2006 Legislation
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HOUSE BILL NO. 424 – Schools, M&O levy, reduced

HOUSE BILL NO. 424

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H0424...............................................by REVENUE AND TAXATION
SCHOOLS - Amends and repeals existing law to reduce school maintenance and
operation levies; and to delete the law relating to property tax
replacement for schools.
                                                                        
01/19    House intro - 1st rdg - to printing
01/20    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 424
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SCHOOL LEVIES; AMENDING SECTION 33-802, IDAHO CODE, TO REDUCE  THE
  3        MAINTENANCE  AND  OPERATION LEVY; AMENDING SECTION 33-1002, IDAHO CODE, TO
  4        REDUCE THE LOCAL DISTRICT'S CONTRIBUTION, TO REQUIRE SCHOOL  DISTRICTS  TO
  5        REDUCE THEIR LOCAL DISTRICT CONTRIBUTION TO BE ELIGIBLE FOR EDUCATION SUP-
  6        PORT  PROGRAM  DISTRIBUTIONS AND TO MAKE A TECHNICAL CORRECTION; REPEALING
  7        SECTION 33-1002D, IDAHO CODE, RELATING TO PROPERTY TAX REPLACEMENT; AMEND-
  8        ING SECTION 63-3638, IDAHO CODE, TO DELETE A CODE REFERENCE; DECLARING  AN
  9        EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
                                                                        
 10    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 11        SECTION  1.  That  Section  33-802, Idaho Code, be, and the same is hereby
 12    amended to read as follows:
                                                                        
 13        33-802.  SCHOOL LEVIES. Any tax levied for school purposes shall be a lien
 14    on the property against which the tax is levied. The board of  trustees  shall
 15    determine  the levies upon each dollar of taxable property in the district for
 16    the ensuing fiscal year as follows:
 17        1.  Bond, Interest and Judgment Obligation Levies. Such levies as shall be
 18    required to satisfy all maturing bond, bond  interest,  and  judgment  obliga-
 19    tions.
 20        2.  Maximum School Maintenance and Operation Levies. Such levies for main-
 21    taining  and  operating  the  schools  of  the district and for the payment of
 22    tuition and transportation, that do not exceed an amount equal to  four-tenths
 23    of  one  percent (.4%) during tax year 1994, and do not exceed an amount equal
 24    to three-tenths fifteen-hundredths of one percent (.315%) during tax year 1995
 25    2006 and thereafter, applied to  the  actual  or  adjusted  market  value  for
 26    assessment  purposes  of the district as such valuation existed on December 31
 27    of the previous year, but allowances necessary as a credit for prepaid  taxes,
 28    as provided in section 63-1607, Idaho Code, shall not be included in such max-
 29    imum  levies. Provided however, that in the event property within a district's
 30    boundaries is contained in a revenue allocation area established under chapter
 31    29, title 50, Idaho Code, and such revenue allocation area has given notice of
 32    termination thereunder, then, only for the purpose  of  determining  the  levy
 33    described  in  this  subsection,  the district may add the increment value, as
 34    defined in section 50-2903, Idaho Code, to the actual or adjusted market value
 35    for assessment purposes of the district as such value existed on  December  31
 36    of the previous year.
 37        3.  Authorized  School  Maintenance  and Operation Levies. Such levies for
 38    maintaining and operating the schools of the district and for the  payment  of
 39    tuition  and  transportation  that  do  not  exceed one hundred eleven percent
 40    (111%) of the local district's contribution authorized  in  subsection  2.  of
 41    section  33-1002, Idaho Code. Implementation of the provisions of this subsec-
 42    tion shall be authorized only after approval by a majority of  the  district's
 43    electors  voting on the question. Levies otherwise authorized by law shall not
                                                                        
