETERY DISTRICT BOUNDARY ADJUSTMENTS IF  CERTAIN
 10        CIRCUMSTANCES  OCCUR;  AMENDING  SECTION 31-1404, IDAHO CODE, TO ALLOW THE
 11        BOUNDARY OF A FIRE PROTECTION DISTRICT TO BE CHANGED IF  DECLARED  IN  THE
 12        PUBLIC  INTEREST  BY  THE  BOARD OF COUNTY COMMISSIONERS; AMENDING SECTION
 13        31-1420, IDAHO CODE, TO PROVIDE A PROCEDURE  FOR  FIRE  DISTRICT  BOUNDARY
 14        ADJUSTMENTS  IF CERTAIN CIRCUMSTANCES OCCUR; AND AMENDING SECTION 42-3120,
 15        IDAHO CODE, TO PROVIDE A PROCEDURE WHERE THE DIRECTOR OF THE DEPARTMENT OF
 16        WATER RESOURCES MAY ADJUST THE BOUNDARIES OF A FLOOD CONTROL  DISTRICT  IF
 17        CERTAIN CIRCUMSTANCES OCCUR AND TO MAKE TECHNICAL CORRECTIONS.
                                                                        
 18    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 19        SECTION  1.  That  Section 40-1706, Idaho Code, be, and the same is hereby
 20    amended to read as follows:
                                                                        
 21        40-1706.  ADJUSTMENT OF HIGHWAY DISTRICT BORDERS BOUNDARIES --  NOTICE  --
 22    HEARING  --  DECISION OF COMMISSIONERS -- APPEAL. (1) In areas where more than
 23    one (1) highway district exists and the highway districts were organized under
 24    the provisions of this chapter, the commissioners  shall  have  the  duty  and
 25    obligation  from time to time as shall be practical and for the best interests
 26    of the countywide administration of the secondary highway systems,  to  adjust
 27    the  borders  boundaries  of the highway districts coexisting in the county as
 28    shall most equitably and economically permit the administration, operation and
 29    construction of the secondary highway system within the county.  Consideration
 30    of  the  merit for adjustment of highway district boundaries for the equitable
 31    and economical administration, operation and  construction  of  the  secondary
 32    highway  system shall specifically extend to consideration of tax revenue dis-
 33    tributions for multiple highway  districts,  the  boundaries  of  which  exist
 34    within  five  (5) miles of a property taxed as an operating property in accor-
 35    dance with section 63-410, Idaho Code.  Such consideration shall include prop-
 36    erties used to produce electricity utilizing wind, that contain more than five
 37    (5) electrical generating towers on private, state or federal lands.
 38        (2)  Notice of a proposal to change the boundaries  of  the  highway  dis-
 39    tricts  within  the  county  shall  be  given by the commissioners through the
 40    county clerk to the districts affected and notice shall be published in accor-
 41    dance with the provisions of section 40-206, Idaho Code.
 42        (3)  At the hearing any person objecting may be heard in  opposition,  and
 43    upon  the closing of the hearing, the commissioners shall within ten (10) days
                                                                        
                                           2
                                                                        
  1    after the hearing, notify the districts affected of their decision, and.
  2        (4)  Aany district aggrieved by the decision shall have the right  through
  3    its  highway  commissioners  to  appeal  the decision directly to the district
  4    court of the county in which the district lies.
  5        (5)  Matters referred to the district court on appeal shall  be  submitted
  6    by  petition  for  hearing  within twenty (20) days of the announcement of the
  7    decision of the commissioners and the matter disposed of by the district court
  8    by reversal or approval. Failure to diligently prosecute the matter before the
  9    district court shall justify the district court in dismissing the appeal with-
 10    out hearing.
                                                                        
