2006 Legislation
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HOUSE BILL NO. 678 – School dist, tax levies

HOUSE BILL NO. 678

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H0678...............................................by REVENUE AND TAXATION
SCHOOL DISTRICTS - TAX LEVIES - Amends and adds to existing law to reduce
the maintenance and operation levy; to revise how maximum school
maintenance and operation levies are calculated for tax year 2007 and
thereafter; to provide for a budget stabilization levy for certain
districts; to reduce the local district's contribution; to require school
districts to reduce their local district contribution to be eligible for
education support program distributions; to provide ongoing property tax
relief; to provide that moneys in the fund shall be state discretionary
funds; to provide for the transfer of excess revenues of the General Fund
upon certain circumstances occurring; and to provide for transfers to the
Public School Income Fund.
                                                                        
02/13    House intro - 1st rdg - to printing
02/14    Rpt prt - to Rev/Tax
02/15    Rpt out - rec d/p - to 2nd rdg
02/16    2nd rdg - to 3rd rdg
02/17    3rd rdg - PASSED - 52-17-1
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bayer, Bedke, Bell,
      Bilbao, Black, Block, Bolz, Brackett, Bradford, Cannon, Chadderdon,
      Clark, Collins, Crow, Deal, Denney, Ellsworth, Eskridge, Field(18),
      Field(23), Garrett, Hart(Jacobson), Harwood, Henderson, Lake,
      Loertscher, Mathews, McGeachin, McKague, Moyle, Nielsen, Nonini,
      Raybould, Ring, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Smith(24), Stevenson, Wills, Wood,
      Mr. Speaker
      NAYS -- Bastian, Boe, Edmunson, Henbest, Jaquet, Kemp, LeFavour,
      Martinez, Mitchell, Pasley-Stuart, Pence, Ringo, Skippen, Smith(30),
      Smylie, Snodgrass, Trail
      Absent and excused -- Miller
    Floor Sponsor - Roberts
    Title apvd - to Senate
02/20    Senate intro - 1st rdg - to Loc Gov
03/10    Rpt out - to 14th Ord
03/17    Rpt out - w/o amen - to 2nd rdg
03/20    2nd rdg - to 3rd rdg
03/23    Ret'd 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. 678
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SCHOOL LEVIES; AMENDING SECTION 33-802, IDAHO CODE, TO REDUCE  THE
  3        MAINTENANCE  AND  OPERATION LEVY, TO REVISE HOW MAXIMUM SCHOOL MAINTENANCE
  4        AND OPERATION LEVIES ARE CALCULATED FOR TAX YEAR 2007 AND  THEREAFTER  AND
  5        TO PROVIDE FOR A BUDGET STABILIZATION LEVY FOR CERTAIN DISTRICTS; AMENDING
  6        SECTION  33-1002, IDAHO CODE, TO REDUCE THE LOCAL DISTRICT'S CONTRIBUTION,
  7        TO PROVIDE FOR CALCULATION OF THE NUMBER, TO REQUIRE SCHOOL  DISTRICTS  TO
  8        REDUCE THEIR LOCAL DISTRICT CONTRIBUTION TO BE ELIGIBLE FOR EDUCATION SUP-
  9        PORT  PROGRAM  DISTRIBUTIONS  AND TO MAKE A TECHNICAL CORRECTION; AMENDING
 10        SECTION 33-1002D, IDAHO CODE, TO PROVIDE ONGOING PROPERTY TAX  RELIEF  AND
 11        TO  PROVIDE  THAT  MONEYS  IN THE FUND SHALL BE STATE DISCRETIONARY FUNDS;
 12        AMENDING CHAPTER 68, TITLE 67, IDAHO CODE, BY THE ADDITION OF A  NEW  SEC-
 13        TION  67-6804,  IDAHO CODE, TO PROVIDE FOR THE TRANSFER OF EXCESS REVENUES
 14        OF THE GENERAL FUND UPON CERTAIN CIRCUMSTANCES OCCURRING  AND  TO  PROVIDE
 15        FOR  TRANSFERS  TO  THE PUBLIC SCHOOL INCOME FUND; DECLARING AN EMERGENCY,
 16        PROVIDING RETROACTIVE APPLICATION AND PROVIDING EFFECTIVE DATES.
                                                                        
