View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
H0859...............................................by REVENUE AND TAXATION
SALES TAX - PUBLIC SCHOOL FUNDING - Repeals and amends existing law to
increase the sales tax to 6%; and to remove the three-tenths of one percent
property tax levy for maintenance and operation of public schools.
03/29 House intro - 1st rdg - to printing
03/30 Rpt prt - to 2nd rdg
03/31 2nd rdg - to 3rd rdg
04/11 Ret'd to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 859
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION POLICIES FOR FUNDING PUBLIC SCHOOLS; AMENDING SECTION
3 33-701, IDAHO CODE, TO DELETE REFERENCE TO SCHOOL MAINTENANCE AND OPERA-
4 TION LEVIES AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 33-802,
5 IDAHO CODE, TO DELETE REFERENCE TO SCHOOL DISTRICT LEVIES THAT MAY BE
6 IMPOSED WITHOUT VOTER APPROVAL, TO PROVIDE BUDGET STABILIZATION LEVIES FOR
7 CERTAIN DISTRICTS, TO DELETE THE LOCAL DISTRICT CONTRIBUTION FOR SCHOOL
8 FORMULA PURPOSES, TO CONTINUE IN EFFECT ALL VOTER APPROVED LEVIES FOR THE
9 TERM AUTHORIZED AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION
10 33-802A, IDAHO CODE, TO CLARIFY REFERENCES TO SCHOOL LEVIES; REPEALING
11 SECTION 33-808, IDAHO CODE, RELATING TO NOTICE OF ADJUSTMENT TO MARKET
12 VALUE FOR ASSESSMENT PURPOSES UPON TERMINATION OF A REVENUE ALLOCATION
13 AREA; AMENDING SECTION 33-905, IDAHO CODE, TO PROVIDE A CORRECT CODE REF-
14 ERENCE AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 33-1002, IDAHO
15 CODE, TO REVISE HOW THE EDUCATIONAL SUPPORT PROGRAM IS CALCULATED, TO PRO-
16 VIDE ELIGIBILITY FOR CHARTER DISTRICTS TO CONTINUE TO RECEIVE SCHOOL FOR-
17 MULA MONEYS AND TO MAKE TECHNICAL CORRECTIONS; REPEALING SECTION 33-1002A,
18 IDAHO CODE, RELATING TO THE LOCAL DISTRICT CONTRIBUTION REDUCTION AND
19 REPEALING SECTION 33-1002D, IDAHO CODE, RELATING TO PROPERTY TAX REPLACE-
20 MENT; AMENDING SECTION 33-1003, IDAHO CODE, TO DELETE REFERENCE TO AN
21 OBSOLETE PROVISION AND TO MAKE TECHNICAL CORRECTIONS; TO PROVIDE THAT THE
22 STATE DEPARTMENT OF EDUCATION SHALL UTILIZE THE PROVISIONS OF SECTIONS
23 33-802, 33-1002, 33-1002A, 33-1002D AND 33-1003, IDAHO CODE, AS THEY
24 EXISTED PRIOR TO AMENDMENT OR REPEAL BY THE PROVISIONS OF THIS ACT FOR THE
25 PURPOSES OF FUNDING PUBLIC SCHOOLS THROUGH THE END OF FISCAL YEAR 2006;
26 AMENDING SECTION 33-1004, IDAHO CODE, TO PROVIDE A CORRECT CODE REFERENCE
27 AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 33-1114, IDAHO CODE,
28 TO DELETE REFERENCE TO SCHOOL DISTRICT MAINTENANCE AND OPERATION LEVIES;
29 AMENDING SECTION 33-1408, IDAHO CODE, TO REVISE THE SPECIAL LEVY FOR
30 TUITION AND TO EXEMPT THE LEVY FROM THE THREE PERCENT PROPERTY TAX CAP;
31 AMENDING SECTION 33-5208, IDAHO CODE, TO PROVIDE A CORRECT CODE REFERENCE;
32 AMENDING SECTION 50-2908, IDAHO CODE, TO DELETE REFERENCE TO PROPERTY TAX
33 FOR SCHOOLS AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 63-315,
34 IDAHO CODE, TO PROVIDE APPLICATION TO CHARTER SCHOOL DISTRICTS LEVYING A
35 MAINTENANCE AND OPERATION LEVY IN THE PRIOR CALENDAR YEAR; AMENDING SEC-
36 TION 63-802A, IDAHO CODE, TO DELETE REFERENCE TO SCHOOL DISTRICT MAINTE-
37 NANCE AND OPERATION LEVIES, TO PROVIDE APPLICATION TO SCHOOL DISTRICTS AND
38 TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 63-811, IDAHO CODE, TO
39 DELETE REFERENCE TO PROPERTY TAX ALLOCATED FOR SCHOOLS; AMENDING SECTION
40 63-3619, IDAHO CODE, TO INCREASE THE SALES TAX TO SIX PERCENT; AMENDING
41 SECTION 63-3621, IDAHO CODE, TO INCREASE THE USE TAX TO SIX PERCENT;
42 AMENDING SECTION 63-3638, IDAHO CODE, TO REVISE THE DISTRIBUTION FOR SALES
43 TAX REVENUES, TO DELETE REFERENCE TO MAINTENANCE AND OPERATION TAXES FOR
44 SCHOOL DISTRICTS AND TO MAKE A TECHNICAL CORRECTION; PROVIDING SEVERABIL-
45 ITY; DECLARING AN EMERGENCY, PROVIDING RETROACTIVE APPLICATION AND PRO-
46 VIDING EFFECTIVE DATES.
2
1 Be It Enacted by the Legislature of the State of Idaho:
2 SECTION 1. That Section 33-701, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 33-701. FISCAL YEAR -- PAYMENT AND ACCOUNTING OF FUNDS. The fiscal year
5 of each school district shall be a period of twelve (12) months commencing on
6 the first day of July in each year.
7 The board of trustees of each school district shall have the following
8 powers and duties:
9 1. To determine and order paid all lawful expenses for salaries, wages
10 and purchases, whether or not there be money in the treasury for payment of
11 warrants drawn against any fund of the district. Warrants shall be signed by
12 the treasurer of the district and countersigned by the chairman or vice-chair-
13 man of the board of trustees.
14 Whenever any school district has sufficient funds on deposit so to do, it
15 may pay any allowed claim for salaries, wages or purchases by regular bank
16 check signed by the treasurer or assistant treasurer of the district and coun-
17 tersigned by the chairman, or vice-chairman, of the board of trustees.
18 The total amount of warrants or orders for warrants drawn on any fund,
19 together with disbursements from such fund in any other manner made, shall not
20 exceed ninety-five percent (95%) of the estimated income and revenue accrued
21 or accruing to such fund for the same school year, until such income and reve-
22 nue shall have been paid into the treasury to the credit of the district;
23 2. To invest all or part of any plant facilities reserve fund, or any
24 fund accumulated for the payment of interest on, and the redemption of, out-
25 standing bonds, or other obligations of the district in bonds or certificates
26 of indebtedness of the United States of America, or in bonds or warrants of
27 the state of Idaho, or in warrants or tax anticipation notes of any county or
28 school district of the state of Idaho, when such investments shall be due and
29 payable on or before the date any plant facilities reserve fund shall be
30 required to be expended or any bonds or other obligations, or interest
31 thereon, of the investing district shall become payable.
32 Whenever in the judgment of the board of trustees, the proceeds of any
33 bond issue should be temporarily invested pending the expenditure of such pro-
34 ceeds for the purposes for which such bonds were issued, the proceeds may be
35 invested in the manner and form hereinabove prescribed. Any interest, or prof-
36 its accruing from such investments shall be used for the purposes for which
37 the bonds were issued. Unless otherwise provided by law, any interest or prof-
38 its accruing from the investment of any funds shall be credited to the general
39 fund of the district;
40 3. To insure any school house schoolhouse and other property, and the
41 district, against any loss by fire, casualty, or liability, and the board, its
42 officers and employees, and to preserve its property for the benefit of the
43 district. In case of loss of any insured property, any proceeds from insur-
44 ance:
45 (a) mMay be expended in constructing a temporary or permanent structure,
46 but no sum greater than the insurance proceeds shall be so expended except
47 upon approval of a majority of the school district electors voting in an
48 election called for that purpose; or
49 (b) mMay be placed in and made a part of the school plant facilities
50 reserve fund of the district, if the district has such a fund; or
51 (c) mMay be placed in a separate account in the bond interest and redemp-
52 tion fund of the district to repay any kind of obligation incurred by the
53 district in replacing or restoring the property for which the insurance
3
1 proceeds were received, and shall not be included in the computations of
2 bond and bond interest levies as provided in section 33-802A, Idaho Code.
3 If the proceeds of any insurance received by a school district by reason
4 of loss on real property shall be less than five thousand dollars ($5,000),
5 such proceeds may be credited to the general fund of the district;
6 4. To pay from the general fund of the district the expense of any member
7 of the board incurred while traveling on the business of the board, or attend-
8 ing any meeting called by the state board of education or by the state super-
9 intendent of public instruction, or attending any annual or special meetings
10 of the state school trustees association, and to pay the membership fee of the
11 board of trustees in said association. Whenever any member of the board of
12 trustees resides at such distance from the meeting place of the board as to
13 require, in the judgment of the board, such member to incur extraordinary
14 expense in traveling from his home to and from said meeting place, the board
15 may approve payment to such member of the extraordinary expense incurred in
16 attending any meeting of the board.
17 For the purpose of this paragraph, the term "expense" or "extraordinary
18 expense" shall include allowance for mileage or actual travel expense incur-
19 red;
20 5. To prepare, or cause to be prepared and published, in the manner here-
21 inafter prescribed, within one hundred twenty (120) days from the last day of
22 each fiscal year, an annual statement of financial condition and report of the
23 school district as of the end of such fiscal year in a form prescribed by the
24 state superintendent of public instruction. Such annual statement shall
25 include, but not be limited to, the amounts of money budgeted and received and
26 from what sources, and the amounts budgeted and expended for salaries and
27 other expenses by category. Salaries may be reported in gross amount. Each
28 school district shall have available at the administrative office, upon
29 request, a full and complete list of vendors and the amount paid to each and a
30 list of the number of teachers paid at each of the several stated gross salary
31 levels in effect in the district.
