2006 Legislation
Print Friendly

HOUSE BILL NO. 876 – Sales tax increased/school funding

HOUSE BILL NO. 876

View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status



H0876...............................................by REVENUE AND TAXATION
SALES TAX - PUBLIC SCHOOL FUNDING - Repeals and amends existing law to
enact the "Property Tax Relief Act of 2006"; to revise school funding; to
remove the maintenance and operation levy for school funding; to provide
that $75,000 of the market value for assessment purposes or 50% of the
market value for assessment purposes, whichever is the lesser, shall be
exempt from property taxation; and to increase the sales and use tax to
6.25%.
                                                                        
04/04    House intro - 1st rdg - to printing
    Rpt prt - to 2nd rdg
04/05    2nd rdg - to 3rd rdg
    Rls susp - PASSED - 44-26-0
      AYES -- Anderson, Andrus, Barrett, Bedke, Bell, Bilbao, Black, Block,
      Bolz, Brackett, Bradford, Cannon, Chadderdon, Clark, Collins, Deal,
      Denney, Eskridge, Field(18), Field(23), Garrett, Hart, Harwood,
      Henderson, Lake, Loertscher, McKague, Moyle, Nielsen, Nonini,
      Raybould, Ring, Roberts, Rusche, Sayler, Schaefer, Shepherd(2),
      Shepherd(8), Shirley, Skippen, Stevenson, Wills, Wood, Mr. Speaker
      NAYS -- Barraclough, Bastian, Bayer, Boe, Crow, Edmunson, Ellsworth,
      Henbest, Jaquet, Kemp, LeFavour, Martinez, Mathews, McGeachin,
      Miller, Mitchell, Pasley-Stuart, Pence, Ringo, Rydalch, Sali,
      Smith(30), Smith(24), Smylie, Snodgrass, Trail
      Absent and excused -- None
    Floor Sponsors - Roberts, Clark & Lake
    Title apvd - to Senate
04/05    Senate intro - 1st rdg - to Loc Gov
    Rpt out - w/o rec - to 2nd rdg
04/06    Rls susp - FAILED - 15-20-0
      AYES -- Brandt, Broadsword, Burtenshaw, Cameron, Compton, Goedde,
      Hill, Jorgenson, Keough, Lodge, McKenzie, Pearce, Richardson,
      Stegner, Williams
      NAYS -- Andreason, Bunderson, Burkett, Coiner, Corder, Darrington,
      Davis, Fulcher, Gannon, Geddes, Kelly, Langhorst, Little, Malepeai,
      Marley, McGee, Schroeder, Stennett, Sweet, Werk
      Absent and excused -- None
    Floor Sponsor - Stegner
    Ret'd to House
    Filed in Office of the Chief Clerk

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 876
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO TAXATION; PROVIDING A SHORT TITLE; AMENDING SECTION 33-701,  IDAHO
  3        CODE,  TO  DELETE REFERENCE TO SCHOOL MAINTENANCE AND OPERATION LEVIES AND
  4        TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION  33-802,  IDAHO  CODE,  TO
  5        DELETE  REFERENCE  TO  SCHOOL  DISTRICT LEVIES THAT MAY BE IMPOSED WITHOUT
  6        VOTER APPROVAL, TO PROVIDE BUDGET STABILIZATION LEVIES  FOR  CERTAIN  DIS-
  7        TRICTS,  TO DELETE THE LOCAL DISTRICT CONTRIBUTION FOR SCHOOL FORMULA PUR-
  8        POSES, TO CONTINUE IN EFFECT ALL VOTER APPROVED LEVIES FOR THE TERM AUTHO-
  9        RIZED AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION  33-802A,  IDAHO
 10        CODE,  TO  CLARIFY  REFERENCES TO SCHOOL LEVIES; REPEALING SECTION 33-808,
 11        IDAHO CODE, RELATING TO NOTICE OF ADJUSTMENT TO MARKET VALUE  FOR  ASSESS-
 12        MENT PURPOSES UPON TERMINATION OF A REVENUE ALLOCATION AREA; AMENDING SEC-
 13        TION 33-905, IDAHO CODE, TO PROVIDE A CORRECT CODE REFERENCE AND TO MAKE A
 14        TECHNICAL  CORRECTION; AMENDING SECTION 33-1002, IDAHO CODE, TO REVISE HOW
 15        THE EDUCATIONAL SUPPORT PROGRAM IS CALCULATED, TO PROVIDE ELIGIBILITY  FOR
 16        CHARTER DISTRICTS TO CONTINUE TO RECEIVE SCHOOL FORMULA MONEYS AND TO MAKE
 17        TECHNICAL CORRECTIONS; REPEALING SECTION 33-1002A, IDAHO CODE, RELATING TO
 18        THE  LOCAL DISTRICT CONTRIBUTION REDUCTION AND REPEALING SECTION 33-1002D,
 19        IDAHO  CODE,  RELATING  TO  PROPERTY  TAX  REPLACEMENT;  AMENDING  SECTION
 20        33-1003, IDAHO CODE, TO DELETE REFERENCE TO AN OBSOLETE PROVISION  AND  TO
 21        MAKE TECHNICAL CORRECTIONS; TO PROVIDE THAT THE STATE DEPARTMENT OF EDUCA-
 22        TION  SHALL  UTILIZE THE PROVISIONS OF SECTIONS 33-802, 33-1002, 33-1002A,
 23        33-1002D AND 33-1003, IDAHO CODE, AS THEY EXISTED PRIOR  TO  AMENDMENT  OR
 24        REPEAL  BY  THE  PROVISIONS OF THIS ACT FOR THE PURPOSES OF FUNDING PUBLIC
 25        SCHOOLS THROUGH THE END OF FISCAL YEAR  2006;  AMENDING  SECTION  33-1004,
 26        IDAHO  CODE,  TO  PROVIDE A CORRECT CODE REFERENCE AND TO MAKE A TECHNICAL
 27        CORRECTION; AMENDING SECTION 33-1114, IDAHO CODE, TO DELETE  REFERENCE  TO
 28        SCHOOL   DISTRICT  MAINTENANCE  AND  OPERATION  LEVIES;  AMENDING  SECTION
 29        33-1408, IDAHO CODE, TO REVISE THE SPECIAL LEVY FOR TUITION AND TO  EXEMPT
 30        THE  LEVY  FROM  THE  THREE  PERCENT  PROPERTY  TAX  CAP; AMENDING SECTION
 31        33-5208, IDAHO CODE, TO PROVIDE A CORRECT CODE REFERENCE; AMENDING SECTION
 32        50-2908, IDAHO CODE, TO DELETE REFERENCE TO PROPERTY TAX FOR  SCHOOLS  AND
 33        TO  MAKE  A  TECHNICAL CORRECTION; AMENDING SECTION 63-315, IDAHO CODE, TO
 34        PROVIDE APPLICATION TO CHARTER SCHOOL DISTRICTS LEVYING A MAINTENANCE  AND
 35        OPERATION LEVY IN THE PRIOR CALENDAR YEAR; AMENDING SECTION 63-602G, IDAHO
 36        CODE,  TO PROVIDE THAT THE FIRST SEVENTY-FIVE THOUSAND DOLLARS OF THE MAR-
 37        KET VALUE FOR ASSESSMENT PURPOSES OF THE HOMESTEAD OR FIFTY PERCENT OF THE
 38        MARKET VALUE FOR ASSESSMENT PURPOSES OF THE HOMESTEAD,  WHICHEVER  IS  THE
 39        LESSER,  SHALL  BE  EXEMPT FROM PROPERTY TAXATION, TO DEFINE HOMESTEAD, TO
 40        PROVIDE FOR CERTAIN ANNUAL ADJUSTMENTS TO THE MAXIMUM  AMOUNT  SUBJECT  TO
 41        PROPERTY  TAX  EXEMPTION,  TO PROVIDE FOR PUBLICATION AND DISSEMINATION OF
 42        ADJUSTMENTS AND TO PROVIDE THAT THE PUBLICATION OF  ADJUSTMENTS  SHALL  BE
 43        EXEMPT FROM THE PROVISIONS OF THE ADMINISTRATIVE PROCEDURE ACT AND TO MAKE
 44        TECHNICAL  CORRECTIONS;  AMENDING  SECTION  63-802A, IDAHO CODE, TO DELETE
 45        REFERENCE TO SCHOOL DISTRICT MAINTENANCE AND OPERATION LEVIES, TO  PROVIDE
 46        APPLICATION TO SCHOOL DISTRICTS AND TO MAKE A TECHNICAL CORRECTION; AMEND-
                                                                        
                                           2
                                                                        
  1        ING  SECTION 63-811, IDAHO CODE, TO DELETE REFERENCE TO PROPERTY TAX ALLO-
  2        CATED FOR SCHOOLS; AMENDING SECTION 63-3619, IDAHO CODE, TO  INCREASE  THE
  3        SALES  TAX TO SIX AND ONE-QUARTER PERCENT; AMENDING SECTION 63-3621, IDAHO
  4        CODE, TO INCREASE THE USE TAX TO SIX  AND  ONE-QUARTER  PERCENT;  AMENDING
  5        SECTION 63-3638, IDAHO CODE, TO REVISE THE DISTRIBUTION FOR SALES TAX REV-
  6        ENUES,  TO  DELETE REFERENCE TO MAINTENANCE AND OPERATION TAXES FOR SCHOOL
  7        DISTRICTS, TO PROVIDE DISTRIBUTION TO THE PUBLIC  EDUCATION  STABILIZATION
  8        FUND AND TO MAKE A TECHNICAL CORRECTION; PROVIDING SEVERABILITY; DECLARING
  9        AN  EMERGENCY,   PROVIDING RETROACTIVE APPLICATION AND PROVIDING EFFECTIVE
 10        DATES.
                                                                        
 11    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 12        SECTION 1.  SHORT TITLE. This act may be known and cited as the  "Property
 13    Tax Relief Act of 2006."
                                                                        
 14        SECTION  2.  That  Section  33-701, Idaho Code, be, and the same is hereby
 15    amended to read as follows:
                                                                        
 16        33-701.  FISCAL YEAR -- PAYMENT AND ACCOUNTING OF FUNDS. The  fiscal  year
 17    of  each school district shall be a period of twelve (12) months commencing on
 18    the first day of July in each year.
 19        The board of trustees of each school district  shall  have  the  following
 20    powers and duties:
 21        1.  To  determine  and  order paid all lawful expenses for salaries, wages
 22    and purchases, whether or not there be money in the treasury  for  payment  of
 23    warrants  drawn  against any fund of the district. Warrants shall be signed by
 24    the treasurer of the district and countersigned by the chairman or vice-chair-
 25    man of the board of trustees.
 26        Whenever any school district has sufficient funds on deposit so to do,  it
 27    may  pay  any  allowed  claim for salaries, wages or purchases by regular bank
 28    check signed by the treasurer or assistant treasurer of the district and coun-
 29    tersigned by the chairman, or vice-chairman, of the board of trustees.
 30        The total amount of warrants or orders for warrants  drawn  on  any  fund,
 31    together with disbursements from such fund in any other manner made, shall not
 32    exceed  ninety-five  percent (95%) of the estimated income and revenue accrued
 33    or accruing to such fund for the same school year, until such income and reve-
 34    nue shall have been paid into the treasury to the credit of the district;
 35        2.  To invest all or part of any plant facilities  reserve  fund,  or  any
 36    fund  accumulated  for the payment of interest on, and the redemption of, out-
 37    standing bonds, or other obligations of the district in bonds or  certificates
 38    of  indebtedness  of  the United States of America, or in bonds or warrants of
 39    the state of Idaho, or in warrants or tax anticipation notes of any county  or
 40    school  district of the state of Idaho, when such investments shall be due and
 41    payable on or before the date any  plant  facilities  reserve  fund  shall  be
 42    required  to  be  expended  or  any  bonds  or  other obligations, or interest
 43    thereon, of the investing district shall become payable.
 44        Whenever in the judgment of the board of trustees,  the  proceeds  of  any
 45    bond issue should be temporarily invested pending the expenditure of such pro-
 46    ceeds  for  the purposes for which such bonds were issued, the proceeds may be
 47    invested in the manner and form hereinabove prescribed. Any interest, or prof-
 48    its accruing from such investments shall be used for the  purposes  for  which
 49    the bonds were issued. Unless otherwise provided by law, any interest or prof-
 50    its accruing from the investment of any funds shall be credited to the general
 51    fund of the district;
                                                                        