 11        SECTION 2.  That Section 27-107, Idaho Code, be, and the  same  is  hereby
 12    amended to read as follows:
                                                                        
 13        27-107.  ELECTION  --  QUALIFICATION  OF  ELECTORS  -- CANVASS -- BOUNDARY
 14    ADJUSTMENT. (1) Such election shall be conducted in accordance with  the  gen-
 15    eral  laws  of the state. The board of county commissioners shall establish as
 16    many election precincts within such proposed cemetery maintenance district  as
 17    may  be necessary, and define the boundaries thereof, which said precincts may
 18    thereafter be changed by the cemetery maintenance board of  such  district  in
 19    case such district be organized. Said board of county commissioners shall also
 20    appoint  three  (3)  judges  of  election for each such election precinct, who
 21    shall perform the same duties as judges of election under the general laws  of
 22    the  state;  and the result of such election shall be certified, and canvassed
 23    and declared by the board of county commissioners.
 24        (2)  Once declared by the board of county commissioners, the  boundary  of
 25    the  district  shall remain unchanged except as may be otherwise determined by
 26    the board of county commissioners to be in the public interest  in  accordance
 27    with subsection (3) of section 27-121, Idaho Code.
                                                                        
 28        SECTION  3.  That  Section  27-121, Idaho Code, be, and the same is hereby
 29    amended to read as follows:
                                                                        
 30        27-121.  LEVIES BY CEMETERY MAINTENANCE BOARD  COMMISSIONERS  --  DISTRICT
 31    BOUNDARY  ADJUSTMENT.  (1) At the last regular meeting of the cemetery mainte-
 32    nance board prior to the second Monday of September in each year, the cemetery
 33    board of each cemetery maintenance district may levy for cemetery  purposes  a
 34    property  tax in each cemetery maintenance district of not more than four hun-
 35    dredths of one percent (.04%) of the market value for assessment  purposes  on
 36    all  taxable  property within the cemetery maintenance district. Upon the levy
 37    being made by the cemetery maintenance board under this section, it  shall  be
 38    the  duty  of  the secretary of the district to transmit to the county auditor
 39    and county assessor and state board of equalization, certified copies  of  the
 40    resolution  providing for such levy as provided in section 63-808, Idaho Code.
 41    Said taxes shall be collected as provided in section 63-812, Idaho Code.
 42        (2)  An additional property tax of not more than  six  hundredths  of  one
 43    percent  (.06%)  of  the  market  value for assessment purposes on all taxable
 44    property within the cemetery maintenance district may be levied by  the  ceme-
 45    tery  board  for the sole and express purpose of acquisition of burial ground.
 46    The proceeds from such levy may be accumulated by the board for future  acqui-
 47    sitions, or pledged to the repayment of indebtedness incurred pursuant to sec-
 48    tion  27-122,  Idaho Code, provided, that the proposal to levy such additional
 49    amount of property tax, or portion thereof, shall have  been  approved  by  at
 50    least  two-thirds  (2/3)  of  the  qualified electors residing in the cemetery
 51    maintenance district at a previous election held in accordance with the provi-
                                                                        
                                           3
                                                                        
  1    sions of section 34-106, Idaho Code.
  2        (3)  In areas of a county where more than  one  (1)  cemetery  maintenance
  3    district  exists,  the  districts were organized under the provisions of  this
  4    chapter, district boundaries are contiguous and where  a  boundary  change  is
  5    unanimously  petitioned  by a cemetery maintenance board of commissioners, the
  6    county commissioners shall adjust the boundaries of cemetery maintenance  dis-
  7    tricts  having  contiguous  boundaries  if  the county commission determines a
  8    boundary adjustment would permit one (1) or more of the  cemetery  maintenance
  9    districts  to more equitably or economically operate. A petition by a cemetery
 10    maintenance board  of commissioners to adjust boundaries  shall be filed  with
 11    the  county  clerk and the county clerk shall transmit a copy of  the petition
 12    to all affected cemetery maintenance district boards of  commissioners.  Addi-
 13    tionally,  notice  of a board's petition shall be published in accordance with
 14    the procedures contained in section 40-206, Idaho  Code,   as  if  a  cemetery
 15    maintenance  district  were  a  highway  district.  At  the hearing any person
 16    objecting may be heard in opposition, and no later than ten  (10)  days  after
 17    the  hearing, the county commission shall issue an order stating its decision.
 18    Any district aggrieved by the decision may appeal the decision to the district
 19    court of the county in which the district lies.
 20        (4)  Consideration of the merit for  adjustment  of  cemetery  maintenance
 21    district boundaries for the equitable and economical administration, operation
 22    and  construction of the cemeteries shall specifically extend to consideration
 23    of tax revenue distributions for cemetery maintenance districts, the  contigu-
 24    ous  boundaries  of which coexist within five (5) miles of a property taxed as
 25    an operating property in accordance with section 63-410, Idaho Code. Such con-
 26    sideration shall include properties used to produce electricity utilizing wind
 27    and that contain more than five (5) electrical generating towers  on  private,
 28    state or federal lands.
                                                                        
