2005 Legislation
Print Friendly

HOUSE BILL NO. 264 – School levy, revenue allocatn area

HOUSE BILL NO. 264

View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status



H0264...............................................by REVENUE AND TAXATION
SCHOOL LEVIES - Adds to and amends existing law relating to school levies
to authorize a school district to add the increment value to a school
district's actual or adjusted market value for assessment purposes as such
valuation existed on December 31 of the previous year, when calculating the
maximum school maintenance and operation levies and the local district
contribution levy in the event property within the district is contained in
a revenue allocation area and such revenue allocation area has given notice
of termination; to provide for public notice to taxpayers of a school
district that the district shall adjust its market value for assessment
purposes due to termination of a revenue allocation area; and to provide
for computation of property tax replacement of a portion of the authorized
school maintenance and operation levy by adding the increment value to the
actual or adjusted market value for assessment purposes as such values
existed on December 31 of the previous year of a school district if
applicable under a circumstance relating to termination of a revenue
allocation area.
                                                                        
02/24    House intro - 1st rdg - to printing
02/25    Rpt prt - to Rev/Tax
03/07    Rpt out - rec d/p - to 2nd rdg
03/08    2nd rdg - to 3rd rdg
03/09    3rd rdg - PASSED - 69-0-1
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bell,
      Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark,
      Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson,
      Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
      McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
      Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
      Wills, Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- Bedke
    Floor Sponsor - Schaefer
    Title apvd - to Senate
03/10    Senate intro - 1st rdg - to Loc Gov
03/16    Rpt out - rec d/p - to 2nd rdg
03/17    2nd rdg - to 3rd rdg
03/21    3rd rdg - PASSED - 29-0-5, 1 vacancy
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Cameron,
      Compton, Corder, Darrington, Davis, Gannon, Geddes, Goedde, Hill,
      Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Marley, McGee,
      McKenzie, Pearce, Richardson, Schroeder, Stegner, Stennett, Sweet
      NAYS -- None
      Absent and excused -- Burtenshaw, Coiner, Malepeai, Werk, Williams,
      (District 21 seat vacant)
    Floor Sponsor - McKenzie
    Title apvd - to House
03/22    To enrol
03/23    Rpt enrol - Sp signed
03/24    Pres signed - To Governor
03/28    Governor signed
         Session Law Chapter 191
         Effective: 07/01/05

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 264
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SCHOOL LEVIES; AMENDING SECTION 33-802, IDAHO CODE, TO AUTHORIZE A
  3        SCHOOL DISTRICT TO ADD THE INCREMENT VALUE TO A SCHOOL  DISTRICT'S  ACTUAL
  4        OR ADJUSTED MARKET VALUE FOR ASSESSMENT PURPOSES AS SUCH VALUATION EXISTED
  5        ON  DECEMBER  31  OF THE PREVIOUS YEAR WHEN CALCULATING THE MAXIMUM SCHOOL
  6        MAINTENANCE AND OPERATION LEVIES AND THE LOCAL DISTRICT CONTRIBUTION  LEVY
  7        IN  THE EVENT PROPERTY WITHIN THE DISTRICT IS CONTAINED IN A REVENUE ALLO-
  8        CATION AREA AND SUCH REVENUE ALLOCATION AREA HAS GIVEN NOTICE OF  TERMINA-
  9        TION;  AMENDING  CHAPTER 8, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW
 10        SECTION 33-808, IDAHO CODE, TO PROVIDE FOR PUBLIC NOTICE TO TAXPAYERS OF A
 11        SCHOOL DISTRICT THAT THE  DISTRICT  SHALL  ADJUST  ITS  MARKET  VALUE  FOR
 12        ASSESSMENT  PURPOSES  DUE TO TERMINATION OF A REVENUE ALLOCATION AREA; AND
 13        AMENDING SECTION 33-1002D, IDAHO CODE, TO PROVIDE FOR COMPUTATION OF PROP-
 14        ERTY TAX REPLACEMENT OF A PORTION OF THE AUTHORIZED SCHOOL MAINTENANCE AND
 15        OPERATION LEVY BY ADDING THE INCREMENT VALUE TO  THE  ACTUAL  OR  ADJUSTED
 16        MARKET VALUE FOR ASSESSMENT PURPOSES AS SUCH VALUES EXISTED ON DECEMBER 31
 17        OF  THE  PREVIOUS  YEAR OF A SCHOOL DISTRICT IF APPLICABLE UNDER A CIRCUM-
 18        STANCE RELATING TO TERMINATION OF A REVENUE ALLOCATION AREA.
                                                                        
