2006 Legislation
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HOUSE BILL NO. 480 – Tax dist budget/reduce property tax

HOUSE BILL NO. 480

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H0480aa.............................................by REVENUE AND TAXATION
PROPERTY TAX - Adds to and amends existing law to provide a mechanism for
the voters of certain taxing districts to reduce the property tax portion
of the taxing district's budget for the following fiscal year, with
exceptions; to define terms; to provide procedures; to provide a
restriction imposed by statute for indigent assistance; to provide the
amount of the property tax portion of a taxing district's budget in the
event a taxing district's property tax portion of its budget is established
pursuant to a property tax reduction election; to provide for an increase
of that amount according to certain factors; and to limit foregone
increases.
                                                                        
01/26    House intro - 1st rdg - to printing
01/27    Rpt prt - to Rev/Tax
02/15    Rpt out - to Gen Ord
02/16    Rpt out amen - to engros
02/17    Rpt engros - 1st rdg - to 2nd rdg as amen
    Rls susp - PASSED - 62-7-1
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart(Jacobson), Harwood,
      Henbest, Henderson, Kemp, Lake, LeFavour, Loertscher, Mathews,
      McGeachin, McKague, Mitchell, Moyle, Nielsen, Nonini, Pence,
      Raybould, Ring, Roberts, Rydalch, Sali, Sayler, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(24), Smylie,
      Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
      NAYS -- Boe, Jaquet, Martinez, Pasley-Stuart, Ringo, Rusche,
      Smith(30)
      Absent and excused -- Miller
    Floor Sponsor - Moyle
    Title apvd - to Senate
02/20    Senate intro - 1st rdg - to Loc Gov

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 480
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LIMITATION OF PROPERTY TAXES; AMENDING CHAPTER 8, TITLE 63,  IDAHO
  3        CODE,  BY  THE ADDITION OF A NEW SECTION 63-802B, IDAHO CODE, TO PROVIDE A
  4        MECHANISM FOR THE VOTERS OF CERTAIN TAXING DISTRICTS TO REDUCE  THE  PROP-
  5        ERTY  TAX PORTION OF THE TAXING DISTRICT'S BUDGET FOR THE FOLLOWING FISCAL
  6        YEAR, TO DEFINE TERMS AND TO PROVIDE PROCEDURES; AMENDING SECTION  63-802,
  7        IDAHO  CODE,  TO PROVIDE A RESTRICTION IMPOSED BY LAW ON SCHOOL DISTRICTS,
  8        TO PROVIDE FOR A LIMIT ON AN INCREASE IN THE  EVENT  A  TAXING  DISTRICT'S
  9        PROPERTY  TAX  PORTION OF ITS BUDGET IS ESTABLISHED PURSUANT TO A PROPERTY
 10        TAX REDUCTION ELECTION AND TO LIMIT FOREGONE INCREASES;  PROVIDING  SEVER-
 11        ABILITY; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
                                                                        
 12    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 13        SECTION  1.  That  Chapter  8,  Title  63, Idaho Code, be, and the same is
 14    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 15    ignated as Section 63-802B, Idaho Code, and to read as follows:
                                                                        
