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H0264...............................................by REVENUE AND TAXATION
SCHOOL LEVIES - Adds to and amends existing law relating to school levies
to authorize a school district to add the increment value to a school
district's actual or adjusted market value for assessment purposes as such
valuation existed on December 31 of the previous year, when calculating the
maximum school maintenance and operation levies and the local district
contribution levy in the event property within the district is contained in
a revenue allocation area and such revenue allocation area has given notice
of termination; to provide for public notice to taxpayers of a school
district that the district shall adjust its market value for assessment
purposes due to termination of a revenue allocation area; and to provide
for computation of property tax replacement of a portion of the authorized
school maintenance and operation levy by adding the increment value to the
actual or adjusted market value for assessment purposes as such values
existed on December 31 of the previous year of a school district if
applicable under a circumstance relating to termination of a revenue
allocation area.
02/24 House intro - 1st rdg - to printing
02/25 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 - 69-0-1
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, Henderson,
Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Bedke
Floor Sponsor - Schaefer
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 - McKenzie
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 191
Effective: 07/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 264
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO SCHOOL LEVIES; AMENDING SECTION 33-802, IDAHO CODE, TO AUTHORIZE A
3 SCHOOL DISTRICT TO ADD THE INCREMENT VALUE TO A SCHOOL DISTRICT'S ACTUAL
4 OR ADJUSTED MARKET VALUE FOR ASSESSMENT PURPOSES AS SUCH VALUATION EXISTED
5 ON DECEMBER 31 OF THE PREVIOUS YEAR WHEN CALCULATING THE MAXIMUM SCHOOL
6 MAINTENANCE AND OPERATION LEVIES AND THE LOCAL DISTRICT CONTRIBUTION LEVY
7 IN THE EVENT PROPERTY WITHIN THE DISTRICT IS CONTAINED IN A REVENUE ALLO-
8 CATION AREA AND SUCH REVENUE ALLOCATION AREA HAS GIVEN NOTICE OF TERMINA-
9 TION; AMENDING CHAPTER 8, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW
10 SECTION 33-808, IDAHO CODE, TO PROVIDE FOR PUBLIC NOTICE TO TAXPAYERS OF A
11 SCHOOL DISTRICT THAT THE DISTRICT SHALL ADJUST ITS MARKET VALUE FOR
12 ASSESSMENT PURPOSES DUE TO TERMINATION OF A REVENUE ALLOCATION AREA; AND
13 AMENDING SECTION 33-1002D, IDAHO CODE, TO PROVIDE FOR COMPUTATION OF PROP-
14 ERTY TAX REPLACEMENT OF A PORTION OF THE AUTHORIZED SCHOOL MAINTENANCE AND
15 OPERATION LEVY BY ADDING THE INCREMENT VALUE TO THE ACTUAL OR ADJUSTED
16 MARKET VALUE FOR ASSESSMENT PURPOSES AS SUCH VALUES EXISTED ON DECEMBER 31
17 OF THE PREVIOUS YEAR OF A SCHOOL DISTRICT IF APPLICABLE UNDER A CIRCUM-
18 STANCE RELATING TO TERMINATION OF A REVENUE ALLOCATION AREA.
19 Be It Enacted by the Legislature of the State of Idaho:
20 SECTION 1. That Section 33-802, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 33-802. SCHOOL LEVIES. Any tax levied for school purposes shall be a lien
23 on the property against which the tax is levied. The board of trustees shall
24 determine the levies upon each dollar of taxable property in the district for
25 the ensuing fiscal year as follows:
26 1. Bond, Interest and Judgment Obligation Levies. Such levies as shall be
27 required to satisfy all maturing bond, bond interest, and judgment obliga-
28 tions.
29 2. Maximum School Maintenance and Operation Levies. Such levies for main-
30 taining and operating the schools of the district and for the payment of
31 tuition and transportation, that do not exceed an amount equal to four-tenths
32 of one percent (.4%) during tax year 1994, and do not exceed an amount equal
33 to three-tenths of one percent (.3%) during tax year 1995 and thereafter,
34 applied to the actual or adjusted market value for assessment purposes of the
35 district as such valuation existed on December 31 of the previous year, but
36 allowances necessary as a credit for prepaid taxes, as provided in section
37 63-1607, Idaho Code, shall not be included in such maximum levies. Provided
38 however, that in the event property within a district's boundaries is con-
39 tained in a revenue allocation area established under chapter 29, title 50,
40 Idaho Code, and such revenue allocation area has given notice of termination
41 thereunder, then, only for the purpose of determining the levy described in
42 this subsection, the district may add the increment value, as defined in sec-
43 tion 50-2903, Idaho Code, to the actual or adjusted market value for assess-
2
1 ment purposes of the district as such value existed on December 31 of the pre-
2 vious year.
