2006 Legislation
Print Friendly

SENATE BILL NO. 1404 – School bonds, definitions

SENATE BILL NO. 1404

View Bill Status

View Bill Text

View Amendment

View Statement of Purpose / Fiscal Impact



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

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

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

Bill Status



S1404aa....................................................by STATE AFFAIRS
SCHOOL BONDS - Amends existing law relating to school bonds to provide that
all property exempt from taxation pursuant to Section 63-602G, Idaho Code,
be included within the definition of "market value for assessment
purposes."
                                                                        
02/15    Senate intro - 1st rdg - to printing
02/16    Rpt prt - to Educ
02/28    Rpt out - rec d/p - to 2nd rdg
03/01    2nd rdg - to 3rd rdg
03/06    3rd rdg - PASSED - 24-8-3
      AYES -- Andreason, Broadsword, Bunderson, Burkett, Cameron, Coiner,
      Compton, Corder, Darrington, Gannon, Goedde, Hill, Kelly, Keough,
      Langhorst, Little, Lodge, Marley, McGee, McKenzie, Schroeder,
      Stegner, Werk, Williams
      NAYS -- Brandt, Burtenshaw, Fulcher, Geddes, Jorgenson, Pearce,
      Richardson, Sweet
      Absent and excused -- Davis, Malepeai, Stennett
    Floor Sponsor - Little
    Title apvd - to House
03/07    House intro - 1st rdg - to St Aff
03/28    Rpt out - rec d/p - Held at Desk
04/10    Ref'd to Gen Ord
    Rpt out amen - to 1st rdg as amen
    1st rdg - to 2nd rdg as amen
    Rls susp - PASSED - 53-16-1
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Clark, Collins, Crow, Deal, Denney, Ellsworth, Eskridge,
      Field(18), Field(23), Garrett, Hart, Harwood, Henderson, Lake,
      Loertscher, Mathews, McGeachin, McKague, Moyle, Nielsen, Nonini,
      Raybould, Ring, Roberts, Rydalch, Sali, Sayler, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(24), Stevenson,
      Wills, Wood, Mr. Speaker
      NAYS -- Boe, Edmunson, Henbest, Jaquet, Kemp, LeFavour, Martinez,
      Miller, Mitchell, Pasley-Stuart, Pence, Ringo, Rusche, Smith(30),
      Smylie, Snodgrass
      Absent and excused -- Trail
    Floor Sponsors - Roberts & Bolz
    Title apvd - to Senate
04/11    Senate did not concur in House amens
    Filed in Office of the Secretary of Senate

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1404
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SCHOOL BONDS; AMENDING SECTION 33-1103,  IDAHO  CODE,  TO  PROVIDE
  3        THAT  ALL PROPERTY EXEMPT FROM TAXATION PURSUANT TO SECTION 63-602G, IDAHO
  4        CODE, BE INCLUDED WITHIN THE DEFINITION OF "MARKET  VALUE  FOR  ASSESSMENT
  5        PURPOSES"; AND DECLARING AN EMERGENCY.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION  1.  That  Section 33-1103, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        33-1103.  DEFINITIONS -- BONDS -- LIMITATION ON AMOUNT -- ELECTIONS TO AU-
 10    THORIZE ISSUANCE. For the purposes of this chapter the  following  definitions
 11    shall  have  the  meanings  specified:  "Market value for assessment purposes"
 12    means the amount of the last preceding equalized  assessment  of  all  taxable
 13    property  and  all  property exempt from taxation pursuant to section 63-602G,
 14    Idaho Code, within the school district on the tax rolls completed  and  avail-
 15    able as of the date of approval by the electorate in the school bond election.
 16    "Aggregate  outstanding  indebtedness"  means the total sum of unredeemed out-
 17    standing bonds, minus all moneys in the bond interest and redemption  fund  or
 18    funds  accumulated for the redemption of such outstanding bonds, and minus the
 19    sum of all taxes levied for the redemption of such bonds, with  the  exception
 20    of  that  portion  of  such tax levies required for the payment of interest on
 21    bonds, which taxes remain uncollected. "Issue," "issued," or "issuance"  means
 22    a  formal  delivery  of bonds to any purchaser thereof and payment therefor to
 23    the school district.
 24        The board of trustees of any school district, upon approval of a  majority
 25    thereof,  may submit to the qualified school district electors of the district
 26    the question as to whether the board shall be empowered  to  issue  negotiable
 27    coupon bonds of the district in an amount and for a period of time to be named
 28    in the notice of election.
 29        An  elementary  school district which employs not less than six (6) teach-
 30    ers, or a school district operating an elementary school  or  schools,  and  a
 31    secondary school or schools, or issuing bonds for the acquisition of a second-
 32    ary school or schools, may issue bonds in an amount not to exceed five percent
 33    (5%)  of  the market value for assessment purposes thereof, less the aggregate
 34    outstanding indebtedness; and no other school district shall issue bonds in an
 35    amount to exceed at any time two percent (2%) of the market value for  assess-
 36    ment  purposes thereof less the aggregate outstanding indebtedness. The market
 37    value for assessment purposes, the aggregate outstanding indebtedness and  the
 38    unexhausted  debt-incurring  power of the district shall each be determined as
 39    of the date of approval by the electors in the school bond election.
 40        Notice of the bond election shall be given, the  election  shall  be  con-
 41    ducted  and  the returns thereof canvassed, and the qualifications of electors
 42    voting or offering to vote shall be, as provided in  sections  33-401  through
 43    33-406, Idaho Code.
                                                                        