 17    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 18        SECTION 1.  That Section 33-802, Idaho Code, be, and the  same  is  hereby
 19    amended to read as follows:
                                                                        
 20        33-802.  SCHOOL LEVIES. Any tax levied for school purposes shall be a lien
 21    on  the  property against which the tax is levied. The board of trustees shall
 22    determine the levies upon each dollar of taxable property in the district  for
 23    the ensuing fiscal year as follows:
 24        1.  Bond, Interest and Judgment Obligation Levies. Such levies as shall be
 25    required  to  satisfy  all  maturing bond, bond interest, and judgment obliga-
 26    tions.
 27        2.  Maximum School Maintenance and Operation Levies. Such levies for main-
 28    taining and operating the schools of the  district  and  for  the  payment  of
 29    tuition  and transportation, that do not exceed an amount equal to four-tenths
 30    of one percent (.4%) during tax year 1994, and do not exceed an  amount  equal
 31    to three-tenths fifteen-hundredths of one percent (.315%) during tax year 1995
 32    2006  and  thereafter,  applied  to  the  actual  or adjusted market value for
 33    assessment purposes of the district as such valuation existed on  December  31
 34    of  the previous year, but allowances necessary as a credit for prepaid taxes,
 35    as provided in section 63-1607, Idaho Code, shall not be included in such max-
 36    imum levies. Provided however, that in the event property within a  district's
 37    boundaries is contained in a revenue allocation area established under chapter
 38    29, title 50, Idaho Code, and such revenue allocation area has given notice of
 39    termination  thereunder,  then,  only  for the purpose of determining the levy
 40    described in this subsection, the district may add  the  increment  value,  as
 41    defined in section 50-2903, Idaho Code, to the actual or adjusted market value
 42    for  assessment  purposes of the district as such value existed on December 31
 43    of the previous year. For tax year 2007 and thereafter, the levy rate  limita-
                                                                        
                                           2
                                                                        
  1    tion of this subsection shall be modified as follows:
  2        (a)  Multiply  the amount of money raised statewide in the prior year pur-
  3        suant to this section by one and three-hundredths (1.03);
  4        (b)  Subtract the value of any increase  in  statewide  market  value  for
  5        assessment  purposes resulting from new construction or change of land use
  6        classification as evidenced by the value shown  on  the  new  construction
  7        roll  compiled pursuant to section 63-301A, Idaho Code, from the actual or
  8        adjusted statewide market value as such valuation existed on  December  31
  9        of the previous year;
 10        (c)  Divide  the  amount in subsection 2.(a) of this section by the amount
 11        in subsection 2.(b) of this section;
 12        (d)  Reduce the rate resulting from the calculation in subsection 2.(c) of
 13        this section by an amount equal to the  moneys  appropriated  pursuant  to
 14        section 33-1002D, Idaho Code.
 15        3.  Authorized  School  Maintenance  and Operation Levies. Such levies for
 16    maintaining and operating the schools of the district and for the  payment  of
 17    tuition  and  transportation  that  do  not  exceed one hundred eleven percent
 18    (111%) of the local district's contribution authorized  in  subsection  2.  of
 19    section  33-1002, Idaho Code. Implementation of the provisions of this subsec-
 20    tion shall be authorized only after approval by a majority of  the  district's
 21    electors  voting on the question. Levies otherwise authorized by law shall not
 22    require an election.
 23        4.  Supplemental Maintenance and Operation Levies. No levy  in  excess  of
 24    the  levy  permitted by subsection 2. or 3. of this section shall be made by a
 25    noncharter school district unless such a  supplemental  levy  in  a  specified
 26    amount  and  for  a specified time not to exceed two (2) years be first autho-
 27    rized through an election held pursuant to chapter 4, title  33,  Idaho  Code,
 28    and approved by a majority of the district electors voting in such election. A
 29    levy approved pursuant to this subsection may be reduced by a majority vote of
 30    the board of trustees in the second year.
 31        5.  Charter District Supplemental Maintenance and Operation. Levies pursu-
 32    ant  to  the  respective  charter  of any such charter district shall be first
 33    authorized through an election held pursuant to chapter  4,  title  33,  Idaho
 34    Code, and approved by a majority of the district electors voting in such elec-
 35    tion.
 36        6.  The  Local  District Contribution. The local school district contribu-
 37    tion levy is the amount utilized for calculating local district  participation
 38    in the educational foundation program, which is applied to the adjusted market
 39    value for assessment purposes, as such valuation existed on December 31 of the
 40    previous  year,  together  with  the  increment  value,  as defined in section
 41    50-2903, Idaho Code, if applicable under the circumstance described in subsec-
 42    tion 2. of this section, relating to termination of a revenue allocation area.
 43        7.  The board of trustees of any school district that has,  for  at  least
 44    seven (7) consecutive years, been authorized through an election held pursuant
 45    to  chapter  4,  title 33, Idaho Code, to certify a supplemental levy that has
 46    annually been equal to or greater than twenty percent (20%) of the total  gen-
 47    eral  maintenance and operation fund, may submit the question of an indefinite
 48    term supplemental levy to the electors of the school district.  Such  question
 49    shall clearly state the dollar amount that will be certified annually and that
 50    the  levy  will  be  for  an  indefinite number of years. The question must be
 51    approved by a majority of the district electors voting on the question  in  an
 52    election  held  pursuant to chapter 4, title 33, Idaho Code. The levy approved
 53    pursuant to this subsection may be reduced by a majority vote of the board  of
 54    trustees during any fiscal year.
 55        (8)  School  districts  not  receiving  state equalization funds in fiscal
                                                                        
