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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
]]]] 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
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