                                           2
                                                                        
  1        The  question  shall  be  approved only if the percentage of votes cast at
  2    such election were cast in favor thereof is that which now, or  may  hereafter
  3    be,  set  by the constitution of the state of Idaho. Upon such approval of the
  4    issuance of bonds, the same may be issued at any time after the date  of  such
  5    election.
                                                                        
  6        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
  7    declared to exist, this act shall be in full force and effect on and after its
  8    passage and approval.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                                     Moved by    Roberts             
                                                                        
                                                     Seconded by Crow                
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENT TO S.B. NO. 1404
                                                                        
  1                                AMENDMENT TO THE BILL
  2        On page 2 of the printed bill, delete lines 6 through 8 and insert:
                                                                        
  3        "SECTION 2.  That Section 33-802, Idaho Code, be, and the same  is  hereby
  4    amended to read as follows:
                                                                        
  5        33-802.  SCHOOL LEVIES. Any tax levied for school purposes shall be a lien
  6    on  the  property against which the tax is levied. The board of trustees shall
  7    determine the levies upon each dollar of taxable property in the district  for
  8    the ensuing fiscal year as follows:
  9        1.  Bond, Interest and Judgment Obligation Levies. Such levies as shall be
 10    required  to  satisfy  all  maturing bond, bond interest, and judgment obliga-
 11    tions.
 12        2.  Maximum School Maintenance and Operation Levies. Such levies for main-
 13    taining and operating the schools of the  district  and  for  the  payment  of
 14    tuition  and transportation, that do not exceed an amount equal to four-tenths
 15    of one percent (.4%) during tax year 1994, and do not exceed an  amount  equal
 16    to three-tenths fifteen-hundredths of one percent (.315%) during tax year 1995
 17    2006  and  thereafter,  applied  to  the  actual  or adjusted market value for
 18    assessment purposes of the district as such valuation existed on  December  31
 19    of  the previous year, but allowances necessary as a credit for prepaid taxes,
 20    as provided in section 63-1607, Idaho Code, shall not be included in such max-
 21    imum levies. Provided however, that in the event property within a  district's
 22    boundaries is contained in a revenue allocation area established under chapter
 23    29, title 50, Idaho Code, and such revenue allocation area has given notice of
 24    termination  thereunder,  then,  only  for the purpose of determining the levy
 25    described in this subsection, the district may add  the  increment  value,  as
 26    defined in section 50-2903, Idaho Code, to the actual or adjusted market value
 27    for  assessment  purposes of the district as such value existed on December 31
 28    of the previous year. For tax year 2007 and thereafter, the levy rate  limita-
 29    tion of this subsection 2. shall be modified as follows:
 30        (a)  Multiply  the amount of money raised statewide in the prior year pur-
 31        suant to this section by one and three-hundredths (1.03);
 32        (b)  Subtract the value of any increase  in  statewide  market  value  for
 33        assessment  purposes resulting from new construction or change of land use
 34        classification as evidenced by the value shown  on  the  new  construction
 35        roll  compiled pursuant to section 63-301A, Idaho Code, from the actual or
 36        adjusted statewide market value as such valuation existed on  December  31
 37        of the previous year;
 38        (c)  Divide  the  amount in subsection 2.(a) of this section by the amount
 39        in subsection 2.(b) of this section;
 40        (d)  Reduce the rate resulting from the calculation in subsection 2.(c) of
 41        this section by an amount equal to the  moneys  appropriated  pursuant  to
 42        section 33-1002D, Idaho Code.
                                                                        