                                           3
                                                                        
  1    year 2006 may authorize a budget stabilization  levy  for  fiscal  years  2007
  2    through 2011. Such levies shall not exceed the following amount:
  3        (a)  The amount of money the school district received from its maintenance
  4        and operations levy and state property tax replacments fund in fiscal year
  5        2006; minus
  6        (b)  The amount of money the school district will receive from its mainte-
  7        nance and operations levy and state property tax replacement funds in fis-
  8        cal  year  2007,  and  the  amount of equalized state funds that the state
  9        department of education estimates the school district will receive in fis-
 10        cal year 2007.
                                                                        
 11        SECTION 2.  That Section 33-1002, Idaho Code, be, and the same  is  hereby
 12    amended to read as follows:
                                                                        
 13        33-1002.  EDUCATIONAL  SUPPORT PROGRAM. The educational support program is
 14    calculated as follows:
 15        1.  State Educational Support Funds. Add the state appropriation,  includ-
 16    ing  the  moneys available in the public school income fund, together with all
 17    miscellaneous revenues to determine the total state funds.
 18        2.  From the total state funds subtract the following amounts  needed  for
 19    state support of special programs provided by a school district:
 20        a.  Pupil  tuition-equivalency allowances as provided in section 33-1002B,
 21        Idaho Code;
 22        b.  Transportation support program as provided in section  33-1006,  Idaho
 23        Code;
 24        c.  Feasibility  studies  allowance as provided in section 33-1007A, Idaho
 25        Code;
 26        d.  The approved costs for border district allowance, provided in  section
 27        33-1403,  Idaho  Code, as determined by the state superintendent of public
 28        instruction;
 29        e.  The approved costs for exceptional child approved contract  allowance,
 30        provided in subsection 2. of section 33-2004, Idaho Code, as determined by
 31        the state superintendent of public instruction;
 32        f.  Certain  expectant and delivered mothers allowance as provided in sec-
 33        tion 33-2006, Idaho Code;
 34        g.  Salary-based apportionment calculated as provided in sections  33-1004
 35        through 33-1004F, Idaho Code;
 36        h.  Unemployment insurance benefit payments according to the provisions of
 37        section 72-1349A, Idaho Code;
 38        i.  For expenditure as provided by the public school technology program;
 39        j.  For  the  support of provisions that provide a safe environment condu-
 40        cive to student learning and maintain classroom discipline, an  allocation
 41        of $300 per support unit; and
 42        k.  Any additional amounts as required by statute to effect administrative
 43        adjustments  or  as specifically required by the provisions of any bill of
 44        appropriation;
 45    to secure the state educational support funds.
 46        3.  Local  Districts'  Contribution  Calculation.  Without  including  any
 47    allowance as a credit for prepaid taxes as provided by section 63-1607,  Idaho
 48    Code,  the local districts' contribution shall be the amount appropriated pur-
 49    suant to section 33-1002D, Idaho Code, plus three-tenths percent (.3%)  during
 50    fiscal  year 2003-04 and each year thereafter, a percentage of the total state
 51    adjusted market value for assessment purposes for the previous year with  such
 52    percentage  being  determined pursuant to section 33-802, Idaho Code, and with
 53    such value being determined by the provisions of section 63-315,  Idaho  Code,
                                                                        