 16        63-802B.  TAXPAYER  PROPERTY  TAX  RELIEF. (1) Property tax is a local tax
 17    best controlled by registered voters in any given taxing district;  such  dis-
 18    trict  generally  having  been established at the request of the voters, or by
 19    legislative action to comply with provisions of the state's  constitution.  It
 20    is  therefor legislative intent that taxpayers have proper authority to resist
 21    excessive property taxes and, to this end, taxpayers in any given tax district
 22    may initiate local option property tax relief in the form of a budget  limita-
 23    tion  on the property tax portion of the district's budget. This section shall
 24    only apply to those taxing districts subject  to  the  provisions  of  section
 25    63-802,  Idaho  Code,  and  whose property tax portion of its budget equals or
 26    exceeds two hundred fifty thousand dollars ($250,000) annually.
 27        (2)  For the purpose of this section, the term "property  tax  portion  of
 28    the  district's budget" does not include revenues from nonproperty tax sources
 29    nor amounts or levies that  have  been  voter  approved  for  bonds,  override
 30    levies,  supplemental  levies,  levies  applicable  to newly annexed property,
 31    school districts or levies for newly created taxing districts.
 32        (3)  After a district has adopted a  budget  for  the  forthcoming  fiscal
 33    year,  electors who are registered to vote in the taxing district may initiate
 34    a budget limitation election that places a budget limitation on  the  property
 35    tax  portion  of  the  district's budget. The limit shall be the amount estab-
 36    lished by the election in the district which amount shall be effective for the
 37    district's next fiscal year following the election. In the event  of  multiple
 38    petitions,  the petition first certified by the taxing district clerk shall be
 39    the question for election. An election may be held pursuant to section 63-802,
 40    Idaho Code, for an override of the budget limitation. The budget limitation of
 41    this section shall be automatically terminated in the event a district subject
 42    to the limitation shall consolidate or  combine  with  another  district.  The
 43    newly  formed  district shall be subject to all of the provisions of this sec-
                                                                        
                                           2
                                                                        
  1    tion as a newly created taxing district.
  2        (4)  Qualified electors may initiate any  budget  limitation  election  by
  3    submitting  a  petition  to  the governing board of the district that has been
  4    signed by twenty-five (25) residents of the district. The petition shall be in
  5    substantially the following form:
  6                              BUDGET LIMITATION PETITION
                                                                        
  7             To the (name of the taxing district):
  8             We, the undersigned agree that the property tax portion  of  the
  9        district's budget, as most recently adopted by the district governing
 10        board,  is  excessive  in  its  demand for increased property tax and
 11        request that the following question be placed on the ballot to wit:
 12             "Shall the property tax portion of the .... district's budget be
 13        limited to ....(insert dollar amount)....?".
 14        (5)  Upon receiving a signed petition, the governing board  clerk  of  the
 15    district  shall  review  the  petition  and  determine  whether the signatures
 16    thereon are valid. Upon a determination that sufficient signatures for passage
 17    are valid, the governing board may give  notice  and  hold  a  public  hearing
 18    within  thirty  (30)  days  to explain the currently adopted budget and future
 19    expectations and needs. Notice of such hearing  shall  be  prominently  adver-
 20    tised,  to  include the place, hour and day of the hearing. After the hearing,
 21    or if no hearing is held, the district shall conduct an election at the  first
 22    available  election  date. The election shall meet the requirements of section
 23    34-106, Idaho Code.  Notice of the election shall be posted at least ten  (10)
 24    days  prior  to the date of the election in at least one (1) conspicuous place
 25    in the district, such place to be determined by the governing board. At  least
 26    ten  (10)  days before the election, a copy of such notice shall also be  pub-
 27    lished in a daily or weekly newspaper published within  the  district,  in  at
 28    least one (1) issue thereof. If there is no newspaper within the district, the
 29    governing  board  shall advertise as specified above in a newspaper of general
 30    circulation within the district. The place, hour  and  day  of  such  election
 31    shall  be  specified  in the notice. Within seven (7) days after the election,
 32    the governing board shall canvass the ballots and certify the results  to  the
 33    county clerk and the state tax commission.
 34        (6)  If  a  budget  limitation election is held, the question for election
 35    shall be:
 36             "Shall the property tax portion of the district's budget be lim-
 37        ited to ....(insert dollar amount)....?".
 38        For this election:
 39        (a)  The term "property tax portion of the  district's  budget"  does  not
 40        include revenues from nonproperty tax sources and does not include revenue
 41        from levies that are voter approved for bonds, override levies, supplemen-
 42        tal  levies,  or  for  levies applicable to newly annexed property, or for
 43        levies for newly created taxing districts; and
 44        (b)  Budget limitation  elections may be initiated either  by  twenty-five
 45        (25)  residents of the district or the district's governing board. No more
 46        than one (1) budget limitation election may be held in any one (1) year.
 47        (7)  If a majority of the persons voting at the budget limitation election
 48    vote in favor of the question, the property tax portion of the district's bud-
 49    get  shall  be  limited  to the amount established by the registered voters in
 50    the district provided an override election pursuant to section  63-802,  Idaho
 51    Code, is not held and passed in the interim.
 52        (8)  The cost of publication, hearing or election required in this section
 53    shall  be  paid from any district fund which is not prohibited by statute from
 54    being used for this purpose.
                                                                        