                                           2
                                                                        
  1    require an election.
  2        4.  Supplemental Maintenance and Operation Levies. No levy  in  excess  of
  3    the  levy  permitted by subsection 2. or 3. of this section shall be made by a
  4    noncharter school district unless such a  supplemental  levy  in  a  specified
  5    amount  and  for  a specified time not to exceed two (2) years be first autho-
  6    rized through an election held pursuant to chapter 4, title  33,  Idaho  Code,
  7    and approved by a majority of the district electors voting in such election. A
  8    levy approved pursuant to this subsection may be reduced by a majority vote of
  9    the board of trustees in the second year.
 10        5.  Charter District Supplemental Maintenance and Operation. Levies pursu-
 11    ant    to  the  respective charter of any such charter district shall be first
 12    authorized through an election held pursuant to chapter  4,  title  33,  Idaho
 13    Code, and approved by a majority of the district electors voting in such elec-
 14    tion.
 15        6.  The  Local  District Contribution. The local school district contribu-
 16    tion levy is the amount utilized for calculating local district  participation
 17    in the educational foundation program, which is applied to the adjusted market
 18    value for assessment purposes, as such valuation existed on December 31 of the
 19    previous  year,  together  with  the  increment  value,  as defined in section
 20    50-2903, Idaho Code, if applicable under the circumstance described in subsec-
 21    tion 2. of this section, relating to termination of a revenue allocation area.
 22        7.  The board of trustees of any school district that has,  for  at  least
 23    seven (7) consecutive years, been authorized through an election held pursuant
 24    to  chapter  4,  title 33, Idaho Code, to certify a supplemental levy that has
 25    annually been equal to or greater than twenty percent (20%) of the total  gen-
 26    eral  maintenance and operation fund, may submit the question of an indefinite
 27    term supplemental levy to the electors of the school district.  Such  question
 28    shall clearly state the dollar amount that will be certified annually and that
 29    the  levy  will  be  for  an  indefinite number of years. The question must be
 30    approved by a majority of the district electors voting on the question  in  an
 31    election  held  pursuant to chapter 4, title 33, Idaho Code. The levy approved
 32    pursuant to this subsection may be reduced by a majority vote of the board  of
 33    trustees during any fiscal year.
                                                                        
 34        SECTION  2.  That  Section 33-1002, Idaho Code, be, and the same is hereby
 35    amended to read as follows:
                                                                        
 36        33-1002.  EDUCATIONAL SUPPORT PROGRAM. The educational support program  is
 37    calculated as follows:
 38        1.  State  Educational Support Funds. Add the state appropriation, includ-
 39    ing the moneys available in the public school income fund, together  with  all
 40    miscellaneous revenues to determine the total state funds.
 41        2.  From  the  total state funds subtract the following amounts needed for
 42    state support of special programs provided by a school district:
 43        a.  Pupil tuition-equivalency allowances as provided in section  33-1002B,
 44        Idaho Code;
 45        b.  Transportation  support  program as provided in section 33-1006, Idaho
 46        Code;
 47        c.  Feasibility studies allowance as provided in section  33-1007A,  Idaho
 48        Code;
 49        d.  The  approved costs for border district allowance, provided in section
 50        33-1403, Idaho Code, as determined by the state superintendent  of  public
 51        instruction;
 52        e.  The  approved costs for exceptional child approved contract allowance,
 53        provided in subsection 2. of section 33-2004, Idaho Code, as determined by
                                                                        
