2006 Legislation
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HOUSE BILL NO. 478 – Taxing dist, budget request, limit

HOUSE BILL NO. 478

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Bill Status



H0478...............................................by REVENUE AND TAXATION
TAXING DISTRICTS - Amends existing law to provide that no taxing district
shall certify a budget request for an amount of property tax revenues to
finance an annual budget that exceeds the dollar amount of property taxes
certified for its annual budget for any one of the three tax years
preceding the current tax year, whichever is greater, which amount may be
increased by a growth factor of not to exceed three percent, unless an
election is held to exceed the amount authorized.
                                                                        
01/26    House intro - 1st rdg - to printing
01/27    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. 478
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PROPERTY TAXES AND  TAXING  DISTRICTS;  AMENDING  SECTION  63-802,
  3        IDAHO  CODE,  TO  PROVIDE  THAT  NO TAXING DISTRICT SHALL CERTIFY A BUDGET
  4        REQUEST FOR AN AMOUNT OF PROPERTY TAX REVENUES TO FINANCE AN ANNUAL BUDGET
  5        THAT EXCEEDS THE DOLLAR AMOUNT OF PROPERTY TAXES CERTIFIED FOR ITS  ANNUAL
  6        BUDGET  FOR ANY ONE OF THE THREE TAX YEARS PRECEDING THE CURRENT TAX YEAR,
  7        WHICHEVER IS GREATER, WHICH AMOUNT MAY BE INCREASED BY A GROWTH FACTOR  OF
  8        NOT  TO  EXCEED  THREE  PERCENT  UNLESS  AN ELECTION IS HELD TO EXCEED THE
  9        AMOUNT AUTHORIZED BY THIS ACT; DECLARING AN EMERGENCY AND PROVIDING RETRO-
 10        ACTIVE APPLICATION.
                                                                        
 11    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 12        SECTION 1.  That Section 63-802, Idaho Code, be, and the  same  is  hereby
 13    amended to read as follows:
                                                                        
 14        63-802.  LIMITATION  ON  BUDGET  REQUESTS  -- LIMITATION ON TAX CHARGES --
 15    EXCEPTIONS. (1) Except as provided in subsection (32) of this section for  tax
 16    year  1995  2006, and each year thereafter, no taxing district shall certify a
 17    budget request for an amount of property tax revenues  to  finance  an  annual
 18    budget that exceeds the greater of:
 19        (a)  Tthe  dollar amount of property taxes certified for its annual budget
 20        for any one (1) of the three (3) tax years preceding the current tax year,
 21        whichever is greater, which amount may be increased by a growth factor  of
 22        not  to  exceed  three percent (3%); plus the amount of revenue that would
 23        have been generated by applying the levy of the previous year, not includ-
 24        ing any levy described in subsection (4) of this section, to any  increase
 25        in  market  value  subject  to taxation resulting from new construction or
 26        change of land use classification as evidenced by the value shown  on  the
 27        new  construction  roll  compiled pursuant to section 63-301A, Idaho Code;
 28        and by the value of annexation during the previous calendar year, as  cer-
 29        tified by the state tax commission for market values of operating property
 30        of public utilities and by 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 except as may be provided in subsection (1)(h) of
 35        this section; or
 36        (d)  In the case of school districts, the restriction imposed  in  section
 37        33-802, Idaho Code; or
 38        (e)  In  the  case of a nonschool district for which less than the maximum
 39        allowable increase in the dollar amount of property  taxes  is   certified
 40        for  annual  budget  purposes in any one (1) year, such a district may, in
 41        any following year, recover the foregone increase by certifying, in  addi-
 42        tion  to  any increase otherwise allowed, an amount not to exceed one hun-
 43        dred percent (100%) of the increase originally foregone.  Said  additional
                                                                        