32 Nothing herein provided shall be construed as limiting any school district
33 as to any additional or supplementary statements and reports it may elect to
34 make for the purpose of informing the public of its financial operations,
35 either as to form, content, method, or frequency; and if all the information
36 required herein to be published shall have been published as provided herein
37 at regular intervals during the fiscal year covering successive portions of
38 the fiscal year, then such information may be omitted from the annual state-
39 ment of financial condition and report for such portions of the fiscal year as
40 already have been reported.
41 The annual statement of financial condition and report shall be published
42 within the time above prescribed in one (1) issue of a newspaper printed and
43 published within the district, or, if there be none, then in a newspaper as
44 provided in section 60-106, Idaho Code, published within the district, or, if
45 there be none, then in a newspaper as provided in section 60-106, Idaho Code,
46 in the county in which the school district is located, or, if more than one
47 (1) newspaper is published in said district or county, then in the newspaper
48 most likely to give best general notice of the contents of such annual state-
49 ment of financial condition and report to the residents of said district; pro-
50 vided, that if no newspaper is published in the district or county, then such
51 statement of financial condition and report shall be published in a newspaper
52 as provided in section 60-106, Idaho Code, most likely to give best general
53 notice of the contents to the residents of said district.
54 The chairman, clerk and treasurer of each school district shall certify
55 the annual statement of financial condition and report to be true and correct,
4
1 and the certification shall be included in each published statement.
2 In the event the board of trustees of any school district shall fail to
3 prepare or cause to be prepared or to publish the annual statement of finan-
4 cial condition and report as herein required, the state superintendent of pub-
5 lic instruction shall cause the same to be prepared and published, and the
6 cost thereof shall be an obligation of the school district. One (1) copy of
7 the annual statement of financial condition and report shall be retained in
8 the office of the clerk of the board of school trustees, where the same shall
9 be open at all times to examination and inspection by any person;
10 6. To cause to be made a full and complete audit of the financial state-
11 ments of the district as required in section 67-450B, Idaho Code.
12 The auditor shall be employed on written contract.
13 One (1) copy of the audit report shall be filed with the state department
14 of education, after its acceptance by the board of trustees, but not later
15 than October 15;
16 7. To file annually with the state department of education such financial
17 and statistical reports as said state superintendent of public instruction may
18 require;
19 8. To order and have destroyed any canceled check or warrant, or any form
20 of claim or voucher which has been paid, at any time after five (5) years from
21 the date the same was canceled and paid;
22 9. To review the school district budget periodically and make appropriate
23 budget adjustments to reflect the availability of funds and the requirements
24 of the school district. Revenue derived from maintenance and operation levies
25 made pursuant to section 33-802 2, Idaho Code, shall be excluded from budget
26 adjustments as provided in this paragraph. Any person or persons proposing a
27 budget adjustment under this section shall notify in writing each member of
28 the board of trustees one (1) week prior to the meeting at which such proposal
29 will be made. Prior to the final vote on such a proposal, notice shall be
30 posted and published once, as prescribed in section 33-402, Idaho Code. A bud-
31 get adjustment shall not be approved unless voted affirmatively by sixty per-
32 cent (60%) of the members of the board of trustees. Such amended budgets shall
33 be submitted to the state superintendent of public instruction;
34 10. To invest any money coming into the hands of the school district in
35 investments permitted by section 67-1210, Idaho Code. Unless otherwise pro-
36 vided by law, any interest or profits accruing from the investment of any
37 funds shall be credited to the general fund of the district.
38 SECTION 2. That Section 33-802, Idaho Code, be, and the same is hereby
39 amended to read as follows:
40 33-802. SCHOOL LEVIES. Any tax levied for school purposes shall be a lien
41 on the property against which the tax is levied. The board of trustees shall
42 determine the levies upon each dollar of taxable property in the district for
43 the ensuing fiscal year as follows:
44 (1.) Bond, Interest and Judgment Obligation Levies. Such levies as shall
45 be required to satisfy all maturing bond, bond interest, and judgment obliga-
46 tions.
47 (2.) Maximum School Maintenance and Operation Credit Against Prepaid
48 Taxes -- Budget Stabilization Levies. Such levies for maintaining and operat-
49 ing the schools of the district and for the payment of tuition and transporta-
50 tion, that do not exceed an amount equal to four-tenths of one percent (.4%)
51 during tax year 1994, and do not exceed an amount equal to three-tenths of one
52 percent (.3%) during tax year 1995 and thereafter, applied to the actual or
53 adjusted market value for assessment purposes of the district as such valua-
5
1 tion existed on December 31 of the previous year, but aAllowances necessary as
2 a credit for prepaid taxes, as provided in section 63-1607, Idaho Code, shall
3 not be included in such maximum levies. Provided however, that in the event
4 property within a district's boundaries is contained in a revenue allocation
5 area established under chapter 29, title 50, Idaho Code, and such revenue
6 allocation area has given notice of termination thereunder, then, only for the
7 purpose of determining the levy described in this subsection, the district may
8 add the increment value, as defined in section 50-2903, Idaho Code, to the
9 actual or adjusted market value for assessment purposes of the district as
10 such value existed on December 31 of the previous year.
11 3. Authorized School Maintenance and Operation Levies. Such levies for
12 maintaining and operating the schools of the district and for the payment of
13 tuition and transportation that do not exceed one hundred eleven percent
14 (111%) of the local district's contribution authorized in subsection 2. of
15 section 33-1002, Idaho Code. Implementation of the provisions of this subsec-
16 tion shall be authorized only after approval by a majority of the district's
17 electors voting on the question. Levies otherwise authorized by law shall not
18 require an election School districts not receiving state equalization funds in
19 fiscal year 2006 may authorize a budget stabilization levy for fiscal years
20 2007 through 2011. Such levies shall not exceed the difference between the
21 amount of equalized funds that the state department of education estimates the
22 school district will receive in fiscal year 2007, based on the school
23 district's fiscal year 2006 reporting data, and the combined amount of money
24 the school district received from its maintenance and operation levy and state
25 property tax replacement funds in fiscal year 2006. The state department of
26 education shall notify the state tax commission and affected counties of the
27 maximum levy amounts permitted, by no later than August 1, 2006.
28 4.(3) Supplemental Maintenance and Operation Levies. No levy in excess of
29 the levy permitted by subsection 2. or 3. of this section shall be made by a
30 noncharter school district unless such a supplemental levy in a specified
31 amount and for a specified time not to exceed two (2) years be first autho-
32 rized through an election held pursuant to chapter 4, title 33, Idaho Code,
33 and approved by a majority of the district electors voting in such election. A
34 levy approved pursuant to this subsection may be reduced by a majority vote of
35 the board of trustees in the second year.
36 5.(4) Charter District Supplemental Maintenance and Operation. Levies
37 pursuant to the respective charter of any such charter district shall be first
38 authorized through an election held pursuant to chapter 4, title 33, Idaho
39 Code, and approved by a majority of the district electors voting in such elec-
40 tion.
41 6. The Local District Contribution. The local school district contribu-
42 tion levy is the amount utilized for calculating local district participation
43 in the educational foundation program, which is applied to the adjusted mar-
44 ket value for assessment purposes, as such valuation existed on December 31 of
45 the previous year, together with the increment value, as defined in section
46 50-2903, Idaho Code, if applicable under the circumstance described in subsec-
47 tion 2. of this section, relating to termination of a revenue allocation area.
48 7.(5) The board of trustees of any school district that has, for at least
49 seven (7) consecutive years, been authorized through an election held pursuant
50 to chapter 4, title 33, Idaho Code, to certify a supplemental levy that has
51 annually been equal to or greater than twenty percent (20%) of the total gen-
52 eral maintenance and operation fund, may submit the question of an indefinite
53 term supplemental levy to the electors of the school district. Such question
54 shall clearly state the dollar amount that will be certified annually and that
55 the levy will be for an indefinite number of years. The question must be
6
1 approved by a majority of the district electors voting on the question in an
2 election held pursuant to chapter 4, title 33, Idaho Code. The levy approved
3 pursuant to this subsection may be reduced by a majority vote of the board of
4 trustees during any fiscal year.
5 (6) All voter approved levies, whether in charter or noncharter dis-
6 tricts, that were authorized prior to June 30, 2006, are hereby continued in
7 full force and effect for the duration of the term authorized.
8 SECTION 3. That Section 33-802A, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 33-802A. COMPUTATION OF BOND AND BOND INTEREST LEVIES. When the board of
11 trustees of any school district determines and makes the a levy required
12 allowed by section 33-802, Idaho Code, and incorporates such levy as a part of
13 the school district's budget to service all maturing bond and bond interest
14 payments for the ensuing fiscal year, it shall take into consideration any
15 state bond levy equalization funds provided pursuant to section 33-906, Idaho
16 Code, and any balances remaining or that may remain in its bond interest and
17 redemption fund after meeting its bond and bond interest obligations for its
18 current fiscal year. The levy so made for the ensuing fiscal year shall be an
19 amount which, together with any state bond levy equalization funds provided
20 pursuant to section 33-906, Idaho Code, and the balance in its bond interest
21 and redemption fund remaining after meeting its current fiscal year bond and
22 bond interest obligations, shall satisfy all maturing bond and bond interest
23 payments for at least the ensuing twelve (12) months, and not to exceed the
24 ensuing twenty-one (21) months counted from July 1 of the current calendar
25 year.
26 SECTION 4. That Section 33-808, Idaho Code, be, and the same is hereby
27 repealed.
