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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 - 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
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