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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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005IN 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 factorof19 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 periodofnot 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 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