                                           3
                                                                        
  1        the state superintendent of public instruction;
  2        f.  Certain expectant and delivered mothers allowance as provided in  sec-
  3        tion 33-2006, Idaho Code;
  4        g.  Salary-based  apportionment calculated as provided in sections 33-1004
  5        through 33-1004F, Idaho Code;
  6        h.  Unemployment insurance benefit payments according to the provisions of
  7        section 72-1349A, Idaho Code;
  8        i.  For expenditure as provided by the public school technology program;
  9        j.  For the support of provisions that provide a safe  environment  condu-
 10        cive  to student learning and maintain classroom discipline, an allocation
 11        of $300 per support unit; and
 12        k.  Any additional amounts as required by statute to effect administrative
 13        adjustments  or  as specifically required by the provisions of any bill of
 14        appropriation;
 15    to secure the state educational support funds.
 16        3.  Local  Districts'  Contribution  Calculation.  Without  including  any
 17    allowance as a credit for prepaid taxes as provided by section 63-1607,  Idaho
 18    Code,  the local districts' contribution shall be the amount appropriated pur-
 19    suant to section 33-1002D, Idaho Code,  plus  three-tenths  fifteen-hundredths
 20    percent  (.315%)  during fiscal year 2003-04 2006-07 and each year thereafter,
 21    of the total state adjusted market value for assessment purposes for the  pre-
 22    vious  year  with  such  value  being  determined by the provisions of section
 23    63-315, Idaho Code, and four-tenths percent (.4%) during fiscal  year  1994-95
 24    and each year thereafter, of the cooperative electrical associations' property
 25    values  that have been derived from the taxes paid in lieu of ad valorem prop-
 26    erty taxes for the previous year as provided in section 63-3502,  Idaho  Code.
 27    In order to be eligible to participate in the educational support program pur-
 28    suant to this chapter, each district, including specially chartered districts,
 29    shall  have  reduced its local district contribution and property tax levy for
 30    maintenance and operation purposes by twenty-five  hundredths  percent  (.25%)
 31    from tax year 1993-94.
 32        4.  Educational  Support  Program  Distribution  Funds. Add the local dis-
 33    tricts' contribution, subsection 3. of this section, and the state educational
 34    support program funds, subsection 1. of this section, together to  secure  the
 35    total educational support program distribution funds.
 36        5.  Average  Daily  Attendance.  The  total state average daily attendance
 37    shall be the sum of the average daily attendance of all  of  the  school  dis-
 38    tricts  of  the state. The state board of education shall establish rules set-
 39    ting forth the procedure to determine average daily attendance  and  the  time
 40    for, and method of, submission of such report. Average daily attendance calcu-
 41    lation  shall  be carried out to the nearest hundredth. Computation of average
 42    daily attendance shall also be governed by the provisions of section 33-1003A,
 43    Idaho Code.
 44        6.  Support Units. The total state support units shall  be  determined  by
 45    using  the tables set out hereafter called computation of kindergarten support
 46    units, computation of elementary support units, computation of secondary  sup-
 47    port  units,  computation of exceptional education support units, and computa-
 48    tion of alternative school secondary support units. The  sum  of  all  of  the
 49    total  support  units  of all school districts of the state shall be the total
 50    state support units.
 51                      COMPUTATION OF KINDERGARTEN SUPPORT UNITS
 52    Average Daily
 53    Attendance            Attendance Divisor         Units Allowed
 54    41 or more     ....   40.......................  1 or more as computed
 55    31 -  40.99 ADA....    -.......................  1
                                                                        
                                           4
                                                                        
  1    26 -  30.99 ADA....    -.......................   .85
  2    21 -  25.99 ADA....    -.......................   .75
  3    16 -  20.99 ADA....    -.......................   .6
  4     8 -  15.99 ADA....    -.......................   .5
  5     1 -   7.99 ADA....    -.......................  count as elementary
                                                                        
  6                       COMPUTATION OF ELEMENTARY SUPPORT UNITS
  7    Average Daily
  8    Attendance            Attendance Divisor         Minimum Units Allowed
  9    300 or more ADA........................................  15
 10                        ..23...grades 4,5 & 6....
 11                        ..22...grades 1,2 & 3....1994-95
 12                        ..21...grades 1,2 & 3....1995-96
 13                        ..20...grades 1,2 & 3....1996-97
 14                              and each year thereafter.
 15    160   to  299.99 ADA... 20.....................         8.4
 16    110   to  159.99 ADA... 19.....................         6.8
 17     71.1 to  109.99 ADA... 16.....................         4.7
 18     51.7 to   71.0  ADA... 15.....................         4.0
 19     33.6 to   51.6  ADA... 13.....................         2.8
 20     16.6 to   33.5  ADA... 12.....................         1.4
 21      1.0 to   16.5  ADA... n/a....................         1.0
                                                                        
 22                        COMPUTATION OF SECONDARY SUPPORT UNITS
 23    Average Daily
 24    Attendance            Attendance Divisor         Minimum Units Allowed
 25    750 or more      .... 18.5.....................        47
 26    400 -  749.99 ADA.... 16.......................        28
 27    300 -  399.99 ADA.... 14.5.....................        22
 28    200 -  299.99 ADA.... 13.5.....................        17
 29    100 -  199.99 ADA.... 12.......................         9
 30     99.99 or fewer       Units allowed as follows:
 31             Grades 7-12  .........................         8
 32             Grades 9-12  .........................         6
 33             Grades 7- 9  .........................         1 per 14 ADA
 34             Grades 7- 8  .........................         1 per 16 ADA
                                                                        