                                           4
                                                                        
  1    with  such  value  being  multiplied  by  the percentage calculated in section
  2    33-802 2.(a),(b),(c) and (d), Idaho Code, and four-tenths percent (.4%) during
  3    fiscal year 1994-95 and each year thereafter, of  the  cooperative  electrical
  4    associations'  property  values  that have been derived from the taxes paid in
  5    lieu of ad valorem property taxes for the previous year as provided in section
  6    63-3502, Idaho Code. In order to receive state funds, pursuant  to  this  sec-
  7    tion,  a  charter  district  shall  utilize a school maintenance and operation
  8    property tax levy, for the purposes of calculating the moneys  to  be  raised,
  9    that  is  no greater than that which it levied in tax year 1994, less the dif-
 10    ference between the maximum levy rate permitted by section 33-802, Idaho Code,
 11    and four-tenths of one percent (.4%).
 12        4.  Educational Support Program Distribution Funds.  Add  the  local  dis-
 13    tricts' contribution, subsection 3. of this section, and the state educational
 14    support  program  funds, subsection 1. of this section, together to secure the
 15    total educational support program distribution funds.
 16        5.  Average Daily Attendance. The total  state  average  daily  attendance
 17    shall  be  the  sum  of the average daily attendance of all of the school dis-
 18    tricts of the state. The state board of education shall establish  rules  set-
 19    ting  forth  the  procedure to determine average daily attendance and the time
 20    for, and method of, submission of such report. Average daily attendance calcu-
 21    lation shall be carried out to the nearest hundredth. Computation  of  average
 22    daily attendance shall also be governed by the provisions of section 33-1003A,
 23    Idaho Code.
 24        6.  Support  Units.  The  total state support units shall be determined by
 25    using the tables set out hereafter called computation of kindergarten  support
 26    units,  computation of elementary support units, computation of secondary sup-
 27    port units, computation of exceptional education support units,  and  computa-
 28    tion  of  alternative  school  secondary  support units. The sum of all of the
 29    total support units of all school districts of the state shall  be  the  total
 30    state support units.
 31                      COMPUTATION OF KINDERGARTEN SUPPORT UNITS
 32    Average Daily
 33    Attendance            Attendance Divisor         Units Allowed
 34    41 or more     ....   40.......................  1 or more as computed
 35    31 -  40.99 ADA....    -.......................  1
 36    26 -  30.99 ADA....    -.......................   .85
 37    21 -  25.99 ADA....    -.......................   .75
 38    16 -  20.99 ADA....    -.......................   .6
 39     8 -  15.99 ADA....    -.......................   .5
 40     1 -   7.99 ADA....    -.......................  count as elementary
                                                                        
 41                       COMPUTATION OF ELEMENTARY SUPPORT UNITS
 42    Average Daily
 43    Attendance            Attendance Divisor         Minimum Units Allowed
 44    300 or more ADA........................................  15
 45                        ..23...grades 4,5 & 6....
 46                        ..22...grades 1,2 & 3....1994-95
 47                        ..21...grades 1,2 & 3....1995-96
 48                        ..20...grades 1,2 & 3....1996-97
 49                              and each year thereafter.
 50    160   to  299.99 ADA... 20.....................         8.4
 51    110   to  159.99 ADA... 19.....................         6.8
 52     71.1 to  109.99 ADA... 16.....................         4.7
 53     51.7 to   71.0  ADA... 15.....................         4.0
 54     33.6 to   51.6  ADA... 13.....................         2.8
                                                                        
                                           5
                                                                        
  1     16.6 to   33.5  ADA... 12.....................         1.4
  2      1.0 to   16.5  ADA... n/a....................         1.0
                                                                        
  3                        COMPUTATION OF SECONDARY SUPPORT UNITS
  4    Average Daily
  5    Attendance            Attendance Divisor         Minimum Units Allowed
  6    750 or more      .... 18.5.....................        47
  7    400 -  749.99 ADA.... 16.......................        28
  8    300 -  399.99 ADA.... 14.5.....................        22
  9    200 -  299.99 ADA.... 13.5.....................        17
 10    100 -  199.99 ADA.... 12.......................         9
 11     99.99 or fewer       Units allowed as follows:
 12             Grades 7-12  .........................         8
 13             Grades 9-12  .........................         6
 14             Grades 7- 9  .........................         1 per 14 ADA
 15             Grades 7- 8  .........................         1 per 16 ADA
                                                                        
