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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
]]]] 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
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