2006 Legislation
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HOUSE BILL NO. 508 – Taxing dist, budget request, limit

HOUSE BILL NO. 508

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Bill Status



H0508aaS............................................by REVENUE AND TAXATION
TAXING DISTRICTS - Amends existing law to allow a taxing district to
include fifty percent of the value of annexation during the previous
calendar year for property tax budget limitation purposes.
                                                                        
01/30    House intro - 1st rdg - to printing
01/31    Rpt prt - to Rev/Tax
02/13    Rpt out - rec d/p - to 2nd rdg
02/14    2nd rdg - to 3rd rdg
02/17    3rd rdg - PASSED - 42-27-1
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bayer, Bedke, Bell,
      Bilbao, Bolz, Brackett, Cannon, Chadderdon, Clark, Collins, Crow,
      Deal, Denney, Ellsworth, Eskridge, Field(18), Field(23),
      Hart(Jacobson), Harwood, Lake, Loertscher, Mathews, McGeachin,
      McKague, Moyle, Nielsen, Nonini, Ring, Roberts, Rydalch, Sali,
      Schaefer, Shepherd(8), Skippen, Stevenson, Wills, Wood, Mr. Speaker
      NAYS -- Bastian, Black, Block, Boe, Bradford, Edmunson, Garrett,
      Henbest, Henderson, Jaquet, Kemp, LeFavour, Martinez, Mitchell,
      Pasley-Stuart, Pence, Raybould, Ringo, Rusche, Sayler, Shepherd(2),
      Shirley, Smith(30), Smith(24), Smylie, Snodgrass, Trail
      Absent and excused -- Miller
    Floor Sponsor - Roberts
    Title apvd - to Senate
02/20    Senate intro - 1st rdg - to Loc Gov
03/24    Rpt out - to 14th Ord
03/28    Rpt out amen - to 1st rdg as amen
03/29    1st rdg - to 2nd rdg as amen
03/30    2nd rdg - to 3rd rdg as amen
    Rls susp - PASSED - 25-7-3
      AYES -- Andreason, Brandt, Bunderson, Burkett, Burtenshaw, Corder,
      Darrington, Davis, Fulcher, Goedde, Hill, Jorgenson, Kelly,
      Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie,
      Richardson, Stegner, Stennett, Werk, Williams
      NAYS -- Broadsword, Compton, Gannon, Geddes, Keough, Pearce,
      Schroeder
      Absent and excused -- Cameron, Coiner, Sweet
    Floor Sponsor - Corder
    Title apvd - to House
04/03    House did not concur in Senate amens
    Filed in Office of the Chief Clerk

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 508
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LIMITATION ON BUDGET REQUESTS OF TAXING DISTRICTS;  AMENDING  SEC-
  3        TION  63-802, IDAHO CODE, TO ALLOW A TAXING DISTRICT TO INCLUDE FIFTY PER-
  4        CENT OF THE VALUE OF ANNEXATION DURING  THE  PREVIOUS  CALENDAR  YEAR  FOR
  5        PROPERTY  TAX  BUDGET LIMITATION PURPOSES; DECLARING AN EMERGENCY AND PRO-
  6        VIDING RETROACTIVE APPLICATION.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION 1.  That Section 63-802, Idaho Code, be, and the  same  is  hereby
  9    amended to read as follows:
                                                                        
 10        63-802.  LIMITATION  ON  BUDGET  REQUESTS  -- LIMITATION ON TAX CHARGES --
 11    EXCEPTIONS. (1) Except as provided in subsection (3) of this section  for  tax
 12    year 1995, and each year thereafter, no taxing district shall certify a budget
 13    request  for  an  amount  of property tax revenues to finance an annual budget
 14    that exceeds the greater of:
 15        (a)  The dollar amount of property taxes certified for its  annual  budget
 16        for any one (1) of the three (3) tax years preceding the current tax year,
 17        whichever  is greater, which amount may be increased by a growth factor of
 18        not to exceed three percent (3%) plus the amount  of  revenue  that  would
 19        have been generated by applying the levy of the previous year, not includ-
 20        ing  any levy described in subsection (4) of this section, to any increase
 21        in market value subject to taxation resulting  from  new  construction  or
 22        change  of  land use classification as evidenced by the value shown on the
 23        new construction roll compiled pursuant to section  63-301A,  Idaho  Code;
 24        and by fifty percent (50%) of  the value of annexation during the previous
 25        calendar  year, as certified by the state tax commission for market values
 26        of operating property of public utilities and by the county assessor; or
 27        (b)  The dollar amount of property taxes certified for its  annual  budget
 28        during the last year in which a levy was made; or
 29        (c)  The  dollar  amount  of the actual budget request, if the taxing dis-
 30        trict is newly created except as may be provided in subsection  (1)(h)  of
 31        this section; or
 32        (d)  In  the  case of school districts, the restriction imposed in section
 33        33-802, Idaho Code; or
 34        (e)  In the case of a nonschool district for which less than  the  maximum
 35        allowable  increase  in  the dollar amount of property taxes is  certified
 36        for annual budget purposes in any one (1) year, such a  district  may,  in
 37        any  following year, recover the foregone increase by certifying, in addi-
 38        tion to any increase otherwise allowed, an amount not to exceed  one  hun-
 39        dred  percent  (100%) of the increase originally foregone. Said additional
 40        amount shall be included in future calculations for increases as  allowed;
 41        or
 42        (f)  In  the case of cities, if the immediately preceding year's levy sub-
 43        ject to the limitation provided by this section, is less than  0.004,  the
                                                                        