 16                  COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS
 17    Average Daily
 18    Attendance            Attendance Divisor         Minimum Units Allowed
 19    14 or more ....       14.5.....................  1 or more as computed
 20    12 -  13.99....        -.......................  1
 21     8 -  11.99....        -.......................   .75
 22     4 -   7.99....        -.......................   .5
 23     1 -   3.99....        -.......................   .25
                                                                        
 24              COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS
 25    Pupils in Attendance  Attendance Divisor         Minimum Units Allowed
 26    12 or more..........  12......................   1 or more as computed
                                                                        
 27        In  applying these tables to any given separate attendance unit, no school
 28    district shall receive less total money than it would  receive  if  it  had  a
 29    lesser  average daily attendance in such separate attendance unit. In applying
 30    the kindergarten table to a kindergarten program of  less  days  than  a  full
 31    school  year,  the  support  unit allowance shall be in ratio to the number of
 32    days of a full school year. The tables for exceptional education and  alterna-
 33    tive  school  secondary  support  units  shall be applicable only for programs
 34    approved by the state department of education following rules  established  by
 35    the  state  board  of  education. Moneys generated from computation of support
 36    units for alternative schools shall be utilized for  alternative  school  pro-
 37    grams.  School  district  administrative and facility costs may be included as
 38    part of the alternative school expenditures.
 39        7.  State Distribution Factor per Support Unit. Divide educational support
 40    program distribution funds, after subtracting the amounts necessary to pay the
 41    obligations specified in subsection 2. of this section,  by  the  total  state
 42    support units to secure the state distribution factor per support unit.
 43        8.  District  Share of State Funds for Educational Support Program. Ascer-
 44    tain a district's share of state funds for the educational support program  as
 45    follows:
 46        a.  District  Contribution Calculation. Without including any allowance as
 47        a credit for prepaid taxes, as provided in section  63-1607,  Idaho  Code,
 48        the  district  contribution calculation shall be the rate determined under
 49        subsection 3. of this section.
 50        b.  District Support Units. The number of support units  for  each  school
 51        district in the state shall be determined as follows:
                                                                        
                                           6
                                                                        
  1             (1)  Divide  the  actual average daily attendance, excluding students
  2             approved for inclusion in the exceptional child educational  program,
  3             for  the  administrative schools and each of the separate schools and
  4             attendance units by the appropriate divisor from the tables  of  sup-
  5             port  units  in  this  section,  then add the quotients to obtain the
  6             district's support units allowance for regular students, kindergarten
  7             through grade 12 including  alternative  school  secondary  students.
  8             Calculations  in  application of this subsection shall be carried out
  9             to the nearest tenth.
 10             (2)  Divide the combined totals of the average  daily  attendance  of
 11             all  preschool,  handicapped, kindergarten, elementary, secondary and
 12             juvenile detention center students  approved  for  inclusion  in  the
 13             exceptional  child program of the district by the appropriate divisor
 14             from the table for computation of exceptional education support units
 15             to obtain the number of support  units  allowed  for  the  district's
 16             approved  exceptional child program. Calculations for this subsection
 17             shall be carried out to the nearest tenth when more than one (1) unit
 18             is allowed.
 19             (3)  The total number of support units of the district shall  be  the
 20             sum  of  the  total  support  units  for regular students, subsection
 21             8.b.(1) of this section, and the  support  units  allowance  for  the
 22             approved  exceptional  child program, subsection 8.b.(2) of this sec-
 23             tion.
 24        c.  Total District Allowance Educational Program. Multiply the  district's
 25        total  number  of  support units, carried out to the nearest tenth, by the
 26        state distribution  factor per support unit and to this  product  add  the
 27        approved  amount  of programs of the district provided in subsection 2. of
 28        this section to secure the district's total allowance for the  educational
 29        support program.
 30        d.  District Share. To secure the district's share of state apportionment,
 31        subtract  the  amount of the local district contribution calculation, sub-
 32        section 3. of this section, from the amount of the total  district  allow-
 33        ance, subsection 8.c. of this section.
 34        e.  Adjustment of District Share. The contract salary of every noncertifi-
 35        cated  teacher shall be subtracted from the district's share as calculated
 36        from the provisions of subsection 8.d. of this section.
                                                                        