 19    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 20        SECTION 1.  That Section 33-802, Idaho Code, be, and the  same  is  hereby
 21    amended to read as follows:
                                                                        
 22        33-802.  SCHOOL LEVIES. Any tax levied for school purposes shall be a lien
 23    on  the  property against which the tax is levied. The board of trustees shall
 24    determine the levies upon each dollar of taxable property in the district  for
 25    the ensuing fiscal year as follows:
 26        1.  Bond, Interest and Judgment Obligation Levies. Such levies as shall be
 27    required  to  satisfy  all  maturing bond, bond interest, and judgment obliga-
 28    tions.
 29        2.  Maximum School Maintenance and Operation Levies. Such levies for main-
 30    taining and operating the schools of the  district  and  for  the  payment  of
 31    tuition  and transportation, that do not exceed an amount equal to four-tenths
 32    of one percent (.4%) during tax year 1994, and do not exceed an  amount  equal
 33    to  three-tenths  of  one  percent  (.3%) during tax year 1995 and thereafter,
 34    applied to the actual or adjusted market value for assessment purposes of  the
 35    district  as  such  valuation existed on December 31 of the previous year, but
 36    allowances necessary as a credit for prepaid taxes,  as  provided  in  section
 37    63-1607,  Idaho  Code,  shall not be included in such maximum levies. Provided
 38    however, that in the event property within a  district's  boundaries  is  con-
 39    tained  in  a  revenue allocation area established under chapter 29, title 50,
 40    Idaho Code, and such revenue allocation area has given notice  of  termination
 41    thereunder,  then,  only  for the purpose of determining the levy described in
 42    this subsection, the district may add the increment value, as defined in  sec-
 43    tion  50-2903,  Idaho Code, to the actual or adjusted market value for assess-
                                                                        
                                           2
                                                                        
  1    ment purposes of the district as such value existed on December 31 of the pre-
  2    vious year.
  3        3.  Authorized School Maintenance and Operation Levies.  Such  levies  for
  4    maintaining  and  operating the schools of the district and for the payment of
  5    tuition and transportation that do  not  exceed  one  hundred  eleven  percent
  6    (111%)  of  the  local  district's contribution authorized in subsection 2. of
  7    section 33-1002, Idaho Code. Implementation of the provisions of this  subsec-
  8    tion  shall  be authorized only after approval by a majority of the district's
  9    electors voting on the question. Levies otherwise authorized by law shall  not
 10    require an election.
 11        4.  Supplemental  Maintenance  and  Operation Levies. No levy in excess of
 12    the levy permitted by subsection 2. or 3. of this section shall be made  by  a
 13    noncharter  school  district  unless  such  a supplemental levy in a specified
 14    amount and for a specified time not to exceed two (2) years  be  first  autho-
 15    rized  through  an  election held pursuant to chapter 4, title 33, Idaho Code,
 16    and approved by a majority of the district electors voting in such election. A
 17    levy approved pursuant to this subsection may be reduced by a majority vote of
 18    the board of trustees in the second year.
 19        5.  Charter District Supplemental Maintenance and Operation. Levies pursu-
 20    ant to the respective charter of any such  charter  district  shall  be  first
 21    authorized  through  an  election  held pursuant to chapter 4, title 33, Idaho
 22    Code, and approved by a majority of the district electors voting in such elec-
 23    tion.
 24        6.  The Local District Contribution. The local school  district  contribu-
 25    tion  levy is the amount utilized for calculating local district participation
 26    in the educational foundation program, which is applied to the adjusted market
 27    value for assessment purposes, as such valuation existed on December 31 of the
 28    previous year, together with  the  increment  value,  as  defined  in  section
 29    50-2903, Idaho Code, if applicable under the circumstance described in subsec-
 30    tion 2. of this section, relating to termination of a revenue allocation area.
 31        7.  The  board  of  trustees of any school district that has, for at least
 32    seven (7) consecutive years, been authorized through an election held pursuant
 33    to chapter 4, title 33, Idaho Code, to certify a supplemental  levy  that  has
 34    annually  been equal to or greater than twenty percent (20%) of the total gen-
 35    eral maintenance and operation fund, may submit the question of an  indefinite
 36    term  supplemental  levy to the electors of the school district. Such question
 37    shall clearly state the dollar amount that will be certified annually and that
 38    the levy will be for an indefinite number  of  years.  The  question  must  be
 39    approved  by  a majority of the district electors voting on the question in an
 40    election held pursuant to chapter 4, title 33, Idaho Code. The  levy  approved
 41    pursuant  to this subsection may be reduced by a majority vote of the board of
 42    trustees during any fiscal year.
                                                                        