                                           3
                                                                        
  1        3.  To  insure  any  school  house schoolhouse and other property, and the
  2    district, against any loss by fire, casualty, or liability, and the board, its
  3    officers and employees, and to preserve its property for the  benefit  of  the
  4    district.  In  case  of loss of any insured property, any proceeds from insur-
  5    ance:
  6        (a)  mMay be expended in constructing a temporary or permanent  structure,
  7        but no sum greater than the insurance proceeds shall be so expended except
  8        upon  approval  of a majority of the school district electors voting in an
  9        election called for that purpose; or
 10        (b)  mMay be placed in and made a part  of  the  school  plant  facilities
 11        reserve fund of the district, if the district has such a fund; or
 12        (c)  mMay be placed in a separate account in the bond interest and redemp-
 13        tion  fund of the district to repay any kind of obligation incurred by the
 14        district in replacing or restoring the property for  which  the  insurance
 15        proceeds  were  received, and shall not be included in the computations of
 16        bond and bond interest levies as provided in section 33-802A, Idaho Code.
 17        If the proceeds of any insurance received by a school district  by  reason
 18    of  loss  on  real property shall be less than five thousand dollars ($5,000),
 19    such proceeds may  be credited to the general fund of the district;
 20        4.  To pay from the general fund of the district the expense of any member
 21    of the board incurred while traveling on the business of the board, or attend-
 22    ing any meeting called by the state board of education or by the state  super-
 23    intendent  of  public instruction, or attending any annual or special meetings
 24    of the state school trustees association, and to pay the membership fee of the
 25    board of trustees in said association. Whenever any member  of  the  board  of
 26    trustees  resides  at  such distance from the meeting place of the board as to
 27    require, in the judgment of the board,  such  member  to  incur  extraordinary
 28    expense  in  traveling from his home to and from said meeting place, the board
 29    may approve payment to such member of the extraordinary  expense  incurred  in
 30    attending any meeting of the board.
 31        For  the  purpose  of this paragraph, the term "expense" or "extraordinary
 32    expense" shall include allowance for mileage or actual travel  expense  incur-
 33    red;
 34        5.  To prepare, or cause to be prepared and published, in the manner here-
 35    inafter  prescribed, within one hundred twenty (120) days from the last day of
 36    each fiscal year, an annual statement of financial condition and report of the
 37    school district as of the end of such fiscal year in a form prescribed by  the
 38    state  superintendent  of  public  instruction.  Such  annual  statement shall
 39    include, but not be limited to, the amounts of money budgeted and received and
 40    from what sources, and the amounts budgeted  and  expended  for  salaries  and
 41    other  expenses  by  category.  Salaries may be reported in gross amount. Each
 42    school district shall  have  available  at  the  administrative  office,  upon
 43    request, a full and complete list of vendors and the amount paid to each and a
 44    list of the number of teachers paid at each of the several stated gross salary
 45    levels in effect in the district.
 46        Nothing herein provided shall be construed as limiting any school district
 47    as  to  any additional or supplementary statements and reports it may elect to
 48    make for the purpose of informing the  public  of  its  financial  operations,
 49    either  as  to form, content, method, or frequency; and if all the information
 50    required herein to be published shall have been published as  provided  herein
 51    at  regular  intervals  during the fiscal year covering successive portions of
 52    the fiscal year, then such information may be omitted from the  annual  state-
 53    ment of financial condition and report for such portions of the fiscal year as
 54    already have been reported.
 55        The  annual statement of financial condition and report shall be published
                                                                        
                                           4
                                                                        
  1    within the time above prescribed in one (1) issue of a newspaper  printed  and
  2    published  within  the  district, or, if there be none, then in a newspaper as
  3    provided in section 60-106, Idaho Code, published within the district, or,  if
  4    there  be none, then in a newspaper as provided in section 60-106, Idaho Code,
  5    in the county in which the school district is located, or, if  more  than  one
  6    (1)  newspaper  is published in said district or county, then in the newspaper
  7    most likely to give best general notice of the contents of such annual  state-
  8    ment of financial condition and report to the residents of said district; pro-
  9    vided,  that if no newspaper is published in the district or county, then such
 10    statement of financial condition and report shall be published in a  newspaper
 11    as  provided  in  section 60-106, Idaho Code, most likely to give best general
 12    notice of the contents to the residents of said district.
 13        The chairman, clerk and treasurer of each school  district  shall  certify
 14    the annual statement of financial condition and report to be true and correct,
 15    and the certification shall be included in each published statement.
 16        In  the  event  the board of trustees of any school district shall fail to
 17    prepare or cause to be prepared or to publish the annual statement  of  finan-
 18    cial condition and report as herein required, the state superintendent of pub-
 19    lic  instruction  shall  cause the same to be prepared  and published, and the
 20    cost thereof shall be an obligation of the school district. One  (1)  copy  of
 21    the  annual  statement  of financial condition and report shall be retained in
 22    the office of the clerk of the board of school trustees, where the same  shall
 23    be open at all times to examination and inspection by any person;
 24        6.  To  cause to be made a full and complete audit of the financial state-
 25    ments of the district as required in section 67-450B, Idaho Code.
 26        The auditor shall be employed on written contract.
 27        One (1) copy of the audit report shall be filed with the state  department
 28    of  education,  after  its  acceptance by the board of trustees, but not later
 29    than October 15;
 30        7.  To file annually with the state department of education such financial
 31    and statistical reports as said state superintendent of public instruction may
 32    require;
 33        8.  To order and have destroyed any canceled check or warrant, or any form
 34    of claim or voucher which has been paid, at any time after five (5) years from
 35    the date the same was canceled and paid;
 36        9.  To review the school district budget periodically and make appropriate
 37    budget adjustments to reflect the availability of funds and  the  requirements
 38    of  the school district. Revenue derived from maintenance and operation levies
 39    made pursuant to section 33-802 2, Idaho Code, shall be excluded  from  budget
 40    adjustments  as  provided in this paragraph. Any person or persons proposing a
 41    budget adjustment under this section shall notify in writing  each  member  of
 42    the board of trustees one (1) week prior to the meeting at which such proposal
 43    will  be  made.  Prior  to  the final vote on such a proposal, notice shall be
 44    posted and published once, as prescribed in section 33-402, Idaho Code. A bud-
 45    get adjustment shall not be approved unless voted affirmatively by sixty  per-
 46    cent (60%) of the members of the board of trustees. Such amended budgets shall
 47    be submitted to the state superintendent of public instruction;
 48        10. To  invest  any  money coming into the hands of the school district in
 49    investments permitted by section 67-1210, Idaho Code.  Unless  otherwise  pro-
 50    vided  by  law,  any  interest  or profits accruing from the investment of any
 51    funds shall be credited to the general fund of the district.
                                                                        
 52        SECTION 3.  That Section 33-802, Idaho Code, be, and the  same  is  hereby
 53    amended to read as follows:
                                                                        
                                           5
                                                                        
  1        33-802.  SCHOOL LEVIES. Any tax levied for school purposes shall be a lien
  2    on  the  property against which the tax is levied. The board of trustees shall
  3    determine the levies upon each dollar of taxable property in the district  for
  4    the ensuing fiscal year as follows:
  5        (1.)  Bond,  Interest and Judgment Obligation Levies. Such levies as shall
  6    be required to satisfy all maturing bond, bond interest, and judgment  obliga-
  7    tions.
  8        (2.)  Maximum  School  Maintenance  and  Operation  Credit Against Prepaid
  9    Taxes -- Budget Stabilization Levies. Such levies for maintaining and  operat-
 10    ing the schools of the district and for the payment of tuition and transporta-
 11    tion,  that  do not exceed an amount equal to four-tenths of one percent (.4%)
 12    during tax year 1994, and do not exceed an amount equal to three-tenths of one
 13    percent (.3%) during tax year 1995 and thereafter, applied to  the  actual  or
 14    adjusted  market  value for assessment purposes of the district as such valua-
 15    tion existed on December 31 of the previous year, but aAllowances necessary as
 16    a credit for prepaid taxes, as provided in section 63-1607, Idaho Code,  shall
 17    not  be  included in such maximum  levies. Provided however, that in the event
 18    property within a district's boundaries is contained in a  revenue  allocation
 19    area  established  under  chapter  29,  title 50, Idaho Code, and such revenue
 20    allocation area has given notice of termination thereunder, then, only for the
 21    purpose of determining the levy described in this subsection, the district may
 22    add the increment value, as defined in section 50-2903,  Idaho  Code,  to  the
 23    actual  or  adjusted  market  value for assessment purposes of the district as
 24    such value existed on December 31 of the previous year.
 25        3.  Authorized School Maintenance and Operation Levies.  Such  levies  for
 26    maintaining  and  operating the schools of the district and for the payment of
 27    tuition and transportation that do  not  exceed  one  hundred  eleven  percent
 28    (111%)  of  the  local  district's contribution authorized in subsection 2. of
 29    section 33-1002, Idaho Code. Implementation of the provisions of this  subsec-
 30    tion  shall  be authorized only after approval by a majority of the district's
 31    electors voting on the question. Levies otherwise authorized by law shall  not
 32    require an election School districts not receiving state equalization funds in
 33    fiscal  year  2006  may authorize a budget stabilization levy for fiscal years
 34    2007 through 2011. Such levies shall not exceed  the  difference  between  the
 35    amount of equalized funds that the state department of education estimates the
 36    school  district  will  receive  in  fiscal  year  2007,   based on the school
 37    district's fiscal year 2006 reporting data, and the combined amount  of  money
 38    the school district received from its maintenance and operation levy and state
 39    property  tax  replacement  funds in fiscal year 2006. The state department of
 40    education shall notify the state tax commission and affected counties  of  the
 41    maximum levy amounts permitted, by no later than August 1, 2006.
 42        4.(3)  Supplemental Maintenance and Operation Levies. No levy in excess of
 43    the  levy  permitted by subsection 2. or 3. of this section shall be made by a
 44    noncharter school district unless such a  supplemental  levy  in  a  specified
 45    amount  and  for  a specified time not to exceed two (2) years be first autho-
 46    rized through an election held pursuant to chapter 4, title  33,  Idaho  Code,
 47    and approved by a majority of the district electors voting in such election. A
 48    levy approved pursuant to this subsection may be reduced by a majority vote of
 49    the board of trustees in the second year.
 50        5.(4)  Charter  District  Supplemental  Maintenance  and Operation. Levies
 51    pursuant to the respective charter of any such charter district shall be first
 52    authorized through an election held pursuant to chapter  4,  title  33,  Idaho
 53    Code, and approved by a majority of the district electors voting in such elec-
 54    tion.
 55        6.  The  Local  District Contribution. The local school district contribu-
                                                                        
                                           6
                                                                        
  1    tion levy is the amount utilized for calculating local district  participation
  2    in  the educational foundation  program, which is applied to the adjusted mar-
  3    ket value for assessment purposes, as such valuation existed on December 31 of
  4    the previous year, together with the increment value, as  defined  in  section
  5    50-2903, Idaho Code, if applicable under the circumstance described in subsec-
  6    tion 2. of this section, relating to termination of a revenue allocation area.
  7        7.(5)  The board of trustees of any school district that has, for at least
  8    seven (7) consecutive years, been authorized through an election held pursuant
  9    to  chapter  4,  title 33, Idaho Code, to certify a supplemental levy that has
 10    annually been equal to or greater than twenty percent (20%) of the total  gen-
 11    eral  maintenance and operation fund, may submit the question of an indefinite
 12    term supplemental levy to the electors of the school district.  Such  question
 13    shall clearly state the dollar amount that will be certified annually and that
 14    the  levy  will  be  for  an  indefinite number of years. The question must be
 15    approved by a majority of the district electors voting on the question  in  an
 16    election  held pursuant to chapter 4, title 33,  Idaho Code. The levy approved
 17    pursuant to this subsection may be reduced by a majority vote of the board  of
 18    trustees during any fiscal year.
 19        (6)  All  voter  approved  levies,  whether  in charter or noncharter dis-
 20    tricts, that were authorized prior to June 30, 2006, are hereby  continued  in
 21    full force and effect for the duration of the term authorized.
                                                                        
 22        SECTION  4.  That  Section 33-802A, Idaho Code, be, and the same is hereby
 23    amended to read as follows:
                                                                        
 24        33-802A.  COMPUTATION OF BOND AND BOND INTEREST LEVIES. When the board  of
 25    trustees  of  any  school  district  determines  and makes the a levy required
 26    allowed by section 33-802, Idaho Code, and incorporates such levy as a part of
 27    the school district's budget to service all maturing bond  and  bond  interest
 28    payments  for  the  ensuing  fiscal year, it shall take into consideration any
 29    state bond levy equalization funds provided pursuant to section 33-906,  Idaho
 30    Code,  and  any balances remaining or that may remain in its bond interest and
 31    redemption fund after meeting its bond and bond interest obligations  for  its
 32    current  fiscal year. The levy so made for the ensuing fiscal year shall be an
 33    amount which, together with any state bond levy  equalization  funds  provided
 34    pursuant  to  section 33-906, Idaho Code, and the balance in its bond interest
 35    and redemption fund remaining after meeting its current fiscal year  bond  and
 36    bond  interest  obligations, shall satisfy all maturing bond and bond interest
 37    payments for at least the ensuing twelve (12) months, and not  to  exceed  the
 38    ensuing  twenty-one  (21)  months  counted from July 1 of the current calendar
 39    year.
                                                                        
 40        SECTION 5.  That Section 33-808, Idaho Code, be, and the  same  is  hereby
 41    repealed.
                                                                        
 42        SECTION  6.  That  Section  33-905, Idaho Code, be, and the same is hereby
 43    amended to read as follows:
                                                                        
 44        33-905.  SCHOOL DISTRICT BUILDING ACCOUNT -- PAYMENTS TO ACCOUNT -- MONEYS
 45    APPROPRIATED TO STATE BOARD -- APPLICATION FOR MONEYS -- PAYMENTS TO DISTRICTS
 46    -- REPORTS ON APPLICATIONS -- USES OF MONEYS. 1. The state of Idaho, recogniz-
 47    ing its responsibility to establish and maintain a general, uniform and  thor-
 48    ough  system of public, free common schools, in an effort to partially fulfill
 49    this responsibility, hereby creates and establishes the school district build-
 50    ing account in the state treasury. The school district building account  shall
                                                                        