 35                  COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS
 36    Average Daily
 37    Attendance            Attendance Divisor         Minimum Units Allowed
 38    14 or more ....       14.5.....................  1 or more as computed
 39    12 -  13.99....        -.......................  1
 40     8 -  11.99....        -.......................   .75
 41     4 -   7.99....        -.......................   .5
 42     1 -   3.99....        -.......................   .25
                                                                        
 43              COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS
 44    Pupils in Attendance  Attendance Divisor         Minimum Units Allowed
 45    12 or more..........  12......................   1 or more as computed
                                                                        
 46        In applying these tables to any given separate attendance unit, no  school
 47    district  shall  receive  less  total  money than it would receive if it had a
 48    lesser average daily attendance in such separate attendance unit. In  applying
 49    the  kindergarten  table  to  a  kindergarten program of less days than a full
 50    school year, the support unit allowance shall be in ratio  to  the  number  of
                                                                        
                                           5
                                                                        
  1    days  of a full school year. The tables for exceptional education and alterna-
  2    tive school secondary support units shall  be  applicable  only  for  programs
  3    approved  by  the state department of education following rules established by
  4    the state board of education. Moneys generated  from  computation  of  support
  5    units  for  alternative  schools shall be utilized for alternative school pro-
  6    grams. School district administrative and facility costs may  be  included  as
  7    part of the alternative school expenditures.
  8        7.  State Distribution Factor per Support Unit. Divide educational support
  9    program distribution funds, after subtracting the amounts necessary to pay the
 10    obligations  specified  in  subsection  2. of this section, by the total state
 11    support units to secure the state distribution factor per support unit.
 12        8.  District Share of State Funds for Educational Support Program.  Ascer-
 13    tain  a district's share of state funds for the educational support program as
 14    follows:
 15        a.  District Contribution Calculation. Without including any allowance  as
 16        a  credit  for  prepaid taxes, as provided in section 63-1607, Idaho Code,
 17        the district contribution calculation shall be the rate  determined  under
 18        subsection 3. of this section.
 19        b.  District  Support  Units.  The number of support units for each school
 20        district in the state shall be determined as follows:
 21             (1)  Divide the actual average daily attendance,  excluding  students
 22             approved  for inclusion in the exceptional child educational program,
 23             for the administrative schools and each of the separate  schools  and
 24             attendance  units  by the appropriate divisor from the tables of sup-
 25             port units in this section, then add  the  quotients  to  obtain  the
 26             district's support units allowance for regular students, kindergarten
 27             through  grade  12  including  alternative school secondary students.
 28             Calculations in application of this subsection shall be  carried  out
 29             to the nearest tenth.
 30             (2)  Divide  the  combined  totals of the average daily attendance of
 31             all preschool, handicapped, kindergarten, elementary,  secondary  and
 32             juvenile  detention  center  students  approved  for inclusion in the
 33             exceptional child program of the district by the appropriate  divisor
 34             from the table for computation of exceptional education support units
 35             to  obtain  the  number  of  support units allowed for the district's
 36             approved exceptional child program. Calculations for this  subsection
 37             shall be carried out to the nearest tenth when more than one (1) unit
 38             is allowed.
 39             (3)  The  total  number of support units of the district shall be the
 40             sum of the total  support  units  for  regular  students,  subsection
 41             8.b.(1)  of  this  section,  and  the support units allowance for the
 42             approved exceptional child program, subsection 8.b.(2) of  this  sec-
 43             tion.
 44        c.  Total  District Allowance Educational Program. Multiply the district's
 45        total number of support units, carried out to the nearest  tenth,  by  the
 46        state  distribution  factor  per  support unit and to this product add the
 47        approved amount of programs of the district provided in subsection  2.  of
 48        this  section to secure the district's total allowance for the educational
 49        support program.
 50        d.  District Share. To secure the district's share of state apportionment,
 51        subtract the amount of the local district contribution  calculation,  sub-
 52        section  3.  of this section, from the amount of the total district allow-
 53        ance, subsection 8.c. of this section.
 54        e.  Adjustment of District Share. The contract salary of every noncertifi-
 55        cated teacher shall be subtracted from the district's share as  calculated
                                                                        