 37        SECTION 3.  That Section 33-1002D, Idaho Code, be, and the same is  hereby
 38    amended to read as follows:
                                                                        
 39        33-1002D.  PROPERTY TAX REPLACEMENT RELIEF. The purpose of this section is
 40    to  provide ongoing property tax relief. All moneys transferred  to the public
 41    school income fund, pursuant to section 67-6804, Idaho Code, shall be annually
 42    appropriated by the legislature to the educational support program/division of
 43    operations as state discretionary funds. replace a portion of  the  authorized
 44    school  maintenance  and  operation  property  tax  levy  with state sales tax
 45    receipts. As used in this section, the term "property tax  computation  ratio"
 46    shall  mean  a  ratio determined by dividing the district's certified property
 47    tax maintenance and operation budget by the actual or  adjusted  market  value
 48    for  assessment purposes as such values existed on December 31 of the previous
 49    calendar year, together with  the  increment  value,  as  defined  in  section
 50    50-2903, Idaho Code, if applicable under the circumstance described in section
 51    33-802 2., Idaho Code, relating to termination of a revenue allocation area.
 52        (1)  (a) In the case of a school district that had a property tax computa-
 53        tion  ratio  of not less than four-tenths of one percent (.4%) in tax year
                                                                        
                                           7
                                                                        
  1        1994, that school district shall receive from the appropriations made  for
  2        that  purpose,  an amount equal to the greater of the district's actual or
  3        adjusted market value for assessment purposes as such valuation existed on
  4        December 31 of the previous calendar year,  together  with  the  increment
  5        value,  as defined in section 50-2903, Idaho Code, if applicable under the
  6        circumstance described in section 33-802 2., Idaho Code, relating to  ter-
  7        mination of a revenue allocation area, multiplied by one-tenth of one per-
  8        cent (.1%).
  9        (b)  In  the case of a school district that had a property tax computation
 10        ratio of less than four-tenths of one percent (.4%) in tax year 1994,  the
 11        greater  of  the  1992,  1993  or 1994 property tax computation ratio less
 12        three-tenths of one percent (.3%) shall be designated the district's  base
 13        multiplier.  In  no  case shall the base multiplier be less than zero (0).
 14        Four-tenths of one percent (.4%) less the greater of the district's  1992,
 15        1993  or  1994  property  tax  computation  ratio  shall be designated the
 16        district's adjustment factor. In no case shall the  adjustment  factor  be
 17        greater  than  one-tenth  of one percent (.1%) or less than zero (0). Each
 18        school district's actual multiplier shall be the base multiplier plus one-
 19        fifth (1/5) of the adjustment factor in tax year 1995, the base multiplier
 20        plus two-fifths (2/5) of the adjustment factor in tax year 1996, the  base
 21        multiplier  plus  three-fifths  (3/5) of the adjustment factor in tax year
 22        1997, the base multiplier plus four-fifths (4/5) of the adjustment  factor
 23        in  tax  year 1998, and the base multiplier plus the adjustment  factor in
 24        tax year 1999 and beyond. Each school district  shall  receive,  from  the
 25        appropriations  made  for  that purpose, an amount equal to the district's
 26        actual or adjusted market value for assessment purposes as such  valuation
 27        existed  on  December  31 of the previous calendar year, together with the
 28        increment value, as defined in section 50-2903, Idaho Code, if  applicable
 29        under  the circumstance described in section 33-802 2., Idaho Code, relat-
 30        ing to termination  of  a  revenue  allocation  area,  multiplied  by  the
 31        district's actual multiplier.
 32        (c)  The  preceding  provisions of this subsection notwithstanding, appro-
 33        priations from the state for the value of one-tenth of one  percent  (.1%)
 34        of  the  greater  of  the  district's  actual or adjusted market value for
 35        assessment purposes as such valuation existed on December 31 of the previ-
 36        ous calendar year, together with the increment value, as defined  in  sec-
 37        tion  50-2903,  Idaho Code, if applicable under the circumstance described
 38        in section 33-802 2., Idaho Code, relating to  termination  of  a  revenue
 39        allocation   area,   shall   not   exceed   seventy-five  million  dollars
 40        ($75,000,000) in any fiscal year. If the  amount  school  districts  would
 41        otherwise  be  entitled to receive pursuant to the preceding provisions of
 42        this subsection exceeds seventy-five million dollars  ($75,000,000),  then
 43        each  school district shall receive its share of seventy-five million dol-
 44        lars ($75,000,000) based on the formulas contained in this section.
 45        (2)  (a) Participation in this property tax reduction program is voluntary
 46        for a charter district. If a charter district participates, in addition to
 47        the provisions of subsection (1) of this section it shall not have a prop-
 48        erty tax computation ratio that is above three-tenths of one percent (.3%)
 49        or the district's property tax computation ratio in tax  year  1994,  less
 50        one-tenth of one percent (.1%), whichever is greater.
 51        (b)  If  in any year the charter district's property tax computation ratio
 52        used to calculate its maintenance and operation budget is increased  above
 53        the  limit specified in this subsection the district shall not be eligible
 54        for the distribution pursuant to subsection (1) of this section  for  that
 55        year.
                                                                        