                                           2
                                                                        
  1        city  may  increase  its  budget by an amount not to exceed the difference
  2        between 0.004 and actual prior year's levy multiplied by the prior  year's
  3        market  value  for  assessment  purposes.  The  additional  amount must be
  4        approved by sixty percent (60%) of the voters voting on the question at an
  5        election called for that purpose and held on the date in May  or  November
  6        provided by law, and may  be included in the annual budget of the city for
  7        purposes of this section; or
  8        (g)  A  taxing district may submit to the electors within the district the
  9        question of whether the budget from property tax revenues may be increased
 10        beyond the amount authorized in this section,  but  not  beyond  the  levy
 11        authorized by statute. The additional amount must be approved by sixty-six
 12        and two-thirds percent (66 2/3%) or more of the voters voting on the ques-
 13        tion  at an election called for that purpose and held on the May or Novem-
 14        ber dates provided by section 34-106,  Idaho  Code.  If  approved  by  the
 15        required  minimum sixty-six and two-thirds percent (66 2/3%) of the voters
 16        voting at the election, the new budget amount shall be the base budget for
 17        the purposes of this section; or
 18        (h)  When a nonschool district consolidates with  another  nonschool  dis-
 19        trict  or  dissolves  and  a  new district performing similar governmental
 20        functions as the dissolved district forms with the same boundaries  within
 21        three (3) years, the maximum amount of a budget of the district from prop-
 22        erty  tax  revenues  shall not be greater than the sum of the amounts that
 23        would have been authorized by this section for the district itself or  for
 24        the  districts that were consolidated or dissolved and incorporated into a
 25        new district; or
 26        (i)  In the instance or case of cooperative service agencies, the restric-
 27        tions imposed in sections 33-315 through 33-318, Idaho Code.
 28        (2)  In the case of fire districts, during the year immediately  following
 29    the election of a public utility or public utilities to consent to be provided
 30    fire protection pursuant to section 31-1422, Idaho Code, the maximum amount of
 31    property  tax  revenues  permitted  in  subsection  (1) of this section may be
 32    increased by an amount equal to the current year's taxable value of  the  con-
 33    senting  public  utility or public utilities multiplied by that portion of the
 34    prior year's levy subject to the limitation provided by subsection (1) of this
 35    section.
 36        (3)  No board of county commissioners shall set  a  levy,  nor  shall  the
 37    state  tax  commission approve a levy for annual budget purposes which exceeds
 38    the limitation imposed in subsection (1) of this section, unless authority  to
 39    exceed  such  limitation  has  been  approved  by  a  majority  of  the taxing
 40    district's electors voting on the question at an election called for that pur-
 41    pose and held pursuant to section 34-106, Idaho Code, provided  however,  that
 42    such voter approval shall be for a period of not to exceed two (2) years.
 43        (4)  The  amount of property tax revenues to finance an annual budget does
 44    not include revenues from nonproperty tax sources, and does not include  reve-
 45    nue  from levies that are voter approved for bonds, override levies or supple-
 46    mental levies, plant facilities reserve fund  levies,  school  emergency  fund
 47    levies  or for levies applicable to fifty percent (50%) of the market value of
 48    newly annexed property or for levies applicable to new  construction  as  evi-
 49    denced  by the value of property subject to the occupancy tax pursuant to sec-
 50    tion 63-317, Idaho Code, for the preceding tax year.
                                                                        
 51        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
 52    declared to exist, this act shall be in full force and effect on and after its
 53    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    Bunderson           
                                                                        
                                                     Seconded by Corder              
                                                                        
                                                                        
                                       IN THE SENATE
                              SENATE AMENDMENT TO H.B. NO. 508
                                                                        
                                                                        
  1                                AMENDMENT TO THE BILL
  2        On page 1 of the printed bill, delete lines 8 through 43, and  on  page  2
  3    delete lines 1 through 53 and insert:
                                                                        