3 3. Authorized School Maintenance and Operation Levies. Such levies for
4 maintaining and operating the schools of the district and for the payment of
5 tuition and transportation that do not exceed one hundred eleven percent
6 (111%) of the local district's contribution authorized in subsection 2. of
7 section 33-1002, Idaho Code. Implementation of the provisions of this subsec-
8 tion shall be authorized only after approval by a majority of the district's
9 electors voting on the question. Levies otherwise authorized by law shall not
10 require an election.
11 4. Supplemental Maintenance and Operation Levies. No levy in excess of
12 the levy permitted by subsection 2. or 3. of this section shall be made by a
13 noncharter school district unless such a supplemental levy in a specified
14 amount and for a specified time not to exceed two (2) years be first autho-
15 rized through an election held pursuant to chapter 4, title 33, Idaho Code,
16 and approved by a majority of the district electors voting in such election. A
17 levy approved pursuant to this subsection may be reduced by a majority vote of
18 the board of trustees in the second year.
19 5. Charter District Supplemental Maintenance and Operation. Levies pursu-
20 ant to the respective charter of any such charter district shall be first
21 authorized through an election held pursuant to chapter 4, title 33, Idaho
22 Code, and approved by a majority of the district electors voting in such elec-
23 tion.
24 6. The Local District Contribution. The local school district contribu-
25 tion levy is the amount utilized for calculating local district participation
26 in the educational foundation program, which is applied to the adjusted market
27 value for assessment purposes, as such valuation existed on December 31 of the
28 previous year, together with the increment value, as defined in section
29 50-2903, Idaho Code, if applicable under the circumstance described in subsec-
30 tion 2. of this section, relating to termination of a revenue allocation area.
31 7. The board of trustees of any school district that has, for at least
32 seven (7) consecutive years, been authorized through an election held pursuant
33 to chapter 4, title 33, Idaho Code, to certify a supplemental levy that has
34 annually been equal to or greater than twenty percent (20%) of the total gen-
35 eral maintenance and operation fund, may submit the question of an indefinite
36 term supplemental levy to the electors of the school district. Such question
37 shall clearly state the dollar amount that will be certified annually and that
38 the levy will be for an indefinite number of years. The question must be
39 approved by a majority of the district electors voting on the question in an
40 election held pursuant to chapter 4, title 33, Idaho Code. The levy approved
41 pursuant to this subsection may be reduced by a majority vote of the board of
42 trustees during any fiscal year.
43 SECTION 2. That Chapter 8, Title 33, Idaho Code, be, and the same is
44 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
45 ignated as Section 33-808, Idaho Code, and to read as follows:
46 33-808. NOTICE OF ADJUSTMENT TO MARKET VALUE FOR ASSESSMENT PURPOSES UPON
47 TERMINATION OF A REVENUE ALLOCATION AREA. (1) A school district that shall
48 adjust its market value for assessment purposes in accordance with the provi-
49 sions of section 33-802 2., Idaho Code, relating to termination of a revenue
50 allocation area, shall advertise its action by publishing in at least the
51 newspaper of largest paid circulation published in the county of the district,
52 or if there is no such newspaper, then in a newspaper published nearest to the
53 district where the advertisement is required to be published.
3
1 (2) For purposes of this section, the definition of "newspaper" shall be
2 as established in sections 60-106 and 60-107, Idaho Code; provided further,
3 that the newspaper of largest circulation shall be established by the state-
4 ment of average annual paid weekday circulation listed on the newspaper's
5 sworn statement of ownership that was filed with the United States post office
6 on a date most recently preceding the date on which the advertisement required
7 in this section is to be published. The advertisement shall be run when the
8 school district ascertains that it will adjust its market value for assessment
9 purposes in accordance with the provisions of section 33-802 2., Idaho Code,
10 relating to termination of a revenue allocation area, and shall be published
11 once a week for two (2) weeks following action by the board of trustees.
12 (3) The form and content of the notice shall be substantially as follows:
13 NOTICE OF PROPERTY TAX ADJUSTMENT BY SCHOOL BOARD
14 The (insert name of the school district) hereinafter the "District," has
15 increased its market value for assessment purposes as of December 31, ...., by
16 the amount of the increment value of the (insert name of Redevelopment Agency
17 Revenue Allocation Area) on such date, in accordance with the provisions of
18 Section 33-802, Idaho Code, because the revenue allocation area gave notice of
19 termination pursuant to Section 50-2903, Idaho Code, and as a result thereof
20 property taxes on the incremental value of the revenue allocation area will
21 not be collected and distributed to the District. Section 33-802, Idaho Code,
22 permits the District to replace those funds by adjusting its market value as
23 described herein. The total amount of dollars in property taxes to be directly
24 collected by the District pursuant to this action is estimated to be $..... .
25 SECTION 3. That Section 33-1002D, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 33-1002D. PROPERTY TAX REPLACEMENT. The purpose of this section is to
28 replace a portion of the authorized school maintenance and operation property
29 tax levy with state sales tax receipts. As used in this section, the term
30 "property tax computation ratio" shall mean a ratio determined by dividing the
31 district's certified property tax maintenance and operation budget by the
32 actual or adjusted market value for assessment purposes as such values existed
33 on December 31 of the previous calendar year, together with the increment
34 value, as defined in section 50-2903, Idaho Code, if applicable under the cir-
35 cumstance described in section 33-802 2., Idaho Code, relating to termination
36 of a revenue allocation area.