                                           7
                                                                        
  1    have paid into it such appropriations or revenues as may be provided by law.
  2        2.  Moneys in the school district building account are hereby appropriated
  3    to  and  may  be  expended by the state board of education at any time for the
  4    purposes provided in this section, any provision  of  chapter  35,  title  67,
  5    Idaho Code, or chapter 36, title 67, Idaho Code, notwithstanding.
  6        3.  (a) As  to any moneys in the account other than lottery dividends dis-
  7        tributed pursuant to subsection 4. of this section, the board of  trustees
  8        of  any  school  district  may  apply  to  the state board of education to
  9        receive a payment or payments from the school district  building  account;
 10        provided,  a district demonstrates to the state board of education that it
 11        has a substantial and serious need based  upon  the  district's  classroom
 12        student-teacher ratios, past efforts to levy for such construction, physi-
 13        cal  condition of existing structures, and the total assessed market value
 14        of the district, all of which shall be further defined by actual need cri-
 15        teria established by the state board of education.
 16        (b)  When an application for moneys from the account is  approved  by  the
 17        state board of education, the state board shall inform the school district
 18        that  the  application  has  been approved, citing the amount approved for
 19        payment and an estimate of the time when the payment can actually be  made
 20        to the school district.
 21        4.  By not later than August 31, moneys in the account pursuant to distri-
 22    bution  from  section  67-7434, Idaho Code, the lottery dividends and interest
 23    earned thereon, shall be distributed to each of the several school  districts,
 24    in  the  proportion that the average daily attendance of that district for the
 25    previous school year bears to the total average daily attendance of the  state
 26    during  the previous school year. For the purposes of this subsection 4. only,
 27    the Idaho school for the deaf and the blind shall be considered a school  dis-
 28    trict,  and  shall  receive a distribution based upon the average daily atten-
 29    dance of the school. Average daily attendance shall be calculated as  provided
 30    in section 33-1002 4.(3), Idaho Code.
 31        5.  All  payments  from the school district building account shall be paid
 32    out directly to the school district in warrants drawn by the state  controller
 33    upon  presentation of proper vouchers from the state board of education. Pend-
 34    ing payments out of the school district building account, the  moneys  in  the
 35    account  shall  be  invested by the state treasurer in the same manner as pro-
 36    vided under section 67-1210, Idaho Code, with respect to other idle moneys  in
 37    the  state  treasury.  Interest earned on the investments shall be returned to
 38    the school district building account.
 39        6.  Payments from the school  district  building  account  received  by  a
 40    school district may be used by the school district for the purposes authorized
 41    in section 33-1102, Idaho Code.
 42        7.  (a) By not later than December 1, each school district shall report to
 43        the  state  department  of education the projects on which moneys received
 44        from the school district building account were expended. The state depart-
 45        ment of education shall transmit a summary of such reports to the legisla-
 46        ture by not later than January 15 of the following year.
 47        (b)  By not later than December 1, each school district  shall  report  to
 48        the state department of education the planned uses for the moneys received
 49        from the school district building account.  The state department of educa-
 50        tion  shall  transmit  a  summary of the reports to the legislature by not
 51        later than January 15 of the following year.
                                                                        
 52        SECTION 7.  That Section 33-1002, Idaho Code, be, and the same  is  hereby
 53    amended to read as follows:
                                                                        
                                           8
                                                                        
  1        33-1002.  EDUCATIONAL  SUPPORT PROGRAM. The educational support program is
  2    calculated as follows:
  3        (1.)  State  Educational  Support  Funds.  Add  the  state  appropriation,
  4    including the moneys available in the public  school  income  fund,   together
  5    with all miscellaneous revenues to determine the total state funds.
  6        (2.)  From the total state funds subtract the following amounts needed for
  7    state support of special programs provided by a school district:
  8        (a.)  Pupil   tuition-equivalency   allowances   as  provided  in  section
  9        33-1002B, Idaho Code;
 10        (b.)  Transportation support program as provided in section 33-1006, Idaho
 11        Code;
 12        (c.)  Feasibility studies allowance as provided in section 33-1007A, Idaho
 13        Code;
 14        (d.)  The approved costs for border district allowance, provided  in  sec-
 15        tion  33-1403,  Idaho  Code,  as determined by the state superintendent of
 16        public instruction;
 17        (e.)  The approved costs for exceptional child  approved  contract  allow-
 18        ance,  provided in subsection 2. of section 33-2004, Idaho Code, as deter-
 19        mined by the state superintendent of public instruction;
 20        (f.)  Certain expectant and delivered mothers  allowance  as  provided  in
 21        section 33-2006, Idaho Code;
 22        (g.)  Salary-based   apportionment  calculated  as  provided  in  sections
 23        33-1004 through 33-1004F, Idaho Code;
 24        (h.)  Unemployment insurance benefit payments according to the  provisions
 25        of section 72-1349A, Idaho Code;
 26        (i.)  For expenditure as provided by the public school technology program;
 27        (j.)  For the support of provisions that provide a safe environment condu-
 28        cive  to student learning and maintain classroom discipline, an allocation
 29        of $300 per support unit; and
 30        (k.)  Any additional amounts as required by statute to effect  administra-
 31        tive adjustments or as specifically required by the provisions of any bill
 32        of appropriation;
 33    to secure the state total educational support distribution funds.
 34        (3.)  Local  Districts'  Contribution  Calculation.  Without including any
 35    allowance as a credit for prepaid taxes as provided by section 63-1607,  Idaho
 36    Code,  the local districts' contribution shall be the amount appropriated pur-
 37    suant to section 33-1002D, Idaho Code, plus three-tenths percent (.3%)  during
 38    fiscal year 2003-04 and each year thereafter, of the total state adjusted mar-
 39    ket  value for assessment purposes for the previous year with such value being
 40    determined by the provisions of section 63-315, Idaho  Code,  and  four-tenths
 41    percent  (.4%)  during  fiscal  year  1994-95 and each year thereafter, of the
 42    cooperative electrical associations' property values that  have  been  derived
 43    from  the taxes paid in lieu of ad valorem taxes for the previous year as pro-
 44    vided in section 63-3502, Idaho Code.
 45        4.  Educational Support Program Distribution Funds.  Add  the  local  dis-
 46    tricts' contribution, subsection 3. of this section, and the state educational
 47    support  program  funds, subsection 1. of this section, together to secure the
 48    total educational support program distribution funds.
 49        5.  Average Daily Attendance. The total  state  average  daily  attendance
 50    shall  be  the  sum  of the average daily attendance of all of the school dis-
 51    tricts of the state. The state board of education shall establish  rules  set-
 52    ting  forth  the  procedure to determine average daily attendance and the time
 53    for, and method of, submission of such report. Average daily attendance calcu-
 54    lation shall be carried out to the nearest hundredth. Computation  of  average
 55    daily attendance shall also be governed by the provisions of section 33-1003A,
                                                                        
                                           9
                                                                        
  1    Idaho Code.
  2        6.(4)  Support Units. The total state support units shall be determined by
  3    using  the tables set out hereafter called computation of kindergarten support
  4    units, computation of elementary support units, computation of secondary  sup-
  5    port  units,  computation of exceptional education support units, and computa-
  6    tion of alternative school secondary support units. The  sum  of  all  of  the
  7    total  support  units  of all school districts of the state shall be the total
  8    state support units.
  9                      COMPUTATION OF KINDERGARTEN SUPPORT UNITS
 10    Average Daily
 11    Attendance            Attendance Divisor         Units Allowed
 12    41 or more     ....   40.......................  1 or more as computed
 13    31 -  40.99 ADA....    -.......................  1
 14    26 -  30.99 ADA....    -.......................   .85
 15    21 -  25.99 ADA....    -.......................   .75
 16    16 -  20.99 ADA....    -.......................   .6
 17     8 -  15.99 ADA....    -.......................   .5
 18     1 -   7.99 ADA....    -.......................  count as elementary
                                                                        
 19                       COMPUTATION OF ELEMENTARY SUPPORT UNITS
 20    Average Daily
 21    Attendance            Attendance Divisor         Minimum Units Allowed
 22    300 or more ADA........................................  15
 23                        ..23...grades 4,5 & 6....
 24                        ..22...grades 1,2 & 3....1994-95
 25                        ..21...grades 1,2 & 3....1995-96
 26                        ..20...grades 1,2 & 3....1996-97
 27                              and each year thereafter.
 28    160   to  299.99 ADA... 20.....................         8.4
 29    110   to  159.99 ADA... 19.....................         6.8
 30     71.1 to  109.99 ADA... 16.....................         4.7
 31     51.7 to   71.0  ADA... 15.....................         4.0
 32     33.6 to   51.6  ADA... 13.....................         2.8
 33     16.6 to   33.5  ADA... 12.....................         1.4
 34      1.0 to   16.5  ADA... n/a....................         1.0
                                                                        
 35                        COMPUTATION OF SECONDARY SUPPORT UNITS
 36    Average Daily
 37    Attendance            Attendance Divisor         Minimum Units Allowed
 38    750 or more      .... 18.5.....................        47
 39    400 -  749.99 ADA.... 16.......................        28
 40    300 -  399.99 ADA.... 14.5.....................        22
 41    200 -  299.99 ADA.... 13.5.....................        17
 42    100 -  199.99 ADA.... 12.......................         9
 43     99.99 or fewer       Units allowed as follows:
 44             Grades 7-12  .........................         8
 45             Grades 9-12  .........................         6
 46             Grades 7- 9  .........................         1 per 14 ADA
 47             Grades 7- 8  .........................         1 per 16 ADA
                                                                        
                                           10
                                                                        
  1                  COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS
  2    Average Daily
  3    Attendance            Attendance Divisor         Minimum Units Allowed
  4    14 or more ....       14.5.....................  1 or more as computed
  5    12 -  13.99....        -.......................  1
  6     8 -  11.99....        -.......................   .75
  7     4 -   7.99....        -.......................   .5
  8     1 -   3.99....        -.......................   .25
                                                                        
  9              COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS
 10    Pupils in Attendance  Attendance Divisor         Minimum Units Allowed
 11    12 or more..........  12......................   1 or more as computed
                                                                        
 12        In applying these tables to any given separate attendance unit, no  school
 13    district  shall  receive  less  total  money than it would receive if it had a
 14    lesser average daily attendance in such separate attendance unit. In  applying
 15    the  kindergarten  table  to  a  kindergarten program of less days than a full
 16    school year, the support unit allowance shall be in ratio  to  the  number  of
 17    days  of a full school year. The tables for exceptional education and alterna-
 18    tive school secondary support units shall  be  applicable  only  for  programs
 19    approved  by  the state department of education following rules established by
 20    the state board of education. Moneys generated  from  computation  of  support
 21    units  for  alternative  schools shall be utilized for alternative school pro-
 22    grams. School district administrative and facility costs may  be  included  as
 23    part of the alternative school expenditures.
 24        7.(5)  State Distribution Factor per Support Unit. Divide educational sup-
 25    port  program  distribution  funds, after subtracting the amounts necessary to
 26    pay the obligations specified in subsection (2.) of this section, by the total
 27    state support units to secure the state distribution factor per support unit.
 28        8.(6)  District Share of State  Funds  for  Educational  Support  Program.
 29    Ascertain  a  district's share of state funds for the educational support pro-
 30    gram as follows:
 31        a.  District Contribution Calculation. Without including any allowance  as
 32        a  credit  for  prepaid taxes, as provided in section 63-1607, Idaho Code,
 33        the district contribution calculation shall be the rate  determined  under
 34        subsection 3. of this section.
 35        b.  District  Support  Units.  The number of support units for each school
 36        district in the state shall be determined as follows:
 37        (a)  (1i)   Divide the actual average daily attendance, excluding students
 38             approved for inclusion in the exceptional child educational  program,
 39             for  the  administrative schools and each of the separate schools and
 40             attendance units by the appropriate divisor from the tables  of  sup-
 41             port  units  in  this  section,  then add the quotients to obtain the
 42             district's support units allowance for regular students, kindergarten
 43             through grade 12 including  alternative  school  secondary  students.
 44             Calculations  in  application of this subsection shall be carried out
 45             to the nearest tenth.
 46             (2ii)  Divide the combined totals of the average daily attendance  of
 47             all  preschool,  handicapped, kindergarten, elementary, secondary and
 48             juvenile detention center students  approved  for  inclusion  in  the
 49             exceptional  child program of the district by the appropriate divisor
 50             from the table for computation of exceptional education support units
 51             to obtain the number of support  units  allowed  for  the  district's
 52             approved  exceptional child program. Calculations for this subsection
 53             shall be carried out to the nearest tenth when more than one (1) unit
                                                                        
