2006 Legislation
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HOUSE BILL NO. 509 – Taxing dist, budget request, limit


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Bill Status

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

Bill Text

  ]]]]              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
  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:
 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;
  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
  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 / Fiscal Impact

                       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.

Name:  Rep. Ken Roberts 
Phone: 332-1000  

STATEMENT OF PURPOSE/FISCAL NOTE                         H 509