37 (1) (a) In the case of a school district that had a property tax computa-
38 tion ratio of not less than four-tenths of one percent (.4%) in tax year
39 1994, that school district shall receive from the appropriations made for
40 that purpose, an amount equal to the greater of the district's actual or
41 adjusted market value for assessment purposes as such valuation existed on
42 December 31 of the previous calendar year, together with the increment
43 value, as defined in section 50-2903, Idaho Code, if applicable under the
44 circumstance described in section 33-802 2., Idaho Code, relating to ter-
45 mination of a revenue allocation area, multiplied by one-tenth of one per-
46 cent (.1%).
47 (b) In the case of a school district that had a property tax computation
48 ratio of less than four-tenths of one percent (.4%) in tax year 1994, the
49 greater of the 1992, 1993 or 1994 property tax computation ratio less
50 three-tenths of one percent (.3%) shall be designated the district's base
51 multiplier. In no case shall the base multiplier be less than zero (0).
4
1 Four-tenths of one percent (.4%) less the greater of the district's 1992,
2 1993 or 1994 property tax computation ratio shall be designated the
3 district's adjustment factor. In no case shall the adjustment factor be
4 greater than one-tenth of one percent (.1%) or less than zero (0). Each
5 school district's actual multiplier shall be the base multiplier plus one-
6 fifth (1/5) of the adjustment factor in tax year 1995, the base multiplier
7 plus two-fifths (2/5) of the adjustment factor in tax year 1996, the base
8 multiplier plus three-fifths (3/5) of the adjustment factor in tax year
9 1997, the base multiplier plus four-fifths (4/5) of the adjustment factor
10 in tax year 1998, and the base multiplier plus the adjustment factor in
11 tax year 1999 and beyond. Each school district shall receive, from the
12 appropriations made for that purpose, an amount equal to the district's
13 actual or adjusted market value for assessment purposes as such valuation
14 existed on December 31 of the previous calendar year, together with the
15 increment value, as defined in section 50-2903, Idaho Code, if applicable
16 under the circumstance described in section 33-802 2., Idaho Code, relat-
17 ing to termination of a revenue allocation area, multiplied by the
18 district's actual multiplier.
19 (c) The preceding provisions of this subsection notwithstanding, appro-
20 priations from the state for the value of one-tenth of one percent (.1%)
21 of the greater of the district's actual or adjusted market value for
22 assessment purposes as such valuation existed on December 31 of the previ-
23 ous calendar year, together with the increment value, as defined in sec-
24 tion 50-2903, Idaho Code, if applicable under the circumstance described
25 in section 33-802 2., Idaho Code, relating to termination of a revenue
26 allocation area, shall not exceed seventy-five million dollars
27 ($75,000,000) in any fiscal year. If the amount school districts would
28 otherwise be entitled to receive pursuant to the preceding provisions of
29 this subsection exceeds seventy-five million dollars ($75,000,000), then
30 each school district shall receive its share of seventy-five million dol-
31 lars ($75,000,000) based on the formulas contained in this section.
32 (2) (a) Participation in this property tax reduction program is voluntary
33 for a charter district. If a charter district participates, in addition to
34 the provisions of subsection (1) of this section it shall not have a prop-
35 erty tax computation ratio that is above three-tenths of one percent
36 (.3%) or the district's property tax computation ratio in tax year 1994,
37 less one-tenth of one percent (.1%), whichever is greater.
38 (b) If in any year the charter district's property tax computation ratio
39 used to calculate its maintenance and operation budget is increased above
40 the limit specified in this subsection the district shall not be eligible
41 for the distribution pursuant to subsection (1) of this section for that
42 year.
43 (3) Limitations imposed upon a school district's property tax computation
44 ratio under the provisions of this section do not apply to any levy approved
45 by electors of the school district as provided by law.
46 (4) Distributions calculated as provided in this section shall be made to
47 school districts of this state in two (2) equal installments on the due dates
48 as specified in section 63-903(1), Idaho Code, for the property taxes being
49 replaced.
50 (5) For purposes of section 33-1002, Idaho Code, moneys distributed pur-
51 suant to this section shall not be included in determining total state funds.
STATEMENT OF PURPOSE
RS 14991
The bill amends Section 33-802 to provide that a school district
in which a tax increment area is terminated may add back the tax
increment value to its market value for purposes of determining
the proper amount of its dollar certification for its M & O
budget, and makes conforming amendments to Section 33-1002D.
FISCAL NOTE
There is no fiscal impact to the general fund.
Contact
Name: Rep. Robert Schaefer
Phone: 208 322 1000
STATEMENT OF PURPOSE/FISCAL NOTE H 264