View Bill Status
View Bill Text
View Amendment
View Engrossed Bill (Original Bill with Amendment(s) Incorporated)
View Statement of Purpose / Fiscal Impact
S1501aaH...................................................by STATE AFFAIRS
SCHOOL DISTRICTS - MAINTENANCE AND OPERATION LEVIES - Adds to existing law
to submit an advisory vote to the electors at the 2006 general election
regarding deleting the property tax and replacing it with an increase in
the sales tax; to revise how maximum school maintenance and operation
levies are calculated for tax year 2006 and each year thereafter; to revise
local districts' contribution calculation; to provide a property tax
computation ratio for school districts; and to define a term.
04/05 Senate intro - 1st rdg - to printing
Rpt prt - to Loc Gov
Rpt out - w/o rec - to 2nd rdg
04/06 Rls susp - PASSED - 32-2-1
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Cameron,
Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
Goedde, Hill, Kelly, Keough, Langhorst, Little, Lodge, Malepeai,
Marley, McGee, McKenzie, Pearce, Richardson, Schroeder, Stegner,
Stennett, Sweet, Werk
NAYS -- Burtenshaw, Jorgenson
Absent and excused -- Williams
Floor Sponsor - Little
Title apvd - to House
04/07 House intro - 1st rdg - Held at Desk
04/11 Ref'd to Gen Ord
Rpt out amen - to 1st rdg as amen
1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 54-16-0
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Bolz, Brackett, Bradford,
Chadderdon, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Henderson, Kemp, Lake,
Loertscher, Mathews, McGeachin, McKague, Miller, Moyle, Nielsen,
Nonini, Raybould, Ring, Roberts, Rusche, Rydalch, Sali, Sayler,
Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smylie,
Snodgrass, Stevenson, Wills, Wood, Mr. Speaker
NAYS -- Boe, Cannon, Clark, Hart, Harwood, Henbest, Jaquet, LeFavour,
Martinez, Mitchell, Pasley-Stuart, Pence, Ringo, Smith(30),
Smith(24), Trail
Absent and excused -- None
Floor Sponsor - Roberts
Title apvd - to Senate
04/11 Senate concurred in House amens - to engros
Rpt engros - 1st rdg - to 2nd rdg as amen
Rls susp - FAILED - 5-30-0
AYES -- Brandt, Burtenshaw, Little, Pearce, Williams
NAYS -- Andreason, Broadsword, Bunderson, Burkett, Cameron, Coiner,
Compton, Corder, Darrington, Davis, Fulcher(Fulcher), Gannon, Geddes,
Goedde, Hill(Moeller), Jorgenson, Kelly, Keough, Langhorst, Lodge,
Malepeai, Marley, McGee, McKenzie, Richardson, Schroeder, Stegner,
Stennett, Sweet, Werk
Absent and excused -- None
Floor Sponsor - Little
Filed in Office of the Secretary of Senate
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE SENATE
SENATE BILL NO. 1501
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAX FUNDING MAINTENANCE AND OPERATIONS OF PUBLIC SCHOOLS
3 AND REPLACEMENT FUNDS; STATING LEGISLATIVE FINDINGS, SUBMITTING AN ADVI-
4 SORY VOTE TO THE ELECTORS, DIRECTING THE SECRETARY OF STATE AND ATTORNEY
5 GENERAL TO PERFORM SPECIFIED DUTIES, STATING THE QUESTION TO BE SUBMITTED,
6 DECLARING THE ADVISORY QUESTION A MEASURE, AND MAKING APPLICABLE CERTAIN
7 PROVISIONS GOVERNING ELECTION CAMPAIGN CONTRIBUTIONS AND EXPENDITURES.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. The Legislature finds and declares that the issue of the
10 property tax funding maintenance and operations of public schools is of impor-
11 tance to the citizens of the state of Idaho. As a representative body, members
12 of the Legislature desire to be responsive and responsible to these citizens.