                                           11
                                                                        
  1             is allowed.
  2             (3iii) The total number of support units of the district shall be the
  3             sum of the total  support  units  for  regular  students,  subsection
  4             8.b.(1)  (6)(a)(i)  of  this section, and the support units allowance
  5             for  the  approved  exceptional  child  program,  subsection  8.b.(2)
  6             (6)(a)(ii) of this section.
  7        c.(b)  Total  District  Allowance  Educational   Program.   Multiply   the
  8        district's  total  number  of  support  units,  carried out to the nearest
  9        tenth, by the state distribution factor per support unit and to this prod-
 10        uct add the approved amount of programs of the district provided  in  sub-
 11        section  (2.) of this section to secure the district's total allowance for
 12        the educational support program.
 13        d.(c)  District Share. To secure tThe district's share of state apportion-
 14        ment, subtract the amount of the local district contribution  calculation,
 15        subsection  3.  of  this section, from is the amount of the total district
 16        allowance, subsection 8.c. (6)(b) of this section.
 17        e.(d)  Adjustment of District Share. The contract salary of every  noncer-
 18        tificated  teacher shall be subtracted from the district's share as calcu-
 19        lated from the provisions of subsection 8.d. (6)(c) of this section.
 20        (7)  Property Tax Computation Ratio. In order to receive state funds  pur-
 21    suant  to  this  section a charter district shall utilize a school maintenance
 22    and operation property tax computation ratio for the  purpose  of  calculating
 23    its maintenance and operation levy, that is no greater than that which it uti-
 24    lized in tax year 1994, less four-tenths of one percent (.4%). As used herein,
 25    the  term  "property  tax  computation ratio" shall mean a ratio determined by
 26    dividing the district's certified property tax maintenance and operation  bud-
 27    get  by  the  actual  or adjusted market value for assessment purposes as such
 28    values existed on December 31, l993. Such maintenance and operation levy shall
 29    be based on the property tax computation ratio multiplied  by  the  actual  or
 30    adjusted market value for assessment purposes as such values existed on Decem-
 31    ber 31 of the prior calendar year.
                                                                        
 32        SECTION  8.  That  Sections 33-1002A and 33-1002D, Idaho Code, be, and the
 33    same are hereby repealed.
                                                                        
 34        SECTION 9.  That Section 33-1003, Idaho Code, be, and the same  is  hereby
 35    amended to read as follows:
                                                                        
 36        33-1003.  SPECIAL   APPLICATIONS  OF  EDUCATIONAL  SUPPORT  PROGRAM.  (1.)
 37    Decrease in Average Daily Attendance. --  Any  school  district  which  has  a
 38    decrease  in total average daily attendance of one percent (1%) of its average
 39    daily attendance in the then current school year from the total average  daily
 40    attendance  used for determining the allowance in the educational support pro-
 41    gram for the school year immediately preceding, the allowance  of  funds  from
 42    the  educational  support program may be based on the average daily attendance
 43    of the school year immediately preceding, less one  percent  (1%).  When  this
 44    provision  is  applied, the decrease in average daily attendance shall be pro-
 45    portionately distributed among the various categories of  support  units  that
 46    are appropriate for the district.
 47        (2.)  Application  of Support Program to Separate Schools/Attendance Units
 48    in District.
 49        (a.)  Separate Elementary School. -- Any separate elementary school  shall
 50        be  allowed  to  participate in the educational support program as  though
 51        the school were the only elementary school operated by the district.
 52        (b.)  Hardship Elementary School. -- Upon  application  of  the  board  of
                                                                        
                                           12
                                                                        
  1        trustees  of  a school district, the state board of education is empowered
  2        to determine that a given elementary school or elementary  schools  within
  3        the school district, not  otherwise qualifying, are entitled to be counted
  4        as  a  separate  elementary  school  as defined in section  33-1001, Idaho
  5        Code, when, in the discretion of the state  board  of  education,  special
  6        conditions  exist  warranting  the  retention  of the school as a separate
  7        attendance unit and the retention results in  a  substantial  increase  in
  8        cost  per  pupil  in  average  daily attendance above the average cost per
  9        pupil in average daily attendance of the remainder of the district's  ele-
 10        mentary  grade  school  pupils. An elementary school operating as a previ-
 11        ously approved hardship elementary school shall continue to be  considered
 12        as  a  separate attendance unit, unless the hardship status of the elemen-
 13        tary school is rescinded by the state board of education.
 14        (c.)  Separate Secondary School. -- Any separate secondary school shall be
 15        allowed to participate in the educational support program  as  though  the
 16        school were the only secondary school operated by the district.
 17        (d.)  Elementary/Secondary  School  Attendance Units. -- Elementary grades
 18        in an elementary/secondary school will be funded as a separate  attendance
 19        unit if all elementary grades served are situated more than ten (10) miles
 20        distance  from  both  the  nearest  like elementary grades within the same
 21        school district and from the location of the office of the  superintendent
 22        of  schools  of such district, or from the office of the chief administra-
 23        tive officer of such district if the district employs no superintendent of
 24        schools. Secondary grades in an elementary/secondary school will be funded
 25        as a separate attendance unit if all secondary grades served  are  located
 26        more  than fifteen (15) miles by an all-weather road from the nearest like
 27        secondary grades operated by the district.
 28        (e.)  Hardship Secondary School. -- Any district which  operated  two  (2)
 29        secondary  schools  separated  by  less than fifteen (15) miles, but which
 30        district was  created  through  consolidation  subsequent  to  legislative
 31        action  pursuant  to chapter 111, laws of 1947, and which school buildings
 32        were constructed prior to 1935, shall be entitled to count the schools  as
 33        separate attendance units.
 34        (f.)  Minimum  Pupils  Required. -- Any elementary school having less than
 35        ten (10) pupils in average daily attendance shall not be allowed  to  par-
 36        ticipate in the state or county support program unless the school has been
 37        approved for operation by the state board of education.
 38        (3.)  Remote  Schools.  --  The board of trustees of any Idaho school dis-
 39    trict which operates and maintains a school which is remote and isolated  from
 40    the other schools of the state because of geographical or topographical condi-
 41    tions  may  petition the state board of education to recognize and approve the
 42    school as a remote and necessary school. The petition shall  be  in  form  and
 43    content approved by the state board of education and shall provide such infor-
 44    mation as the state board of education may require. Petitions for the recogni-
 45    tion  of  a school as a remote and necessary school shall be filed annually at
 46    least ninety (90) days prior to the date of the annual meeting of the board of
 47    trustees as established in section 33-510, Idaho Code.
 48        Within forty-five (45) days after the receipt of a petition for the recog-
 49    nition of a remote and necessary school, the state board  of  education  shall
 50    either  approve or disapprove the petition and notify the board of trustees of
 51    its decision. Schools which the state board of  education  approves  as  being
 52    necessary and remote shall be allowed adequate funding within the support pro-
 53    gram  for an acceptable educational program for the students of the school. In
 54    the case of a remote and necessary secondary school, grades 7-12,  the  educa-
 55    tional  program  shall  be deemed acceptable when, in the opinion of the state
                                                                        
                                           13
                                                                        
  1    board of education, the accreditation standard relating to staff size,  estab-
  2    lished in accordance with section 33-119, Idaho  Code, has been met. The final
  3    determination  of  an acceptable program and adequate funding in the case of a
  4    remote and necessary elementary school shall be made by  the  state  board  of
  5    education.
  6        (4.)  Support Program When District Boundaries are Changed.
  7        (a.)  In  new  districts formed by the division of a district, the support
  8        program computed for the district divided in its last year  of  operation,
  9        shall  be apportioned to the new districts created by the division, in the
 10        proportion that the average daily attendance  of  pupils,  elementary  and
 11        secondary  combined, residing in the area of each new district so created,
 12        is to the average daily attendance of all pupils, elementary and secondary
 13        combined, in the district divided in its last year of operation before the
 14        division.
 15        (b.)  When boundaries of districts are changed by excision  or  annexation
 16        of  territory, the support program of any district from which territory is
 17        excised for the last year of  operation  before  such  excision  shall  be
 18        divided,  and  apportioned  among the districts involved, as prescribed in
 19        subsection 4a. (4)(a) of this section.
 20        (c.)  In new districts formed by consolidation of  former  districts,  the
 21        support program allowance for a seven (7) year period following the forma-
 22        tion of the new district, shall not be less than the combined support pro-
 23        gram  allowances of  the component districts in the last year of operation
 24        before consolidation.
 25        5.  For the fiscal year which commences on July 1, 1986, and for each suc-
 26    ceeding fiscal year, any school  district  whose  adjusted  market  value  for
 27    assessment  purposes  decreases  forty percent (40%) or more from the previous
 28    year's adjusted market value for assessment purposes as such valuation existed
 29    on December 31, is eligible to receive an adjustment to its  educational  sup-
 30    port program entitlement, subject to qualifications as follows:
 31        a.  The  adjusted market value for assessment purposes has decreased forty
 32        percent (40%) or more from the previous year's adjusted market  value  for
 33        assessment purposes as such valuation existed on December 31; and
 34        b.  The school levy to be certified for the general maintenance and opera-
 35        tion fund shall be no less than four-tenths of one percent (.4%); and
 36        c.  An  eligible school district has made application to the state depart-
 37        ment of education for an adjustment to entitlement from the  state  educa-
 38        tional support program on or before June 1 of the fiscal year. Such appli-
 39        cation must document the need for additional funds and must include a dis-
 40        trict plan to minimize impact of a reduced local tax base.
                                                                        
 41        SECTION  10.  The  State  Department of Education shall utilize the provi-
 42    sions of Sections 33-802, 33-1002, 33-1002A, 33-1002D and 33-1003, Idaho Code,
 43    as they existed prior to amendment or repeal by the provisions of this act for
 44    the purposes of funding public schools through the end of fiscal year 2006.
                                                                        
 45        SECTION 11.  That Section 33-1004, Idaho Code, be, and the same is  hereby
 46    amended to read as follows:
                                                                        
 47        33-1004.  STAFF  ALLOWANCE.  For  each  school district, a staff allowance
 48    shall be determined as follows:
 49        1.  Using the daily attendance reports that have been submitted  for  com-
 50    puting  the  February 15th apportionment of state funds as provided in section
 51    33-1009, Idaho Code, determine the total support units for the district in the
 52    manner provided in  section 33-1002 8.b. (6)(a), Idaho Code;
                                                                        
                                           14
                                                                        
  1        2.  Determine the instructional staff allowance by multiplying the support
  2    units by 1.1. A district must demonstrate that it actually employs the  number
  3    of  certificated  instructional staff allowed. If the district does not employ
  4    the number allowed, the staff allowance shall be reduced to the actual  number
  5    employed;
  6        3.  Determine  the  administrative staff allowance by multiplying the sup-
  7    port units by .075;
  8        4.  Determine the classified staff allowance by  multiplying  the  support
  9    units by .375;
 10        5.  Additional conditions governing staff allowance:
 11        a.  In  determining  the  number  of staff in subsections 2., 3. and 4. of
 12        this section, a district may contract separately for services to  be  ren-
 13        dered  by  nondistrict  employees and such employees may be counted in the
 14        staff allowance. A "nondistrict employee" means  a  person  for  whom  the
 15        school district does not pay the employer's obligations for employee bene-
 16        fits.  When  a  district  contracts  for  the  services  of  a nondistrict
 17        employee, only the salary portion of the contract shall be  allowable  for
 18        computations.
 19        b.  If  there are circumstances preventing eligible use of staff allowance
 20        to which a district is entitled as provided in subsections 2.  and  3.  of
 21        this  section,  an appeal may be filed with the state department of educa-
 22        tion outlining the reasons and proposed alternative use  of  these  funds,
 23        and a waiver may be granted.
 24        c.  For any district with less than forty (40) support units:
 25             (1)  The  instructional  staff allowance shall be calculated applying
 26             the actual number of support units. If the actual instructional staff
 27             employed in the school year is greater than the  instructional  staff
 28             allowance,  then the instructional staff allowance shall be increased
 29             by one-half (1/2) staff allowance; and
 30             (2)  The administrative staff allowance shall be calculated  applying
 31             the  actual  number  of  support  units. If the actual administrative
 32             staff employed in the school year is greater than the  administrative
 33             staff  allowance,  then  the  administrative staff allowance shall be
 34             increased by one-half (1/2) staff allowance.
 35             (3)  Additionally, for any district with less than twenty  (20)  sup-
 36             port  units,  the  instructional  staff allowance shall be calculated
 37             applying the actual  number  of  support  units.  If  the  number  of
 38             instructional  staff  employed in the school year is greater than the
 39             instructional staff allowance, the staff allowance shall be increased
 40             as provided in paragraphs (1) and (2) of this subsection, and  by  an
 41             additional one-half (1/2) instructional staff allowance.
 42        d.  Only  instructional,  administrative  and classified personnel compen-
 43        sated by the school district from the general  maintenance  and  operation
 44        fund  of the district shall be included in the calculation of staff allow-
 45        ance or in any other calculations based upon staff,  including  determina-
 46        tion  of  the  experience and education multiplier, the reporting require-
 47        ments, or the district's salary-based apportionment calculation.  No  food
 48        service  staff  or  transportation  staff  shall  be included in the staff
 49        allowance.
 50        6.  In the event that the staff allowance in any category is  insufficient
 51    to  meet  accreditation standards, a district may appeal to the state board of
 52    education, demonstrating the insufficiency, and the state board  may  grant  a
 53    waiver authorizing sufficient additional staff to be included within the staff
 54    allowance  to  meet accreditation standards. Such a waiver shall be limited to
 55    one (1) year, but may be renewed upon showing of continuing justification.
                                                                        