                                           3
                                                                        
  1        SECTION 2.  That Section 63-802, Idaho Code, be, and the  same  is  hereby
  2    amended to read as follows:
                                                                        
  3        63-802.  LIMITATION  ON  BUDGET  REQUESTS  -- LIMITATION ON TAX CHARGES --
  4    EXCEPTIONS. (1) Except as provided in subsection (3) of this section  for  tax
  5    year  1995, and  each year thereafter, no taxing district shall certify a bud-
  6    get request for an amount of property tax revenues to finance an annual budget
  7    that exceeds the greater of:
  8        (a)  The dollar amount of property taxes certified for its  annual  budget
  9        for any one (1) of the three (3) tax years preceding the current tax year,
 10        whichever  is greater, which amount may be increased by a growth factor of
 11        not to exceed three percent (3%) plus the amount  of  revenue  that  would
 12        have been generated by applying the levy of the previous year, not includ-
 13        ing  any levy described in subsection (4) of this section, to any increase
 14        in market value subject to taxation resulting  from  new  construction  or
 15        change  of  land use classification as evidenced by the value shown on the
 16        new construction roll compiled pursuant to section  63-301A,  Idaho  Code;
 17        and  by the value of annexation during the previous calendar year, as cer-
 18        tified by the state tax commission for market values of operating property
 19        of public utilities and by the county assessor; or
 20        (b)  The dollar amount of property taxes certified for its  annual  budget
 21        during the last year in which a levy was made; or
 22        (c)  The  dollar  amount  of the actual budget request, if the taxing dis-
 23        trict is newly created except as may be provided in subsection  (1)(h)  of
 24        this section; or
 25        (d)  In  the  case of school districts, the restriction imposed in section
 26        33-802, Idaho Code by law; or
 27        (e)  In the case of a nonschool district for which less than  the  maximum
 28        allowable  increase  in  the dollar amount of property taxes is  certified
 29        for annual budget purposes in any one (1) year, such a  district  may,  in
 30        any  following year, recover the foregone increase by certifying, in addi-
 31        tion to any increase otherwise allowed, an amount not to exceed  one  hun-
 32        dred  percent  (100%) of the increase originally foregone. Said additional
 33        amount shall be included in future calculations for increases as  allowed;
 34        or
 35        (f)  In  the case of cities, if the immediately preceding year's levy sub-
 36        ject to the limitation provided by this section, is less than  0.004,  the
 37        city  may  increase  its  budget by an amount not to exceed the difference
 38        between 0.004 and actual prior year's levy multiplied by the prior  year's
 39        market  value  for  assessment  purposes.  The  additional  amount must be
 40        approved by sixty percent (60%) of the voters voting on the question at an
 41        election called for that purpose and held on the date in May  or  November
 42        provided by law, and may  be included in the annual budget of the city for
 43        purposes of this section; or
 44        (g)  A  taxing district may submit to the electors within the district the
 45        question of whether the budget from property tax revenues may be increased
 46        beyond the amount authorized in this section,  but  not  beyond  the  levy
 47        authorized by statute. The additional amount must be approved by sixty-six
 48        and two-thirds percent (66 2/3%) or more of the voters voting on the ques-
 49        tion  at an election called for that purpose and held on the May or Novem-
 50        ber dates provided by section 34-106,  Idaho  Code.  If  approved  by  the
 51        required  minimum sixty-six and two-thirds percent (66 2/3%) of the voters
 52        voting at the election, the new budget amount shall be the base budget for
 53        the purposes of this section; or
 54        (h)  When a nonschool district consolidates with  another  nonschool  dis-
                                                                        