                                           2
                                                                        
  1        amount  shall be included in future calculations for increases as allowed;
  2        or
  3        (f)  In the case of cities, if the immediately preceding year's levy  sub-
  4        ject  to  the limitation provided by this section, is less than 0.004, the
  5        city may increase its budget by an amount not  to  exceed  the  difference
  6        between  0.004 and actual prior year's levy multiplied by the prior year's
  7        market value for assessment purposes.  The  additional  amount  must    be
  8        approved by sixty percent (60%) of the voters voting on the question at an
  9        election  called  for that purpose and held on the date in May or November
 10        provided by law, and may  be included in the annual budget of the city for
 11        purposes of this section; or
 12        (g2)  A taxing district may submit to the electors within the district the
 13        question of whether the budget from property tax revenues may be increased
 14        beyond the amount authorized in this section,  but  not  beyond  the  levy
 15        authorized by statute. The additional amount must be approved by sixty-six
 16        and two-thirds percent (66 2/3%) or more of the voters voting on the ques-
 17        tion  at an election called for that purpose and held on the May or Novem-
 18        ber dates provided by section 34-106,  Idaho  Code.  If  approved  by  the
 19        required  minimum sixty-six and two-thirds percent (66 2/3%) of the voters
 20        voting at the election, the new budget amount shall be the base budget for
 21        the purposes of this section.; or
 22        (h)  When a nonschool district consolidates with  another  nonschool  dis-
 23        trict  or  dissolves  and  a  new district performing similar governmental
 24        functions as the dissolved district forms with the same boundaries  within
 25        three (3) years, the maximum amount of a budget of the district from prop-
 26        erty  tax  revenues  shall not be greater than the sum of the amounts that
 27        would have been authorized by this section for the district itself or  for
 28        the  districts that were consolidated or dissolved and incorporated into a
 29        new district; or
 30        (i)  In the instance or case of cooperative service agencies, the restric-
 31        tions imposed in sections 33-315 through 33-318, Idaho Code.
 32        (2)  In the case of fire districts, during the year immediately  following
 33    the election of a public utility or public utilities to consent to be provided
 34    fire protection pursuant to section 31-1422, Idaho Code, the maximum amount of
 35    property  tax  revenues  permitted  in  subsection  (1) of this section may be
 36    increased by an amount equal to the current year's taxable value of  the  con-
 37    senting  public  utility or public utilities multiplied by that portion of the
 38    prior year's levy subject to the limitation provided by subsection (1) of this
 39    section.
 40        (3)  No board of county commissioners shall set  a  levy,  nor  shall  the
 41    state  tax  commission approve a levy for annual budget purposes which exceeds
 42    the limitation imposed in subsection (1) of this section, unless authority  to
 43    exceed  such  limitation  has  been  approved  by  a  majority  of  the taxing
 44    district's electors voting on the question at an election called for that pur-
 45    pose and held pursuant to section 34-106, Idaho Code, provided  however,  that
 46    such voter approval shall be for a period of not to exceed two (2) years.
 47        (4)  The  amount of property tax revenues to finance an annual budget does
 48    not include revenues from nonproperty tax sources, and does not include  reve-
 49    nue  from levies that are voter approved for bonds, override levies or supple-
 50    mental levies, plant facilities reserve fund  levies,  school  emergency  fund
 51    levies or for levies applicable to newly annexed property or for levies appli-
 52    cable to new construction as evidenced by the value of property subject to the
 53    occupancy  tax  pursuant  to section 63-317, Idaho Code, for the preceding tax
 54    year.
                                                                        
                                           3
                                                                        
  1        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
  2    declared to exist, this act shall be in full force and effect on and after its
  3    passage and approval, and retroactively to January 1, 2006.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15814

The proposed legislation limits all property tax portions of any
budget to a three percent (3%) increase per year.


                           FISCAL NOTE

There is no fiscal impact.









Contact
Name: Rep. Mike Moyle 
      Rep. Dolores Crow
      Rep. Jim Clark
Phone: (208) 332-1000




STATEMENT OF PURPOSE/FISCAL NOTE                         H 478