2005 Legislation
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HOUSE BILL NO. 279 – Property tax, grwth factor/exmptns

HOUSE BILL NO. 279

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact



                       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