                                           6
                                                                        
  1        from the provisions of subsection 8.d. of this section.
                                                                        
  2        SECTION  3.  That Section 33-1002D, Idaho Code, be, and the same is hereby
  3    repealed.
                                                                        
  4        SECTION 4.  That Section 63-3638, Idaho Code, be, and the same  is  hereby
  5    amended to read as follows:
                                                                        
  6        63-3638.  SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
  7    ter,  except  as  may  otherwise  be required in sections 63-3203 and 63-3709,
  8    Idaho Code, shall be distributed by the tax commission as follows:
  9        (1)  An amount of money shall be distributed to the state  refund  account
 10    sufficient  to  pay  current  refund claims. All refunds authorized under this
 11    chapter by the commission shall be paid through the state refund account,  and
 12    those moneys are continuously appropriated.
 13        (2)  Five  million dollars ($5,000,000) per year is continuously appropri-
 14    ated and shall be distributed to the permanent building fund, provided by sec-
 15    tion 57-1108, Idaho Code.
 16        (3)  Four million eight hundred thousand dollars ($4,800,000) per year  is
 17    continuously appropriated and shall be distributed to the water pollution con-
 18    trol account established by section 39-3605, Idaho Code.
 19        (4)  An  amount  equal to the sum required to be certified by the chairman
 20    of the Idaho housing and finance association to the state tax commission  pur-
 21    suant  to  section 67-6211, Idaho Code, in each year is continuously appropri-
 22    ated and shall be paid to any capital reserve fund, established by  the  Idaho
 23    housing  and finance association pursuant to section 67-6211, Idaho Code. Such
 24    amounts, if any, as may be appropriated hereunder to the capital reserve  fund
 25    of  the Idaho housing and finance association shall be repaid for distribution
 26    under the provisions of this section, subject to  the  provisions  of  section
 27    67-6215,  Idaho Code, by the Idaho housing and finance association, as soon as
 28    possible, from any moneys available therefor and  in  excess  of  the  amounts
 29    which the association determines will keep it self-supporting.
 30        (5)  An  amount  equal  to  the  sum required by the provisions of section
 31    63-709, Idaho Code, is continuously appropriated and shall be paid as provided
 32    by section 63-709, Idaho Code.
 33        (6)  An amount required by the provisions of chapter 53, title  33,  Idaho
 34    Code.
 35        (7)  An  amount  required by the provisions of chapter 87, title 67, Idaho
 36    Code.
 37        (8)  One dollar ($1.00) on each application for certificate  of  title  or
 38    initial  application  for  registration  of  a motor vehicle, snowmobile, all-
 39    terrain vehicle or other vehicle processed by the county assessor or the Idaho
 40    transportation department excepting those applications in which any  sales  or
 41    use  taxes  due  have been previously collected by a retailer, shall  be a fee
 42    for the services of the assessor of the county  or  the  Idaho  transportation
 43    department  in  collecting  such  taxes,  and  shall  be paid into the current
 44    expense fund of the county or state highway  account  established  in  section
 45    40-702, Idaho Code.
 46        (9)  Thirteen  and  three-quarters percent (13.75%) is continuously appro-
 47    priated and shall be distributed to the revenue sharing account which is  cre-
 48    ated in the state treasury, and the moneys in the revenue sharing account will
 49    be  paid  in  installments each calendar quarter by the tax commission as fol-
 50    lows:
 51        (a)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 52        ious cities as follows:
                                                                        