                                           15
                                                                        
  1        SECTION 12.  That Section 33-1114, Idaho Code, be, and the same is  hereby
  2    amended to read as follows:
                                                                        
  3        33-1114.  LEVY  FOR  LIQUIDATION OF BONDED INDEBTEDNESS. Whenever it shall
  4    appear that the board of trustees of any school district has failed to certify
  5    to the board of county commissioners the  levy  required  in  section  33-802,
  6    Idaho  Code,  said The board of county commissioners shall, in addition to all
  7    other levies set by them, set levies sufficient to  meet  all  accruing  bond,
  8    bond  interest  and  judgment  obligations of the district maturing during the
  9    year when such levies shall be collected and paid.
                                                                        
 10        SECTION 13.  That Section 33-1408, Idaho Code, be, and the same is  hereby
 11    amended to read as follows:
                                                                        
 12        33-1408.  SPECIAL  LEVY  FOR TUITION. Any school district is hereby autho-
 13    rized to make a levy above the maintenance and operation levy otherwise autho-
 14    rized by law for the purpose of paying tuition  costs  of  its  students  who,
 15    under authorization of the board of trustees of the district, attend school in
 16    another  district either in or out of Idaho, except for those costs reimbursed
 17    by the state under border contracts. Such levy shall be exempt from the provi-
 18    sions of section 63-802, Idaho Code.
                                                                        
 19        SECTION 14.  That Section 33-5208, Idaho Code, be, and the same is  hereby
 20    amended to read as follows:
                                                                        
 21        33-5208.  PUBLIC  CHARTER  SCHOOL FINANCIAL SUPPORT. Except as provided in
 22    subsection (8) of this section, from the state educational support program the
 23    state department of education shall make the following apportionment  to  each
 24    public charter school for each fiscal year based on attendance figures submit-
 25    ted in a manner and time as required by the department of education:
 26        (1)  Per  student  support.  Computation  of support units for each public
 27    charter school shall be calculated as if it were a separate  school  according
 28    to  the  schedules  in  section  33-1002 6.(4), Idaho Code, except that public
 29    charter schools with fewer than one hundred (100) secondary ADA  shall  use  a
 30    divisor  of  twelve  (12) and the minimum units shall not apply, and no public
 31    charter school shall receive an increase in support  units  that  exceeds  the
 32    support  units it received in the prior year by more than twenty (20). Funding
 33    from the state educational support program shall be equal to the total distri-
 34    bution factor, plus the salary-based apportionment  provided  in  chapter  10,
 35    title  33,  Idaho  Code.  Provided  however, any public charter school that is
 36    formed by the conversion of an existing traditional  public  school  shall  be
 37    assigned  divisors, pursuant to section 33-1002, Idaho Code, that are no lower
 38    than the divisors of the school  district  in  which  the  traditional  public
 39    school is located, for each category of pupils listed.
 40        (2)  Special  education.  For  each student enrolled in the public charter
 41    school who is entitled to special education services, the  state  and  federal
 42    funds from the exceptional child education program for that student that would
 43    have  been  apportioned  for  that student to the school district in which the
 44    public charter school is located.
 45        (3)  Alternative school support. Public charter schools may qualify  under
 46    the provisions of sections 33-1002 and 33-1002C, Idaho Code, provided the pub-
 47    lic  charter  school  meets the necessary statutory requirements, and students
 48    qualify for attendance at an alternative school as provided  by  rule  of  the
 49    state board of education.
 50        (4)  Transportation  support.  Support shall be paid to the public charter
                                                                        
                                           16
                                                                        
  1    school as provided in chapter 15, title 33, Idaho Code, and  section  33-1006,
  2    Idaho  Code.  Each  public charter school shall furnish the department with an
  3    enrollment count as of the first Friday in November, of public charter  school
  4    students  living more than one and one-half (1 1/2) miles from the school. For
  5    charter schools in the initial year of operation, the petition shall include a
  6    proposal for transportation services with an estimated first  year  cost.  The
  7    state department of education is authorized to include in the annual appropri-
  8    ation  to the charter school eighty percent (80%) of the estimated transporta-
  9    tion cost. The final appropriation payment in July shall  reflect  eighty-five
 10    percent (85%) of the actual cost.
 11        (5)  Payment  schedule. The state department of education is authorized to
 12    make an advance payment of twenty-five  percent  (25%)  of  a  public  charter
 13    school's  estimated  annual apportionment for its first year of operation, and
 14    each year thereafter, provided the public charter school has  an  increase  of
 15    student  population  in  any  given  year  of twenty (20) students or more, to
 16    assist the school with initial start-up costs or payroll obligations.
 17        (a)  For a state public charter school to receive the advance payment, the
 18        school shall submit its anticipated fall membership for each  grade  level
 19        to the state department of education by June 1.
 20        (b)  Using  the  figures  provided by the public charter school, the state
 21        department of education shall determine an estimated annual  apportionment
 22        from  which the amount of the advance payment shall be calculated. Advance
 23        payment shall be made to the school on or after July 1 but no  later  than
 24        July 31.
 25        (c)  All  subsequent  payments,  taking  into account the one-time advance
 26        payment made for the first year of operation, shall be made to the  public
 27        charter  school  in the same manner as other traditional public schools in
 28        accordance with the provisions of section 33-1009, Idaho Code.
 29    A public charter school shall comply with all applicable  fiscal  requirements
 30    of law, except that the following provisions shall not be applicable to public
 31    charter  schools: section 33-1003B, Idaho Code, relating to guaranteed minimum
 32    support; that portion of section 33-1004, Idaho Code, relating to reduction of
 33    the administrative and instructional staff allowance when there is a  discrep-
 34    ancy  between the number allowed and the number actually employed; and section
 35    33-1004E, Idaho Code, for calculation of district staff indices.
 36        (6)  Nothing in this chapter shall be construed to  prohibit  any  private
 37    person or organization from providing funding or other financial assistance to
 38    the establishment or operation of a public charter school.
 39        (7)  Nothing  in  this  chapter shall prevent a public charter school from
 40    applying for federal grant moneys.
 41        (8)  (a) For the period July 1, 2003, through June 30,  2005,  all  public
 42        virtual  schools  shall be assigned divisors, pursuant to section 33-1002,
 43        Idaho Code, that are no higher than the  median  divisor  shown  for  each
 44        respective  category  of  pupils,  among the possible divisors listed, for
 45        each respective category of pupils that contains more than one  (1)  divi-
 46        sor. If there is an even number of possible divisors listed for a particu-
 47        lar  category  of  pupils,  then the lesser of the two (2) median divisors
 48        shall be used. For the period July 1, 2005, through  June  30,  2007,  all
 49        public  virtual  schools  shall be assigned divisors,  pursuant to section
 50        33-1002, Idaho Code, that are no higher than the  second  highest  divisor
 51        shown, among the possible divisors listed, for each respective category of
 52        pupils  that  contains  more  than one (1) divisor. The divisor provisions
 53        contained herein shall only be applicable to the number of pupils in aver-
 54        age daily attendance in such public virtual schools for the period July 1,
 55        2003, through June 30, 2004. If the number  of  pupils  in  average  daily
                                                                        
                                           17
                                                                        
  1        attendance  in  any  particular  category  of pupils increases, during the
  2        period July 1, 2004, through June 30, 2005, to a number above  that  which
  3        existed  in the prior fiscal year, then those additional pupils in average
  4        daily attendance shall  be  assigned  the  divisor,  pursuant  to  section
  5        33-1002, Idaho Code, that would have otherwise been assigned to the school
  6        district or public charter school had this section not been in force.
  7        (b)  Each student in attendance at a public virtual school shall be funded
  8        based  upon  either  the  actual hours of attendance in the public virtual
  9        school on a flexible schedule, or the percentage of coursework  completed,
 10        whichever is more advantageous to the school, up to the maximum of one (1)
 11        full-time equivalent student.
 12        (c)  All  federal  educational funds shall be administered and distributed
 13        to public charter schools, including public  virtual  schools,  that  have
 14        been  designated  by  the  state  board  of education as a local education
 15        agency (LEA), as provided in section 33-5203(7), Idaho Code.
 16        (9)  Nothing in this  section  prohibits  separate  face-to-face  learning
 17    activities or services.
                                                                        
 18        SECTION  15.  That Section 50-2908, Idaho Code, be, and the same is hereby
 19    amended to read as follows:
                                                                        
 20        50-2908.  DETERMINATION OF TAX LEVIES -- CREATION OF SPECIAL FUND. (1) For
 21    purposes of calculating the rate at which taxes shall be levied by or for each
 22    taxing district in which a revenue allocation area is located, the county com-
 23    missioners shall, with respect to the taxable property located in such revenue
 24    allocation area, use the equalized assessed value of such taxable property  as
 25    shown  on  the  base  assessment  roll  rather  than  on the current equalized
 26    assessed valuation of such taxable property.
 27        (2)  With respect to each such taxing district, the  tax  rate  calculated
 28    under subsection (1) of this section shall be applied to the current equalized
 29    assessed  valuation  of all taxable property in the taxing district, including
 30    the taxable property in the revenue allocation area. The tax revenues  thereby
 31    produced shall be allocated as  follows:
 32        (a)  To  the  taxing  district shall be allocated and shall be paid by the
 33        county treasurer:
 34             (i)   All taxes levied by the taxing district or  on  its  behalf  on
 35             taxable  property  located within the taxing district but outside the
 36             revenue allocation area; and
 37             (ii)  A portion of the taxes levied by the taxing district or on  its
 38             behalf  on the taxable property located within the revenue allocation
 39             area, which portion is the amount produced  by  applying  the  taxing
 40             district's  tax  rate determined under subsection (1) of this section
 41             to the equalized assessed valuation, as shown on the base  assessment
 42             roll,  of  the taxable property located within the revenue allocation
 43             area; and
 44             (iii) If such taxing district is a school district, a further portion
 45             of the taxes levied by such district or on its behalf on the  taxable
 46             property located within the revenue allocation area, which portion is
 47             the   amount   equal   to   the   percentage   specified  in  section
 48             33-1002(7)(a), Idaho Code, multiplied by the difference  between  the
 49             current equalized assessed valuation of such taxable property and the
 50             equalized assessed valuation of such taxable property as shown on the
 51             base assessment roll.
 52        (b)  To  the  urban renewal agency shall be allocated the balance, if any,
 53        of the taxes levied on the taxable property  located  within  the  revenue
                                                                        
                                           18
                                                                        
  1        allocation area.
  2        (3)  Upon  enactment of an ordinance adopting a revenue allocation financ-
  3    ing provision as part of an urban renewal plan, the urban renewal agency shall
  4    create a special fund or funds to be used for the purposes enumerated in  this
  5    chapter.   The revenues allocated to the urban renewal agency pursuant to this
  6    chapter, shall be paid to the agency by the treasurer of the county  in  which
  7    the  revenue  allocation  district  is  located  and shall be deposited by the
  8    agency into one (1) or more of such special funds. The agency  may,  in  addi-
  9    tion,  deposit  into  such  special fund or funds such other income, proceeds,
 10    revenues and funds it may receive from sources other than the  revenues  allo-
 11    cated to it under subsection (2)(b) of this section.
 12        (4)  For  the  purposes  of  section 63-803, Idaho Code, during the period
 13    when revenue allocation under this chapter  is  in  effect,  and  solely  with
 14    respect  to any taxing district in which a revenue allocation area is located,
 15    the county commissioners shall, in fixing any tax levy,  take  into  consider-
 16    ation the equalized assessed valuation of the taxable property situated in the
 17    revenue  allocation area as shown in the base assessment roll, rather than the
 18    current equalized assessed value of such taxable property.
 19        (5)  For all other purposes, including, without limitation,  for  purposes
 20    of  sections  33-802,  33-1002 and 63-1313, Idaho Code, reference in the Idaho
 21    Code to the term "market value for assessment purposes"  (or  any  other  such
 22    similar  term)  shall  mean market value for assessment purposes as defined in
 23    section 63-208, Idaho Code.
                                                                        
 24        SECTION 16.  That Section 63-315, Idaho Code, be, and the same  is  hereby
 25    amended to read as follows:
                                                                        
 26        63-315.  ASSESSMENT  RATIOS AND THE DETERMINATION OF ADJUSTED MARKET VALUE
 27    FOR ASSESSMENT PURPOSES FOR SCHOOL DISTRICTS. (1) The provisions of this  sec-
 28    tion  shall  apply  only to charter school districts levying a maintenance and
 29    operation levy in the prior calendar year.  For the purpose of  this  section,
 30    adjusted  market  value  for  assessment purposes shall be the adjusted market
 31    value for assessment purposes of all property assessed for property  tax  pur-
 32    poses for the year referred to in sections 33-802 and 33-1002, Idaho Code.
 33        (2)  The  state  tax  commission  shall  conduct a ratio study to annually
 34    ascertain the ratio between the  assessed  value  and  the  market  value  for
 35    assessment  purposes  of all property assessed for property tax purposes. Said
 36    ratio study shall be conducted in accordance with nationally  accepted  proce-
 37    dures.  From  the  ratio so ascertained the state tax commission shall compute
 38    the adjusted market value of all property assessed for property tax purposes.
 39        (3)  The ratio shall be computed in each school district  and  applied  to
 40    the market value for assessment purposes within each school district.
 41        (4)  Sales used in determining the ratio required by this section shall be
 42    arm's  length,  market value property sales occurring in the year beginning on
 43    October 1 of the year preceding the year for which the adjusted  market  value
 44    is  to  be determined. The state tax commission may, at its discretion, modify
 45    the sales period when doing so produces provably better representativeness  of
 46    the actual ratio in any school district. The state tax commission may also add
 47    independently  conducted  appraisals  when  the  state tax commission believes
 48    that this procedure will improve the representativeness and reliability of the
 49    ratio.
 50        (5)  Whenever the state tax commission is unable to determine with reason-
 51    able statistical certainty that the assessed value within any school  district
 52    differs  from  the market value for assessment purposes, the state tax commis-
 53    sion may certify the assessed value to be the adjusted  market  value  of  any
                                                                        