  4        "SECTION  1.  That  Chapter  8,  Title 63, Idaho Code, be, and the same is
  5    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  6    ignated as Section 63-802B, Idaho Code, and to read as follows:
                                                                        
  7        63-802B.  TRUTH  IN TAXATION -- NOTICE OF INCREASES IN PROPERTY TAXES. (1)
  8    No taxing district shall certify to the board of county  commissioners  or  to
  9    the  state  tax  commission  an amount of property tax revenues to finance its
 10    annual budget that exceeds by more than three percent (3%) of  the  amount  of
 11    the  property  tax  rate or of the  property tax revenues certified to finance
 12    that district's annual budget for the tax year preceding the current tax  year
 13    until the taxing district shall advertise its intent to adopt such a budget or
 14    increase  in  tax  rate    in  a  newspaper qualified for publication of legal
 15    notices by that taxing district under section 60-106, Idaho Code.
 16        (2)  The notice shall be published in a prominent  location  in  the  main
 17    news  section  of the newspaper once each week for the two (2) weeks preceding
 18    the date, if any, of the budget hearing set pursuant to section 63-802A, Idaho
 19    Code, or if no budget hearing is required, the adoption of the final budget.
 20        (3)  The notice shall include:
 21        (a)  A prominent bold typeface heading in type larger than the text of the
 22        notice, the words: "NOTICE OF  TAX  INCREASE,  ....(name  of  taxing  dis-
 23        trict)....".  The  taxing  district shall supply an estimate in the notice
 24        for typical homes with a one hundred thousand  dollar  ($100,000)  taxable
 25        value,  typical  farms with a one hundred fifty thousand dollar ($150,000)
 26        taxable value and typical businesses with a two  hundred  thousand  dollar
 27        ($200,000)  taxable  value,  all  valued during the past tax year with the
 28        following estimates: last year's taxable value, this year's estimated tax-
 29        able value, last year's actual taxes and this year's estimated taxes.  The
 30        taxing  district  may  consult  with the state tax commission in obtaining
 31        necessary estimates for purposes of this notice.
 32        (b)  The fact that the taxing district has proposed to increase the amount
 33        of property tax revenue to  fund its annual budget and the  percentage  of
 34        the increase over the prior year's budget;
 35        (c)  The  total  amount  of property tax revenue certified and approved by
 36        the district under section 63-803, Idaho Code, for the prior year and  the
 37        total amount proposed to be so certified for the current year; and
 38        (d)  The  time and place of the district's budget hearing, if a hearing is
 39        required, that the hearings shall be open to the public, and,  whether  or
 40        not  a hearing is required, the means by which any person may submit writ-
 41        ten comments on the budget at or before the time of the hearing.
                                                                        
                                          2
                                                                        
  1        (4)  As used in this section, the term "amount of property  tax  revenues"
  2    means  the  amount  determined  without  regard to amounts applicable to voter
  3    approved levies.   The amount of property tax revenues to  finance  an  annual
  4    budget  does  not  include revenues from nonproperty tax sources, and does not
  5    include revenue from levies that are  voter  approved    for  bonds,  override
  6    levies  or  supplemental  levies, plant facilities reserve fund levies, school
  7    emergency fund levies or for levies applicable to newly  annexed  property  or
  8    for  levies  applicable to new construction as evidenced by the value of prop-
  9    erty subject to the occupancy tax pursuant to section 63-317, Idaho Code,  for
 10    the  preceding tax year. As used in this section "taxing district"  means  any
 11    county, any political subdivision of the  state,  any  municipal  corporation,
 12    including  specially  chartered  cities,  any school districts, including spe-
 13    cially chartered school districts, any  quasi-municipal  corporation,  or  any
 14    other  public  corporation  authorized  by law to levy taxes, now or hereafter
 15    organized.
 16        (5)  Alternatively to the required newspaper notice, a taxing district may
 17    substitute a single mailing notice to all district residents,  providing  that
 18    the same information is given and providing that the notice shall be mailed at
 19    least  fourteen  (14)  days  before the budget hearing set pursuant to section
 20    63-802A, Idaho Code, or if no budget hearing is required, the adoption of  the
 21    final budget.
 22        (6)  The  state  tax  commission may by rule establish additional require-
 23    ments relating to content or form of the notice required by this section.
 24        (7)  No direct or collateral action attacking or otherwise questioning the
 25    validity of any notice under this section shall be brought in any court by any
 26    person for any cause whatsoever, after the expiration of thirty (30) days from
 27    the adoption of the budget to which the notice related and the  regularity  of
 28    such notice shall be conclusively presumed.
                                                                        