28 SECTION 5. That Section 33-905, Idaho Code, be, and the same is hereby
29 amended to read as follows:
30 33-905. SCHOOL DISTRICT BUILDING ACCOUNT -- PAYMENTS TO ACCOUNT -- MONEYS
31 APPROPRIATED TO STATE BOARD -- APPLICATION FOR MONEYS -- PAYMENTS TO DISTRICTS
32 -- REPORTS ON APPLICATIONS -- USES OF MONEYS. 1. The state of Idaho, recogniz-
33 ing its responsibility to establish and maintain a general, uniform and thor-
34 ough system of public, free common schools, in an effort to partially fulfill
35 this responsibility, hereby creates and establishes the school district build-
36 ing account in the state treasury. The school district building account shall
37 have paid into it such appropriations or revenues as may be provided by law.
38 2. Moneys in the school district building account are hereby appropriated
39 to and may be expended by the state board of education at any time for the
40 purposes provided in this section, any provision of chapter 35, title 67,
41 Idaho Code, or chapter 36, title 67, Idaho Code, notwithstanding.
42 3. (a) As to any moneys in the account other than lottery dividends dis-
43 tributed pursuant to subsection 4. of this section, the board of trustees
44 of any school district may apply to the state board of education to
45 receive a payment or payments from the school district building account;
46 provided, a district demonstrates to the state board of education that it
47 has a substantial and serious need based upon the district's classroom
48 student-teacher ratios, past efforts to levy for such construction, physi-
49 cal condition of existing structures, and the total assessed market value
50 of the district, all of which shall be further defined by actual need cri-
7
1 teria established by the state board of education.
2 (b) When an application for moneys from the account is approved by the
3 state board of education, the state board shall inform the school district
4 that the application has been approved, citing the amount approved for
5 payment and an estimate of the time when the payment can actually be made
6 to the school district.
7 4. By not later than August 31, moneys in the account pursuant to distri-
8 bution from section 67-7434, Idaho Code, the lottery dividends and interest
9 earned thereon, shall be distributed to each of the several school districts,
10 in the proportion that the average daily attendance of that district for the
11 previous school year bears to the total average daily attendance of the state
12 during the previous school year. For the purposes of this subsection 4. only,
13 the Idaho school for the deaf and the blind shall be considered a school dis-
14 trict, and shall receive a distribution based upon the average daily atten-
15 dance of the school. Average daily attendance shall be calculated as provided
16 in section 33-1002 4.(3), Idaho Code.
17 5. All payments from the school district building account shall be paid
18 out directly to the school district in warrants drawn by the state controller
19 upon presentation of proper vouchers from the state board of education. Pend-
20 ing payments out of the school district building account, the moneys in the
21 account shall be invested by the state treasurer in the same manner as pro-
22 vided under section 67-1210, Idaho Code, with respect to other idle moneys in
23 the state treasury. Interest earned on the investments shall be returned to
24 the school district building account.
25 6. Payments from the school district building account received by a
26 school district may be used by the school district for the purposes authorized
27 in section 33-1102, Idaho Code.
28 7. (a) By not later than December 1, each school district shall report to
29 the state department of education the projects on which moneys received
30 from the school district building account were expended. The state depart-
31 ment of education shall transmit a summary of such reports to the legisla-
32 ture by not later than January 15 of the following year.
33 (b) By not later than December 1, each school district shall report to
34 the state department of education the planned uses for the moneys received
35 from the school district building account. The state department of educa-
36 tion shall transmit a summary of the reports to the legislature by not
37 later than January 15 of the following year.
38 SECTION 6. That Section 33-1002, Idaho Code, be, and the same is hereby
39 amended to read as follows:
40 33-1002. EDUCATIONAL SUPPORT PROGRAM. The educational support program is
41 calculated as follows:
42 (1.) State Educational Support Funds. Add the state appropriation,
43 including the moneys available in the public school income fund, together
44 with all miscellaneous revenues to determine the total state funds.
45 (2.) From the total state funds subtract the following amounts needed for
46 state support of special programs provided by a school district:
47 (a.) Pupil tuition-equivalency allowances as provided in section
48 33-1002B, Idaho Code;
49 (b.) Transportation support program as provided in section 33-1006, Idaho
50 Code;
51 (c.) Feasibility studies allowance as provided in section 33-1007A, Idaho
52 Code;
53 (d.) The approved costs for border district allowance, provided in sec-
8
1 tion 33-1403, Idaho Code, as determined by the state superintendent of
2 public instruction;
3 (e.) The approved costs for exceptional child approved contract allow-
4 ance, provided in subsection 2. of section 33-2004, Idaho Code, as deter-
5 mined by the state superintendent of public instruction;
6 (f.) Certain expectant and delivered mothers allowance as provided in
7 section 33-2006, Idaho Code;
8 (g.) Salary-based apportionment calculated as provided in sections
9 33-1004 through 33-1004F, Idaho Code;
10 (h.) Unemployment insurance benefit payments according to the provisions
11 of section 72-1349A, Idaho Code;
12 (i.) For expenditure as provided by the public school technology program;
13 (j.) For the support of provisions that provide a safe environment condu-
14 cive to student learning and maintain classroom discipline, an allocation
15 of $300 per support unit; and
16 (k.) Any additional amounts as required by statute to effect administra-
17 tive adjustments or as specifically required by the provisions of any bill
18 of appropriation;
19 to secure the state total educational support distribution funds.
20 (3.) Local Districts' Contribution Calculation. Without including any
21 allowance as a credit for prepaid taxes as provided by section 63-1607, Idaho
22 Code, the local districts' contribution shall be the amount appropriated pur-
23 suant to section 33-1002D, Idaho Code, plus three-tenths percent (.3%) during
24 fiscal year 2003-04 and each year thereafter, of the total state adjusted mar-
25 ket value for assessment purposes for the previous year with such value being
26 determined by the provisions of section 63-315, Idaho Code, and four-tenths
27 percent (.4%) during fiscal year 1994-95 and each year thereafter, of the
28 cooperative electrical associations' property values that have been derived
29 from the taxes paid in lieu of ad valorem taxes for the previous year as pro-
30 vided in section 63-3502, Idaho Code.
31 4. Educational Support Program Distribution Funds. Add the local dis-
32 tricts' contribution, subsection 3. of this section, and the state educational
33 support program funds, subsection 1. of this section, together to secure the
34 total educational support program distribution funds.
35 5. Average Daily Attendance. The total state average daily attendance
36 shall be the sum of the average daily attendance of all of the school dis-
37 tricts of the state. The state board of education shall establish rules set-
38 ting forth the procedure to determine average daily attendance and the time
39 for, and method of, submission of such report. Average daily attendance calcu-
40 lation shall be carried out to the nearest hundredth. Computation of average
41 daily attendance shall also be governed by the provisions of section 33-1003A,
42 Idaho Code.
43 6.(4) Support Units. The total state support units shall be determined by
44 using the tables set out hereafter called computation of kindergarten support
45 units, computation of elementary support units, computation of secondary sup-
46 port units, computation of exceptional education support units, and computa-
47 tion of alternative school secondary support units. The sum of all of the
48 total support units of all school districts of the state shall be the total
49 state support units.
9
1 COMPUTATION OF KINDERGARTEN SUPPORT UNITS
2 Average Daily
3 Attendance Attendance Divisor Units Allowed
4 41 or more .... 40....................... 1 or more as computed
5 31 - 40.99 ADA.... -....................... 1
6 26 - 30.99 ADA.... -....................... .85
7 21 - 25.99 ADA.... -....................... .75
8 16 - 20.99 ADA.... -....................... .6
9 8 - 15.99 ADA.... -....................... .5
10 1 - 7.99 ADA.... -....................... count as elementary
11 COMPUTATION OF ELEMENTARY SUPPORT UNITS
12 Average Daily
13 Attendance Attendance Divisor Minimum Units Allowed
14 300 or more ADA........................................ 15
15 ..23...grades 4,5 & 6....
16 ..22...grades 1,2 & 3....1994-95
17 ..21...grades 1,2 & 3....1995-96
18 ..20...grades 1,2 & 3....1996-97
19 and each year thereafter.
20 160 to 299.99 ADA... 20..................... 8.4
21 110 to 159.99 ADA... 19..................... 6.8
22 71.1 to 109.99 ADA... 16..................... 4.7
23 51.7 to 71.0 ADA... 15..................... 4.0
24 33.6 to 51.6 ADA... 13..................... 2.8
25 16.6 to 33.5 ADA... 12..................... 1.4
26 1.0 to 16.5 ADA... n/a.................... 1.0
27 COMPUTATION OF SECONDARY SUPPORT UNITS
28 Average Daily
29 Attendance Attendance Divisor Minimum Units Allowed
30 750 or more .... 18.5..................... 47
31 400 - 749.99 ADA.... 16....................... 28
32 300 - 399.99 ADA.... 14.5..................... 22
33 200 - 299.99 ADA.... 13.5..................... 17
34 100 - 199.99 ADA.... 12....................... 9
35 99.99 or fewer Units allowed as follows:
36 Grades 7-12 ......................... 8
37 Grades 9-12 ......................... 6
38 Grades 7- 9 ......................... 1 per 14 ADA
39 Grades 7- 8 ......................... 1 per 16 ADA
40 COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS
41 Average Daily
42 Attendance Attendance Divisor Minimum Units Allowed
43 14 or more .... 14.5..................... 1 or more as computed
44 12 - 13.99.... -....................... 1
45 8 - 11.99.... -....................... .75
46 4 - 7.99.... -....................... .5
47 1 - 3.99.... -....................... .25
48 COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS
49 Pupils in Attendance Attendance Divisor Minimum Units Allowed
50 12 or more.......... 12...................... 1 or more as computed
10
1 In applying these tables to any given separate attendance unit, no school
2 district shall receive less total money than it would receive if it had a
3 lesser average daily attendance in such separate attendance unit. In applying
4 the kindergarten table to a kindergarten program of less days than a full
5 school year, the support unit allowance shall be in ratio to the number of
6 days of a full school year. The tables for exceptional education and alterna-
7 tive school secondary support units shall be applicable only for programs
8 approved by the state department of education following rules established by
9 the state board of education. Moneys generated from computation of support
10 units for alternative schools shall be utilized for alternative school pro-
11 grams. School district administrative and facility costs may be included as
12 part of the alternative school expenditures.