                                          2
                                                                        
  1        3.  Authorized  School  Maintenance  and Operation Levies. Such levies for
  2    maintaining and operating the schools of the district and for the  payment  of
  3    tuition  and  transportation  that  do  not  exceed one hundred eleven percent
  4    (111%) of the local district's contribution authorized  in  subsection  2.  of
  5    section  33-1002, Idaho Code. Implementation of the provisions of this subsec-
  6    tion shall be authorized only after approval by a majority of  the  district's
  7    electors  voting on the question. Levies otherwise authorized by law shall not
  8    require an election.
  9        4.  Supplemental Maintenance and Operation Levies. No levy  in  excess  of
 10    the  levy  permitted by subsection 2. or 3. of this section shall be made by a
 11    noncharter school district unless such a  supplemental  levy  in  a  specified
 12    amount  and  for  a specified time not to exceed two (2) years be first autho-
 13    rized through an election held pursuant to chapter 4, title  33,  Idaho  Code,
 14    and approved by a majority of the district electors voting in such election. A
 15    levy approved pursuant to this subsection may be reduced by a majority vote of
 16    the board of trustees in the second year.
 17        5.  Charter District Supplemental Maintenance and Operation. Levies pursu-
 18    ant  to  the  respective  charter  of any such charter district shall be first
 19    authorized through an election held pursuant to chapter  4,  title  33,  Idaho
 20    Code, and approved by a majority of the district electors voting in such elec-
 21    tion.
 22        6.  The  Local  District Contribution. The local school district contribu-
 23    tion levy is the amount utilized for calculating local district  participation
 24    in the educational foundation program, which is applied to the adjusted market
 25    value for assessment purposes, as such valuation existed on December 31 of the
 26    previous  year,  together  with  the  increment  value,  as defined in section
 27    50-2903, Idaho Code, if applicable under the circumstance described in subsec-
 28    tion 2. of this section, relating to termination of a revenue allocation area.
 29        7.  The board of trustees of any school district that has,  for  at  least
 30    seven (7) consecutive years, been authorized through an election held pursuant
 31    to  chapter  4,  title 33, Idaho Code, to certify a supplemental levy that has
 32    annually been equal to or greater than twenty percent (20%) of the total  gen-
 33    eral  maintenance and operation fund, may submit the question of an indefinite
 34    term supplemental levy to the electors of the school district.  Such  question
 35    shall clearly state the dollar amount that will be certified annually and that
 36    the  levy  will  be  for  an  indefinite number of years. The question must be
 37    approved by a majority of the district electors voting on the question  in  an
 38    election  held  pursuant to chapter 4, title 33, Idaho Code. The levy approved
 39    pursuant to this subsection may be reduced by a majority vote of the board  of
 40    trustees during any fiscal year.
 41        8.  School districts not receiving state equalization funds in fiscal year
 42    2006  may  authorize a budget stabilization levy for fiscal years 2007 through
 43    2011. Such levies shall not exceed the following amount:
 44        (a)  The amount of money the school district received from its maintenance
 45        and operation levy and state property tax replacments fund in fiscal  year
 46        2006; minus
 47        (b)  The amount of money the school district will receive from its mainte-
 48        nance  and operation levy and state property tax replacement funds in fis-
 49        cal year 2007, and the amount of equalized  state  funds  that  the  state
 50        department of education estimates the school district will receive in fis-
 51        cal year 2007.
                                                                        