13 For this reason, the Legislature herewith submits an advisory ballot to the
14 electors of the state of Idaho, and the results will guide the Legislature as
15 to whether the three-tenths of one percent property tax contained in Section
16 33-802, Idaho Code, and levied against the market value of taxable property
17 in the school district for maintenance and operation purposes of school dis-
18 tricts be removed and the funds be replaced by a sufficient increase in the
19 state sales tax.
20 At the election to be held on November 7, 2006, the question provided
21 herein shall be placed on the ballot as an advisory vote. The Secretary of
22 State and the Attorney General shall perform the duties as prescribed for an
23 initiative in Chapter 18, Title 34, Idaho Code. The question shall be as fol-
24 lows:
25 "Shall the three-tenths of one percent property tax contained in
26 Section 33-802, Idaho Code, and levied against the market value of
27 taxable property in the school district for maintenance and opera-
28 tion purposes of school districts be removed and the funds be
29 replaced by a sufficient increase in the state sales tax?".
30 The advisory question provided for in this act is hereby declared to be a
31 "measure" for purposes of Chapter 66, Title 67, Idaho Code, and the provisions
32 of Chapter 66, Title 67, Idaho Code, shall apply thereto.
]]]] 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 AMENDMENTS TO S.B. NO. 1501
1 AMENDMENTS TO SECTION 1
2 On page 1 of the printed bill, delete lines 9 and 10 and insert:
3 "SECTION 1. The Legislature finds that the issue of property taxes is of
4 impor-"; delete lines 15 through 19 and insert: "to reducing property taxes
5 and replacing the funds with an increase in the state sales tax."; delete
6 lines 25 through 29 and insert:
7 ""Shall property taxes be reduced and the funds be replaced by
8 an increase in the state sales tax?".".
9 AMENDMENT TO THE BILL
10 On page 1, following line 32 insert:
11 "SECTION 2. That Section 33-802, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 33-802. SCHOOL LEVIES. Any tax levied for school purposes shall be a lien
14 on the property against which the tax is levied. The board of trustees shall
15 determine the levies upon each dollar of taxable property in the district for
16 the ensuing fiscal year as follows:
17 1. Bond, Interest and Judgment Obligation Levies. Such levies as shall be
18 required to satisfy all maturing bond, bond interest, and judgment obliga-
19 tions.
20 2. Maximum School Maintenance and Operation Levies. Such levies for main-
21 taining and operating the schools of the district and for the payment of
22 tuition and transportation, that do not exceed an amount equal to four-tenths
23 of one percent (.4%) during tax year 1994, and do not exceed an amount equal
24 to three-tenths of one percent (.3%) during tax year 1995 and thereafter
25 through tax year 2005, applied to the actual or adjusted market value for
26 assessment purposes of the district as such valuation existed on December 31
27 of the previous year, but allowances necessary as a credit for prepaid taxes,
28 as provided in section 63-1607, Idaho Code, shall not be included in such max-
29 imum levies. Provided however, that in the event property within a district's
30 boundaries is contained in a revenue allocation area established under chapter
31 29, title 50, Idaho Code, and such revenue allocation area has given notice of
32 termination thereunder, then, only for the purpose of determining the levy
33 described in this subsection, the district may add the increment value, as
34 defined in section 50-2903, Idaho Code, to the actual or adjusted market value
35 for assessment purposes of the district as such value existed on December 31
36 of the previous year. For tax year 2006, and each year thereafter, the maximum
37 levy of this subsection 2. shall not exceed an amount equal to the following
38 percentage as applied pursuant to this section:
39 (a) Multiply the amount of money raised statewide in the prior year, pur-
40 suant to this section, by 1.03;
41 (b) Subtract the value of any increase in statewide market value for
2
1 assessment purposes resulting from new construction or change of land use
2 classification as evidenced by the value shown on the prior year's new
3 construction roll compiled pursuant to section 63-301A, Idaho Code, from
4 the actual or adjusted statewide market value as such valuation existed on
5 December 31 of the previous year;
6 (c) Divide the amount in subsection 2.(a) of this section by the amount
7 in subsection 2.(b) of this section.