                                           7
                                                                        
  1             (i)   Fifty percent (50%) of such amount shall be paid to the various
  2             cities, and each city shall be entitled to an amount in  the  propor-
  3             tion  that the population of that city bears to the population of all
  4             cities within the state; and
  5             (ii)  Fifty percent (50%) of such amount shall be paid to the various
  6             cities, and each city shall be entitled to an amount in  the  propor-
  7             tion  that  the preceding year's market value for assessment purposes
  8             for that city bears to the preceding year's market value for  assess-
  9             ment purposes for all cities within the state.
 10        (b)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 11        ious counties as follows:
 12             (i)   One  million three hundred twenty thousand dollars ($1,320,000)
 13             annually shall be distributed one forty-fourth (1/44) to each of  the
 14             various counties; and
 15             (ii)  The  balance  of such amount shall be paid to the various coun-
 16             ties, and each county shall be entitled to an amount in  the  propor-
 17             tion  that  the  population of that county bears to the population of
 18             the state;
 19        (c)  Thirty-five and nine-tenths percent (35.9%) of the  amount  appropri-
 20        ated in this subsection (9) shall be paid to the several counties for dis-
 21        tribution to the cities and counties as follows:
 22             (i)   Each  city and county which received a payment under the provi-
 23             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 24             calendar year 1999, shall be entitled to a like  amount  during  suc-
 25             ceeding calendar quarters.
 26             (ii)  If  the  dollar amount of money available under this subsection
 27             (9)(c) in any quarter does not equal the amount paid  in  the  fourth
 28             quarter of calendar year 1999, each city's and county's payment shall
 29             be reduced proportionately.
 30             (iii) If  the  dollar amount of money available under this subsection
 31             (9)(c) in any quarter exceeds the amount paid in the  fourth  quarter
 32             of  calendar  year  1999, each city and county shall be entitled to a
 33             proportionately increased payment, but such increase shall not exceed
 34             one hundred five percent (105%) of the  total  payment  made  in  the
 35             fourth quarter of calendar year 1999.
 36             (iv)  If  the  dollar amount of money available under this subsection
 37             (9)(c) in any quarter exceeds one hundred five percent (105%) of  the
 38             total  payment  made in the fourth quarter of calendar year 1999, any
 39             amount over and above such one hundred five percent (105%)  shall  be
 40             paid fifty percent (50%) to the various cities in the proportion that
 41             the  population  of  the  city  bears to the population of all cities
 42             within the state, and fifty percent (50%) to the various counties  in
 43             the  proportion  that the population of a county bears to the popula-
 44             tion of the state; and
 45        (d)  Seven and seven-tenths percent (7.7%) of the amount  appropriated  in
 46        this    subsection (9) shall be paid to the several counties for distribu-
 47        tion to special purpose taxing districts as follows:
 48             (i)   Each such district which received a payment  under  the  provi-
 49             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 50             calendar  year  1999,  shall be entitled to a like amount during suc-
 51             ceeding calendar quarters.
 52             (ii)  If the dollar amount of money available under  this  subsection
 53             (9)(d)  in  any  quarter does not equal the amount paid in the fourth
 54             quarter of calendar year 1999, each special purpose taxing district's
 55             payment shall be reduced proportionately.
                                                                        