 43        SECTION 2.  That Chapter 8, Title 33, Idaho Code,  be,  and  the  same  is
 44    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 45    ignated as Section 33-808, Idaho Code, and to read as follows:
                                                                        
 46        33-808.  NOTICE OF ADJUSTMENT TO MARKET VALUE FOR ASSESSMENT PURPOSES UPON
 47    TERMINATION OF A REVENUE ALLOCATION AREA. (1) A  school  district  that  shall
 48    adjust  its market value for assessment purposes in accordance with the provi-
 49    sions of section 33-802 2., Idaho Code, relating to termination of  a  revenue
 50    allocation  area,  shall  advertise  its  action by publishing in at least the
 51    newspaper of largest paid circulation published in the county of the district,
 52    or if there is no such newspaper, then in a newspaper published nearest to the
 53    district where the advertisement is required to be published.
                                                                        
                                           3
                                                                        
  1        (2)  For purposes of this section, the definition of "newspaper" shall  be
  2    as  established  in  sections 60-106 and 60-107, Idaho Code; provided further,
  3    that the newspaper of largest circulation shall be established by  the  state-
  4    ment  of  average  annual  paid  weekday circulation listed on the newspaper's
  5    sworn statement of ownership that was filed with the United States post office
  6    on a date most recently preceding the date on which the advertisement required
  7    in this section is to be published. The advertisement shall be  run  when  the
  8    school district ascertains that it will adjust its market value for assessment
  9    purposes  in  accordance with the provisions of section 33-802 2., Idaho Code,
 10    relating to termination of a revenue allocation area, and shall  be  published
 11    once a week for two (2) weeks following action by the board of trustees.
 12        (3)  The form and content of the notice shall be substantially as follows:
                                                                        
 13                  NOTICE OF PROPERTY TAX ADJUSTMENT BY SCHOOL BOARD
                                                                        
 14        The  (insert  name of the school district) hereinafter the "District," has
 15    increased its market value for assessment purposes as of December 31, ...., by
 16    the amount of the increment value of the (insert name of Redevelopment  Agency
 17    Revenue  Allocation  Area)  on such date, in accordance with the provisions of
 18    Section 33-802, Idaho Code, because the revenue allocation area gave notice of
 19    termination pursuant to Section 50-2903, Idaho Code, and as a  result  thereof
 20    property  taxes  on  the incremental value of the revenue allocation area will
 21    not be collected and distributed to the District. Section 33-802, Idaho  Code,
 22    permits  the  District to replace those funds by adjusting its market value as
 23    described herein. The total amount of dollars in property taxes to be directly
 24    collected by the District pursuant to this action is estimated to be $..... .
                                                                        
 25        SECTION 3.  That Section 33-1002D, Idaho Code, be, and the same is  hereby
 26    amended to read as follows:
                                                                        
 27        33-1002D.  PROPERTY  TAX  REPLACEMENT.  The  purpose of this section is to
 28    replace a portion of the authorized school maintenance and operation  property
 29    tax  levy  with  state  sales  tax receipts. As used in this section, the term
 30    "property tax computation ratio" shall mean a ratio determined by dividing the
 31    district's certified property tax maintenance  and  operation  budget  by  the
 32    actual or adjusted market value for assessment purposes as such values existed
 33    on  December  31  of  the  previous calendar year, together with the increment
 34    value, as defined in section 50-2903, Idaho Code, if applicable under the cir-
 35    cumstance described in section 33-802 2., Idaho Code, relating to  termination
 36    of a revenue allocation area.
 37        (1)  (a) In the case of a school district that had a property tax computa-
 38        tion  ratio  of not less than four-tenths of one percent (.4%) in tax year
 39        1994, that school district shall receive from the appropriations made  for
 40        that  purpose,  an amount equal to the greater of the district's actual or
 41        adjusted market value for assessment purposes as such valuation existed on
 42        December 31 of the previous calendar year,  together  with  the  increment
 43        value,  as defined in section 50-2903, Idaho Code, if applicable under the
 44        circumstance described in section 33-802 2., Idaho Code, relating to  ter-
 45        mination of a revenue allocation area, multiplied by one-tenth of one per-
 46        cent (.1%).
 47        (b)  In  the case of a school district that had a property tax computation
 48        ratio of less than four-tenths of one percent (.4%) in tax year 1994,  the
 49        greater of the 1992, 1993 or 1994 property  tax  computation  ratio   less
 50        three-tenths  of one percent (.3%) shall be designated the district's base
 51        multiplier. In no case shall the base multiplier be less  than  zero  (0).
                                                                        