 29        SECTION  4.  That  Section 31-1404, Idaho Code, be, and the same is hereby
 30    amended to read as follows:
                                                                        
 31        31-1404.  NOTICE OF HEARING. When such petition is presented to the  board
 32    of  county  commissioners  and filed in the office of the clerk of such board,
 33    the said board shall set a time for a hearing upon such petition,  which  time
 34    shall  not be less than four (4) nor more than six (6) weeks, from the date of
 35    the presentation and filing of such petition. A notice of  the  time  of  such
 36    hearing shall be published by said board, once each week for three (3) succes-
 37    sive weeks previous to the time set for such hearing, in a newspaper published
 38    within each county in which said district is to be situated. Said notice shall
 39    state  that a fire protection district is proposed to be organized, giving the
 40    proposed boundaries thereof, and that any taxpayer within the proposed  bound-
 41    aries  of such proposed district may on the date fixed for such hearing appear
 42    and offer any testimony pertaining to the organization of such  district,  the
 43    proposed boundaries thereof or the including or excluding of any real property
 44    therein  or therefrom. After hearing and considering any and all testimony, if
 45    any such be interposed, the county commissioners shall thereupon make an order
 46    thereon either denying such petition or granting the  same,  with  or  without
 47    modification,  and  shall accordingly fix the boundaries of such proposed dis-
 48    trict in any order granting such petition. The boundaries so  fixed  shall  be
 49    the  boundaries  of  said district after its organization be completed as pro-
 50    vided by this chapter, and shall remain unchanged except as may  be  otherwise
 51    determined  by  the board of county commissioners to be in the public interest
 52    in accordance with subsection (4) of section 31-1420, Idaho Code. Aa map show-
 53    ing the boundaries of such proposed district as finally fixed  and  determined
                                                                        
                                           4
                                                                        
  1    by the board of county commissioners shall be prepared and filed in the office
  2    of the clerk of said board.
  3        If  the district is to be situated in two (2) or more counties, each board
  4    of county commissioners shall coordinate the hearing date and the publications
  5    of notice so that only one (1) hearing need be held. Unless  otherwise  agreed
  6    to  by  each board of county commissioners involved, the hearing shall be held
  7    in the county with the  largest area to be included within the  district,  and
  8    the  boards  of county commissioners are hereby specifically authorized to act
  9    in a joint manner for such purposes.
                                                                        