13 7.(5) State Distribution Factor per Support Unit. Divide educational sup-
14 port program distribution funds, after subtracting the amounts necessary to
15 pay the obligations specified in subsection (2.) of this section, by the total
16 state support units to secure the state distribution factor per support unit.
17 8.(6) District Share of State Funds for Educational Support Program.
18 Ascertain a district's share of state funds for the educational support pro-
19 gram as follows:
20 a. District Contribution Calculation. Without including any allowance as
21 a credit for prepaid taxes, as provided in section 63-1607, Idaho Code,
22 the district contribution calculation shall be the rate determined under
23 subsection 3. of this section.
24 b. District Support Units. The number of support units for each school
25 district in the state shall be determined as follows:
26 (a) (1i) Divide the actual average daily attendance, excluding students
27 approved for inclusion in the exceptional child educational program,
28 for the administrative schools and each of the separate schools and
29 attendance units by the appropriate divisor from the tables of sup-
30 port units in this section, then add the quotients to obtain the
31 district's support units allowance for regular students, kindergarten
32 through grade 12 including alternative school secondary students.
33 Calculations in application of this subsection shall be carried out
34 to the nearest tenth.
35 (2ii) Divide the combined totals of the average daily attendance of
36 all preschool, handicapped, kindergarten, elementary, secondary and
37 juvenile detention center students approved for inclusion in the
38 exceptional child program of the district by the appropriate divisor
39 from the table for computation of exceptional education support units
40 to obtain the number of support units allowed for the district's
41 approved exceptional child program. Calculations for this subsection
42 shall be carried out to the nearest tenth when more than one (1) unit
43 is allowed.
44 (3iii) The total number of support units of the district shall be the
45 sum of the total support units for regular students, subsection
46 8.b.(1) (6)(a)(i) of this section, and the support units allowance
47 for the approved exceptional child program, subsection 8.b.(2)
48 (6)(a)(ii) of this section.
49 c.(b) Total District Allowance Educational Program. Multiply the
50 district's total number of support units, carried out to the nearest
51 tenth, by the state distribution factor per support unit and to this prod-
52 uct add the approved amount of programs of the district provided in sub-
53 section (2.) of this section to secure the district's total allowance for
54 the educational support program.
55 d.(c) District Share. To secure tThe district's share of state apportion-
11
1 ment, subtract the amount of the local district contribution calculation,
2 subsection 3. of this section, from is the amount of the total district
3 allowance, subsection 8.c. (6)(b) of this section.
4 e.(d) Adjustment of District Share. The contract salary of every noncer-
5 tificated teacher shall be subtracted from the district's share as calcu-
6 lated from the provisions of subsection 8.d. (6)(c) of this section.
7 (7) Property Tax Computation Ratio. In order to receive state funds pur-
8 suant to this section a charter district shall utilize a school maintenance
9 and operation property tax computation ratio for the purpose of calculating
10 its maintenance and operation levy, that is no greater than that which it uti-
11 lized in tax year 1994, less four-tenths of one percent (.4%). As used herein,
12 the term "property tax computation ratio" shall mean a ratio determined by
13 dividing the district's certified property tax maintenance and operation bud-
14 get by the actual or adjusted market value for assessment purposes as such
15 values existed on December 31, l993. Such maintenance and operation levy shall
16 be based on the property tax computation ratio multiplied by the actual or
17 adjusted market value for assessment purposes as such values existed on Decem-
18 ber 31 of the prior calendar year.
19 SECTION 7. That Sections 33-1002A and 33-1002D, Idaho Code, be, and the
20 same are hereby repealed.
21 SECTION 8. That Section 33-1003, Idaho Code, be, and the same is hereby
22 amended to read as follows:
23 33-1003. SPECIAL APPLICATIONS OF EDUCATIONAL SUPPORT PROGRAM. (1.)
24 Decrease in Average Daily Attendance. -- Any school district which has a
25 decrease in total average daily attendance of one percent (1%) of its average
26 daily attendance in the then current school year from the total average daily
27 attendance used for determining the allowance in the educational support pro-
28 gram for the school year immediately preceding, the allowance of funds from
29 the educational support program may be based on the average daily attendance
30 of the school year immediately preceding, less one percent (1%). When this
31 provision is applied, the decrease in average daily attendance shall be pro-
32 portionately distributed among the various categories of support units that
33 are appropriate for the district.
34 (2.) Application of Support Program to Separate Schools/Attendance Units
35 in District.
36 (a.) Separate Elementary School. -- Any separate elementary school shall
37 be allowed to participate in the educational support program as though
38 the school were the only elementary school operated by the district.
39 (b.) Hardship Elementary School. -- Upon application of the board of
40 trustees of a school district, the state board of education is empowered
41 to determine that a given elementary school or elementary schools within
42 the school district, not otherwise qualifying, are entitled to be counted
43 as a separate elementary school as defined in section 33-1001, Idaho
44 Code, when, in the discretion of the state board of education, special
45 conditions exist warranting the retention of the school as a separate
46 attendance unit and the retention results in a substantial increase in
47 cost per pupil in average daily attendance above the average cost per
48 pupil in average daily attendance of the remainder of the district's ele-
49 mentary grade school pupils. An elementary school operating as a previ-
50 ously approved hardship elementary school shall continue to be considered
51 as a separate attendance unit, unless the hardship status of the elemen-
52 tary school is rescinded by the state board of education.
12
1 (c.) Separate Secondary School. -- Any separate secondary school shall be
2 allowed to participate in the educational support program as though the
3 school were the only secondary school operated by the district.
4 (d.) Elementary/Secondary School Attendance Units. -- Elementary grades
5 in an elementary/secondary school will be funded as a separate attendance
6 unit if all elementary grades served are situated more than ten (10) miles
7 distance from both the nearest like elementary grades within the same
8 school district and from the location of the office of the superintendent
9 of schools of such district, or from the office of the chief administra-
10 tive officer of such district if the district employs no superintendent of
11 schools. Secondary grades in an elementary/secondary school will be funded
12 as a separate attendance unit if all secondary grades served are located
13 more than fifteen (15) miles by an all-weather road from the nearest like
14 secondary grades operated by the district.
15 (e.) Hardship Secondary School. -- Any district which operated two (2)
16 secondary schools separated by less than fifteen (15) miles, but which
17 district was created through consolidation subsequent to legislative
18 action pursuant to chapter 111, laws of 1947, and which school buildings
19 were constructed prior to 1935, shall be entitled to count the schools as
20 separate attendance units.
21 (f.) Minimum Pupils Required. -- Any elementary school having less than
22 ten (10) pupils in average daily attendance shall not be allowed to par-
23 ticipate in the state or county support program unless the school has been
24 approved for operation by the state board of education.
25 (3.) Remote Schools. -- The board of trustees of any Idaho school dis-
26 trict which operates and maintains a school which is remote and isolated from
27 the other schools of the state because of geographical or topographical condi-
28 tions may petition the state board of education to recognize and approve the
29 school as a remote and necessary school. The petition shall be in form and
30 content approved by the state board of education and shall provide such infor-
31 mation as the state board of education may require. Petitions for the recogni-
32 tion of a school as a remote and necessary school shall be filed annually at
33 least ninety (90) days prior to the date of the annual meeting of the board of
34 trustees as established in section 33-510, Idaho Code.
35 Within forty-five (45) days after the receipt of a petition for the recog-
36 nition of a remote and necessary school, the state board of education shall
37 either approve or disapprove the petition and notify the board of trustees of
38 its decision. Schools which the state board of education approves as being
39 necessary and remote shall be allowed adequate funding within the support pro-
40 gram for an acceptable educational program for the students of the school. In
41 the case of a remote and necessary secondary school, grades 7-12, the educa-
42 tional program shall be deemed acceptable when, in the opinion of the state
43 board of education, the accreditation standard relating to staff size, estab-
44 lished in accordance with section 33-119, Idaho Code, has been met. The final
45 determination of an acceptable program and adequate funding in the case of a
46 remote and necessary elementary school shall be made by the state board of
47 education.
48 (4.) Support Program When District Boundaries are Changed.
49 (a.) In new districts formed by the division of a district, the support
50 program computed for the district divided in its last year of operation,
51 shall be apportioned to the new districts created by the division, in the
52 proportion that the average daily attendance of pupils, elementary and
53 secondary combined, residing in the area of each new district so created,
54 is to the average daily attendance of all pupils, elementary and secondary
55 combined, in the district divided in its last year of operation before the
13
1 division.
2 (b.) When boundaries of districts are changed by excision or annexation
3 of territory, the support program of any district from which territory is
4 excised for the last year of operation before such excision shall be
5 divided, and apportioned among the districts involved, as prescribed in
6 subsection 4a. (4)(a) of this section.
7 (c.) In new districts formed by consolidation of former districts, the
8 support program allowance for a seven (7) year period following the forma-
9 tion of the new district, shall not be less than the combined support pro-
10 gram allowances of the component districts in the last year of operation
11 before consolidation.
12 5. For the fiscal year which commences on July 1, 1986, and for each suc-
13 ceeding fiscal year, any school district whose adjusted market value for
14 assessment purposes decreases forty percent (40%) or more from the previous
15 year's adjusted market value for assessment purposes as such valuation existed
16 on December 31, is eligible to receive an adjustment to its educational sup-
17 port program entitlement, subject to qualifications as follows:
18 a. The adjusted market value for assessment purposes has decreased forty
19 percent (40%) or more from the previous year's adjusted market value for
20 assessment purposes as such valuation existed on December 31; and
21 b. The school levy to be certified for the general maintenance and opera-
22 tion fund shall be no less than four-tenths of one percent (.4%); and
23 c. An eligible school district has made application to the state depart-
24 ment of education for an adjustment to entitlement from the state educa-
25 tional support program on or before June 1 of the fiscal year. Such appli-
26 cation must document the need for additional funds and must include a dis-
27 trict plan to minimize impact of a reduced local tax base.