 52        SECTION  3.  That  Section 33-1002, Idaho Code, be, and the same is hereby
 53    amended to read as follows:
                                                                        
                                          3
                                                                        
  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, includ-
  4    ing the moneys available in the public school income fund, together  with  all
  5    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  33-1002B,
  9        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 section
 15        33-1403, Idaho Code, as determined by the state superintendent  of  public
 16        instruction;
 17        e.  The  approved costs for exceptional child approved contract allowance,
 18        provided in subsection 2. of section 33-2004, Idaho Code, as determined by
 19        the state superintendent of public instruction;
 20        f.  Certain expectant and delivered mothers allowance as provided in  sec-
 21        tion 33-2006, Idaho Code;
 22        g.  Salary-based  apportionment calculated as provided in sections 33-1004
 23        through 33-1004F, Idaho Code;
 24        h.  Unemployment insurance benefit payments according to the provisions of
 25        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 administrative
 31        adjustments or as specifically required by the provisions of any  bill  of
 32        appropriation;
 33    to secure the state educational support 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, a percentage of the total  state
 39    adjusted  market value for assessment purposes for the previous year with such
 40    percentage being determined pursuant to section 33-802, Idaho Code,  and  with
 41    such  value  being determined by the provisions of section 63-315, Idaho Code,
 42    with such value being multiplied  by  the  percentage  calculated  in  section
 43    33-802 2.(a), (b), (c) and (d), Idaho Code, and four-tenths percent (.4%) dur-
 44    ing  fiscal year 1994-95 and each year thereafter, of the cooperative electri-
 45    cal associations' property values that have been derived from the  taxes  paid
 46    in lieu of ad valorem property taxes for the previous year as provided in sec-
 47    tion  63-3502,  Idaho  Code. In order to receive state funds, pursuant to this
 48    section, a charter district shall utilize a school maintenance  and  operation
 49    property  tax  levy,  for the purposes of calculating the moneys to be raised,
 50    that is no greater than that which it levied in tax year 1994, less  the  dif-
 51    ference between the maximum levy rate permitted by section 33-802, Idaho Code,
 52    and four-tenths of one percent (.4%).
 53        4.  Educational  Support  Program  Distribution  Funds. Add the local dis-
 54    tricts' contribution, subsection 3. of this section, and the state educational
 55    support program funds, subsection 1. of this section, together to  secure  the
                                                                        
                                          4
                                                                        
  1    total educational support program distribution funds.
  2        5.  Average  Daily  Attendance.  The  total state average daily attendance
  3    shall be the sum of the average daily attendance of all  of  the  school  dis-
  4    tricts  of  the state. The state board of education shall establish rules set-
  5    ting forth the procedure to determine average daily attendance  and  the  time
  6    for, and method of, submission of such report. Average daily attendance calcu-
  7    lation  shall  be carried out to the nearest hundredth. Computation of average
  8    daily attendance shall also be governed by the provisions of section 33-1003A,
  9    Idaho Code.
 10        6.  Support Units. The total state support units shall  be  determined  by
 11    using  the tables set out hereafter called computation of kindergarten support
 12    units, computation of elementary support units, computation of secondary  sup-
 13    port  units,  computation of exceptional education support units, and computa-
 14    tion of alternative school secondary support units. The  sum  of  all  of  the
 15    total  support  units  of all school districts of the state shall be the total
 16    state support units.
 17                      COMPUTATION OF KINDERGARTEN SUPPORT UNITS
 18    Average Daily
 19    Attendance            Attendance Divisor         Units Allowed
 20    41 or more     ....   40.......................  1 or more as computed
 21    31 -  40.99 ADA....    -.......................  1
 22    26 -  30.99 ADA....    -.......................   .85
 23    21 -  25.99 ADA....    -.......................   .75
 24    16 -  20.99 ADA....    -.......................   .6
 25     8 -  15.99 ADA....    -.......................   .5
 26     1 -   7.99 ADA....    -.......................  count as elementary
                                                                        
