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H0285......................................................by STATE AFFAIRS
TAXING DISTRICTS - Amends existing law to provide a procedure for
adjustment of highway district boundaries, cemetery maintenance district
boundaries or fire protection district boundaries when a wind farm
producing electric energy is constructed within five miles of a boundary;
and to provide a definition of "wind farm."
03/02 House intro - 1st rdg - to printing
03/03 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. 285
BY STATE AFFAIRS 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 IF CERTAIN CIRCUMSTANCES OCCUR
5 AND TO PROVIDE A LIMITATION; AMENDING SECTION 27-107, IDAHO CODE, TO ALLOW
6 THE BOUNDARY OF A CEMETERY DISTRICT TO BE CHANGED IF DECLARED IN THE PUB-
7 LIC INTEREST BY THE BOARD OF COUNTY COMMISSIONERS; AMENDING SECTION
8 27-121, IDAHO CODE, TO PROVIDE A PROCEDURE FOR CEMETERY DISTRICT BOUNDARY
9 ADJUSTMENTS IF CERTAIN CIRCUMSTANCES OCCUR AND TO PROVIDE A LIMITATION;
10 AND AMENDING SECTION 31-1420, IDAHO CODE, TO PROVIDE A PROCEDURE FOR FIRE
11 PROTECTION BOUNDARY ADJUSTMENTS IF CERTAIN CIRCUMSTANCES OCCUR AND TO PRO-
12 VIDE A LIMITATION.
13 Be It Enacted by the Legislature of the State of Idaho:
14 SECTION 1. That Section 40-1706, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 40-1706. ADJUSTMENT OF HIGHWAY DISTRICT BORDERS BOUNDARIES -- NOTICE --
17 HEARING -- DECISION OF COMMISSIONERS -- APPEAL. (1) In areas where more than
18 one (1) highway district exists and the highway districts were organized under
19 the provisions of this chapter, the commissioners shall have the duty and
20 obligation from time to time as shall be practical and for the best interests
21 of the countywide administration of the secondary highway systems, to adjust
22 the borders boundaries of the highway districts coexisting in the county as
23 shall most equitably and economically permit the administration, operation and
24 construction of the secondary highway system within the county. Consideration
25 of the merit for adjustment of highway district boundaries for the equitable
26 and economical administration, operation and construction of the secondary
27 highway system shall specifically extend to consideration of tax revenue dis-
28 tributions for multiple highway districts, the contiguous boundaries of which
29 exist within five (5) miles of a property defined by the electrical connection
30 of more than five (5) electrical generating towers used to produce electricity
31 from wind that are sited on and across private, state or federal lands for
32 the purpose of producing greater than ten megawatts (10MW) of peak power in
33 combination. Where such property may cross county boundaries, authority for
34 boundary adjustment shall apply only to that electrical generating property
35 sited within an individual county and shall not extend into any adjacent
36 county. For each highway district, the boundaries as adjusted by this section
37 must comply with the requirements of section 63-215, Idaho Code.
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 and where a boundary change is unanimously petitioned by a cemetery
5 maintenance board of commissioners, the county commissioners may adjust ceme-
6 tery maintenance district boundaries if the county commission determines a
7 boundary adjustment would permit one (1) or more of the cemetery maintenance
8 districts to more equitably or economically operate. A petition by a cemetery
9 maintenance board of commissioners to adjust boundaries shall be filed with
10 the county clerk and the county clerk shall transmit a copy of the petition
11 to all affected cemetery maintenance district boards of commissioners. Addi-
12 tionally, notice of a board's petition shall be published in accordance with
13 the procedures contained in section 40-206, Idaho Code, as if a cemetery
14 maintenance district were a highway district. At the hearing any person
15 objecting may be heard in opposition, and no later than ten (10) days after
16 the hearing, the county commission shall issue an order stating its decision.
17 Any district aggrieved by the decision may appeal the decision to the district
18 court of the county in which the district lies.
19 (4) Consideration of the merit for adjustment of cemetery maintenance
20 district boundaries for the equitable and economical administration, operation
21 and construction of the cemeteries shall specifically extend to consideration
22 of tax revenue distributions for cemetery maintenance districts, the bound-
23 aries of which exist within five (5) miles of a property defined by the elec-
24 trical connection of more than five (5) electrical generating towers used to
25 produce electricity from wind that are sited on and across private, state or
26 federal lands for the purpose of producing greater than ten megawatts (10MW)
27 of peak power in combination. Where such property may cross county boundaries,
28 authority for boundary adjustment shall apply only to that electrical gener-
29 ating property sited within an individual county and shall not extend into any
30 adjacent county. For each cemetery maintenance district, the boundaries as
31 adjusted by this section must comply with the requirements of section 63-215,
32 Idaho Code.
33 SECTION 4. That Section 31-1420, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 31-1420. LEVY. (1) Each year, immediately prior to the annual county levy
36 of taxes, the board of commissioners of each fire protection district, orga-
37 nized and existing under this act, may levy a tax upon all the taxable prop-
38 erty within the boundaries of such district sufficient to defray the cost of
39 equipping and maintaining the district of twenty-four hundredths percent
40 (.24%) of market value for assessment purposes, to be used for the purposes of
41 this act and for no other purpose. The levy shall be made by resolution
42 entered upon the minutes of the board of commissioners of the fire protection
43 district, and it shall be the duty of the secretary of the district, immedi-
44 ately after entry of the resolution in the minutes, to transmit to the county
45 auditor, county assessor and state board of equalization certified copies of
46 the resolution providing for such levy. Said taxes shall be collected as pro-
47 vided by section 63-812, Idaho Code.
