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H0279...............................................by REVENUE AND TAXATION
PROPERTY TAXES - Amends and repeals existing law to delete the value of new
construction or change of land use classification from being exempt from
the three percent growth factor for taxing districts annual budgets.
03/01 House intro - 1st rdg - to printing
03/02 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 279
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO LIMITATION ON BUDGET REQUESTS; AMENDING SECTION 63-802, IDAHO
3 CODE, TO DELETE THE VALUE OF NEW CONSTRUCTION OR CHANGE OF LAND USE CLAS-
4 SIFICATION FROM BEING EXEMPT FROM THE THREE PERCENT GROWTH FACTOR FOR TAX-
5 ING DISTRICTS ANNUAL BUDGETS; REPEALING SECTION 63-301A, IDAHO CODE;
6 DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 63-802, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 63-802. LIMITATION ON BUDGET REQUESTS -- LIMITATION ON TAX CHARGES --
11 EXCEPTIONS. (1) Except as provided in subsection (3) of this section for tax
12 year 1995, and each year thereafter, no taxing district shall certify a budget
13 request for an amount of property tax revenues to finance an annual budget
14 that exceeds the greater of:
15 (a) The dollar amount of property taxes certified for its annual budget
16 for any one (1) of the three (3) tax years preceding the current tax year,
17 whichever is greater, which amount may be increased by a growth factor of
18 not to exceed three percent (3%) plus the amount of revenue that would
19 have been generated by applying the levy of the previous year, not includ-
20 ing any levy described in subsection (4) of this section, to any increase
21 in market value subject to taxation resulting from new construction or
22 change of land use classification as evidenced by the value shown on the
23 new construction roll compiled pursuant to section 63-301A, Idaho Code;
24 and by the value of annexation during the previous calendar year, as cer-
25 tified by the state tax commission for market values of operating property
26 of public utilities and by the county assessor; or
27 (b) The dollar amount of property taxes certified for its annual budget
28 during the last year in which a levy was made; or
29 (c) The dollar amount of the actual budget request, if the taxing dis-
30 trict is newly created; or
31 (d) In the case of school districts, the restriction imposed in section
32 33-802, Idaho Code; or
33 (e) In the case of a nonschool district for which less than the maximum
34 allowable increase in the dollar amount of property taxes is certified
35 for annual budget purposes in any one (1) year, such a district may, in
36 any following year, recover the foregone increase by certifying, in addi-
37 tion to any increase otherwise allowed, an amount not to exceed one hun-
38 dred percent (100%) of the increase originally foregone. Said additional
39 amount shall be included in future calculations for increases as allowed;
40 or
41 (f) In the case of cities, if the immediately preceding year's levy sub-
42 ject to the limitation provided by this section, is less than 0.004, the
43 city may increase its budget by an amount not to exceed the difference
2
1 between 0.004 and actual prior year's levy multiplied by the prior year's
2 market value for assessment purposes. The additional amount must be
3 approved by sixty percent (60%) of the voters voting on the question at an
4 election called for that purpose and held on the date in May or November
5 provided by law, and may be included in the annual budget of the city for
6 purposes of this section; or
7 (g) A library district may submit to the electors within the district
8 the question of whether the budget from property tax revenues may be
9 increased beyond the amount authorized in this section, but not beyond the
10 levy authorized in section 33-2724, Idaho Code. The additional amount must
11 be approved by sixty-six and two-thirds percent (66 2/3%) or more of the
12 voters voting on the question at an election called for that purpose and
13 held on the May or November dates provided by section 34-106, Idaho Code.
14 If approved by the required minimum sixty-six and two-thirds percent
15 (66 2/3%) of the voters voting at the election, the new budget amount
16 shall be the base budget for the purposes of this section; or
17 (h) In the instance or case of cooperative service agencies, the restric-
18 tions imposed in sections 33-315 through 33-318, Idaho Code.
19 (2) In the case of fire districts, during the year immediately following
20 the election of a public utility or public utilities to consent to be provided
21 fire protection pursuant to section 31-1422, Idaho Code, the maximum amount of
22 property tax revenues permitted in subsection (1) of this section may be
23 increased by an amount equal to the current year's taxable value of the con-
24 senting public utility or public utilities multiplied by that portion of the
25 prior year's levy subject to the limitation provided by subsection (1) of this
26 section.
27 (3) No board of county commissioners shall set a levy, nor shall the
28 state tax commission approve a levy for annual budget purposes which exceeds
29 the limitation imposed in subsection (1) of this section, unless authority to
30 exceed such limitation has been approved by a majority of the taxing
31 district's electors voting on the question at an election called for that pur-
32 pose and held pursuant to section 34-106, Idaho Code, provided however, that
33 such voter approval shall be for a period of not to exceed two (2) years.
34 (4) The amount of property tax revenues to finance an annual budget does
35 not include revenues from nonproperty tax sources, and does not include reve-
36 nue from levies that are voter approved for bonds, override levies or supple-
37 mental levies, plant facilities reserve fund levies, or for school emergency
38 fund levies or for levies applicable to newly annexed property. or for levies
39 applicable to new construction as evidenced by the value of property subject
40 to the occupancy tax pursuant to section 63-317, Idaho Code, for the preceding
41 tax year.
42 SECTION 2. That Section 63-301A, Idaho Code, be, and the same is hereby
43 repealed.
44
45 SECTION 3. An emergency existing therefor, which emergency is hereby
46 declared to exist, this act shall be in full force and effect on and after its
47 passage and approval, and retroactively to January 1, 2005.
STATEMENT OF PURPOSE
RS 15088
This legislation would delete the value of new construction from
the three percent (3%) growth factor exemption.
FISCAL NOTE
There is no fiscal impact to state government.
Contact
Name: Rep. Mike Moyle
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 279