                                           4
                                                                        
  1        trict  or  dissolves  and  a  new district performing similar governmental
  2        functions as the dissolved district forms with the same boundaries  within
  3        three (3) years, the maximum amount of a budget of the district from prop-
  4        erty  tax  revenues  shall not be greater than the sum of the amounts that
  5        would have been authorized by this section for the district itself or  for
  6        the  districts that were consolidated or dissolved and incorporated into a
  7        new district; or
  8        (i)  In the instance or case of cooperative service agencies, the restric-
  9        tions imposed in sections 33-315 through 33-318, Idaho Code.
 10        (2)  In the case of fire districts, during the year immediately  following
 11    the election of a public utility or public utilities to consent to be provided
 12    fire protection pursuant to section 31-1422, Idaho Code, the maximum amount of
 13    property  tax  revenues  permitted  in  subsection  (1) of this section may be
 14    increased by an amount equal to the current year's taxable value of  the  con-
 15    senting  public  utility or public utilities multiplied by that portion of the
 16    prior year's levy subject to the limitation provided by subsection (1) of this
 17    section.
 18        (3)  No board of county commissioners shall set  a  levy,  nor  shall  the
 19    state  tax  commission approve a levy for annual budget purposes which exceeds
 20    the limitation imposed in subsection  (1)  or  (5)  of  this  section,  unless
 21    authority  to  exceed  such  limitation has been approved by a majority of the
 22    taxing district's electors voting on the question at an  election  called  for
 23    that  purpose  and  held pursuant to section 34-106, Idaho Code, provided how-
 24    ever, that such voter approval shall be for a period of not to exceed two  (2)
 25    years.
 26        (4)  The  amount of property tax revenues to finance an annual budget does
 27    not include revenues from nonproperty tax sources, and does not include  reve-
 28    nue  from levies that are voter approved for bonds, override levies or supple-
 29    mental levies, plant facilities reserve fund  levies,  school  emergency  fund
 30    levies or for levies applicable to newly annexed property or for levies appli-
 31    cable to new construction as evidenced by the value of property subject to the
 32    occupancy  tax  pursuant  to section 63-317, Idaho Code, for the preceding tax
 33    year.
 34        (5)  In the event an election is held pursuant to section  63-802B,  Idaho
 35    Code,  and  the  property tax portion of a taxing district's budget is reduced
 36    pursuant to that election, the amount of  the  property  tax  portion  of  the
 37    district's  budget  that  has  been  reduced pursuant to election shall be the
 38    amount that may be increased by a growth factor of not to exceed three percent
 39    (3%) plus the amount of revenue that would have been generated by applying the
 40    levy of the previous year, not including any levy described in subsection  (4)
 41    of this section, to any increase in market value subject to taxation resulting
 42    from new construction or change of land use classification as evidenced by the
 43    value shown on the new construction roll compiled pursuant to section 63-301A,
 44    Idaho  Code; and by the value of annexation during the previous calendar year,
 45    as certified by the state tax commission for market values of operating  prop-
 46    erty  of  public utilities and by the county assessor. In the year of the ini-
 47    tial reduction, the taxing district shall not be eligible to recover the fore-
 48    gone increase pursuant to subsection (1)(e) of this section.
                                                                        
 49        SECTION 3.  SEVERABILITY.  The provisions of this act are hereby  declared
 50    to  be  severable  and if any provision of this act or the application of such
 51    provision to any person or circumstance is declared invalid  for  any  reason,
 52    such  declaration  shall  not affect the validity of the remaining portions of
 53    this act.
                                                                        
                                           5
                                                                        
  1        SECTION 4.  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.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                                     Moved by    Moyle               
                                                                        
                                                     Seconded by Crow                
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENTS TO H.B. NO. 480
                                                                        
  1                               AMENDMENTS TO SECTION 1
  2        On page 2 of the printed bill,  delete  lines  3  through  5  and  insert:
  3    "submitting  a  petition  that has been signed by residents of the district to
  4    the governing board of the district equal to or exceeding ten percent (10%) of
  5    the number of voters voting at the last election of the taxing  district.  The
  6    petition  shall  be  in  substantially  the  following form:"; delete lines 44
  7    through 46 and insert:
  8        "(b)  Budget limitation elections may be initiated either by the number of
  9        residents of the district equal to or exceeding ten percent (10%)  of  the
 10        number of voters voting at the last election of the taxing district or the
 11        district's  governing  board. No more than one (1) budget limitation elec-
 12        tion may be held in any one (1) year.";
 13    and delete line 47 and insert:
 14        "(7)  If sixty-six and two-thirds percent (66 2/3%) or more of the persons
 15    voting at the budget limitation election".
                                                                        
