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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
]]]] 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
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