                                           8
                                                                        
  1        (3)  Limitations imposed upon a school district's property tax computation
  2    ratio  under  the provisions of this section do not apply to any levy approved
  3    by electors of the school district as provided by law.
  4        (4)  Distributions calculated as provided in this section shall be made to
  5    school districts of this state in two (2) equal installments on the due  dates
  6    as  specified  in  section 63-903(1), Idaho Code, for the property taxes being
  7    replaced.
  8        (5)  For purposes of section 33-1002, Idaho Code, moneys distributed  pur-
  9    suant to this section shall not be included in determining total state funds.
                                                                        
 10        SECTION  4.  That  Chapter  68,  Title 67, Idaho Code, be, and the same is
 11    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 12    ignated as Section 67-6804, Idaho Code, and to read as follows:
                                                                        
 13        67-6804.  TRANSFER  OF  EXCESS REVENUES. (1) The legislature finds that it
 14    is in the best interest of the taxpayers of the state of Idaho to establish  a
 15    state  budget system that captures surplus revenues for the purposes described
 16    herein.
 17        (2)  If the state controller certifies that the receipts  to  the  general
 18    fund  for the fiscal year just ending have exceeded the receipts of the previ-
 19    ous fiscal year by more than eight percent (8%),  then  the  state  controller
 20    shall  transfer  all  general fund collections in excess of said eight percent
 21    (8%) increase to the public school income fund.
 22        (3)  Once a transfer has been made, pursuant to this  section,  the  state
 23    controller  shall  transfer the same dollar amount to the public school income
 24    fund in each subsequent fiscal year. If the provisions of  subsection  (2)  of
 25    this section cause further transfers to be made, then the annual transfer made
 26    by the state controller shall be increased by a like amount.
 27        (4)  All  transfers  to  the  public school income fund authorized by this
 28    section shall be expended pursuant to  the  provisions  of  section  33-1002D,
 29    Idaho Code.
                                                                        
 30        SECTION  5.  An  emergency  existing  therefor,  which emergency is hereby
 31    declared to exist, Section 1 of this act shall be in full force and effect  on
 32    and after its passage and approval, and retroactively to January 1, 2006. Sec-
 33    tions 2, 3 and 4 shall be in full force and effect on and after July 1, 2006.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                            RS 16049

This legislation reduces the maximum property tax levy for
Maintenance and Operations of schools from .3% to .15%. It also
repeals .10% of property tax replacement which has been capped at
$75,000,000 and is currently being funded through the general
fund.
It further caps the revenue growth produced by the remaining .15% 
levy at 3% per year. 
If receipts for the general fund for the year just ended exceed
the revenues from the previous year by 8%, then the excess shall
be transferred to the public school income fund and a
corresponding reduction shall be made in the Maintenance and
Operation levy. 
               
                           FISCAL NOTE

Property taxes will be reduced approximately $125,000,000. It is
expected that the appropriation from the general fund for schools
will increase by a similar amount




Contact
Name: Rep. Roberts 
Phone: 332-1000
Rep. Moyle
Rep. Lake


STATEMENT OF PURPOSE/FISCAL NOTE                         H 678