 16                                AMENDMENT TO SECTION 2
 17        On page 3, delete lines 25 and 26 and insert:
 18        "(d)  In the case of school districts, the restriction imposed in  section
 19        33-802,  Idaho  Code, in the case of counties for indigent assistance, the
 20        restriction imposed in section 31-863, Idaho Code; or".
                                                                        
 21                                 CORRECTIONS TO TITLE
 22        On page 1, in line 6  following  "YEAR"  insert:  "WITH  EXCEPTIONS";  and
 23    delete  line 7, and insert: "IDAHO CODE, TO PROVIDE A RESTRICTION IMPOSED BY A
 24    STATUTE FOR INDIGENT ASSISTANCE,".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                               HOUSE BILL NO. 480, As Amended
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LIMITATION OF PROPERTY TAXES; AMENDING CHAPTER 8, TITLE 63,  IDAHO
  3        CODE,  BY  THE ADDITION OF A NEW SECTION 63-802B, IDAHO CODE, TO PROVIDE A
  4        MECHANISM FOR THE VOTERS OF CERTAIN TAXING DISTRICTS TO REDUCE  THE  PROP-
  5        ERTY  TAX PORTION OF THE TAXING DISTRICT'S BUDGET FOR THE FOLLOWING FISCAL
  6        YEAR WITH EXCEPTIONS, TO DEFINE TERMS AND TO PROVIDE PROCEDURES;  AMENDING
  7        SECTION  63-802, IDAHO CODE, TO PROVIDE A RESTRICTION IMPOSED BY A STATUTE
  8        FOR INDIGENT ASSISTANCE, TO PROVIDE FOR A LIMIT  ON  AN  INCREASE  IN  THE
  9        EVENT  A  TAXING  DISTRICT'S  PROPERTY TAX PORTION OF ITS BUDGET IS ESTAB-
 10        LISHED PURSUANT TO A PROPERTY TAX REDUCTION ELECTION AND TO LIMIT FOREGONE
 11        INCREASES; PROVIDING SEVERABILITY; DECLARING AN  EMERGENCY  AND  PROVIDING
 12        RETROACTIVE APPLICATION.
                                                                        
 13    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 14        SECTION  1.  That  Chapter  8,  Title  63, Idaho Code, be, and the same is
 15    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 16    ignated as Section 63-802B, Idaho Code, and to read as follows:
                                                                        
 17        63-802B.  TAXPAYER  PROPERTY  TAX  RELIEF. (1) Property tax is a local tax
 18    best controlled by registered voters in any given taxing district;  such  dis-
 19    trict  generally  having  been established at the request of the voters, or by
 20    legislative action to comply with provisions of the state's  constitution.  It
 21    is  therefor legislative intent that taxpayers have proper authority to resist
 22    excessive property taxes and, to this end, taxpayers in any given tax district
 23    may initiate local option property tax relief in the form of a budget  limita-
 24    tion  on the property tax portion of the district's budget. This section shall
 25    only apply to those taxing districts subject  to  the  provisions  of  section
 26    63-802,  Idaho  Code,  and  whose property tax portion of its budget equals or
 27    exceeds two hundred fifty thousand dollars ($250,000) annually.
 28        (2)  For the purpose of this section, the term "property  tax  portion  of
 29    the  district's budget" does not include revenues from nonproperty tax sources
 30    nor amounts or levies that  have  been  voter  approved  for  bonds,  override
 31    levies,  supplemental  levies,  levies  applicable  to newly annexed property,
 32    school districts or levies for newly created taxing districts.
 33        (3)  After a district has adopted a  budget  for  the  forthcoming  fiscal
 34    year,  electors who are registered to vote in the taxing district may initiate
 35    a budget limitation election that places a budget limitation on  the  property
 36    tax  portion  of  the  district's budget. The limit shall be the amount estab-
 37    lished by the election in the district which amount shall be effective for the
 38    district's next fiscal year following the election. In the event  of  multiple
 39    petitions,  the petition first certified by the taxing district clerk shall be
 40    the question for election. An election may be held pursuant to section 63-802,
 41    Idaho Code, for an override of the budget limitation. The budget limitation of
 42    this section shall be automatically terminated in the event a district subject
 43    to the limitation shall consolidate or  combine  with  another  district.  The
                                                                        