 10        SECTION 5.  That Section 31-1420, Idaho Code, be, and the same  is  hereby
 11    amended to read as follows:
                                                                        
 12        31-1420.  LEVY -- DISTRICT BOUNDARY ADJUSTMENT. (1) Each year, immediately
 13    prior  to  the annual county levy of taxes, the board of commissioners of each
 14    fire protection district, organized and existing under this act,  may  levy  a
 15    tax  upon all the taxable property within the boundaries of such district suf-
 16    ficient to defray the cost  of  equipping  and  maintaining  the  district  of
 17    twenty-four hundredths percent (.24%) of market value for assessment purposes,
 18    to  be  used  for  the purposes of this act and for no other purpose. The levy
 19    shall be made by resolution entered upon the minutes of the board  of  commis-
 20    sioners  of the fire protection district, and it shall be the duty of the sec-
 21    retary of the district, immediately after entry of the resolution in the  min-
 22    utes,  to  transmit  to the county auditor, county assessor and state board of
 23    equalization certified copies of the resolution providing for such levy.  Said
 24    taxes shall be collected as provided by section 63-812, Idaho Code.
 25        (2)  If two (2) or more fire protection districts consolidate into one (1)
 26    district,  the  provisions  of  section 63-802, Idaho Code, shall apply to the
 27    consolidated district's budget request as if the former district which, in the
 28    year of the consolidation, has the higher levy subject to the  limitations  of
 29    section  63-802,  Idaho  Code, had annexed the other district or districts. In
 30    addition, the consolidated district shall  receive  the  benefit  of  foregone
 31    increases  accumulated  by  the  former  districts under section 63-802(1)(a),
 32    Idaho Code.
 33        (3)  Notwithstanding the provisions of section 63-802,  Idaho  Code,  fire
 34    protection  districts  adversely impacted by abnormally low levies at the time
 35    of enactment of section  63-2220A,  Idaho  Code,  and  recodified  as  section
 36    63-802,  Idaho  Code,  may seek voter approval to reach a fire protection dis-
 37    trict levy of twenty-four  hundredths  percent  (.24%)  of  market  value  for
 38    assessment  purposes  to be used for the purposes of this act and for no other
 39    purpose. The additional budget amount must be approved by sixty-six  and  two-
 40    thirds  percent  (66 2/3%) of the voters on the question at an election called
 41    for that purpose and held on the dates provided by section 34-106, Idaho Code.
 42    If approved by the voters, the additional budget amount  may  be  included  in
 43    each succeeding annual budget.
 44        (4)  In areas of a county where more than one (1) fire protection district
 45    exists,  the  districts  were  organized under the provisions of this chapter,
 46    district boundaries are contiguous and where a boundary change is  unanimously
 47    petitioned  by  a  fire protection district board of commissioners, the county
 48    commissioners shall adjust the boundaries of fire protection districts if  the
 49    county  commission  determines  a  boundary adjustment would permit one (1) or
 50    more of the fire protection districts to more equitably or economically  oper-
 51    ate.   A  petition  by  a  fire  protection district board of commissioners to
 52    adjust boundaries shall be filed with the county clerk and  the  county  clerk
 53    shall transmit a copy of the petition to all affected fire protection district
                                                                        
                                           5
                                                                        
  1    boards  of  commissioners. Additionally, notice of a board's petition shall be
  2    published in accordance with the procedures contained in section 40-206, Idaho
  3    Code, as if a fire protection district were a highway district. At the hearing
  4    any person objecting may be heard in opposition, and no later  than  ten  (10)
  5    days after the hearing, the county commission shall issue an order stating its
  6    decision.  Any  district  aggrieved by the decision may appeal the decision to
  7    the district court of the county in which the district lies.
  8        (5)  Consideration of the merit for adjustment of fire protection district
  9    boundaries for the equitable and economical  acquisition,  administration  and
 10    construction  of  fire protection facilities shall specifically extend to con-
 11    sideration of tax revenue distributions for  fire  protection  districts,  the
 12    contiguous  boundaries  of  which  coexist within five (5) miles of a property
 13    taxed as an operating property in accordance with section 63-410, Idaho  Code.
 14    Such  consideration  shall include properties used to produce electricity uti-
 15    lizing wind and that contain more than five (5) electrical  generating  towers
 16    on private, state or federal lands.
                                                                        