28 SECTION 9. The State Department of Education shall utilize the provisions
29 of Sections 33-802, 33-1002, 33-1002A, 33-1002D and 33-1003, Idaho Code, as
30 they existed prior to amendment or repeal by the provisions of this act for
31 the purposes of funding public schools through the end of fiscal year 2006.
32 SECTION 10. That Section 33-1004, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 33-1004. STAFF ALLOWANCE. For each school district, a staff allowance
35 shall be determined as follows:
36 1. Using the daily attendance reports that have been submitted for com-
37 puting the February 15th apportionment of state funds as provided in section
38 33-1009, Idaho Code, determine the total support units for the district in the
39 manner provided in section 33-1002 8.b. (6)(a), Idaho Code;
40 2. Determine the instructional staff allowance by multiplying the support
41 units by 1.1. A district must demonstrate that it actually employs the number
42 of certificated instructional staff allowed. If the district does not employ
43 the number allowed, the staff allowance shall be reduced to the actual number
44 employed;
45 3. Determine the administrative staff allowance by multiplying the sup-
46 port units by .075;
47 4. Determine the classified staff allowance by multiplying the support
48 units by .375;
49 5. Additional conditions governing staff allowance:
50 a. In determining the number of staff in subsections 2., 3. and 4. of
51 this section, a district may contract separately for services to be ren-
52 dered by nondistrict employees and such employees may be counted in the
14
1 staff allowance. A "nondistrict employee" means a person for whom the
2 school district does not pay the employer's obligations for employee bene-
3 fits. When a district contracts for the services of a nondistrict
4 employee, only the salary portion of the contract shall be allowable for
5 computations.
6 b. If there are circumstances preventing eligible use of staff allowance
7 to which a district is entitled as provided in subsections 2. and 3. of
8 this section, an appeal may be filed with the state department of educa-
9 tion outlining the reasons and proposed alternative use of these funds,
10 and a waiver may be granted.
11 c. For any district with less than forty (40) support units:
12 (1) The instructional staff allowance shall be calculated applying
13 the actual number of support units. If the actual instructional staff
14 employed in the school year is greater than the instructional staff
15 allowance, then the instructional staff allowance shall be increased
16 by one-half (1/2) staff allowance; and
17 (2) The administrative staff allowance shall be calculated applying
18 the actual number of support units. If the actual administrative
19 staff employed in the school year is greater than the administrative
20 staff allowance, then the administrative staff allowance shall be
21 increased by one-half (1/2) staff allowance.
22 (3) Additionally, for any district with less than twenty (20) sup-
23 port units, the instructional staff allowance shall be calculated
24 applying the actual number of support units. If the number of
25 instructional staff employed in the school year is greater than the
26 instructional staff allowance, the staff allowance shall be increased
27 as provided in paragraphs (1) and (2) of this subsection, and by an
28 additional one-half (1/2) instructional staff allowance.
29 d. Only instructional, administrative and classified personnel compen-
30 sated by the school district from the general maintenance and operation
31 fund of the district shall be included in the calculation of staff allow-
32 ance or in any other calculations based upon staff, including determina-
33 tion of the experience and education multiplier, the reporting require-
34 ments, or the district's salary-based apportionment calculation. No food
35 service staff or transportation staff shall be included in the staff
36 allowance.
37 6. In the event that the staff allowance in any category is insufficient
38 to meet accreditation standards, a district may appeal to the state board of
39 education, demonstrating the insufficiency, and the state board may grant a
40 waiver authorizing sufficient additional staff to be included within the staff
41 allowance to meet accreditation standards. Such a waiver shall be limited to
42 one (1) year, but may be renewed upon showing of continuing justification.
43 SECTION 11. That Section 33-1114, Idaho Code, be, and the same is hereby
44 amended to read as follows:
45 33-1114. LEVY FOR LIQUIDATION OF BONDED INDEBTEDNESS. Whenever it shall
46 appear that the board of trustees of any school district has failed to certify
47 to the board of county commissioners the levy required in section 33-802,
48 Idaho Code, said The board of county commissioners shall, in addition to all
49 other levies set by them, set levies sufficient to meet all accruing bond,
50 bond interest and judgment obligations of the district maturing during the
51 year when such levies shall be collected and paid.
52 SECTION 12. That Section 33-1408, Idaho Code, be, and the same is hereby
15
1 amended to read as follows:
2 33-1408. SPECIAL LEVY FOR TUITION. Any school district is hereby autho-
3 rized to make a levy above the maintenance and operation levy otherwise autho-
4 rized by law for the purpose of paying tuition costs of its students who,
5 under authorization of the board of trustees of the district, attend school in
6 another district either in or out of Idaho, except for those costs reimbursed
7 by the state under border contracts. Such levy shall be exempt from the provi-
8 sions of section 63-802, Idaho Code.
9 SECTION 13. That Section 33-5208, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 33-5208. PUBLIC CHARTER SCHOOL FINANCIAL SUPPORT. Except as provided in
12 subsection (8) of this section, from the state educational support program the
13 state department of education shall make the following apportionment to each
14 public charter school for each fiscal year based on attendance figures submit-
15 ted in a manner and time as required by the department of education:
16 (1) Per student support. Computation of support units for each public
17 charter school shall be calculated as if it were a separate school according
18 to the schedules in section 33-1002 6.(4), Idaho Code, except that public
19 charter schools with fewer than one hundred (100) secondary ADA shall use a
20 divisor of twelve (12) and the minimum units shall not apply, and no public
21 charter school shall receive an increase in support units that exceeds the
22 support units it received in the prior year by more than twenty (20). Funding
23 from the state educational support program shall be equal to the total distri-
24 bution factor, plus the salary-based apportionment provided in chapter 10,
25 title 33, Idaho Code. Provided however, any public charter school that is
26 formed by the conversion of an existing traditional public school shall be
27 assigned divisors, pursuant to section 33-1002, Idaho Code, that are no lower
28 than the divisors of the school district in which the traditional public
29 school is located, for each category of pupils listed.
30 (2) Special education. For each student enrolled in the public charter
31 school who is entitled to special education services, the state and federal
32 funds from the exceptional child education program for that student that would
33 have been apportioned for that student to the school district in which the
34 public charter school is located.
35 (3) Alternative school support. Public charter schools may qualify under
36 the provisions of sections 33-1002 and 33-1002C, Idaho Code, provided the pub-
37 lic charter school meets the necessary statutory requirements, and students
38 qualify for attendance at an alternative school as provided by rule of the
39 state board of education.
40 (4) Transportation support. Support shall be paid to the public charter
41 school as provided in chapter 15, title 33, Idaho Code, and section 33-1006,
42 Idaho Code. Each public charter school shall furnish the department with an
43 enrollment count as of the first Friday in November, of public charter school
44 students living more than one and one-half (1 1/2) miles from the school. For
45 charter schools in the initial year of operation, the petition shall include a
46 proposal for transportation services with an estimated first year cost. The
47 state department of education is authorized to include in the annual appropri-
48 ation to the charter school eighty percent (80%) of the estimated transporta-
49 tion cost. The final appropriation payment in July shall reflect eighty-five
50 percent (85%) of the actual cost.
51 (5) Payment schedule. The state department of education is authorized to
52 make an advance payment of twenty-five percent (25%) of a public charter
16
1 school's estimated annual apportionment for its first year of operation, and
2 each year thereafter, provided the public charter school has an increase of
3 student population in any given year of twenty (20) students or more, to
4 assist the school with initial start-up costs or payroll obligations.
5 (a) For a state public charter school to receive the advance payment, the
6 school shall submit its anticipated fall membership for each grade level
7 to the state department of education by June 1.
8 (b) Using the figures provided by the public charter school, the state
9 department of education shall determine an estimated annual apportionment
10 from which the amount of the advance payment shall be calculated. Advance
11 payment shall be made to the school on or after July 1 but no later than
12 July 31.
13 (c) All subsequent payments, taking into account the one-time advance
14 payment made for the first year of operation, shall be made to the public
15 charter school in the same manner as other traditional public schools in
16 accordance with the provisions of section 33-1009, Idaho Code.
17 A public charter school shall comply with all applicable fiscal requirements
18 of law, except that the following provisions shall not be applicable to public
19 charter schools: section 33-1003B, Idaho Code, relating to guaranteed minimum
20 support; that portion of section 33-1004, Idaho Code, relating to reduction of
21 the administrative and instructional staff allowance when there is a discrep-
22 ancy between the number allowed and the number actually employed; and section
23 33-1004E, Idaho Code, for calculation of district staff indices.
24 (6) Nothing in this chapter shall be construed to prohibit any private
25 person or organization from providing funding or other financial assistance to
26 the establishment or operation of a public charter school.
27 (7) Nothing in this chapter shall prevent a public charter school from
28 applying for federal grant moneys.
29 (8) (a) For the period July 1, 2003, through June 30, 2005, all public
30 virtual schools shall be assigned divisors, pursuant to section 33-1002,
31 Idaho Code, that are no higher than the median divisor shown for each
32 respective category of pupils, among the possible divisors listed, for
33 each respective category of pupils that contains more than one (1) divi-
34 sor. If there is an even number of possible divisors listed for a particu-
35 lar category of pupils, then the lesser of the two (2) median divisors
36 shall be used. For the period July 1, 2005, through June 30, 2007, all
37 public virtual schools shall be assigned divisors, pursuant to section
38 33-1002, Idaho Code, that are no higher than the second highest divisor
39 shown, among the possible divisors listed, for each respective category of
40 pupils that contains more than one (1) divisor. The divisor provisions
41 contained herein shall only be applicable to the number of pupils in aver-
42 age daily attendance in such public virtual schools for the period July 1,
43 2003, through June 30, 2004. If the number of pupils in average daily
44 attendance in any particular category of pupils increases, during the
45 period July 1, 2004, through June 30, 2005, to a number above that which
46 existed in the prior fiscal year, then those additional pupils in average
47 daily attendance shall be assigned the divisor, pursuant to section
48 33-1002, Idaho Code, that would have otherwise been assigned to the school
49 district or public charter school had this section not been in force.