                                           19
                                                                        
  1    school district.
  2        (6)  The  state  tax commission shall certify the adjusted market value of
  3    each school district to the state department  of  education  and  each  county
  4    auditor  no later than the first Monday in April each year. The state tax com-
  5    mission shall prepare a report indicating procedures  used  in  computing  the
  6    adjusted  market  value and showing statistical measures computed in the ratio
  7    study. This report shall be submitted to the state department of education  at
  8    the same time as the certification of adjusted market value. The report of the
  9    state tax commission shall also be made available for public inspection in the
 10    office of the county auditor.
 11        (7)  The  state  tax  commission  shall  promulgate rules to implement the
 12    ratio study described in this section.
                                                                        
 13        SECTION 17.  That Section 63-602G, Idaho Code, be, and the same is  hereby
 14    amended to read as follows:
                                                                        
 15        63-602G.  PROPERTY  EXEMPT FROM TAXATION -- RESIDENTIAL IMPROVEMENTS HOME-
 16    STEAD. (1) During the tax year 1983 2006 and each year thereafter, subject  to
 17    annual  adjustment  as  provided herein, the first fifty seventy-five thousand
 18    dollars ($750,000) of the market value for assessment purposes of  residential
 19    improvements  the  homestead  as that term is defined in section 63-701, Idaho
 20    Code, or fifty percent (50%) of the market value for  assessment  purposes  of
 21    residential  improvements  the  homestead  as  that term is defined in section
 22    63-701, Idaho Code, whichever is the lesser, shall  be  exempt  from  property
 23    taxation.  Beginning for tax year 2007, the state tax commission shall publish
 24    adjustments to the maximum amount subject to property tax exemption to reflect
 25    cost-of-living fluctuations. The  adjustments  shall  effect  changes  in  the
 26    amount  subject  to tax exemption by a percentage equal as near as practicable
 27    to the annual increase in the Idaho housing price index as determined  by  the
 28    United  States  office  of federal housing enterprise oversight. The state tax
 29    commission shall publish the adjustments required by this subsection each  and
 30    every  year  the  office  of  federal housing enterprise oversight announces a
 31    change in the Idaho housing price index. The adjustments shall be published no
 32    later than October 1 of each year and shall be effective for claims  filed  in
 33    and  for the following property tax year. The publication of adjustments under
 34    this subsection shall be exempt from the provisions of chapter 52,  title  67,
 35    Idaho  Code, but shall be provided to each county and to members of the public
 36    upon request and without charge.
 37        (2)  The exemption allowed by this section may be granted only if:
 38        (a)  The residential improvements are homestead is owner-occupied and used
 39        as the primary dwelling place of the owner as of January 1, provided  that
 40        in  the event the residential improvements are homestead is owner-occupied
 41        after January 1 but before April 15, the owner of the property is entitled
 42        to the exemption. The residential improvements homestead  may  consist  of
 43        part  of a multidwelling or multipurpose building and shall include all of
 44        such dwelling or building except any portion used exclusively for anything
 45        other than the primary dwelling of the owner. The presence of an office in
 46        an owner-occupied residential property homestead, which office is used for
 47        multiple purposes, including business and personal use, shall not  prevent
 48        the owner from claiming the exemption provided in this section; and
 49        (b)  The tax commission has certified to the board of county commissioners
 50        that  all  properties  in the county which are subject to appraisal by the
 51        county assessor have, in fact, been appraised uniformly so as to secure  a
 52        just valuation for all property within the county; and
 53        (c)  The owner has certified to the county assessor by April 15 that:
                                                                        
                                           20
                                                                        
  1             (i)   He is making application for the exemption allowed by this sec-
  2             tion;
  3             (ii)  That  the residential improvements are homestead is his primary
  4             dwelling place; and
  5             (iii) That he has not made application in any other  county  for  the
  6             exemption,  and  has  not  made  application for the exemption on any
  7             other residential improvements homestead in the county.
  8        (d)  For the purpose of this section, the definition of "owner"  shall  be
  9        the same definition set forth in section 63-701(7), Idaho Code.
 10             When  an  "owner,"  pursuant  to the provisions of section 63-701(7),
 11        Idaho Code, is any person who is the beneficiary of a revocable or irrevo-
 12        cable trust, or who  is a partner of a limited partnership, a member of  a
 13        limited  liability company, or shareholder of a corporation, he or she may
 14        provide proof of the trust, limited partnership,  limited  liability  com-
 15        pany,  or  corporation in the manner set forth in section 63-703(4), Idaho
 16        Code.
 17        (e)  Any owner may request in writing the return of all copies of any doc-
 18        uments submitted with the affidavit set forth in section 63-703(4),  Idaho
 19        Code, that are held by a county assessor, and the copies shall be returned
 20        by the county assessor upon submission of the affidavit in proper form.
 21        (f)  For  the purpose of this section, the definition of "primary dwelling
 22        place" shall be the same definition set forth in section 63-701(8),  Idaho
 23        Code.
 24        (g)  For  the  purpose of this section, the definition of "occupied" shall
 25        be the same definition set forth in section 63-701(6), Idaho Code.
 26        (3)  An owner need only make application for the  exemption  described  in
 27    subsection  (1)  of  this section once, as long as all of the following condi-
 28    tions are met:
 29        (a)  The owner has received the exemption during the previous  year  as  a
 30        result  of  his making a valid application as defined in subsection (2)(c)
 31        of this section.
 32        (b)  The owner or beneficiary, partner, member or shareholder,  as  appro-
 33        priate,  still  occupies  the  same residential improvements homestead for
 34        which the owner made application.
 35        (c)  The residential improvements homestead described in subsection (3)(b)
 36        of this section are is owner-occupied or occupied by a beneficiary,  part-
 37        ner, member or shareholder, as appropriate, and used as the primary dwell-
 38        ing  place of the owner or beneficiary, partner, member or shareholder, as
 39        appropriate, as of January 1; provided however, that in the event the res-
 40        idential improvements are homestead is owner-occupied after January 1, but
 41        before April 15, the owner of the property is entitled to the exemption.
 42        (4)  The exemption allowed by this section must be taken before the reduc-
 43    tion in taxes provided by sections  63-701  through  63-710,  Idaho  Code,  is
 44    applied.
 45        (5)  Recovery  of  property  tax  exemptions  allowed  by this section but
 46    improperly claimed or approved.:
 47        (a)  Upon discovery of evidence, facts  or  circumstances  indicating  any
 48        exemption  allowed by this section was improperly claimed or approved, the
 49        county assessor shall decide  whether  the  exemption  claimed  should  be
 50        allowed  and  if not, notify the taxpayer in writing, assess a recovery of
 51        property tax and notify the county treasurer of this assessment.
 52        (b)  When information indicating that an improper claim for the  exemption
 53        allowed  by  this  section  is discovered by the state tax commission, the
 54        state tax commission may disclose  this  information  to  the  appropriate
 55        county  assessor,  board  of  county  commissioners  and county treasurer.
                                                                        
                                           21
                                                                        
  1        Information disclosed to county officials  by  the  state  tax  commission
  2        under  this  subsection may be used to decide the validity of any entitle-
  3        ment to the exemption provided in this section and is not  otherwise  sub-
  4        ject to public disclosure pursuant to chapter 3, title 9, Idaho Code.
  5        (c)  The  assessment  and  collection of the recovery of property tax must
  6        begin within the seven (7) year period beginning the date  the  assessment
  7        notice  reflecting  the  improperly  claimed  or  approved  exemption  was
  8        required to be mailed to the taxpayer.
  9        (d)  The  taxpayer  may  appeal  to  the board of county commissioners the
 10        decision  by the county assessor to assess the recovery  of  property  tax
 11        within thirty (30) days of the date the county assessor sent the notice to
 12        the taxpayer pursuant to this section.
 13        (e)  A  recovery  of  property  tax  shall  be for each year the exemption
 14        allowed by this section was improperly  claimed  or  approved  up  to  the
 15        lesser  of  a  maximum of seven (7) years or until the property was trans-
 16        ferred to a bona fide purchaser for value. The amount of the  recovery  of
 17        property  tax  shall  be  calculated  using  the  product of the amount of
 18        exempted value for each year multiplied by the levy  for  that  year  plus
 19        costs, late charges and interest for each year at the rates equal to those
 20        provided for delinquent property taxes during that year.
 21        (f)  Any  recovery  of property tax shall be due and payable no later than
 22        the date provided for property taxes in section 63-903, Idaho Code, and if
 23        not timely paid, late charges and interest, beginning  the  first  day  of
 24        January in the year following the year the county assessor sent the notice
 25        to  the taxpayer pursuant to this section, shall be calculated at the cur-
 26        rent rate provided for property taxes.
 27        (g)  Recovered property taxes shall be billed, collected  and  distributed
 28        in  the same manner as property taxes, except each taxing district or unit
 29        shall be notified of the amount of any recovered property  taxes  included
 30        in any distribution.
 31        (h)  Any unpaid recovered property taxes shall become a lien upon the real
 32        property  in  the  same  manner  as provided for property taxes in section
 33        63-206, Idaho Code, except such lien shall attach as of the first  day  of
 34        January in the year following the year the county assessor sent the notice
 35        to the taxpayer pursuant to this section.
 36        (i)  For  purposes  of  the  limitation  provided by section 63-802, Idaho
 37        Code, moneys received pursuant to this subsection as recovery of  property
 38        tax shall be treated as property tax revenue.
 39        (6)  The legislature declares that this exemption is necessary and just.
 40        (7)  Residential  improvements A homestead having previously qualified for
 41    exemption under this section in the preceding year, shall not lose such quali-
 42    fication  due  to:  the  owner's,  beneficiary's,   partner's,   member's   or
 43    shareholder's absence in the current year by reason of active military service
 44    in a designated combat zone, as defined in section 112 of the Internal Revenue
 45    Code,  or  because the residential improvements have homestead has been leased
 46    because the owner, beneficiary, partner, member or shareholder  is  absent  in
 47    the  current  year by reason of active military service in a designated combat
 48    zone, as defined in section 112 of the Internal  Revenue  Code.  If  an  owner
 49    fails to timely apply for exemption as required in this section solely by rea-
 50    son  of  active  duty  in  a designated combat zone by the owner, beneficiary,
 51    partner, member or shareholder, as appropriate, as defined in section  112  of
 52    the  Internal  Revenue Code, and such improvements homestead would have other-
 53    wise qualified under this section, then the board of county  commissioners  of
 54    the  county  in  which  the  residential improvements are homestead is located
 55    shall refund property taxes, if previously paid, in an  amount  equal  to  the
                                                                        
                                           22
                                                                        
  1    exemption which would otherwise have applied.
                                                                        
  2        SECTION  18.  That Section 63-802A, Idaho Code, be, and the same is hereby
  3    amended to read as follows:
                                                                        
  4        63-802A.  NOTICE OF BUDGET HEARING. (1) Not later than April  30  of  each
  5    year,  each  taxing district shall set and notify the county clerk of the date
  6    and location set for the budget hearing of the district. If no budget  hearing
  7    is required by law, the county clerk shall be so notified.
  8        (2)  Beginning  in  2003, a nonschool taxing district that fails to comply
  9    with subsection (1) of this section shall be prohibited from including in  its
 10    budget  any budget increase otherwise permitted by either subsection (1)(a) or
 11    (1)(e) of section 63-802, Idaho Code.
 12        (3)  Beginning in 2003, a school district that fails to comply  with  sub-
 13    section  (1) of this section shall be prohibited, in the year of such failure,
 14    from increasing the portion of its property tax budget  raised  under  section
 15    33-802 2., Idaho Code, over the amount of the immediately preceding year.
 16        (4)  If  a  taxing district wishes to change the time and location of such
 17    budget hearing as stated on the assessment notice, they it shall publish  such
 18    change of time and location in advance of such hearing as provided by law.
                                                                        