 27                       COMPUTATION OF ELEMENTARY SUPPORT UNITS
 28    Average Daily
 29    Attendance            Attendance Divisor         Minimum Units Allowed
 30    300 or more ADA........................................  15
 31                        ..23...grades 4,5 & 6....
 32                        ..22...grades 1,2 & 3....1994-95
 33                        ..21...grades 1,2 & 3....1995-96
 34                        ..20...grades 1,2 & 3....1996-97
 35                              and each year thereafter.
 36    160   to  299.99 ADA... 20.....................         8.4
 37    110   to  159.99 ADA... 19.....................         6.8
 38     71.1 to  109.99 ADA... 16.....................         4.7
 39     51.7 to   71.0  ADA... 15.....................         4.0
 40     33.6 to   51.6  ADA... 13.....................         2.8
 41     16.6 to   33.5  ADA... 12.....................         1.4
 42      1.0 to   16.5  ADA... n/a....................         1.0
                                                                        
 43                        COMPUTATION OF SECONDARY SUPPORT UNITS
 44    Average Daily
 45    Attendance            Attendance Divisor         Minimum Units Allowed
 46    750 or more      .... 18.5.....................        47
 47    400 -  749.99 ADA.... 16.......................        28
 48    300 -  399.99 ADA.... 14.5.....................        22
 49    200 -  299.99 ADA.... 13.5.....................        17
 50    100 -  199.99 ADA.... 12.......................         9
                                                                        
                                          5
                                                                        
  1     99.99 or fewer       Units allowed as follows:
  2             Grades 7-12  .........................         8
  3             Grades 9-12  .........................         6
  4             Grades 7- 9  .........................         1 per 14 ADA
  5             Grades 7- 8  .........................         1 per 16 ADA
                                                                        
  6                  COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS
  7    Average Daily
  8    Attendance            Attendance Divisor         Minimum Units Allowed
  9    14 or more ....       14.5.....................  1 or more as computed
 10    12 -  13.99....        -.......................  1
 11     8 -  11.99....        -.......................   .75
 12     4 -   7.99....        -.......................   .5
 13     1 -   3.99....        -.......................   .25
                                                                        
 14              COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS
 15    Pupils in Attendance  Attendance Divisor         Minimum Units Allowed
 16    12 or more..........  12......................   1 or more as computed
                                                                        
 17        In applying these tables to any given separate attendance unit, no  school
 18    district  shall  receive  less  total  money than it would receive if it had a
 19    lesser average daily attendance in such separate attendance unit. In  applying
 20    the  kindergarten  table  to  a  kindergarten program of less days than a full
 21    school year, the support unit allowance shall be in ratio  to  the  number  of
 22    days  of a full school year. The tables for exceptional education and alterna-
 23    tive school secondary support units shall  be  applicable  only  for  programs
 24    approved  by  the state department of education following rules established by
 25    the state board of education. Moneys generated  from  computation  of  support
 26    units  for  alternative  schools shall be utilized for alternative school pro-
 27    grams. School district administrative and facility costs may  be  included  as
 28    part of the alternative school expenditures.
 29        7.  State Distribution Factor per Support Unit. Divide educational support
 30    program distribution funds, after subtracting the amounts necessary to pay the
 31    obligations  specified  in  subsection  2. of this section, by the total state
 32    support units to secure the state distribution factor per support unit.
 33        8.  District Share of State Funds for Educational Support Program.  Ascer-
 34    tain  a district's share of state funds for the educational support program as
 35    follows:
 36        a.  District Contribution Calculation. Without including any allowance  as
 37        a  credit  for  prepaid taxes, as provided in section 63-1607, Idaho Code,
 38        the district contribution calculation shall be the rate  determined  under
 39        subsection 3. of this section.
 40        b.  District  Support  Units.  The number of support units for each school
 41        district in the state shall be determined as follows:
 42             (1)  Divide the actual average daily attendance,  excluding  students
 43             approved  for inclusion in the exceptional child educational program,
 44             for the administrative schools and each of the separate  schools  and
 45             attendance  units  by the appropriate divisor from the tables of sup-
 46             port units in this section, then add  the  quotients  to  obtain  the
 47             district's support units allowance for regular students, kindergarten
 48             through  grade  12  including  alternative school secondary students.
 49             Calculations in application of this subsection shall be  carried  out
 50             to the nearest tenth.
 51             (2)  Divide  the  combined  totals of the average daily attendance of
 52             all preschool, handicapped, kindergarten, elementary,  secondary  and
                                                                        