50 (b) Each student in attendance at a public virtual school shall be funded
51 based upon either the actual hours of attendance in the public virtual
52 school on a flexible schedule, or the percentage of coursework completed,
53 whichever is more advantageous to the school, up to the maximum of one (1)
54 full-time equivalent student.
55 (c) All federal educational funds shall be administered and distributed
17
1 to public charter schools, including public virtual schools, that have
2 been designated by the state board of education as a local education
3 agency (LEA), as provided in section 33-5203(7), Idaho Code.
4 (9) Nothing in this section prohibits separate face-to-face learning
5 activities or services.
6 SECTION 14. That Section 50-2908, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 50-2908. DETERMINATION OF TAX LEVIES -- CREATION OF SPECIAL FUND. (1) For
9 purposes of calculating the rate at which taxes shall be levied by or for each
10 taxing district in which a revenue allocation area is located, the county com-
11 missioners shall, with respect to the taxable property located in such revenue
12 allocation area, use the equalized assessed value of such taxable property as
13 shown on the base assessment roll rather than on the current equalized
14 assessed valuation of such taxable property.
15 (2) With respect to each such taxing district, the tax rate calculated
16 under subsection (1) of this section shall be applied to the current equalized
17 assessed valuation of all taxable property in the taxing district, including
18 the taxable property in the revenue allocation area. The tax revenues thereby
19 produced shall be allocated as follows:
20 (a) To the taxing district shall be allocated and shall be paid by the
21 county treasurer:
22 (i) All taxes levied by the taxing district or on its behalf on
23 taxable property located within the taxing district but outside the
24 revenue allocation area;
25 (ii) A portion of the taxes levied by the taxing district or on its
26 behalf on the taxable property located within the revenue allocation
27 area, which portion is the amount produced by applying the taxing
28 district's tax rate determined under subsection (1) of this section
29 to the equalized assessed valuation, as shown on the base assessment
30 roll, of the taxable property located within the revenue allocation
31 area; and
32 (iii) If such taxing district is a school district, a further portion
33 of the taxes levied by such district or on its behalf on the taxable
34 property located within the revenue allocation area, which portion is
35 the amount equal to the percentage specified in section
36 33-1002(7)(a), Idaho Code, multiplied by the difference between the
37 current equalized assessed valuation of such taxable property and the
38 equalized assessed valuation of such taxable property as shown on the
39 base assessment roll.
40 (b) To the urban renewal agency shall be allocated the balance, if any,
41 of the taxes levied on the taxable property located within the revenue
42 allocation area.
43 (3) Upon enactment of an ordinance adopting a revenue allocation financ-
44 ing provision as part of an urban renewal plan, the urban renewal agency shall
45 create a special fund or funds to be used for the purposes enumerated in this
46 chapter. The revenues allocated to the urban renewal agency pursuant to this
47 chapter, shall be paid to the agency by the treasurer of the county in which
48 the revenue allocation district is located and shall be deposited by the
49 agency into one (1) or more of such special funds. The agency may, in addi-
50 tion, deposit into such special fund or funds such other income, proceeds,
51 revenues and funds it may receive from sources other than the revenues allo-
52 cated to it under subsection (2)(b) of this section.
53 (4) For the purposes of section 63-803, Idaho Code, during the period
18
1 when revenue allocation under this chapter is in effect, and solely with
2 respect to any taxing district in which a revenue allocation area is located,
3 the county commissioners shall, in fixing any tax levy, take into consider-
4 ation the equalized assessed valuation of the taxable property situated in the
5 revenue allocation area as shown in the base assessment roll, rather than the
6 current equalized assessed value of such taxable property.
7 (5) For all other purposes, including, without limitation, for purposes
8 of sections 33-802, 33-1002 and 63-1313, Idaho Code, reference in the Idaho
9 Code to the term "market value for assessment purposes" (or any other such
10 similar term) shall mean market value for assessment purposes as defined in
11 section 63-208, Idaho Code.
12 SECTION 15. That Section 63-315, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 63-315. ASSESSMENT RATIOS AND THE DETERMINATION OF ADJUSTED MARKET VALUE
15 FOR ASSESSMENT PURPOSES FOR SCHOOL DISTRICTS. (1) The provisions of this sec-
16 tion shall apply only to charter school districts levying a maintenance and
17 operation levy in the prior calendar year. For the purpose of this section,
18 adjusted market value for assessment purposes shall be the adjusted market
19 value for assessment purposes of all property assessed for property tax pur-
20 poses for the year referred to in sections 33-802 and 33-1002, Idaho Code.
21 (2) The state tax commission shall conduct a ratio study to annually
22 ascertain the ratio between the assessed value and the market value for
23 assessment purposes of all property assessed for property tax purposes. Said
24 ratio study shall be conducted in accordance with nationally accepted proce-
25 dures. From the ratio so ascertained the state tax commission shall compute
26 the adjusted market value of all property assessed for property tax purposes.
27 (3) The ratio shall be computed in each school district and applied to
28 the market value for assessment purposes within each school district.
29 (4) Sales used in determining the ratio required by this section shall be
30 arm's length, market value property sales occurring in the year beginning on
31 October 1 of the year preceding the year for which the adjusted market value
32 is to be determined. The state tax commission may, at its discretion, modify
33 the sales period when doing so produces provably better representativeness of
34 the actual ratio in any school district. The state tax commission may also add
35 independently conducted appraisals when the state tax commission believes
36 that this procedure will improve the representativeness and reliability of the
37 ratio.
38 (5) Whenever the state tax commission is unable to determine with reason-
39 able statistical certainty that the assessed value within any school district
40 differs from the market value for assessment purposes, the state tax commis-
41 sion may certify the assessed value to be the adjusted market value of any
42 school district.
43 (6) The state tax commission shall certify the adjusted market value of
44 each school district to the state department of education and each county
45 auditor no later than the first Monday in April each year. The state tax com-
46 mission shall prepare a report indicating procedures used in computing the
47 adjusted market value and showing statistical measures computed in the ratio
48 study. This report shall be submitted to the state department of education at
49 the same time as the certification of adjusted market value. The report of the
50 state tax commission shall also be made available for public inspection in the
51 office of the county auditor.
52 (7) The state tax commission shall promulgate rules to implement the
53 ratio study described in this section.
19
1 SECTION 16. That Section 63-802A, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 63-802A. NOTICE OF BUDGET HEARING. (1) Not later than April 30 of each
4 year, each taxing district shall set and notify the county clerk of the date
5 and location set for the budget hearing of the district. If no budget hearing
6 is required by law, the county clerk shall be so notified.
7 (2) Beginning in 2003, a nonschool taxing district that fails to comply
8 with subsection (1) of this section shall be prohibited from including in its
9 budget any budget increase otherwise permitted by either subsection (1)(a) or
10 (1)(e) of section 63-802, Idaho Code.
11 (3) Beginning in 2003, a school district that fails to comply with sub-
12 section (1) of this section shall be prohibited, in the year of such failure,
13 from increasing the portion of its property tax budget raised under section
14 33-802 2., Idaho Code, over the amount of the immediately preceding year.
15 (4) If a taxing district wishes to change the time and location of such
16 budget hearing as stated on the assessment notice, they it shall publish such
17 change of time and location in advance of such hearing as provided by law.
18 SECTION 17. That Section 63-811, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 63-811. COMPUTATION OF PROPERTY TAXES -- DUTY OF COUNTY AUDITOR. (1) The
21 county auditor must cause to be computed the amount of the local property
22 taxes levied on the total of the taxable value as entered on the property and
23 operating property rolls, and must deliver the property and operating property
24 rolls to the tax collector on or before the first Monday of November.
25 (2) The county auditor must cause to be computed the amount of the local
26 property taxes levied on the total of the taxable value as entered on the sub-
27 sequent property roll, and must deliver the subsequent property roll to the
28 tax collector as soon as possible, without delay, after the first Monday of
29 December.
30 (3) The county auditor must cause to be computed the amount of the state
31 property tax and the amount of the local property taxes levied on the total
32 taxable value as entered on the missed property roll, and must deliver the
33 missed property roll to the tax collector as soon as possible, without delay,
34 after the first Monday of March of the year following the year in which the
35 assessment was entered on the missed property roll.
36 (4) For the purpose of this section, "taxable value" shall mean the por-
37 tion of the equalized assessed value, less any exemptions and the value that
38 exceeds the value of the base assessment roll for the portion of any taxing
39 district within a revenue allocation area of an urban renewal district,
40 located within each taxing district which certifies a budget to be raised from
41 a property tax levy. When the portion of the property tax to be allocated to
42 school districts as required in sections 33-1002 and 50-2908, Idaho Code, is
43 calculated, the taxable value must include the value that exceeds the value of
44 the base assessment roll.
45 (5) The county auditor, at the time of delivery to the county tax collec-
46 tor of the property roll, subsequent property roll, missed property roll or
47 operating property roll with all property taxes computed, must subscribe an
48 affidavit to such roll that he has to the best of his knowledge and ability
49 computed the proper amount of property taxes due, and recorded such orders of
50 the board of equalization as have been made and have made no other changes.
51 (6) Failure of the auditor to make the affidavit shall not affect the
52 validity of any entry on the roll. The making of such affidavit, however, is
20
1 declared to be a duty pertaining to the office of the county auditor. In every
2 case where the said affidavit is omitted from the real property assessment
3 roll, completed and delivered as aforesaid, the board of county commissioners
4 must require the county auditor to make the same, and upon refusal or neglect
5 of such county auditor to make and subscribe to such affidavit forthwith, the
6 chairman of the said board must immediately file in the district court in the
7 county, an information in writing, verified by his oath, charging such county
8 auditor with refusal or neglect to perform the official duties pertaining to
9 his office, and thereupon he must be proceeded against as in such cases pro-
10 vided by law.
11 SECTION 18. That Section 63-3619, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 63-3619. IMPOSITION AND RATE OF THE SALES TAX. An excise tax is hereby
14 imposed upon each sale at retail at the rate of five six percent (56%) of the
15 sales price of all retail sales subject to taxation under this chapter and
16 such amount shall be computed monthly on all sales at retail within the pre-
17 ceding month.