                                           4
                                                                        
  1        Four-tenths of one percent (.4%) less the greater of the district's  1992,
  2        1993  or  1994  property  tax  computation  ratio  shall be designated the
  3        district's adjustment factor. In no case shall the  adjustment  factor  be
  4        greater  than  one-tenth  of one percent (.1%) or less than zero (0). Each
  5        school district's actual multiplier shall be the base multiplier plus one-
  6        fifth (1/5) of the adjustment factor in tax year 1995, the base multiplier
  7        plus two-fifths (2/5) of the adjustment factor in tax year 1996, the  base
  8        multiplier  plus  three-fifths  (3/5) of the adjustment factor in tax year
  9        1997, the base multiplier plus four-fifths (4/5) of the adjustment  factor
 10        in  tax  year  1998, and the base multiplier plus the adjustment factor in
 11        tax year 1999 and beyond. Each school district  shall  receive,  from  the
 12        appropriations  made  for  that purpose, an amount equal to the district's
 13        actual or adjusted market value for assessment purposes as such  valuation
 14        existed  on  December  31 of the previous calendar year, together with the
 15        increment value, as defined in section 50-2903, Idaho Code, if  applicable
 16        under  the circumstance described in section 33-802 2., Idaho Code, relat-
 17        ing to termination  of  a  revenue  allocation  area,  multiplied  by  the
 18        district's actual multiplier.
 19        (c)  The  preceding  provisions of this subsection notwithstanding, appro-
 20        priations from the state for the value of one-tenth of one  percent  (.1%)
 21        of  the  greater  of  the  district's  actual or adjusted market value for
 22        assessment purposes as such valuation existed on December 31 of the previ-
 23        ous calendar year, together with the increment value, as defined  in  sec-
 24        tion  50-2903,  Idaho Code, if applicable under the circumstance described
 25        in section 33-802 2., Idaho Code, relating to  termination  of  a  revenue
 26        allocation   area,   shall   not   exceed   seventy-five  million  dollars
 27        ($75,000,000) in any fiscal year. If the  amount  school  districts  would
 28        otherwise  be  entitled to receive pursuant to the preceding provisions of
 29        this subsection exceeds seventy-five million dollars  ($75,000,000),  then
 30        each  school district shall receive its share of seventy-five million dol-
 31        lars ($75,000,000) based on the formulas contained in this section.
 32        (2)  (a) Participation in this property tax reduction program is voluntary
 33        for a charter district. If a charter district participates, in addition to
 34        the provisions of subsection (1) of this section it shall not have a prop-
 35        erty tax computation ratio  that is  above  three-tenths  of  one  percent
 36        (.3%)  or the district's property tax computation ratio  in tax year 1994,
 37        less one-tenth of one percent (.1%), whichever is greater.
 38        (b)  If in any year the charter district's property tax computation  ratio
 39        used  to calculate its maintenance and operation budget is increased above
 40        the limit specified in this subsection the district  shall not be eligible
 41        for the distribution pursuant to subsection (1) of this section  for  that
 42        year.
 43        (3)  Limitations imposed upon a school district's property tax computation
 44    ratio  under  the provisions of this section do not apply to any levy approved
 45    by electors of the school district as provided by law.
 46        (4)  Distributions calculated as provided in this section shall be made to
 47    school districts of this state in two (2) equal installments on the due  dates
 48    as  specified  in  section 63-903(1), Idaho Code, for the property taxes being
 49    replaced.
 50        (5)  For purposes of section 33-1002, Idaho Code, moneys distributed  pur-
 51    suant to this section shall not be included in determining total state funds.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 14991

The bill amends Section 33-802 to provide that a school district
in which a tax increment area is terminated may add back the tax
increment value to its market value for purposes of determining
the proper amount of its dollar certification for its M & O
budget, and makes conforming amendments to Section 33-1002D.


                           FISCAL NOTE

There is no fiscal impact to the general fund.  




Contact
Name:  Rep. Robert Schaefer 
Phone: 208 322 1000



STATEMENT OF PURPOSE/FISCAL NOTE                       H 264