48 (2) If two (2) or more fire protection districts consolidate into one (1)
49 district, the provisions of section 63-802, Idaho Code, shall apply to the
50 consolidated district's budget request as if the former district which, in the
51 year of the consolidation, has the higher levy subject to the limitations of
52 section 63-802, Idaho Code, had annexed the other district or districts. In
53 addition, the consolidated district shall receive the benefit of foregone
4
1 increases accumulated by the former districts under section 63-802(1)(a),
2 Idaho Code.
3 (3) Notwithstanding the provisions of section 63-802, Idaho Code, fire
4 protection districts adversely impacted by abnormally low levies at the time
5 of enactment of section 63-2220A, Idaho Code, and recodified as section
6 63-802, Idaho Code, may seek voter approval to reach a fire protection dis-
7 trict levy of twenty-four hundredths percent (.24%) of market value for
8 assessment purposes to be used for the purposes of this act and for no other
9 purpose. The additional budget amount must be approved by sixty-six and two-
10 thirds percent (66 2/3%) of the voters on the question at an election called
11 for that purpose and held on the dates provided by section 34-106, Idaho Code.
12 If approved by the voters, the additional budget amount may be included in
13 each succeeding annual budget.
14 (4) In areas of a county where more than one (1) fire protection district
15 exists, the districts were organized under the provisions of this chapter,
16 and where a boundary change is unanimously petitioned by a fire protection
17 district board of commissioners, the county commissioners may adjust the
18 boundaries of fire protection districts if the county commission determines a
19 boundary adjustment would permit one (1) or more of the fire protection dis-
20 tricts to more equitably or economically operate. A petition by a fire protec-
21 tion district of commissioners to adjust boundaries shall be filed with the
22 county clerk and the county clerk shall transmit a copy of the petition to all
23 affected fire protection district boards of commissioners. Additionally,
24 notice of a board's petition shall be published in accordance with the proce-
25 dures contained in section 40-206, Idaho Code, as if a fire protection dis-
26 trict were a highway district. At the hearing any person objecting may be
27 heard in opposition, and no later than ten (10) days after the hearing, the
28 county commission shall issue an order stating its decision. Any district
29 aggrieved by the decision may appeal the decision to the district court of the
30 county in which the district lies.
31 (5) Consideration of the merit for adjustment of fire protection district
32 boundaries for the equitable and economical administration, operation and con-
33 struction of fire protection services shall specifically extend to consider-
34 ation of tax revenue distributions for fire protection districts, boundaries
35 which exist within five (5) miles of a property defined by the electrical
36 connection of more than five (5) electrical generating towers used to produce
37 electricity from wind that are sited on and across private, state or federal
38 lands for the purpose of producing greater than ten megawatts (10MW) of peak
39 power in combination. Where such property may cross county boundaries, author-
40 ity for boundary adjustment shall apply only to that electrical generating
41 property sited within an individual county and shall not extend into any adja-
42 cent county. For each fire protection district, the boundaries as adjusted by
43 this section must comply with the requirements of section 63-215, Idaho Code.
STATEMENT OF PURPOSE
RS 15049
In the future, it can be expected that taxable high-value "new
construction" property utilizing wind for the production of commercial
electrical power will be physically sited through, or very near, multiple
governmental taxing districts that coexist within county boundaries. In
such instances, new construction tax benefits permitting upward
adjustment of 3% capped district budgets may be disproportionate between
multiple districts established for like purpose; for example, coexisting
highway districts, cemetery districts and fire protection districts.
Existing law permits County Commissioners to adjust boundaries of
coexisting highway districts within a county "...as shall most equitably
permit the administration, operation and construction of the secondary
highway system." [ 40-1706, Idaho Code] This legislation amends 40-
1706 to specifically authorize County Commissioners to adjust highway
district boundaries of coexisting districts affected by siting of an
electrical generating property that utilizes wind and has a combined
production capacity greater than 10 megawatts; such adjustment being for
40-1706 purposes stated above.
The legislation further amends existing law to provide new authority to
County Commissioners to adjust district boundaries of cemetery and fire
protection districts coexisting within the county that are reasonably
affected by siting of an electrical generating property that utilizes
wind and has a combined production capacity greater than 10 megawatts; so
long as the purpose for such boundary adjustment is to allow one, or
more, such district(s) to more equitably or economically operate. Due
process of law established for petition and appeal in highway district
boundary adjustment decisions by County Commissioners is carried forward
from 40-1706, Idaho Code, for any County Commissioner consideration or
decision related to adjustment of a cemetery or fire district boundary.
Tax district boundaries associated with any taxing district boundary
change will be established and recorded in accordance with 63-215,
Idaho Code.
FISCAL NOTE
This legislation does not impact State tax revenue received from the
development and operation of a commercial wind generation property
located on federal, state or private lands, nor does it unfairly increase
or decrease the property tax of a developer of such a property.
Contact
Name: Rep. John A. Stevenson
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 285