8 3. Authorized School Maintenance and Operation Levies. Such levies for
9 maintaining and operating the schools of the district and for the payment of
10 tuition and transportation that do not exceed one hundred eleven percent
11 (111%) of the local district's contribution authorized in subsection 2. of
12 section 33-1002, Idaho Code. Implementation of the provisions of this subsec-
13 tion shall be authorized only after approval by a majority of the district's
14 electors voting on the question. Levies otherwise authorized by law shall not
15 require an election.
16 4. Supplemental Maintenance and Operation Levies. No levy in excess of
17 the levy permitted by subsection 2. or 3. of this section shall be made by a
18 noncharter school district unless such a supplemental levy in a specified
19 amount and for a specified time not to exceed two (2) years be first autho-
20 rized through an election held pursuant to chapter 4, title 33, Idaho Code,
21 and approved by a majority of the district electors voting in such election. A
22 levy approved pursuant to this subsection may be reduced by a majority vote of
23 the board of trustees in the second year.
24 5. Charter District Supplemental Maintenance and Operation. Levies pursu-
25 ant to the respective charter of any such charter district shall be first
26 authorized through an election held pursuant to chapter 4, title 33, Idaho
27 Code, and approved by a majority of the district electors voting in such elec-
28 tion.
29 6. The Local District Contribution. The local school district contribu-
30 tion levy is the amount utilized for calculating local district participation
31 in the educational foundation program, which is applied to the adjusted market
32 value for assessment purposes, as such valuation existed on December 31 of the
33 previous year, together with the increment value, as defined in section
34 50-2903, Idaho Code, if applicable under the circumstance described in subsec-
35 tion 2. of this section, relating to termination of a revenue allocation area.
36 7. The board of trustees of any school district that has, for at least
37 seven (7) consecutive years, been authorized through an election held pursuant
38 to chapter 4, title 33, Idaho Code, to certify a supplemental levy that has
39 annually been equal to or greater than twenty percent (20%) of the total gen-
40 eral maintenance and operation fund, may submit the question of an indefinite
41 term supplemental levy to the electors of the school district. Such question
42 shall clearly state the dollar amount that will be certified annually and that
43 the levy will be for an indefinite number of years. The question must be
44 approved by a majority of the district electors voting on the question in an
45 election held pursuant to chapter 4, title 33, Idaho Code. The levy approved
46 pursuant to this subsection may be reduced by a majority vote of the board of
47 trustees during any fiscal year.
48 SECTION 3. That Section 33-1002, Idaho Code, be, and the same is hereby
49 amended to read as follows:
50 33-1002. EDUCATIONAL SUPPORT PROGRAM. The educational support program is
51 calculated as follows:
52 1. State Educational Support Funds. Add the state appropriation, includ-
53 ing the moneys available in the public school income fund, together with all
3
1 miscellaneous revenues to determine the total state funds.
2 2. From the total state funds subtract the following amounts needed for
3 state support of special programs provided by a school district:
4 a. Pupil tuition-equivalency allowances as provided in section 33-1002B,
5 Idaho Code;
6 b. Transportation support program as provided in section 33-1006, Idaho
7 Code;
8 c. Feasibility studies allowance as provided in section 33-1007A, Idaho
9 Code;
10 d. The approved costs for border district allowance, provided in section
11 33-1403, Idaho Code, as determined by the state superintendent of public
12 instruction;
13 e. The approved costs for exceptional child approved contract allowance,
14 provided in subsection 2. of section 33-2004, Idaho Code, as determined by
15 the state superintendent of public instruction;
16 f. Certain expectant and delivered mothers allowance as provided in sec-
17 tion 33-2006, Idaho Code;
18 g. Salary-based apportionment calculated as provided in sections 33-1004
19 through 33-1004F, Idaho Code;
20 h. Unemployment insurance benefit payments according to the provisions of
21 section 72-1349A, Idaho Code;
22 i. For expenditure as provided by the public school technology program;
23 j. For the support of provisions that provide a safe environment condu-
24 cive to student learning and maintain classroom discipline, an allocation
25 of $300 per support unit; and
26 k. Any additional amounts as required by statute to effect administrative
27 adjustments or as specifically required by the provisions of any bill of
28 appropriation;
29 to secure the state educational support funds.