 19        SECTION  19.  That  Section 63-811, Idaho Code, be, and the same is hereby
 20    amended to read as follows:
                                                                        
 21        63-811.  COMPUTATION OF PROPERTY TAXES -- DUTY OF COUNTY AUDITOR. (1)  The
 22    county  auditor  must  cause  to  be computed the amount of the local property
 23    taxes levied on the total of the taxable value as entered on the property  and
 24    operating property rolls, and must deliver the property and operating property
 25    rolls to the tax collector on or before the first Monday of November.
 26        (2)  The  county auditor must cause to be computed the amount of the local
 27    property taxes levied on the total of the taxable value as entered on the sub-
 28    sequent property roll, and must deliver the subsequent property  roll  to  the
 29    tax  collector  as  soon as possible, without delay, after the first Monday of
 30    December.
 31        (3)  The county auditor must cause to be computed the amount of the  state
 32    property  tax  and  the amount of the local property taxes levied on the total
 33    taxable value as entered on the missed property roll,  and  must  deliver  the
 34    missed  property roll to the tax collector as soon as possible, without delay,
 35    after the first Monday of March of the year following the year  in  which  the
 36    assessment was entered on the missed property roll.
 37        (4)  For  the purpose of this section, "taxable value" shall mean the por-
 38    tion of the equalized assessed value, less any exemptions and the  value  that
 39    exceeds  the  value  of the base assessment roll for the portion of any taxing
 40    district within a revenue  allocation  area  of  an  urban  renewal  district,
 41    located within each taxing district which certifies a budget to be raised from
 42    a  property  tax levy. When the portion of the property tax to be allocated to
 43    school districts as required in sections 33-1002 and 50-2908, Idaho  Code,  is
 44    calculated, the taxable value must include the value that exceeds the value of
 45    the base assessment roll.
 46        (5)  The county auditor, at the time of delivery to the county tax collec-
 47    tor  of  the property roll, subsequent property roll,  missed property roll or
 48    operating property roll with all property taxes computed,  must  subscribe  an
 49    affidavit  to  such  roll that he has to the best of his knowledge and ability
 50    computed the proper amount of property taxes due, and recorded such orders  of
 51    the board of equalization as have been made and have made no other changes.
                                                                        
                                           23
                                                                        
  1        (6)  Failure  of  the  auditor  to make the affidavit shall not affect the
  2    validity of any entry on the roll. The making of such affidavit,  however,  is
  3    declared to be a duty pertaining to the office of the county auditor. In every
  4    case  where  the  said  affidavit is omitted from the real property assessment
  5    roll, completed and delivered as aforesaid, the board of county  commissioners
  6    must  require the county auditor to make the same, and upon refusal or neglect
  7    of such county auditor to make and subscribe to such affidavit forthwith,  the
  8    chairman  of the said board must immediately file in the district court in the
  9    county, an information in writing, verified by his oath, charging such  county
 10    auditor  with  refusal or neglect to perform the official duties pertaining to
 11    his office, and thereupon he must be proceeded against as in such  cases  pro-
 12    vided by law.
                                                                        
 13        SECTION  20.  That Section 63-3619, Idaho Code, be, and the same is hereby
 14    amended to read as follows:
                                                                        
 15        63-3619.  IMPOSITION AND RATE OF THE SALES TAX. An excise  tax  is  hereby
 16    imposed  upon each sale at retail at the rate of five six and one-quarter per-
 17    cent (6.25%) of the sales price of all retail sales subject to taxation  under
 18    this  chapter and such amount shall be computed monthly on all sales at retail
 19    within the preceding month.
 20        (a)  The tax shall apply to, be computed on, and collected for all credit,
 21    installment, conditional or similar sales at the time of the sale or,  in  the
 22    case of rentals, at the time the rental is charged.
 23        (b)  The  tax  hereby  imposed shall be collected by the retailer from the
 24    consumer.
 25        (c)  The state tax commission shall provide schedules  for  collection  of
 26    the tax on sales which involve a fraction of a dollar. The retailer shall cal-
 27    culate the tax upon the entire amount of the purchases of the consumer made at
 28    a  particular  time  and not separately upon each item purchased. The retailer
 29    may retain any amount collected under the bracket system prescribed  which  is
 30    in  excess of the amount of tax for which he is liable to the state during the
 31    period as compensation for the work of collecting the tax.
 32        (d)  It is unlawful for any retailer to advertise or hold out or state  to
 33    the  public  or  to  any customer, directly or indirectly, that the tax or any
 34    part thereof will be assumed or absorbed by the retailer or that it  will  not
 35    be  added to the selling price of the property sold or that if added it or any
 36    part thereof will be refunded. Any person violating any provision of this sec-
 37    tion is guilty of a misdemeanor.
 38        (e)  The tax commission may by rule provide that the amount  collected  by
 39    the  retailer from the customer in reimbursement of the tax be displayed sepa-
 40    rately from the list price, the price advertised on the premises,  the  marked
 41    price, or other price on the sales slip or other proof of sale.
 42        (f)  The  taxes  imposed  by this chapter shall apply to the sales to con-
 43    tractors purchasing for use in the performance of contracts  with  the  United
 44    States.
                                                                        
 45        SECTION  21.  That Section 63-3621, Idaho Code, be, and the same is hereby
 46    amended to read as follows:
                                                                        
 47        63-3621.  IMPOSITION AND RATE OF THE USE TAX -- EXEMPTIONS. An excise  tax
 48    is  hereby  imposed on the storage, use, or other consumption in this state of
 49    tangible personal property acquired on or after July June 1, 20056, for  stor-
 50    age,  use, or other consumption in this state at the rate of five six and one-
 51    quarter percent (6.25%) of the value of the property, and a recent sales price
                                                                        
                                           24
                                                                        
  1    shall be presumptive evidence of the value of the property unless the property
  2    is wireless telecommunications equipment, in which case a recent  sales  price
  3    shall be conclusive evidence of the value of the property.
  4        (a)  Every  person  storing, using, or otherwise consuming, in this state,
  5    tangible personal property is liable for the tax. His liability is not  extin-
  6    guished until the tax has been paid to this state except that a receipt from a
  7    retailer  maintaining a place of business in this state or engaged in business
  8    in this state given to the purchaser is sufficient to  relieve  the  purchaser
  9    from  further  liability  for  the tax to which the receipt refers. A retailer
 10    shall not be  considered to have stored, used or consumed wireless  telecommu-
 11    nications  equipment  by  virtue  of giving, selling or otherwise transferring
 12    such equipment at a discount as an inducement to a  consumer  to  commence  or
 13    continue a contract for telecommunications service.
 14        (b)  Every retailer engaged in business in this state, and making sales of
 15    tangible  personal property for the storage, use, or other consumption in this
 16    state, not exempted under section 63-3622, Idaho Code, shall, at the  time  of
 17    making the sales or, if storage, use or other consumption of the tangible per-
 18    sonal  property is not then taxable hereunder, at the time the storage, use or
 19    other consumption becomes taxable, collect the tax from the purchaser and give
 20    to the purchaser a receipt therefor in the manner and form prescribed  by  the
 21    state tax commission.
 22        (c)  The provisions of this section shall not apply when the retailer pays
 23    sales  tax  on  the  transaction and collects reimbursement for such sales tax
 24    from the customer.
 25        (d)  Every retailer engaged in business in this  state  or  maintaining  a
 26    place  of  business in this state shall register with the state tax commission
 27    and give the name and address of all agents operating in this state, the loca-
 28    tion of all distributions or sales houses or offices or other places of  busi-
 29    ness in this state, and such other information as the state tax commission may
 30    require.
 31        (e)  For  the purpose of the proper administration of this act and to pre-
 32    vent evasion of the use tax and the duty to collect the use tax, it  shall  be
 33    presumed  that  tangible  personal property sold by any person for delivery in
 34    this state is sold for storage, use, or other consumption in this  state.  The
 35    burden of proving the sale is tax exempt is upon the person who makes the sale
 36    unless  he  obtains from the purchaser a resale certificate to the effect that
 37    the property is purchased for resale or rental.  It  shall  be  presumed  that
 38    sales made to a person who has completed a resale certificate for the seller's
 39    records  are  not  taxable  and the seller need not collect sales or use taxes
 40    unless the tangible personal property purchased is taxable to the purchaser as
 41    a matter of law in the particular instance claimed on the resale certificate.
 42        A seller may accept a resale certificate from a  purchaser  prior  to  the
 43    time  of  sale,  at the time of sale, or at any reasonable time after the sale
 44    when necessary to establish the privilege of the exemption. The resale certif-
 45    icate relieves the person selling the property from the burden of  proof  only
 46    if  taken  from  a person who is engaged in the business of selling or renting
 47    tangible personal property and who holds the permit provided  for  by  section
 48    63-3620,  Idaho  Code,  or  who  is a retailer not engaged in business in this
 49    state, and who, at the time of  purchasing  the  tangible  personal  property,
 50    intends  to  sell or rent it in the regular course of business or is unable to
 51    ascertain at the time of purchase whether the property will be sold or will be
 52    used for some other purpose. Other than as provided elsewhere in this section,
 53    when a resale certificate, properly executed, is presented to the seller,  the
 54    seller  has  no  duty or obligation to collect sales or use taxes in regard to
 55    any sales transaction so documented regardless of whether the purchaser  prop-
                                                                        
                                           25
                                                                        
  1    erly  or  improperly claimed an exemption. A seller so relieved of the obliga-
  2    tion to collect tax is also relieved of any liability  to  the  purchaser  for
  3    failure  to  collect tax or for making any report or disclosure of information
  4    required or permitted under this chapter.
  5        The resale certificate shall bear the name and address of  the  purchaser,
  6    shall  be  signed  by the purchaser or his agent, shall indicate the number of
  7    the permit issued to the purchaser, or that the purchaser is  an  out-of-state
  8    retailer,  and  shall  indicate the general character of the tangible personal
  9    property sold by the purchaser in the regular course of business. The certifi-
 10    cate shall be substantially in such form as the state tax commission may  pre-
 11    scribe.
 12        (f)  If  a  purchaser  who gives a resale certificate makes any storage or
 13    use of the property other than retention, demonstration or display while hold-
 14    ing it for sale in  the regular course of business, the storage or use is tax-
 15    able as of the time the property is first so stored or used.
 16        (g)  Any person violating any provision of this section  is  guilty  of  a
 17    misdemeanor  and  punishable  by  a  fine not in excess of one hundred dollars
 18    ($100), and each violation shall constitute a separate offense.
 19        (h)  It shall be presumed  that  tangible  personal  property  shipped  or
 20    brought  to  this  state  by  the purchaser was purchased from a retailer, for
 21    storage, use or other consumption in this state.
 22        (i)  It shall be presumed that tangible personal property  delivered  out-
 23    side  this state to a purchaser known by the retailer to be a resident of this
 24    state was purchased from a retailer for storage, use, or other consumption  in
 25    this  state.  This presumption may be controverted by evidence satisfactory to
 26    the state tax commission that the property was not purchased for storage, use,
 27    or other consumption in this state.
 28        (j)  When the tangible personal property subject to use tax has been  sub-
 29    jected  to  a  general  retail sales or use tax by another state of the United
 30    States in an amount equal to or greater than the amount of the Idaho tax,  and
 31    evidence  can  be  given  of such payment, the property will not be subject to
 32    Idaho use tax. If the amount paid the other state was less, the property  will
 33    be subject to use tax to the extent that the Idaho tax exceeds the tax paid to
 34    the  other state. For the purposes of this subsection, a registration certifi-
 35    cate or title issued by another state or subdivision thereof for a vehicle  or
 36    trailer or a vessel as defined in section 67-7003, Idaho Code, shall be suffi-
 37    cient evidence of payment of a general retail sales or use tax.
 38        (k)  The  use  tax herein imposed shall not apply to the use by a nonresi-
 39    dent of this state of a motor vehicle which is registered  or  licensed  under
 40    the laws of the state of his residence and is not used in this state more than
 41    a  cumulative  period  of  time  totaling  ninety (90) days in any consecutive
 42    twelve (12) months, and which is not required to  be  registered  or  licensed
 43    under the laws of this state.
 44        (l)  The  use  tax  herein imposed shall not apply to the use of household
 45    goods, personal effects and personally owned motor vehicles by a  resident  of
 46    this  state,  if  such  articles were acquired by such person in another state
 47    while a resident of that state and primarily for use outside this state and if
 48    such use was actual and substantial, but if an article was acquired less  than
 49    three  (3) months prior to the time he entered this state, it will be presumed
 50    that the article was acquired for use in this state and that its  use  outside
 51    this  state  was  not actual and substantial. For purposes of this subsection,
 52    "resident" shall be as defined in section 63-3013 or 63-3013A, Idaho Code.
 53        (m)  The use tax herein imposed shall not apply to  the  storage,  use  or
 54    other  consumption  of tangible personal property which is or will be incorpo-
 55    rated into real property and which has been donated  to  and  has  become  the
                                                                        
                                           26
                                                                        
  1    property of:
  2        (1)  A  nonprofit organization as defined in section 63-3622O, Idaho Code;
  3        or
  4        (2)  The state of Idaho; or
  5        (3)  Any political subdivision of the state.
  6    This exemption applies whether the tangible personal property is  incorporated
  7    in  real property by the donee, a contractor or subcontractor of the donee, or
  8    any other person.
                                                                        
