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H0495..............................................................by RINGO SALES TAX - SCHOOLS - Adds to existing law to increase the sales and use tax by one cent effective July 1, 2006; and to provide that the increased revenue be used for the funding of public schools. 01/27 House intro - 1st rdg - to printing 01/30 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. 495 BY RINGO 1 AN ACT 2 RELATING TO THE SALES AND USE TAX AND FUNDING FOR THE PUBLIC SCHOOLS; AMEND- 3 ING CHAPTER 36, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 4 63-3641, IDAHO CODE, TO IMPOSE AN ADDITIONAL ONE PERCENT SALES AND USE 5 TAX, TO PROVIDE FOR STATE TAX COMMISSION AUTHORITY AND TO PROVIDE FOR 6 DEPOSIT OF MONEYS; AMENDING CHAPTER 9, TITLE 33, IDAHO CODE, BY THE ADDI- 7 TION OF NEW SECTIONS 33-908, 33-909, 33-910, 33-911, 33-912, 33-913 AND 8 33-914, IDAHO CODE, TO PROVIDE A SHORT TITLE, TO PROVIDE THE PURPOSE FOR 9 RAISING THE SALES AND USE TAX, TO CREATE THE IDAHO LOCAL PUBLIC SCHOOLS 10 INVESTMENT FUND, TO PROVIDE FOR USE OF ENHANCED REVENUES, TO PROVIDE FOR 11 LOCAL ANNUAL ACCOUNTABILITY REPORTS ON USE OF REVENUES, TO PROVIDE FOR AN 12 ANNUAL GENERAL ACCOUNT APPROPRIATION AMOUNT AND TO PROVIDE FOR DISTRIBU- 13 TION OF THE GENERAL ACCOUNT APPROPRIATION AMOUNT. 14 Be It Enacted by the Legislature of the State of Idaho: 15 SECTION 1. That Chapter 36, Title 63, Idaho Code, be, and the same is 16 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 17 ignated as Section 63-3641, Idaho Code, and to read as follows: 18 63-3641. IMPOSITION AND RATE OF ADDITIONAL TAX. (1) On and after July 1, 19 2006, in addition to the taxes imposed by sections 63-3619 and 63-3621, Idaho 20 Code, there is hereby imposed a tax of one percent (1%) upon the same sales 21 and upon the same use, storage or other consumption as are taxed under sec- 22 tions 63-3619 and 63-3621, Idaho Code. The additional tax shall be collected 23 at the same time and in the same manner as taxes imposed under sections 24 63-3619 and 63-3621, Idaho Code, and shall be subject to all the collection, 25 enforcement and administrative provisions of chapter 36, title 63, Idaho Code. 26 (2) All taxes collected under this section, together with all interest, 27 penalties or other amounts relating to such taxes, shall not be subject to the 28 distribution provisions of section 63-3638, Idaho Code, but shall be deposited 29 in the Idaho local public schools investment fund created by section 33-910, 30 Idaho Code. 31 SECTION 2. That Chapter 9, Title 33, Idaho Code, be, and the same is 32 hereby amended by the addition thereto of NEW SECTIONS, to be known and desig- 33 nated as Sections 33-908, 33-909, 33-910, 33-911, 33-912, 33-913 and 33-914, 34 Idaho Code, and to read as follows: 35 33-908. SHORT TITLE. This act shall be entitled "The Idaho Local Public 36 Schools Investment Act." 37 33-909. INCREASE EDUCATION FUNDING FOR ALL K-12 PUBLIC SCHOOLS THROUGH 38 RAISING BY ONE PERCENT THE STATE SALES AND USE TAX RATE EFFECTIVE JULY 1, 39 2006. For the purpose of providing adequate and stable funding for Idaho's 40 K-12 public schools, effective July 1, 2006, the sales and use taxes imposed 2 1 shall be raised from the current five percent (5%) rate to, and be maintained 2 at, the rate of six percent (6%) as provided in section 63-3641, Idaho Code. 3 33-910. CREATION OF THE IDAHO LOCAL PUBLIC SCHOOLS INVESTMENT FUND. The 4 increased revenue derived from raising the sales and use taxes by one percent 5 (1%) shall be placed in the "Idaho Local Public Schools Investment Fund," 6 which is hereby created. All revenues placed in the Idaho local public schools 7 investment fund shall be utilized for funding public education at the K-12 8 level. The provisions of this act shall include and apply to public charter 9 schools. 