18 (a) The tax shall apply to, be computed on, and collected for all credit,
19 installment, conditional or similar sales at the time of the sale or, in the
20 case of rentals, at the time the rental is charged.
21 (b) The tax hereby imposed shall be collected by the retailer from the
22 consumer.
23 (c) The state tax commission shall provide schedules for collection of
24 the tax on sales which involve a fraction of a dollar. The retailer shall cal-
25 culate the tax upon the entire amount of the purchases of the consumer made at
26 a particular time and not separately upon each item purchased. The retailer
27 may retain any amount collected under the bracket system prescribed which is
28 in excess of the amount of tax for which he is liable to the state during the
29 period as compensation for the work of collecting the tax.
30 (d) It is unlawful for any retailer to advertise or hold out or state to
31 the public or to any customer, directly or indirectly, that the tax or any
32 part thereof will be assumed or absorbed by the retailer or that it will not
33 be added to the selling price of the property sold or that if added it or any
34 part thereof will be refunded. Any person violating any provision of this sec-
35 tion is guilty of a misdemeanor.
36 (e) The tax commission may by rule provide that the amount collected by
37 the retailer from the customer in reimbursement of the tax be displayed sepa-
38 rately from the list price, the price advertised on the premises, the marked
39 price, or other price on the sales slip or other proof of sale.
40 (f) The taxes imposed by this chapter shall apply to the sales to con-
41 tractors purchasing for use in the performance of contracts with the United
42 States.
43 SECTION 19. That Section 63-3621, Idaho Code, be, and the same is hereby
44 amended to read as follows:
45 63-3621. IMPOSITION AND RATE OF THE USE TAX -- EXEMPTIONS. An excise tax
46 is hereby imposed on the storage, use, or other consumption in this state of
47 tangible personal property acquired on or after July June 1, 20056, for stor-
48 age, use, or other consumption in this state at the rate of five six percent
49 (56%) of the value of the property, and a recent sales price shall be presump-
50 tive evidence of the value of the property unless the property is wireless
51 telecommunications equipment, in which case a recent sales price shall be con-
21
1 clusive evidence of the value of the property.
2 (a) Every person storing, using, or otherwise consuming, in this state,
3 tangible personal property is liable for the tax. His liability is not extin-
4 guished until the tax has been paid to this state except that a receipt from a
5 retailer maintaining a place of business in this state or engaged in business
6 in this state given to the purchaser is sufficient to relieve the purchaser
7 from further liability for the tax to which the receipt refers. A retailer
8 shall not be considered to have stored, used or consumed wireless telecommu-
9 nications equipment by virtue of giving, selling or otherwise transferring
10 such equipment at a discount as an inducement to a consumer to commence or
11 continue a contract for telecommunications service.
12 (b) Every retailer engaged in business in this state, and making sales of
13 tangible personal property for the storage, use, or other consumption in this
14 state, not exempted under section 63-3622, Idaho Code, shall, at the time of
15 making the sales or, if storage, use or other consumption of the tangible per-
16 sonal property is not then taxable hereunder, at the time the storage, use or
17 other consumption becomes taxable, collect the tax from the purchaser and give
18 to the purchaser a receipt therefor in the manner and form prescribed by the
19 state tax commission.
20 (c) The provisions of this section shall not apply when the retailer pays
21 sales tax on the transaction and collects reimbursement for such sales tax
22 from the customer.
23 (d) Every retailer engaged in business in this state or maintaining a
24 place of business in this state shall register with the state tax commission
25 and give the name and address of all agents operating in this state, the loca-
26 tion of all distributions or sales houses or offices or other places of busi-
27 ness in this state, and such other information as the state tax commission may
28 require.
29 (e) For the purpose of the proper administration of this act and to pre-
30 vent evasion of the use tax and the duty to collect the use tax, it shall be
31 presumed that tangible personal property sold by any person for delivery in
32 this state is sold for storage, use, or other consumption in this state. The
33 burden of proving the sale is tax exempt is upon the person who makes the sale
34 unless he obtains from the purchaser a resale certificate to the effect that
35 the property is purchased for resale or rental. It shall be presumed that
36 sales made to a person who has completed a resale certificate for the seller's
37 records are not taxable and the seller need not collect sales or use taxes
38 unless the tangible personal property purchased is taxable to the purchaser as
39 a matter of law in the particular instance claimed on the resale certificate.
40 A seller may accept a resale certificate from a purchaser prior to the
41 time of sale, at the time of sale, or at any reasonable time after the sale
42 when necessary to establish the privilege of the exemption. The resale certif-
43 icate relieves the person selling the property from the burden of proof only
44 if taken from a person who is engaged in the business of selling or renting
45 tangible personal property and who holds the permit provided for by section
46 63-3620, Idaho Code, or who is a retailer not engaged in business in this
47 state, and who, at the time of purchasing the tangible personal property,
48 intends to sell or rent it in the regular course of business or is unable to
49 ascertain at the time of purchase whether the property will be sold or will be
50 used for some other purpose. Other than as provided elsewhere in this section,
51 when a resale certificate, properly executed, is presented to the seller, the
52 seller has no duty or obligation to collect sales or use taxes in regard to
53 any sales transaction so documented regardless of whether the purchaser prop-
54 erly or improperly claimed an exemption. A seller so relieved of the obliga-
55 tion to collect tax is also relieved of any liability to the purchaser for
22
1 failure to collect tax or for making any report or disclosure of information
2 required or permitted under this chapter.
3 The resale certificate shall bear the name and address of the purchaser,
4 shall be signed by the purchaser or his agent, shall indicate the number of
5 the permit issued to the purchaser, or that the purchaser is an out-of-state
6 retailer, and shall indicate the general character of the tangible personal
7 property sold by the purchaser in the regular course of business. The certifi-
8 cate shall be substantially in such form as the state tax commission may pre-
9 scribe.
10 (f) If a purchaser who gives a resale certificate makes any storage or
11 use of the property other than retention, demonstration or display while hold-
12 ing it for sale in the regular course of business, the storage or use is tax-
13 able as of the time the property is first so stored or used.
14 (g) Any person violating any provision of this section is guilty of a
15 misdemeanor and punishable by a fine not in excess of one hundred dollars
16 ($100), and each violation shall constitute a separate offense.
17 (h) It shall be presumed that tangible personal property shipped or
18 brought to this state by the purchaser was purchased from a retailer, for
19 storage, use or other consumption in this state.
20 (i) It shall be presumed that tangible personal property delivered out-
21 side this state to a purchaser known by the retailer to be a resident of this
22 state was purchased from a retailer for storage, use, or other consumption in
23 this state. This presumption may be controverted by evidence satisfactory to
24 the state tax commission that the property was not purchased for storage, use,
25 or other consumption in this state.
26 (j) When the tangible personal property subject to use tax has been sub-
27 jected to a general retail sales or use tax by another state of the United
28 States in an amount equal to or greater than the amount of the Idaho tax, and
29 evidence can be given of such payment, the property will not be subject to
30 Idaho use tax. If the amount paid the other state was less, the property will
31 be subject to use tax to the extent that the Idaho tax exceeds the tax paid to
32 the other state. For the purposes of this subsection, a registration certifi-
33 cate or title issued by another state or subdivision thereof for a vehicle or
34 trailer or a vessel as defined in section 67-7003, Idaho Code, shall be suffi-
35 cient evidence of payment of a general retail sales or use tax.
36 (k) The use tax herein imposed shall not apply to the use by a nonresi-
37 dent of this state of a motor vehicle which is registered or licensed under
38 the laws of the state of his residence and is not used in this state more than
39 a cumulative period of time totaling ninety (90) days in any consecutive
40 twelve (12) months, and which is not required to be registered or licensed
41 under the laws of this state.
42 (l) The use tax herein imposed shall not apply to the use of household
43 goods, personal effects and personally owned motor vehicles by a resident of
44 this state, if such articles were acquired by such person in another state
45 while a resident of that state and primarily for use outside this state and if
46 such use was actual and substantial, but if an article was acquired less than
47 three (3) months prior to the time he entered this state, it will be presumed
48 that the article was acquired for use in this state and that its use outside
49 this state was not actual and substantial. For purposes of this subsection,
50 "resident" shall be as defined in section 63-3013 or 63-3013A, Idaho Code.
51 (m) The use tax herein imposed shall not apply to the storage, use or
52 other consumption of tangible personal property which is or will be incorpo-
53 rated into real property and which has been donated to and has become the
54 property of:
55 (1) A nonprofit organization as defined in section 63-3622O, Idaho Code;
23
1 or
2 (2) The state of Idaho; or
3 (3) Any political subdivision of the state.
4 This exemption applies whether the tangible personal property is incorporated
5 in real property by the donee, a contractor or subcontractor of the donee, or
6 any other person.
7 SECTION 20. That Section 63-3638, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
10 ter, except as may otherwise be required in sections 63-3203 and 63-3709,
11 Idaho Code, shall be distributed by the tax commission as follows:
12 (1) An amount of money shall be distributed to the state refund account
13 sufficient to pay current refund claims. All refunds authorized under this
14 chapter by the commission shall be paid through the state refund account, and
15 those moneys are continuously appropriated.
16 (2) Five million dollars ($5,000,000) per year is continuously appropri-
17 ated and shall be distributed to the permanent building fund, provided by sec-
18 tion 57-1108, Idaho Code.
19 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
20 continuously appropriated and shall be distributed to the water pollution con-
21 trol account established by section 39-3605, Idaho Code.
22 (4) An amount equal to the sum required to be certified by the chairman
23 of the Idaho housing and finance association to the state tax commission pur-
24 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
25 ated and shall be paid to any capital reserve fund, established by the Idaho
26 housing and finance association pursuant to section 67-6211, Idaho Code. Such
27 amounts, if any, as may be appropriated hereunder to the capital reserve fund
28 of the Idaho housing and finance association shall be repaid for distribution
29 under the provisions of this section, subject to the provisions of section
30 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
31 possible, from any moneys available therefor and in excess of the amounts
32 which the association determines will keep it self-supporting.