                                           2
                                                                        
  1    newly  formed  district shall be subject to all of the provisions of this sec-
  2    tion as a newly created taxing district.
  3        (4)  Qualified electors may initiate any  budget  limitation  election  by
  4    submitting a petition that has been signed by residents of the district to the
  5    governing board of the district equal to or exceeding ten percent (10%) of the
  6    number of voters voting at the last election of the taxing district. The peti-
  7    tion shall be in substantially the following form:
  8                              BUDGET LIMITATION PETITION
                                                                        
  9             To the (name of the taxing district):
 10             We,  the  undersigned agree that the property tax portion of the
 11        district's budget, as most recently adopted by the district governing
 12        board, is excessive in its demand  for  increased  property  tax  and
 13        request that the following question be placed on the ballot to wit:
 14             "Shall the property tax portion of the .... district's budget be
 15        limited to ....(insert dollar amount)....?".
 16        (5)  Upon  receiving  a  signed petition, the governing board clerk of the
 17    district shall review  the  petition  and  determine  whether  the  signatures
 18    thereon are valid. Upon a determination that sufficient signatures for passage
 19    are  valid,  the  governing  board  may  give notice and hold a public hearing
 20    within thirty (30) days to explain the currently  adopted  budget  and  future
 21    expectations  and  needs.  Notice  of such hearing shall be prominently adver-
 22    tised, to include the place, hour and day of the hearing. After  the  hearing,
 23    or  if no hearing is held, the district shall conduct an election at the first
 24    available election date. The election shall meet the requirements  of  section
 25    34-106,  Idaho Code.  Notice of the election shall be posted at least ten (10)
 26    days prior to the date of the election in at least one (1)  conspicuous  place
 27    in  the district, such place to be determined by the governing board. At least
 28    ten (10) days before the election, a copy of such notice shall also  be   pub-
 29    lished  in  a  daily  or weekly newspaper published within the district, in at
 30    least one (1) issue thereof. If there is no newspaper within the district, the
 31    governing board shall advertise as specified above in a newspaper  of  general
 32    circulation  within  the  district.  The  place, hour and day of such election
 33    shall be specified in the notice. Within seven (7) days  after  the  election,
 34    the  governing  board shall canvass the ballots and certify the results to the
 35    county clerk and the state tax commission.
 36        (6)  If a budget limitation election is held, the  question  for  election
 37    shall be:
 38             "Shall the property tax portion of the district's budget be lim-
 39        ited to ....(insert dollar amount)....?".
 40        For this election:
 41        (a)  The  term  "property  tax  portion of the district's budget" does not
 42        include revenues from nonproperty tax sources and does not include revenue
 43        from levies that are voter approved for bonds, override levies, supplemen-
 44        tal levies, or for levies applicable to newly  annexed  property,  or  for
 45        levies for newly created taxing districts; and
 46        (b)  Budget  limitation elections may be initiated either by the number of
 47        residents of the district equal to or exceeding ten percent (10%)  of  the
 48        number of voters voting at the last election of the taxing district or the
 49        district's  governing  board. No more than one (1) budget limitation elec-
 50        tion may be held in any one (1) year.
 51        (7)  If sixty-six and two-thirds percent (66 2/3%) or more of the  persons
 52    voting  at  the  budget limitation election vote in favor of the question, the
 53    property tax portion of the district's budget shall be limited  to the  amount
 54    established  by  the  registered  voters  in the district provided an override
                                                                        