10 33-911. USE OF ENHANCED REVENUES. Local school districts shall spend one 11 hundred percent (100%) of the revenues placed in the Idaho local public 12 schools investment fund on any of the following items designed to help improve 13 local schools and support students: 14 (1) Providing current and adequate classroom materials, such as textbooks 15 and supplies, for students; 16 (2) Providing every high school student with the opportunity to take 17 either college preparatory courses or professional and technical training 18 courses; 19 (3) Reducing class sizes and preventing class size increases; 20 (4) Attracting and retaining highly qualified teachers and other school 21 employees including, but not limited to, providing competitive salaries, 22 offering continuing education opportunities, and providing support for new 23 educators; 24 (5) Replacing out-of-date or broken technology such as computers that 25 students need for individualized learning and access to information; 26 (6) Restoring local educational programs previously eliminated or 27 reduced, enhancing existing educational programs, or providing new educational 28 programs with the goal of ensuring that Idaho student achievement levels meet 29 or exceed local, state and national standards and requirements; 30 (7) Providing classroom aides to help provide more individualized assis- 31 tance to students; 32 (8) Providing support for arts and music education in all public schools; 33 and 34 (9) Paying for routine school maintenance to protect the public's invest- 35 ment and promote student safety. 36 33-912. LOCAL ANNUAL ACCOUNTABILITY REPORTS ON USE OF REVENUES. In addi- 37 tion to its annual audit and in order to provide information to the public 38 about how revenues appropriated from the Idaho local public schools investment 39 fund were used, at least once annually the board of trustees of each local 40 school district shall issue a document available and easily accessible to the 41 general public identifying the provisions set forth in section 33-911, Idaho 42 Code, for which such additional revenues were utilized and benefitted stu- 43 dents. 44 33-913. ANNUAL GENERAL FUND APPROPRIATION AMOUNT. In order to augment, 45 rather than replace, K-12 public school support, the revenues in the Idaho 46 local public schools investment fund are to be provided in addition to the 47 state's general fund appropriation to K-12 public schools and not in place of 48 any part of that appropriation. To that end, the general fund appropriation 49 for K-12 public school support established during the 2005 legislative session 50 shall constitute the initial base funding level for K-12 public schools. In 51 every year thereafter, the general fund appropriation for K-12 public school 3 1 support shall consist, at minimum, of: 2 (1) The base funding amount for the prior year; 3 (2) Dedicated endowment lands, lottery dividends and miscellaneous reve- 4 nues, cigarette and lottery tax revenues, and federal funds; 5 (3) The revenues in the Idaho local public schools investment fund; 6 (4) Sufficient revenues to cover the cost of increased student enroll- 7 ment; and 8 (5) An annual inflationary factor, based on the percentage change in the 9 consumer price index for all urban consumers, as published by the bureau of 10 labor statistics, United States department of labor, from December of the sec- 11 ond previous year to December of the previous year. 12 The general fund appropriation for K-12 public school support may only be 13 reduced in future years if there is a decline in student enrollment greater 14 than ten percent (10%) statewide for two (2) or more consecutive years. 15 33-914. DISTRIBUTION OF GENERAL FUND APPROPRIATION AMOUNT. In every year, 16 the general fund appropriation for K-12 public school support, as determined 17 in section 33-913, Idaho Code, shall be distributed to local public schools as 18 provided in chapter 10, title 33, Idaho Code.
STATEMENT OF PURPOSE RS 15828 This legislation returns the sales tax rate to six percent (6%) effective July 1, 2006, for the purpose of providing adequate and stable funding for Idaho's K-12 public schools. FISCAL NOTE There will be no impact on the state general fund. This legislation directs the revenues from the increase in the sales tax into a newly created Idaho Local Public Schools Investment Fund which, along with other revenue sources, will be used exclusively for K-12 public education at the local level and which must be used for supporting students in the classroom and improving local public schools. Contact Name: Rep. Shirley Ringo Phone: 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 495