33 (5) An amount equal to the sum required by the provisions of section
34 63-709, Idaho Code, is continuously appropriated and shall be paid as provided
35 by section 63-709, Idaho Code.
36 (6) An amount required by the provisions of chapter 53, title 33, Idaho
37 Code.
38 (7) An amount required by the provisions of chapter 87, title 67, Idaho
39 Code.
40 (8) One dollar ($1.00) on each application for certificate of title or
41 initial application for registration of a motor vehicle, snowmobile, all-
42 terrain vehicle or other vehicle processed by the county assessor or the Idaho
43 transportation department excepting those applications in which any sales or
44 use taxes due have been previously collected by a retailer, shall be a fee for
45 the services of the assessor of the county or the Idaho transportation depart-
46 ment in collecting such taxes, and shall be paid into the current expense fund
47 of the county or state highway account established in section 40-702, Idaho
48 Code.
49 (9) Thirteen Eleven and three-quarters five-tenths percent (13.7511.5%)
50 is continuously appropriated and shall be distributed to the revenue sharing
51 account which is created in the state treasury, and the moneys in the revenue
52 sharing account will be paid in installments each calendar quarter by the tax
53 commission as follows:
24
1 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
2 ious cities as follows:
3 (i) Fifty percent (50%) of such amount shall be paid to the various
4 cities, and each city shall be entitled to an amount in the propor-
5 tion that the population of that city bears to the population of all
6 cities within the state; and
7 (ii) Fifty percent (50%) of such amount shall be paid to the various
8 cities, and each city shall be entitled to an amount in the propor-
9 tion that the preceding year's market value for assessment purposes
10 for that city bears to the preceding year's market value for assess-
11 ment purposes for all cities within the state.
12 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
13 ious counties as follows:
14 (i) One million three hundred twenty thousand dollars ($1,320,000)
15 annually shall be distributed one forty-fourth (1/44) to each of the
16 various counties; and
17 (ii) The balance of such amount shall be paid to the various coun-
18 ties, and each county shall be entitled to an amount in the propor-
19 tion that the population of that county bears to the population of
20 the state;
21 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
22 ated in this subsection (9) shall be paid to the several counties for dis-
23 tribution to the cities and counties as follows:
24 (i) Each city and county which received a payment under the provi-
25 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
26 calendar year 1999, shall be entitled to a like amount during suc-
27 ceeding calendar quarters.
28 (ii) If the dollar amount of money available under this subsection
29 (9)(c) in any quarter does not equal the amount paid in the fourth
30 quarter of calendar year 1999, each city's and county's payment shall
31 be reduced proportionately.
32 (iii) If the dollar amount of money available under this subsection
33 (9)(c) in any quarter exceeds the amount paid in the fourth quarter
34 of calendar year 1999, each city and county shall be entitled to a
35 proportionately increased payment, but such increase shall not exceed
36 one hundred five percent (105%) of the total payment made in the
37 fourth quarter of calendar year 1999.
38 (iv) If the dollar amount of money available under this subsection
39 (9)(c) in any quarter exceeds one hundred five percent (105%) of the
40 total payment made in the fourth quarter of calendar year 1999, any
41 amount over and above such one hundred five percent (105%) shall be
42 paid fifty percent (50%) to the various cities in the proportion that
43 the population of the city bears to the population of all cities
44 within the state, and fifty percent (50%) to the various counties in
45 the proportion that the population of a county bears to the popula-
46 tion of the state; and
47 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
48 this subsection (9) shall be paid to the several counties for distribution
49 to special purpose taxing districts as follows:
50 (i) Each such district which received a payment under the provi-
51 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
52 calendar year 1999, shall be entitled to a like amount during suc-
53 ceeding calendar quarters.
54 (ii) If the dollar amount of money available under this subsection
55 (9)(d) in any quarter does not equal the amount paid in the fourth
25
1 quarter of calendar year 1999, each special purpose taxing district's
2 payment shall be reduced proportionately.
3 (iii) If the dollar amount of money available under this subsection
4 (9)(d) in any quarter exceeds the amount distributed under paragraph
5 (i) of this subsection (9)(d), each special purpose taxing district
6 shall be entitled to a share of the excess based on the proportion
7 each such district's current property tax budget bears to the sum of
8 the current property tax budgets of all such districts in the state.
9 The state tax commission shall calculate district current property
10 tax budgets to include any unrecovered foregone amounts as determined
11 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
12 district is situated in more than one (1) county, the tax commission
13 shall determine the portion attributable to the special purpose tax-
14 ing district from each county in which it is situated.
15 (iv) If special purpose taxing districts are consolidated, the
16 resulting district is entitled to a base amount equal to the sum of
17 the base amounts which were received in the last calendar quarter by
18 each district prior to the consolidation.
19 (v) If a special purpose taxing district is dissolved or
20 disincorporated, the state tax commission shall continuously distrib-
21 ute to the board of county commissioners an amount equal to the last
22 quarter's distribution prior to dissolution or disincorporation. The
23 board of county commissioners shall determine any redistribution of
24 moneys so received.
25 (vi) Taxing districts formed after January 1, 2001, are not entitled
26 to a payment under the provisions of this subsection (9)(d).
27 (vii) For purposes of this subsection (9)(d), a special purpose tax-
28 ing district is any taxing district which is not a city, a county or
29 a school district.
30 (10) Amounts calculated in accordance with section 2, chapter 356, Llaws
31 of 2001, for annual distribution to counties and other taxing districts begin-
32 ning in October 2001 for replacement of property tax on farm machinery and
33 equipment exempted pursuant to section 63-602EE, Idaho Code. For nonschool
34 districts, the state tax commission shall distribute one-fourth (1/4) of this
35 amount certified quarterly to each county. For school districts, the state tax
36 commission shall distribute one-fourth (1/4) of the amount certified quarterly
37 to each school district. For nonschool districts, the county auditor shall
38 distribute to each district within thirty (30) calendar days from receipt of
39 moneys from the tax commission. Moneys received by each taxing district for
40 replacement shall be utilized in the same manner and in the same proportions
41 as revenues from property taxation. The moneys remitted to the county trea-
42 surer for replacement of property exempt from taxation pursuant to section
43 63-602EE, Idaho Code, may be considered by the counties and other taxing dis-
44 tricts and budgeted at the same time, in the same manner and in the same year
45 as revenues from taxation on personal property which these moneys replace. If
46 taxing districts are consolidated, the resulting district is entitled to an
47 amount equal to the sum of the amounts which were received in the last calen-
48 dar quarter by each district pursuant to this subsection prior to the consoli-
49 dation. If a taxing district is dissolved or disincorporated, the state tax
50 commission shall continuously distribute to the board of county commissioners
51 an amount equal to the last quarter's distribution prior to dissolution or
52 disincorporation. The board of county commissioners shall determine any redis-
53 tribution of moneys so received. If a taxing district annexes territory, the
54 distribution of moneys received pursuant to this subsection shall be unaf-
55 fected. Taxing districts formed after January 1, 2001, are not entitled to a
26
1 payment under the provisions of this subsection. School districts shall
2 receive an amount determined by multiplying the sum of the year 2000 school
3 district levy plus .001 minus .004 times the market value on December 31,
4 2000, in the district of the property exempt from taxation pursuant to section
5 63-602EE, Idaho Code. For school districts, beginning January 1, 2002, only
6 the portion of property tax replacement received to replace property exempt
7 from taxation pursuant to section 63-602EE, Idaho Code, based on the tax year
8 2000 tax charges for maintenance and operation as limited by sections 33-802
9 2. and 33-1002D, Idaho Code, shall not be subtracted from the maximum school
10 district maintenance and operation property taxes permitted in accordance with
11 section 33-802 2., Idaho Code. For purposes of the limitation provided by sec-
12 tion 63-802, Idaho Code, moneys received pursuant to this section as property
13 tax replacement for property exempt from taxation pursuant to section
14 63-602EE, Idaho Code, shall be treated as property tax revenues.
15 (11) Any moneys remaining over and above those necessary to meet and
16 reserve for payments under other subsections of this section shall be distrib-
17 uted to the general fund.
18 SECTION 21. SEVERABILITY. The provisions of this act are hereby declared
19 to be severable and if any provision of this act or the application of such
20 provision to any person or circumstance is declared invalid for any reason,
21 such declaration shall not affect the validity of the remaining portions of
22 this act.
23 SECTION 22. An emergency existing therefor, which emergency is hereby
24 declared to exist, Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15,
25 16, 17 and 21 of this act shall be in full force and effect on and after pas-
26 sage and approval and retroactively to January 1, 2006. Sections 18 and 19
27 shall be in full force and effect on and after June 1, 2006. Section 20 shall
28 be in full force and effect on and after July 1, 2006.
STATEMENT OF PURPOSE
RS 16302
The purpose of this legislation is to provide meaningful and
substantial property tax relief to all Idaho property owners by
repealing the school maintenance and operations (M&O) levy.
These funds would be replaced, up to the equalized funding level,
by an increased General Fund appropriation to public schools.
The source of such additional general funds would be provided by
an increase in the state sales tax rate from 5% to 6%.
FISCAL NOTE
This legislation would have no impact on 110 of the state's 114
school districts, as well as no impact on charter schools. It
removes nearly $297 million in FY 2007 School M&O property taxes.
Of this, the state would replace approximately $250.7 million, up
to the equalized funding level provided to 110 of the state's 114
school districts, assuming that funding is provided for a 3%
increase in per support unit discretionary funds for school
districts.
The legislation provides the state's four wealthiest school
districts with the ability to levy the difference between what
they are receiving now from their M&O levy and what the state
will provide in equalized funding. (They currently receive no
state equalization funding.)
The $250.7 million state cost would be mostly covered through the
$210 million raised by increasing the sales tax from 5% to 6%,
with the balance to be covered by additional appropriations.
Contact
Name: Rep. Ken Roberts
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 859