  9        SECTION 22.  That Section 63-3638, Idaho Code, be, and the same is  hereby
 10    amended to read as follows:
                                                                        
 11        63-3638.  SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
 12    ter,  except  as  may  otherwise be required  in sections 63-3203 and 63-3709,
 13    Idaho Code, shall be distributed by the tax commission as follows:
 14        (1)  An amount of money shall be distributed to the state  refund  account
 15    sufficient  to  pay  current  refund claims. All refunds authorized under this
 16    chapter by the commission shall be paid through the state refund account,  and
 17    those moneys are continuously appropriated.
 18        (2)  Five  million dollars ($5,000,000) per year is continuously appropri-
 19    ated and shall be distributed to the permanent building fund, provided by sec-
 20    tion 57-1108, Idaho Code.
 21        (3)  Four million eight hundred thousand dollars ($4,800,000) per year  is
 22    continuously appropriated and shall be distributed to the water pollution con-
 23    trol account established by section 39-3605, Idaho Code.
 24        (4)  An  amount  equal to the sum required to be certified by the chairman
 25    of the Idaho housing and finance association to the state tax commission  pur-
 26    suant  to  section 67-6211, Idaho Code, in each year is continuously appropri-
 27    ated and shall be paid to any capital reserve fund, established by  the  Idaho
 28    housing  and finance association pursuant to section 67-6211, Idaho Code. Such
 29    amounts, if any, as may be appropriated hereunder to the capital reserve  fund
 30    of  the Idaho housing and finance association shall be repaid for distribution
 31    under the provisions of this section, subject to  the  provisions  of  section
 32    67-6215,  Idaho Code, by the Idaho housing and finance association, as soon as
 33    possible, from any moneys available therefor and  in  excess  of  the  amounts
 34    which the association determines will keep it self-supporting.
 35        (5)  An  amount  equal  to  the  sum required by the provisions of section
 36    63-709, Idaho Code, is continuously appropriated and shall be paid as provided
 37    by section 63-709, Idaho Code.
 38        (6)  An amount required by the provisions of chapter 53, title  33,  Idaho
 39    Code.
 40        (7)  An  amount  required by the provisions of chapter 87, title 67, Idaho
 41    Code.
 42        (8)  One dollar ($1.00) on each application for certificate  of  title  or
 43    initial  application  for  registration  of  a motor vehicle, snowmobile, all-
 44    terrain vehicle or other vehicle processed by the county assessor or the Idaho
 45    transportation department excepting those applications in which any  sales  or
 46    use taxes due have been previously collected by a retailer, shall be a fee for
 47    the services of the assessor of the county or the Idaho transportation depart-
 48    ment in collecting such taxes, and shall be paid into the current expense fund
 49    of  the  county  or state highway account established in section 40-702, Idaho
 50    Code.
 51        (9)  Thirteen  Ten  and  three-quarters  ninety-five  hundredths   percent
 52    (13.7510.95%)  is  continuously  appropriated  and shall be distributed to the
 53    revenue sharing account which is created in the state treasury, and the moneys
                                                                        
                                           27
                                                                        
  1    in the revenue sharing account will be  paid  in  installments  each  calendar
  2    quarter by the tax commission as follows:
  3        (a)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
  4        ious cities as follows:
  5             (i)   Fifty percent (50%) of such amount shall be paid to the various
  6             cities,  and  each city shall be entitled to an amount in the propor-
  7             tion that the population of that city bears to the population of  all
  8             cities within the state; and
  9             (ii)  Fifty percent (50%) of such amount shall be paid to the various
 10             cities,  and  each city shall be entitled to an amount in the propor-
 11             tion that the preceding year's market value for  assessment  purposes
 12             for  that city bears to the preceding year's market value for assess-
 13             ment purposes for all cities within the state.
 14        (b)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 15        ious counties as follows:
 16             (i)   One million three hundred twenty thousand dollars  ($1,320,000)
 17             annually  shall be distributed one forty-fourth (1/44) to each of the
 18             various counties; and
 19             (ii)  The balance of such amount shall be paid to the  various  coun-
 20             ties,  and  each county shall be entitled to an amount in the propor-
 21             tion that the population of that county bears to  the  population  of
 22             the state;
 23        (c)  Thirty-five  and  nine-tenths percent (35.9%) of the amount appropri-
 24        ated in this subsection (9) shall be paid to the several counties for dis-
 25        tribution to the cities and counties as follows:
 26             (i)   Each city and county which received a payment under the  provi-
 27             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 28             calendar  year  1999,  shall be entitled to a like amount during suc-
 29             ceeding calendar quarters.
 30             (ii)  If the dollar amount of money available under  this  subsection
 31             (9)(c)  in  any  quarter does not equal the amount paid in the fourth
 32             quarter of calendar year 1999, each city's and county's payment shall
 33             be reduced proportionately.
 34             (iii) If the dollar amount of money available under  this  subsection
 35             (9)(c)  in  any quarter exceeds the amount paid in the fourth quarter
 36             of calendar year 1999, each city and county shall be  entitled  to  a
 37             proportionately increased payment, but such increase shall not exceed
 38             one  hundred  five  percent  (105%)  of the total payment made in the
 39             fourth quarter of calendar year 1999.
 40             (iv)  If the dollar amount of money available under  this  subsection
 41             (9)(c)  in any quarter exceeds one hundred five percent (105%) of the
 42             total payment made in the fourth quarter of calendar year  1999,  any
 43             amount  over  and above such one hundred five percent (105%) shall be
 44             paid fifty percent (50%) to the various cities in the proportion that
 45             the population of the city bears to  the  population  of  all  cities
 46             within  the state, and fifty percent (50%) to the various counties in
 47             the proportion that the population of a county bears to  the  popula-
 48             tion of the state; and
 49        (d)  Seven  and  seven-tenths percent (7.7%) of the amount appropriated in
 50        this subsection (9) shall be paid to the several counties for distribution
 51        to special purpose taxing districts as follows:
 52             (i)   Each such district which received a payment  under  the  provi-
 53             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 54             calendar  year  1999,  shall be entitled to a like amount during suc-
 55             ceeding calendar quarters.
                                                                        
                                           28
                                                                        
  1             (ii)  If the dollar amount of money available under  this  subsection
  2             (9)(d)  in  any  quarter does not equal the amount paid in the fourth
  3             quarter of calendar year 1999, each special purpose taxing district's
  4             payment shall be reduced proportionately.
  5             (iii) If the dollar amount of money available under  this  subsection
  6             (9)(d)  in any quarter exceeds the amount distributed under paragraph
  7             (i) of this subsection (9)(d), each special purpose  taxing  district
  8             shall  be  entitled  to a share of the excess based on the proportion
  9             each such district's current property tax budget bears to the sum  of
 10             the  current property tax budgets of all such districts in the state.
 11             The state tax commission shall calculate  district  current  property
 12             tax budgets to include any unrecovered foregone amounts as determined
 13             under section 63-802(1)(e), Idaho Code. When a special purpose taxing
 14             district  is situated in more than one (1) county, the tax commission
 15             shall determine the portion attributable to the special purpose  tax-
 16             ing district from each county in which it is situated.
 17             (iv)  If  special  purpose  taxing  districts  are  consolidated, the
 18             resulting district is entitled to a base amount equal to the  sum  of
 19             the  base amounts which were received in the last calendar quarter by
 20             each district prior to the consolidation.
 21             (v)   If  a  special  purpose  taxing  district   is   dissolved   or
 22             disincorporated, the state tax commission shall continuously distrib-
 23             ute  to the board of county commissioners an amount equal to the last
 24             quarter's distribution prior to dissolution or disincorporation.  The
 25             board  of  county commissioners shall determine any redistribution of
 26             moneys so received.
 27             (vi)  Taxing districts formed after January 1, 2001, are not entitled
 28             to a payment under the provisions of this subsection (9)(d).
 29             (vii) For purposes of this subsection (9)(d), a special purpose  tax-
 30             ing  district is any taxing district which is not a city, a county or
 31             a school district.
 32        (10) Amounts calculated in accordance with section 2, chapter  356,  Llaws
 33    of 2001, for annual distribution to counties and other taxing districts begin-
 34    ning  in  October  2001  for replacement of property tax on farm machinery and
 35    equipment exempted pursuant to section 63-602EE,  Idaho  Code.  For  nonschool
 36    districts,  the state tax commission shall distribute one-fourth (1/4) of this
 37    amount certified quarterly to each county. For school districts, the state tax
 38    commission shall distribute one-fourth (1/4) of the amount certified quarterly
 39    to each school district. For nonschool districts,  the  county  auditor  shall
 40    distribute  to  each district within thirty (30) calendar days from receipt of
 41    moneys from the tax commission. Moneys received by each  taxing  district  for
 42    replacement  shall  be utilized in the same manner and in the same proportions
 43    as revenues from property taxation. The moneys remitted to  the  county  trea-
 44    surer  for  replacement  of  property exempt from taxation pursuant to section
 45    63-602EE, Idaho Code, may be considered by the counties and other taxing  dis-
 46    tricts  and budgeted at the same time, in the same manner and in the same year
 47    as revenues from taxation on personal property which these moneys replace.  If
 48    taxing  districts  are  consolidated, the resulting district is entitled to an
 49    amount equal to the sum of the amounts which were received in the last  calen-
 50    dar quarter by each district pursuant to this subsection prior to the consoli-
 51    dation.  If  a  taxing district is dissolved or disincorporated, the state tax
 52    commission shall continuously distribute to the board of county  commissioners
 53    an  amount  equal  to  the last quarter's distribution prior to dissolution or
 54    disincorporation. The board of county commissioners shall determine any redis-
 55    tribution of moneys so received.  If a taxing district annexes territory,  the
                                                                        
                                           29
                                                                        
  1    distribution  of  moneys  received  pursuant to this subsection shall be unaf-
  2    fected. Taxing districts formed after January 1, 2001, are not entitled  to  a
  3    payment  under  the  provisions  of  this  subsection.  School districts shall
  4    receive an amount determined by multiplying the sum of the  year  2000  school
  5    district  levy  plus  .001  minus  .004 times the market value on December 31,
  6    2000, in the district of the property exempt from taxation pursuant to section
  7    63-602EE, Idaho Code.  For school districts, beginning January 1,  2002,  only
  8    the  portion  of  property tax replacement received to replace property exempt
  9    from taxation pursuant to section 63-602EE, Idaho Code, based on the tax  year
 10    2000  tax  charges for maintenance and operation as limited by sections 33-802
 11    2. and 33-1002D, Idaho Code, shall not be subtracted from the  maximum  school
 12    district maintenance and operation property taxes permitted in accordance with
 13    section 33-802 2., Idaho Code. For purposes of the limitation provided by sec-
 14    tion  63-802, Idaho Code, moneys received pursuant to this section as property
 15    tax  replacement  for  property  exempt  from  taxation  pursuant  to  section
 16    63-602EE, Idaho Code, shall be treated as property tax revenues.
 17        (11) One and sixteen hundredths percent (1.16%) is continuously  appropri-
 18    ated  and shall be distributed to the public education stabilization fund cre-
 19    ated pursuant to section 33-907, Idaho Code.
 20        (12) Any moneys remaining over and  above  those  necessary  to  meet  and
 21    reserve for payments under other subsections of this section shall be distrib-
 22    uted to the general fund.
                                                                        
 23        SECTION  23.  SEVERABILITY. The provisions of this act are hereby declared
 24    to be severable and if any provision of this act or the  application  of  such
 25    provision  to  any  person or circumstance is declared invalid for any reason,
 26    such declaration shall not affect the validity of the  remaining  portions  of
 27    this act.
                                                                        
 28        SECTION  24.  An  emergency  existing  therefor, which emergency is hereby
 29    declared to exist, Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15,
 30    16, 17, 18, 19 and 23 of this act shall be in full force  and  effect  on  and
 31    after  passage  and approval and retroactively to January 1, 2006. Sections 20
 32    and 21 shall be in full force and effect on and after June 1, 2006. Section 22
 33    shall be in full force and effect on and after July 1, 2006.

Statement of Purpose / Fiscal Impact



                           STATEMENT OF PURPOSE

                                RS 16338C2

     The purpose of this legislation is to provide property tax
relief to all Idaho property owners.  All property owners will
see relief by repealing the school maintenance and operations
(M&0) levy.  The source of such additional general funds would be
provided by an increase in the state sales tax rate from 5% to
6.25%.  This legislation also will provide for greater stability
and predictability in Public Schools budgets, by dedicating a
fraction of sales tax revenues to the Public Education
Stabilization Fund (PESF).
     Homeowners will see additional property tax relief by
increasing the homeowner's exemption from $50,000 to $75,000 and
including the value of land in the calculation.  The $75,000
figure is pegged to an inflationary index for adjustments in
future years.    


                               FISCAL NOTE

     The state would replace approximately $250.7 million, up to
the equalized funding level provided to 110 of the state's 114
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 (plus property tax
replacement funds) and what the state will provide in equalized
funding.  (They currently receive no state equalization funding). 
     The $250.7 million state cost would be covered through the
$262.5 million raised by increasing the sales tax from 5% to
6.25%.  The remaining sales tax funds raised are deposited in the
Public Education Stabilization Fund.  
     The homeowner's exemption changes have no fiscal impact on
any state funds.    


Contact
Name: Rep. Ken Roberts 
Phone: 332-1000
Rep. Jim Clark
Rep. Dennis Lake


STATEMENT OF PURPOSE/FISCAL NOTE                           H 876