                                          6
                                                                        
  1             juvenile  detention  center  students  approved  for inclusion in the
  2             exceptional child program of the district by the appropriate  divisor
  3             from the table for computation of exceptional education support units
  4             to  obtain  the  number  of  support units allowed for the district's
  5             approved exceptional child program. Calculations for this  subsection
  6             shall be carried out to the nearest tenth when more than one (1) unit
  7             is allowed.
  8             (3)  The  total  number of support units of the district shall be the
  9             sum of the total  support  units  for  regular  students,  subsection
 10             8.b.(1)  of  this  section,  and  the support units allowance for the
 11             approved exceptional child program, subsection 8.b.(2) of  this  sec-
 12             tion.
 13        c.  Total  District Allowance Educational Program. Multiply the district's
 14        total number of support units, carried out to the nearest  tenth,  by  the
 15        state  distribution    factor per support unit and to this product add the
 16        approved amount of programs of the district provided in subsection  2.  of
 17        this  section to secure the district's total allowance for the educational
 18        support program.
 19        d.  District Share. To secure the district's share of state apportionment,
 20        subtract the amount of the local district contribution  calculation,  sub-
 21        section  3.  of this section, from the amount of the total district allow-
 22        ance, subsection 8.c. of this section.
 23        e.  Adjustment of District Share. The contract salary of every noncertifi-
 24        cated teacher shall be subtracted from the district's share as  calculated
 25        from the provisions of subsection 8.d. of this section.
                                                                        
 26        SECTION  4.  That Section 33-1002D, Idaho Code, be, and the same is hereby
 27    amended to read as follows:
                                                                        
 28        33-1002D.  PROPERTY TAX REPLACEMENT RELIEF. The purpose of this section is
 29    to provide ongoing property tax relief. All moneys transferred  to the  public
 30    school income fund, pursuant to section 67-6804, Idaho Code, shall be annually
 31    appropriated by the legislature to the educational support program/division of
 32    operations  as  state discretionary funds. replace a portion of the authorized
 33    school maintenance and operation  property  tax  levy  with  state  sales  tax
 34    receipts.  As  used in this section, the term "property tax computation ratio"
 35    shall mean a ratio determined by dividing the  district's  certified  property
 36    tax  maintenance  and  operation budget by the actual or adjusted market value
 37    for assessment purposes as such values existed on December 31 of the  previous
 38    calendar  year,  together  with  the  increment  value,  as defined in section
 39    50-2903, Idaho Code, if applicable under the circumstance described in section
 40    33-802 2., Idaho Code, relating to termination of a revenue allocation area.
 41        (1)  (a) In the case of a school district that had a property tax computa-
 42        tion ratio of not less than four-tenths of one percent (.4%) in  tax  year
 43        1994,  that school district shall receive from the appropriations made for
 44        that purpose, an amount equal to the greater of the district's  actual  or
 45        adjusted market value for assessment purposes as such valuation existed on
 46        December  31  of  the  previous calendar year, together with the increment
 47        value, as defined in section 50-2903, Idaho Code, if applicable under  the
 48        circumstance  described in section 33-802 2., Idaho Code, relating to ter-
 49        mination of a revenue allocation area, multiplied by one-tenth of one per-
 50        cent (.1%).
 51        (b)  In the case of a school district that had a property tax  computation
 52        ratio  of less than four-tenths of one percent (.4%) in tax year 1994, the
 53        greater of the 1992, 1993 or 1994  property  tax  computation  ratio  less
                                                                        