 29        SECTION  2.  That  Section  63-308, Idaho Code, be, and the same is hereby
 30    amended to read as follows:
                                                                        
 31        63-308.  VALUATION ASSESSMENT NOTICE TO BE  FURNISHED  TAXPAYER.  (1)  The
 32    valuation  assessment  notice  required  under  the provisions of this chapter
 33    shall be delivered to the taxpayer, or to  his  agent  or  representative,  or
 34    mailed  to  the  taxpayer, or to his agent or representative at his last known
 35    post office address no later than the first Monday in June. The original valu-
 36    ation assessment notice so mailed or delivered must  contain  notices  of  all
 37    meetings  of  the  board of equalization prescribed by this title for the pur-
 38    poses of equalizing assessments of property, and for granting exemptions  from
 39    taxation.  The  notice  shall,  in  clear  terms,  inform  the taxpayer of the
 40    assessed market value for assessment purposes of his property for the  current
 41    year, and his right to appeal to the county board of equalization. The notice,
 42    at a minimum, shall show last year's assessed market value for assessment pur-
 43    poses  of  the property, this year's assessed market value for assessment pur-
 44    poses, last year's actual taxes and this year's estimated taxes. The state tax
 45    commission may require that other data or information be shown on the form.
 46        (2)  In case any changes or corrections are made by the assessor from  the
 47    original  valuation  assessment notice, the assessor shall immediately deliver
 48    or mail a corrected valuation assessment notice to the taxpayer, or his  agent
 49    or representative.
 50        (3)  If  the taxpayer is one other than the equitable titleholder, such as
 51    an escrowee, trustee of trust deed or other third party,  the  taxpayer  shall
 52    deliver  to the equitable  titleholder a true copy of the valuation assessment
 53    notice on or before the second Monday in June.
                                                                        
                                          3
                                                                        
  1        (4)  For property entered and assessed on  the  subsequent  property  roll
  2    pursuant  to section 63-311, Idaho Code, the valuation assessment notice shall
  3    be delivered to the taxpayer, his agent or representative, or  mailed  to  the
  4    taxpayer,  or  to  his  agent  or representative at his last known post office
  5    address as soon as possible after it is  prepared,  but  not  later  than  the
  6    fourth Monday in November.
  7        (5)  For  property entered and assessed on the missed property roll pursu-
  8    ant to section 63-311, Idaho Code, the valuation assessment  notice  shall  be
  9    delivered  to the taxpayer, his agent or representative, or mailed to the tax-
 10    payer, or to his agent or representative at his last known post office address
 11    as soon as possible after it is prepared, but not later than the first  Monday
 12    of January of the following year.
                                                                        
 13        SECTION  3.  This act shall be in full force and effect on and after Janu-
 14    ary 1, 2007.".
                                                                        
 15                                 CORRECTION TO TITLE
 16        On page 1, delete lines 2 through 6 and insert:
 17    "RELATING TO BUDGETS OF TAXING DISTRICTS;  AMENDING CHAPTER 8, TITLE 63, IDAHO
 18        CODE, BY THE ADDITION OF A NEW SECTION 63-802B,  IDAHO  CODE,  TO  REQUIRE
 19        NOTICE  OF  PROPOSED  PROPERTY  TAX  BUDGET INCREASES OR PROPERTY TAX RATE
 20        INCREASES OF TAXING DISTRICTS BEYOND A CERTAIN LEVEL, TO PROVIDE  REQUIRE-
 21        MENTS  FOR  THE NOTICE, TO DEFINE  TERMS, TO PROVIDE ALTERNATIVES TO NEWS-
 22        PAPER NOTICE, TO PROVIDE FOR STATE TAX COMMISSION RULES AND TO LIMIT LEGAL
 23        ACTIONS TO CERTAIN TIME PERIODS AFTER THE ADOPTION OF A TAXING  DISTRICT'S
 24        BUDGET TO WHICH THE NOTICE RELATED AND THE REGULARITY OF SUCH NOTICE SHALL
 25        BE  CONCLUSIVELY PRESUMED; AMENDING SECTION 63-308, IDAHO CODE, TO PROVIDE
 26        ADDITIONAL INFORMATION ON THE VALUATION ASSESSMENT NOTICE FURNISHED TO THE
 27        PROPERTY TAXPAYER; AND PROVIDING AN EFFECTIVE DATE.".

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                            RS 15811

The purpose of this legislation is to place a limit on the value
of annexations.



                          FISCAL IMPACT

There is no fiscal impact to the state general fund.





Contact
Name:  Rep. Ken Roberts 
Phone: 332-1000  


STATEMENT OF PURPOSE/FISCAL NOTE                         H 508