                                           3
                                                                        
  1    election pursuant to section 63-802, Idaho Code, is not held and passed in the
  2    interim.
  3        (8)  The cost of publication, hearing or election required in this section
  4    shall be paid from any district fund which is not prohibited by  statute  from
  5    being used for this purpose.
                                                                        
  6        SECTION  2.  That  Section  63-802, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
                                                                        
  8        63-802.  LIMITATION ON BUDGET REQUESTS -- LIMITATION  ON  TAX  CHARGES  --
  9    EXCEPTIONS.  (1)  Except as provided in subsection (3) of this section for tax
 10    year 1995, and  each year thereafter, no taxing district shall certify a  bud-
 11    get request for an amount of property tax revenues to finance an annual budget
 12    that exceeds the greater of:
 13        (a)  The  dollar  amount of property taxes certified for its annual budget
 14        for any one (1) of the three (3) tax years preceding the current tax year,
 15        whichever is greater, which amount may be increased by a growth factor  of
 16        not  to  exceed  three  percent (3%) plus the amount of revenue that would
 17        have been generated by applying the levy of the previous year, not includ-
 18        ing any levy described in subsection (4) of this section, to any  increase
 19        in  market  value  subject  to taxation resulting from new construction or
 20        change of land use classification as evidenced by the value shown  on  the
 21        new  construction  roll  compiled pursuant to section 63-301A, Idaho Code;
 22        and by the value of annexation during the previous calendar year, as  cer-
 23        tified by the state tax commission for market values of operating property
 24        of public utilities and by the county assessor; or
 25        (b)  The  dollar  amount of property taxes certified for its annual budget
 26        during the last year in which a levy was made; or
 27        (c)  The dollar amount of the actual budget request, if  the  taxing  dis-
 28        trict  is  newly created except as may be provided in subsection (1)(h) of
 29        this section; or
 30        (d)  In the case of school districts, the restriction imposed  in  section
 31        33-802,  Idaho  Code, in the case of counties for indigent assistance, the
 32        restriction imposed in section 31-863, Idaho Code; or
 33        (e)  In the case of a nonschool district for which less than  the  maximum
 34        allowable  increase  in  the dollar amount of property taxes is  certified
 35        for annual budget purposes in any one (1) year, such a  district  may,  in
 36        any  following year, recover the foregone increase by certifying, in addi-
 37        tion to any increase otherwise allowed, an amount not to exceed  one  hun-
 38        dred  percent  (100%) of the increase originally foregone. Said additional
 39        amount shall be included in future calculations for increases as  allowed;
 40        or
 41        (f)  In  the case of cities, if the immediately preceding year's levy sub-
 42        ject to the limitation provided by this section, is less than  0.004,  the
 43        city  may  increase  its  budget by an amount not to exceed the difference
 44        between 0.004 and actual prior year's levy multiplied by the prior  year's
 45        market  value  for  assessment  purposes.  The  additional  amount must be
 46        approved by sixty percent (60%) of the voters voting on the question at an
 47        election called for that purpose and held on the date in May  or  November
 48        provided by law, and may  be included in the annual budget of the city for
 49        purposes of this section; or
 50        (g)  A  taxing district may submit to the electors within the district the
 51        question of whether the budget from property tax revenues may be increased
 52        beyond the amount authorized in this section,  but  not  beyond  the  levy
 53        authorized by statute. The additional amount must be approved by sixty-six
                                                                        