                                          7
                                                                        
  1        three-tenths  of one percent (.3%) shall be designated the district's base
  2        multiplier. In no case shall the base multiplier be less  than  zero  (0).
  3        Four-tenths  of one percent (.4%) less the greater of the district's 1992,
  4        1993 or 1994 property  tax  computation  ratio  shall  be  designated  the
  5        district's  adjustment  factor.  In no case shall the adjustment factor be
  6        greater than one-tenth of one percent (.1%) or less than  zero  (0).  Each
  7        school district's actual multiplier shall be the base multiplier plus one-
  8        fifth (1/5) of the adjustment factor in tax year 1995, the base multiplier
  9        plus  two-fifths (2/5) of the adjustment factor in tax year 1996, the base
 10        multiplier plus three-fifths (3/5) of the adjustment factor  in  tax  year
 11        1997,  the base multiplier plus four-fifths (4/5) of the adjustment factor
 12        in tax year 1998, and the base multiplier plus the adjustment   factor  in
 13        tax  year  1999  and  beyond. Each school district shall receive, from the
 14        appropriations made for that purpose, an amount equal  to  the  district's
 15        actual  or adjusted market value for assessment purposes as such valuation
 16        existed on December 31 of the previous calendar year,  together  with  the
 17        increment  value, as defined in section 50-2903, Idaho Code, if applicable
 18        under the circumstance described in section 33-802 2., Idaho Code,  relat-
 19        ing  to  termination  of  a  revenue  allocation  area,  multiplied by the
 20        district's actual multiplier.
 21        (c)  The preceding provisions of this subsection  notwithstanding,  appro-
 22        priations  from  the state for the value of one-tenth of one percent (.1%)
 23        of the greater of the district's  actual  or  adjusted  market  value  for
 24        assessment purposes as such valuation existed on December 31 of the previ-
 25        ous  calendar  year, together with the increment value, as defined in sec-
 26        tion 50-2903, Idaho Code, if applicable under the  circumstance  described
 27        in  section  33-802  2.,  Idaho Code, relating to termination of a revenue
 28        allocation  area,  shall   not   exceed   seventy-five   million   dollars
 29        ($75,000,000)  in  any  fiscal  year. If the amount school districts would
 30        otherwise be entitled to receive pursuant to the preceding  provisions  of
 31        this  subsection  exceeds seventy-five million dollars ($75,000,000), then
 32        each school district shall receive its share of seventy-five million  dol-
 33        lars ($75,000,000) based on the formulas contained in this section.
 34        (2)  (a) Participation in this property tax reduction program is voluntary
 35        for a charter district. If a charter district participates, in addition to
 36        the provisions of subsection (1) of this section it shall not have a prop-
 37        erty tax computation ratio that is above three-tenths of one percent (.3%)
 38        or  the  district's  property tax computation ratio in tax year 1994, less
 39        one-tenth of one percent (.1%), whichever is greater.
 40        (b)  If in any year the charter district's property tax computation  ratio
 41        used  to calculate its maintenance and operation budget is increased above
 42        the limit specified in this subsection the district shall not be  eligible
 43        for  the  distribution pursuant to subsection (1) of this section for that
 44        year.
 45        (3)  Limitations imposed upon a school district's property tax computation
 46    ratio under the provisions of this section do not apply to any  levy  approved
 47    by electors of the school district as provided by law.
 48        (4)  Distributions calculated as provided in this section shall be made to
 49    school  districts of this state in two (2) equal installments on the due dates
 50    as specified in section 63-903(1), Idaho Code, for the  property  taxes  being
 51    replaced.
 52        (5)  For  purposes of section 33-1002, Idaho Code, moneys distributed pur-
 53    suant to this section shall not be included in determining total state funds.
                                                                        
 54        SECTION 5.  That Chapter 68, Title 67, Idaho Code, be,  and  the  same  is
                                                                        
                                          8
                                                                        
  1    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
  2    ignated as Section 67-6804, Idaho Code, and to read as follows:
                                                                        
  3        67-6804.  TRANSFER OF EXCESS REVENUES. (1) The legislature finds  that  it
  4    is  in the best interest of the taxpayers of the state of Idaho to establish a
  5    state budget system that captures surplus revenues for the purposes  described
  6    herein.
  7        (2)  If  the  state  controller certifies that the receipts to the general
  8    fund for the fiscal year just ending have exceeded the receipts of the  previ-
  9    ous  fiscal  year  by  more than eight percent (8%), then the state controller
 10    shall transfer all general fund collections in excess of  said  eight  percent
 11    (8%) increase to the public school income fund.
 12        (3)  Once  a  transfer  has been made, pursuant to this section, the state
 13    controller shall transfer the same dollar amount to the public  school  income
 14    fund  in  each  subsequent fiscal year. If the provisions of subsection (2) of
 15    this section cause further transfers to be made, then the annual transfer made
 16    by the state controller shall be increased by a like amount.
 17        (4)  All transfers to the public school income  fund  authorized  by  this
 18    section  shall  be  expended  pursuant  to the provisions of section 33-1002D,
 19    Idaho Code.
                                                                        
