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H0509...............................................by REVENUE AND TAXATION
TAXING DISTRICTS - Amends existing law relating to taxing districts to
revise how new construction may be calculated and included in a taxing
district's budget for property tax limitation purposes.
01/30 House intro - 1st rdg - to printing
01/31 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. 509
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO LIMITATION OF BUDGET REQUESTS FOR TAXING DISTRICTS; AMENDING SEC-
3 TION 63-802, IDAHO CODE, TO REVISE HOW NEW CONSTRUCTION OR CHANGE OF LAND
4 USE CLASSIFICATION MAY BE CALCULATED AND INCLUDED IN A TAXING DISTRICT'S
5 BUDGET; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 63-802, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 63-802. LIMITATION ON BUDGET REQUESTS -- LIMITATION ON TAX CHARGES --
10 EXCEPTIONS. (1) Except as provided in subsection (3) of this section for tax
11 year 1995, and each year thereafter, no taxing district shall certify a budget
12 request for an amount of property tax revenues to finance an annual budget
13 that exceeds the greater of:
14 (a) The dollar amount of property taxes certified for its annual budget
15 for any one (1) of the three (3) tax years preceding the current tax year,
16 whichever is greater, which amount may be increased by a growth factor of
17 not to exceed three percent (3%) plus the amount of revenue that would
18 have been generated by applying the levy of the previous year, not includ-
19 ing any levy described in subsection (4) of this section, to any increase
20 in market value subject to taxation resulting from new construction or
21 change of land use classification for the first tax year following the new
22 construction or change of land use classification appearing on the new
23 construction roll and fifty percent (50%) of such new construction or
24 change of land use classification amount for each year thereafter as evi-
25 denced by the value shown on the new construction roll compiled pursuant
26 to section 63-301A, Idaho Code; and by the value of annexation during the
27 previous calendar year, as certified by the state tax commission for mar-
28 ket values of operating property of public utilities and by the county
29 assessor; or
30 (b) The dollar amount of property taxes certified for its annual budget
31 during the last year in which a levy was made; or
32 (c) The dollar amount of the actual budget request, if the taxing dis-
33 trict is newly created except as may be provided in subsection (1)(h) of
34 this section; or
35 (d) In the case of school districts, the restriction imposed in section
36 33-802, Idaho Code; or
37 (e) In the case of a nonschool district for which less than the maximum
38 allowable increase in the dollar amount of property taxes is certified
39 for annual budget purposes in any one (1) year, such a district may, in
40 any following year, recover the foregone increase by certifying, in addi-
41 tion to any increase otherwise allowed, an amount not to exceed one hun-
42 dred percent (100%) of the increase originally foregone. Said additional
43 amount shall be included in future calculations for increases as allowed;
2
1 or
2 (f) In the case of cities, if the immediately preceding year's levy sub-
3 ject to the limitation provided by this section, is less than 0.004, the
4 city may increase its budget by an amount not to exceed the difference
5 between 0.004 and actual prior year's levy multiplied by the prior year's
6 market value for assessment purposes. The additional amount must be
7 approved by sixty percent (60%) of the voters voting on the question at an
8 election called for that purpose and held on the date in May or November
9 provided by law, and may be included in the annual budget of the city for
10 purposes of this section; or
11 (g) A taxing district may submit to the electors within the district the
12 question of whether the budget from property tax revenues may be increased
13 beyond the amount authorized in this section, but not beyond the levy
14 authorized by statute. The additional amount must be approved by sixty-six
15 and two-thirds percent (66 2/3%) or more of the voters voting on the ques-
16 tion at an election called for that purpose and held on the May or Novem-
17 ber dates provided by section 34-106, Idaho Code. If approved by the
18 required minimum sixty-six and two-thirds percent (66 2/3%) of the voters
19 voting at the election, the new budget amount shall be the base budget for
20 the purposes of this section; or
21 (h) When a nonschool district consolidates with another nonschool dis-
22 trict or dissolves and a new district performing similar governmental
23 functions as the dissolved district forms with the same boundaries within
24 three (3) years, the maximum amount of a budget of the district from prop-
25 erty tax revenues shall not be greater than the sum of the amounts that
26 would have been authorized by this section for the district itself or for
27 the districts that were consolidated or dissolved and incorporated into a
28 new district; or
29 (i) In the instance or case of cooperative service agencies, the restric-
30 tions imposed in sections 33-315 through 33-318, Idaho Code.
31 (2) In the case of fire districts, during the year immediately following
32 the election of a public utility or public utilities to consent to be provided
33 fire protection pursuant to section 31-1422, Idaho Code, the maximum amount of
34 property tax revenues permitted in subsection (1) of this section may be
35 increased by an amount equal to the current year's taxable value of the con-
36 senting public utility or public utilities multiplied by that portion of the
37 prior year's levy subject to the limitation provided by subsection (1) of this
38 section.
39 (3) No board of county commissioners shall set a levy, nor shall the
40 state tax commission approve a levy for annual budget purposes which exceeds
41 the limitation imposed in subsection (1) of this section, unless authority to
42 exceed such limitation has been approved by a majority of the taxing
43 district's electors voting on the question at an election called for that pur-
44 pose and held pursuant to section 34-106, Idaho Code, provided however, that
45 such voter approval shall be for a period of not to exceed two (2) years.
46 (4) The amount of property tax revenues to finance an annual budget does
47 not include revenues from nonproperty tax sources, and does not include reve-
48 nue from levies that are voter approved for bonds, override levies or supple-
49 mental levies, plant facilities reserve fund levies, school emergency fund
50 levies or for levies applicable to newly annexed property or for levies appli-
51 cable to new construction as evidenced by the value of property subject to the
52 occupancy tax pursuant to section 63-317, Idaho Code, for the preceding tax
53 year.
54 SECTION 2. An emergency existing therefor, which emergency is hereby
3
1 declared to exist, this act shall be in full force and effect on and after its
2 passage and approval, and retroactively to January 1, 2006.
STATEMENT OF PURPOSE
RS 15812
The purpose of this legislation is to place a limit on the value
of new construction.
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 509