                                           4
                                                                        
  1        and two-thirds percent (66 2/3%) or more of the voters voting on the ques-
  2        tion  at an election called for that purpose and held on the May or Novem-
  3        ber dates provided by section 34-106,  Idaho  Code.  If  approved  by  the
  4        required  minimum sixty-six and two-thirds percent (66 2/3%) of the voters
  5        voting at the election, the new budget amount shall be the base budget for
  6        the purposes of this section; or
  7        (h)  When a nonschool district consolidates with  another  nonschool  dis-
  8        trict  or  dissolves  and  a  new district performing similar governmental
  9        functions as the dissolved district forms with the same boundaries  within
 10        three (3) years, the maximum amount of a budget of the district from prop-
 11        erty  tax  revenues  shall not be greater than the sum of the amounts that
 12        would have been authorized by this section for the district itself or  for
 13        the  districts that were consolidated or dissolved and incorporated into a
 14        new district; or
 15        (i)  In the instance or case of cooperative service agencies, the restric-
 16        tions imposed in sections 33-315 through 33-318, Idaho Code.
 17        (2)  In the case of fire districts, during the year immediately  following
 18    the election of a public utility or public utilities to consent to be provided
 19    fire protection pursuant to section 31-1422, Idaho Code, the maximum amount of
 20    property  tax  revenues  permitted  in  subsection  (1) of this section may be
 21    increased by an amount equal to the current year's taxable value of  the  con-
 22    senting  public  utility or public utilities multiplied by that portion of the
 23    prior year's levy subject to the limitation provided by subsection (1) of this
 24    section.
 25        (3)  No board of county commissioners shall set  a  levy,  nor  shall  the
 26    state  tax  commission approve a levy for annual budget purposes which exceeds
 27    the limitation imposed in subsection  (1)  or  (5)  of  this  section,  unless
 28    authority  to  exceed  such  limitation has been approved by a majority of the
 29    taxing district's electors voting on the question at an  election  called  for
 30    that  purpose  and  held pursuant to section 34-106, Idaho Code, provided how-
 31    ever, that such voter approval shall be for a period of not to exceed two  (2)
 32    years.
 33        (4)  The  amount of property tax revenues to finance an annual budget does
 34    not include revenues from nonproperty tax sources, and does not include  reve-
 35    nue  from levies that are voter approved for bonds, override levies or supple-
 36    mental levies, plant facilities reserve fund  levies,  school  emergency  fund
 37    levies or for levies applicable to newly annexed property or for levies appli-
 38    cable to new construction as evidenced by the value of property subject to the
 39    occupancy  tax  pursuant  to section 63-317, Idaho Code, for the preceding tax
 40    year.
 41        (5)  In the event an election is held pursuant to section  63-802B,  Idaho
 42    Code,  and  the  property tax portion of a taxing district's budget is reduced
 43    pursuant to that election, the amount of  the  property  tax  portion  of  the
 44    district's  budget  that  has  been  reduced pursuant to election shall be the
 45    amount that may be increased by a growth factor of not to exceed three percent
 46    (3%) plus the amount of revenue that would have been generated by applying the
 47    levy of the previous year, not including any levy described in subsection  (4)
 48    of this section, to any increase in market value subject to taxation resulting
 49    from new construction or change of land use classification as evidenced by the
 50    value shown on the new construction roll compiled pursuant to section 63-301A,
 51    Idaho  Code; and by the value of annexation during the previous calendar year,
 52    as certified by the state tax commission for market values of operating  prop-
 53    erty  of  public utilities and by the county assessor. In the year of the ini-
 54    tial reduction, the taxing district shall not be eligible to recover the fore-
 55    gone increase pursuant to subsection (1)(e) of this section.
                                                                        
                                           5
                                                                        
  1        SECTION 3.  SEVERABILITY.  The provisions of this act are hereby  declared
  2    to  be  severable  and if any provision of this act or the application of such
  3    provision to any person or circumstance is declared invalid  for  any  reason,
  4    such  declaration  shall  not affect the validity of the remaining portions of
  5    this act.
                                                                        
  6        SECTION 4.  An emergency existing  therefor,  which  emergency  is  hereby
  7    declared to exist, this act shall be in full force and effect on and after its
  8    passage and approval, and retroactively to January 1, 2006.

Statement of Purpose / Fiscal Impact


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                       STATEMENT OF PURPOSE

                             RS 15690

This legislation will amend Chapter 8, Title 63, Idaho Code.
By a vote of the people a taxing district budget could be
limited.


                           FISCAL NOTE

Requires 10% of voters in last election to sign a petition.
Requires 66 2/3rd voter approval to pass.



Contact
Name: Rep. Mike Moyle 
Phone: (208) 332-1000

 
STATEMENT OF PURPOSE/FISCAL NOTE                         H 480 AA