 20        SECTION 6.  An emergency existing  therefor,  which  emergency  is  hereby
 21    declared  to exist, Section 2 of this act shall be in full force and effect on
 22    and after passage and approval, and retroactively to January 1, 2006.  Section
 23    1  of  this  act  shall  be  in full force and effect on and after passage and
 24    approval. Sections 3, 4 and 5 of this act shall be in full force and effect on
 25    and after July 1, 2006.".
                                                                        
 26                                 CORRECTION TO TITLE
 27    On page 1, in line 2 delete "RELATING TO SCHOOL BONDS" and  insert:  "RELATING
 28    TO  TAXATION  POLICIES  FOR  FUNDING  PUBLIC  SCHOOLS";  and delete line 5 and
 29    insert: "PURPOSES"; AMENDING SECTION 33-802, IDAHO CODE, TO REDUCE THE MAINTE-
 30    NANCE AND OPERATION LEVY, TO REVISE HOW MAXIMUM SCHOOL MAINTENANCE AND  OPERA-
 31    TION LEVIES ARE CALCULATED FOR TAX YEAR 2007 AND THEREAFTER AND TO PROVIDE FOR
 32    A  BUDGET  STABILIZATION LEVY FOR CERTAIN DISTRICTS; AMENDING SECTION 33-1002,
 33    IDAHO CODE, TO REDUCE THE LOCAL DISTRICTS' CONTRIBUTION, TO PROVIDE FOR CALCU-
 34    LATION OF THE NUMBER, TO  REQUIRE  SCHOOL  DISTRICTS  TO  REDUCE  THEIR  LOCAL
 35    DISTRICT'S CONTRIBUTION TO BE ELIGIBLE FOR EDUCATIONAL SUPPORT PROGRAM DISTRI-
 36    BUTION  FUNDS  AND  TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 33-1002D,
 37    IDAHO CODE, TO PROVIDE ONGOING PROPERTY TAX RELIEF AND TO PROVIDE THAT  MONEYS
 38    IN THE FUND SHALL BE STATE DISCRETIONARY FUNDS; AMENDING CHAPTER 68, TITLE 67,
 39    IDAHO  CODE,  BY THE ADDITION OF A NEW SECTION 67-6804, IDAHO CODE, TO PROVIDE
 40    FOR THE TRANSFER OF EXCESS REVENUES OF THE GENERAL FUND UPON  CERTAIN  CIRCUM-
 41    STANCES  OCCURRING  AND  TO  PROVIDE FOR TRANSFERS TO THE PUBLIC SCHOOL INCOME
 42    FUND; DECLARING AN EMERGENCY, PROVIDING RETROACTIVE APPLICATION AND  PROVIDING
 43    EFFECTIVE DATES.".

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15804

The purpose of this legislation is to amend Section 33-1103, Idaho
Code, to allow school districts to use market value currently
exempt under the homeowners exemption.
The districts most restrained by the existing debt limit are those
districts experiencing rapid growth in suburban areas that have
primarily property value growth in mid-priced homes, rather than
commercial and industrial property.  This change also will avoid a
reduction in dept capacity in the event that the homeowners
exemption is increased by other legislation.
The legislation does not affect election requirements for bonds,
nor does it change the requirement that the district must provide
for repayment of the bonds from a dedicated property tax levy. 
This legislation will not affect whether the bonds can or cannot be
issued without a levy rate increase which in practice is the most
significant limitation on the incurrence of bonded indebtedness.



                             FISCAL NOTE

There is no fiscal impact on the general fund.




Contact
Name: Cliff Green, Idaho School Boards Association 
Phone: 854-1476

Sponsors
Senator Brad Little
Representative Darrell Bolz



STATEMENT OF PURPOSE/FISCAL NOTE                        S 1404