 17        SECTION  6.  That  Section 42-3120, Idaho Code, be, and the same is hereby
 18    amended to read as follows:
                                                                        
 19        42-3120.  ENLARGEMENT OF DISTRICT -- PETITION. (1)  An  existing  district
 20    may  be  enlarged in the same manner as a district may be originally organized
 21    pursuant to the provisions of this act chapter, except that a petition for the
 22    enlargement of an existing district shall be  signed  by  at  least  one-third
 23    (1/3)  of  the  qualified voters in the area of the proposed extension to this
 24    existing district, as shall be determined by the voters who voted in the  last
 25    general  election  next  preceding the filing of the petition for enlargement;
 26    and shall bear the indorsement endorsement of the board of the  existing  dis-
 27    trict certifying that the proposed enlargement is desirable.
 28        (2)  In  areas  of a county where more than one (1) flood control district
 29    exists, the districts were organized under the  provisions  of  this  chapter,
 30    district  boundaries are contiguous and where a boundary change is unanimously
 31    petitioned by a flood control district board of  commissioners,  the  director
 32    shall  adjust the boundaries of flood control districts if the director deter-
 33    mines a boundary adjustment would permit one (1) or more of the flood  control
 34    districts  to  more  equitably or economically operate.  A petition by a flood
 35    control district board of commissioners to adjust boundaries  shall  be  filed
 36    with  the  director and the county clerk shall transmit a copy of the petition
 37    to all affected flood control district boards of commissioners.  Additionally,
 38    notice  of a board's petition shall be published in accordance with the proce-
 39    dures contained in section 40-206, Idaho Code, as if a flood control  district
 40    were  a  highway district. At the hearing any person objecting may be heard in
 41    opposition, and no later than ten (10) days after the  hearing,  the  director
 42    shall issue an order stating his decision. Any district aggrieved by the deci-
 43    sion  may appeal the decision to the district court of the county in which the
 44    district lies.
 45        (5)  Consideration of the merit for adjustment of flood  control  district
 46    boundaries  for  the  equitable and economical acquisition, administration and
 47    construction of flood control facilities shall specifically extend to  consid-
 48    eration of tax revenue distributions for flood control districts, the contigu-
 49    ous  boundaries  of which coexist within five (5) miles of a property taxed as
 50    an operating property in accordance with section  63-410,  Idaho  Code.   Such
 51    consideration  shall  include properties used to produce electricity utilizing
 52    wind and that contain more than five (5) electrical generating towers on  pri-
 53    vate, state or federal lands.

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE

                             RS 14532

In the future, it can be expected that wind-farms sited on
federal, state or private lands will be located within, or near,
one of more local tax districts having contiguous boundaries. The
same situation can occur for wind-farms sited on private land or
state land, or a combination of the three. In such instances, tax
benefit analysis may demonstrate that previously established
taxing district boundaries do not fairly distribute tax revenues
made available by properties used to produce electricity from
wind resources. Additionally, impacts of wind-farms sited near
municipal areas may be made less contentious if impacted
communities are able to seek mitigating benefits in the form of
tax revenue acquired through local tax district boundary changes.

This legislation establishes several new sections in Idaho code
that provide opportunities for County Commissioners to consider
the distribution of tax revenues for certain local tax districts,
the boundary of at least one being contiguous with one or more
districts formed for the same purposes, and that same boundary
existing within five (5) miles of a property, or properties,
taxed on the basis of development and operation for the
commercial purpose of generating and marketing electricity
utilizing wind.

Local tax district boundaries within any given county would be
adjusted by County Commissioners based on considerations of merit
for equitable and economical operations between competing tax
districts formed for the same purpose.


                          FISCAL NOTE

This legislation does not impact the State tax revenue received
from the development and operation of wind-farms located on
federal, state or private lands, nor does it unfairly increase or
decrease the total personal property tax of a developer and
operator of a commercial project located on federal, state or
private land.


Contact
Name:   Rep. John A. Stevenson
Phone:  332-1000




STATEMENT OF PURPOSE/FISCAL NOTE                       H 104