2005 Legislation
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HOUSE BILL NO. 317 – Taxing dist, budget limits

HOUSE BILL NO. 317

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Bill Status



H0317...............................................by REVENUE AND TAXATION
TAXING DISTRICTS - BUDGET LIMITS - Amends existing law relating to budget
limits of taxing districts to provide that there shall be no increase above
the three percent property tax cap attributable to new construction or
change of land use classification in a revenue allocation area operated by
an urban renewal agency.
                                                                        
03/10    House intro - 1st rdg - to printing
03/11    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. 317
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LIMITATION ON BUDGET REQUESTS BY TAXING DISTRICTS;  AMENDING  SEC-
  3        TION 63-802, IDAHO CODE, TO PROVIDE GRAMMATICAL CORRECTIONS AND TO PROVIDE
  4        THAT  THERE  SHALL BE NO INCREASE ABOVE THE THREE PERCENT PROPERTY TAX CAP
  5        ATTRIBUTABLE TO NEW CONSTRUCTION OR  CHANGE OF LAND USE CLASSIFICATION  IN
  6        A  REVENUE  ALLOCATION AREA OPERATED BY AN URBAN RENEWAL AGENCY; DECLARING
  7        AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION 1.  That Section 63-802, Idaho Code, be, and the  same  is  hereby
 10    amended to read as follows:
                                                                        
 11        63-802.  LIMITATION  ON  BUDGET  REQUESTS  -- LIMITATION ON TAX CHARGES --
 12    EXCEPTIONS. (1) Except as provided in subsection (3) of this section  for  tax
 13    year 1995, and each year thereafter, no taxing district shall certify a budget
 14    request  for  an  amount  of property tax revenues to finance an annual budget
 15    that exceeds the greater of:
 16        (a)  The dollar amount of property taxes certified for its  annual  budget
 17        for any one (1) of the three (3) tax years preceding the current tax year,
 18        whichever  is greater, which amount may be increased by a growth factor of
 19        not to exceed three percent (3%) plus the amount  of  revenue  that  would
 20        have been generated by applying the levy of the previous year, not includ-
 21        ing  any levy described in subsection (4) of this section, to any increase
 22        in market value subject to taxation resulting  from  new  construction  or
 23        change  of  land use classification as evidenced by the value shown on the
 24        new construction roll compiled pursuant to section  63-301A,  Idaho  Code,
 25        provided however, that there shall be no increase attributable to new con-
 26        struction  or  change  of  land use classification in a revenue allocation
 27        area operated by an urban renewal agency; and by the value  of  annexation
 28        during  the  previous calendar year, as certified by the state tax commis-
 29        sion for market values of operating property of public  utilities  and  by
 30        the county assessor; or
 31        (b)  The  dollar  amount of property taxes certified for its annual budget
 32        during the last year in which a levy was made; or
 33        (c)  The dollar amount of the actual budget request, if  the  taxing  dis-
 34        trict is newly created; or
 35        (d)  In  the  case of school districts, the restriction imposed in section
 36        33-802, Idaho Code; or
 37        (e)  In the case of a nonschool district for which less than  the  maximum
 38        allowable  increase  in  the dollar amount of property taxes is  certified
 39        for annual budget purposes in any one (1) year, such a  district  may,  in
 40        any  following year, recover the foregone increase by certifying, in addi-
 41        tion to any increase otherwise allowed, an amount not to exceed  one  hun-
 42        dred  percent  (100%) of the increase originally foregone. Said additional
 43        amount shall be included in future calculations for increases as  allowed;
                                                                        
                                           2
                                                                        
  1        or
  2        (f)  In  the case of cities, if the immediately preceding year's levy sub-
  3        ject to the limitation provided by this section, is less than  0.004,  the
  4        city  may  increase  its  budget by an amount not to exceed the difference
  5        between 0.004 and actual prior year's levy multiplied  by the prior year's
  6        market value for  assessment  purposes.  The  additional  amount  must  be
  7        approved by sixty percent (60%) of the voters voting on the question at an
  8        election  called  for that purpose and held on the date in May or November
  9        provided by law, and may  be included in the annual budget of the city for
 10        purposes of this section; or
 11        (g)  A library district may submit to the electors within the district the
 12        question of whether the budget from property tax revenues may be increased
 13        beyond the amount authorized in this section,  but  not  beyond  the  levy
 14        authorized  in  section 33-2724, Idaho Code. The additional amount must be
 15        approved by sixty-six and two-thirds percent  (66 2/3%)  or  more  of  the
 16        voters  voting  on the question at an election called for that purpose and
 17        held on the May or November dates provided by section 34-106, Idaho  Code.
 18        If  approved  by  the  required  minimum  sixty-six and two-thirds percent
 19        (66 2/3%) of the voters voting at the  election,  the  new  budget  amount
 20        shall be the base budget for the purposes of this section; or
 21        (h)  In the instance or case of cooperative service agencies, the restric-
 22        tions imposed in sections 33-315 through 33-318, Idaho Code.
 23        (2)  In  the case of fire districts, during the year immediately following
 24    the election of a public utility or public utilities to consent to be provided
 25    fire protection pursuant to section 31-1422, Idaho Code, the maximum amount of
 26    property tax revenues permitted in subsection  (1)  of  this  section  may  be
 27    increased  by  an amount equal to the current year's taxable value of the con-
 28    senting public utility or public utilities multiplied by that portion  of  the
 29    prior year's levy subject to the limitation provided by subsection (1) of this
 30    section.
 31        (3)  No  board  of  county  commissioners  shall set a levy, nor shall the
 32    state tax commission approve a levy for annual budget purposes  which  exceeds
 33    the  limitation imposed in subsection (1) of this section, unless authority to
 34    exceed such  limitation  has  been  approved  by  a  majority  of  the  taxing
 35    district's electors voting on the question at an election called for that pur-
 36    pose  and  held pursuant to section 34-106, Idaho Code, provided however, that
 37    such voter approval shall be for a period of not to exceed two (2) years.
 38        (4)  The amount of property tax revenues to finance an annual budget  does
 39    not  include revenues from nonproperty tax sources, and does not include reve-
 40    nue from levies that are voter approved for bonds, override levies or  supple-
 41    mental  levies,  plant  facilities  reserve fund levies, school emergency fund
 42    levies or for levies applicable to newly annexed property or for levies appli-
 43    cable to new construction as evidenced by the value of property subject to the
 44    occupancy tax pursuant to section 63-317, Idaho Code, for  the  preceding  tax
 45    year.
                                                                        
 46        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 47    declared to exist, this act shall be in full force and effect on and after its
 48    passage and approval, and retroactively to January 1, 2005.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 14746

This legislation amends Section 63-802, Idaho Code, for
grammatical corrections.  The legislation provides that there
shall be no increase above the three percent (3%) property tax
cap attributable to new construction or change of land use
classification in a revenue allocation area operated by an urban
renewal agency.  There is an emergency clause and includes a
retroactive date.


                           FISCAL NOTE

This is no fiscal impact.



Contact
Name:  Rep. Mike Moyle 
Phone: 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                    H 317