                                           8
                                                                        
  1             (iii) If the dollar amount of money available under  this  subsection
  2             (9)(d)  in any quarter exceeds the amount distributed under paragraph
  3             (i) of this subsection (9)(d), each special purpose  taxing  district
  4             shall  be  entitled  to a share of the excess based on the proportion
  5             each such district's current property tax budget bears to the sum  of
  6             the  current property tax budgets of all such districts in the state.
  7             The state tax commission shall calculate  district  current  property
  8             tax budgets to include any unrecovered foregone amounts as determined
  9             under section 63-802(1)(e), Idaho Code. When a special purpose taxing
 10             district  is situated in more than one (1) county, the tax commission
 11             shall determine the portion attributable to the special purpose  tax-
 12             ing district from each county in which it is situated.
 13             (iv)  If  special  purpose  taxing  districts  are  consolidated, the
 14             resulting district is entitled to a base amount equal to the  sum  of
 15             the  base amounts which were received in the last calendar quarter by
 16             each district prior to the consolidation.
 17             (v)   If  a  special  purpose  taxing  district   is   dissolved   or
 18             disincorporated, the state tax commission shall continuously distrib-
 19             ute  to the board of county commissioners an amount equal to the last
 20             quarter's distribution prior to dissolution or disincorporation.  The
 21             board  of  county commissioners shall determine any redistribution of
 22             moneys so received.
 23             (vi)  Taxing districts formed after January 1, 2001, are not entitled
 24             to a payment under the provisions of this subsection (9)(d).
 25             (vii) For purposes of this subsection (9)(d), a special purpose  tax-
 26             ing  district is any taxing district which is not a city, a county or
 27             a school district.
 28        (10) Amounts calculated in accordance with section 2, chapter 356, Laws of
 29    2001, for annual distribution to counties and other taxing districts beginning
 30    in October 2001 for replacement of property tax on farm machinery  and  equip-
 31    ment  exempted  pursuant  to  section 63-602EE, Idaho Code. For nonschool dis-
 32    tricts, the state tax commission shall distribute  one-fourth  (1/4)  of  this
 33    amount certified quarterly to each county. For school districts, the state tax
 34    commission shall distribute one-fourth (1/4) of the amount certified quarterly
 35    to  each  school  district.  For nonschool districts, the county auditor shall
 36    distribute to each district within thirty (30) calendar days from  receipt  of
 37    moneys  from  the  tax commission. Moneys received by each taxing district for
 38    replacement shall be utilized in the same manner and in the  same  proportions
 39    as  revenues  from  property taxation. The moneys remitted to the county trea-
 40    surer for replacement of property exempt from  taxation  pursuant  to  section
 41    63-602EE,  Idaho Code, may be considered by the counties and other taxing dis-
 42    tricts and budgeted at the same time, in the same manner and in the same  year
 43    as  revenues from taxation on personal property which these moneys replace. If
 44    taxing districts are consolidated, the resulting district is  entitled  to  an
 45    amount  equal to the sum of the amounts which were received in the last calen-
 46    dar quarter by each district pursuant to this subsection prior to the consoli-
 47    dation. If a taxing district is dissolved or  disincorporated, the  state  tax
 48    commission  shall continuously distribute to the board of county commissioners
 49    an amount equal to the last quarter's distribution  prior  to  dissolution  or
 50    disincorporation. The board of county commissioners shall determine any redis-
 51    tribution  of moneys so received.  If a taxing district annexes territory, the
 52    distribution of moneys received pursuant to this  subsection  shall  be  unaf-
 53    fected.  Taxing  districts formed after January 1, 2001, are not entitled to a
 54    payment under the  provisions  of  this  subsection.  School  districts  shall
 55    receive  an  amount  determined by multiplying the sum of the year 2000 school
                                                                        
                                           9
                                                                        
  1    district levy plus .001 times the market value on December 31,  2000,  in  the
  2    district  of  the  property exempt from taxation pursuant to section 63-602EE,
  3    Idaho Code.  For school districts, beginning January 1, 2002, only the portion
  4    of property tax replacement received to replace property exempt from  taxation
  5    pursuant  to  section  63-602EE,  Idaho  Code,  based on the tax year 2000 tax
  6    charges for maintenance and operation as limited by sections  33-802  2.,  and
  7    33-1002D, Idaho Code, shall not be subtracted from the maximum school district
  8    maintenance  and operation property taxes permitted in accordance with section
  9    33-802 2., Idaho Code. For purposes of  the  limitation  provided  by  section
 10    63-802,  Idaho  Code, moneys received pursuant to this section as property tax
 11    replacement for property exempt from taxation pursuant  to  section  63-602EE,
 12    Idaho Code, shall be treated as property tax revenues.
 13        (11) Any  moneys  remaining  over  and  above  those necessary to meet and
 14    reserve for payments under other subsections of this section shall be distrib-
 15    uted to the general fund.
                                                                        
 16        SECTION 5.  An emergency existing  therefor,  which  emergency  is  hereby
 17    declared to exist, this act shall be in full force and effect on and after its
 18    passage and approval, and retroactively to January 1, 2006.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                            RS 15513

This legislation reduces the maximum property tax levy for
Maintenance and Operations of schools from .3% to .15%. It also
repeals .10% of property tax replacement which has been capped at
$75,000,000 and is currently being funded through the general
fund.


                          FISCAL IMPACT

Property taxes will be reduced $125,000,000 to $135,000,000.   It
is expected that the appropriation from the general fund for
schools will increase by a similar amount.



Contact
Name:  Rep. Lake 
Phone: 332-1000
Sen. Keough



STATEMENT OF PURPOSE/FISCAL NOTE                         H 424