30 3. Local Districts' Contribution Calculation. Without including any
31 allowance as a credit for prepaid taxes as provided by section 63-1607, Idaho
32 Code, the local districts' contribution shall be the amount appropriated pur-
33 suant to section 33-1002D, Idaho Code, plus three-tenths percent (.3%) during
34 fiscal year 2003-04 and each year thereafter, a percentage of the total state
35 adjusted market value for assessment purposes for the previous year, with such
36 percentage being determined pursuant to section 33-802, Idaho Code, and with
37 such value being determined by the provisions of section 63-315, Idaho Code,
38 and four-tenths percent (.4%) during fiscal year 1994-95 and each year there-
39 after, of the cooperative electrical associations' property values that have
40 been derived from the taxes paid in lieu of ad valorem taxes for the previous
41 year as provided in section 63-3502, Idaho Code.
42 4. Educational Support Program Distribution Funds. Add the local dis-
43 tricts' contribution, subsection 3. of this section, and the state educational
44 support program funds, subsection 1. of this section, together to secure the
45 total educational support program distribution funds.
46 5. Average Daily Attendance. The total state average daily attendance
47 shall be the sum of the average daily attendance of all of the school dis-
48 tricts of the state. The state board of education shall establish rules set-
49 ting forth the procedure to determine average daily attendance and the time
50 for, and method of, submission of such report. Average daily attendance calcu-
51 lation shall be carried out to the nearest hundredth. Computation of average
52 daily attendance shall also be governed by the provisions of section 33-1003A,
53 Idaho Code.
54 6. Support Units. The total state support units shall be determined by
55 using the tables set out hereafter called computation of kindergarten support
4
1 units, computation of elementary support units, computation of secondary sup-
2 port units, computation of exceptional education support units, and computa-
3 tion of alternative school secondary support units. The sum of all of the
4 total support units of all school districts of the state shall be the total
5 state support units.
6 COMPUTATION OF KINDERGARTEN SUPPORT UNITS
7 Average Daily
8 Attendance Attendance Divisor Units Allowed
9 41 or more .... 40....................... 1 or more as computed
10 31 - 40.99 ADA.... -....................... 1
11 26 - 30.99 ADA.... -....................... .85
12 21 - 25.99 ADA.... -....................... .75
13 16 - 20.99 ADA.... -....................... .6
14 8 - 15.99 ADA.... -....................... .5
15 1 - 7.99 ADA.... -....................... count as elementary
16 COMPUTATION OF ELEMENTARY SUPPORT UNITS
17 Average Daily
18 Attendance Attendance Divisor Minimum Units Allowed
19 300 or more ADA........................................ 15
20 ..23...grades 4,5 & 6....
21 ..22...grades 1,2 & 3....1994-95
22 ..21...grades 1,2 & 3....1995-96
23 ..20...grades 1,2 & 3....1996-97
24 and each year thereafter.
25 160 to 299.99 ADA... 20..................... 8.4
26 110 to 159.99 ADA... 19..................... 6.8
27 71.1 to 109.99 ADA... 16..................... 4.7
28 51.7 to 71.0 ADA... 15..................... 4.0
29 33.6 to 51.6 ADA... 13..................... 2.8
30 16.6 to 33.5 ADA... 12..................... 1.4
31 1.0 to 16.5 ADA... n/a.................... 1.0
32 COMPUTATION OF SECONDARY SUPPORT UNITS
33 Average Daily
34 Attendance Attendance Divisor Minimum Units Allowed
35 750 or more .... 18.5..................... 47
36 400 - 749.99 ADA.... 16....................... 28
37 300 - 399.99 ADA.... 14.5..................... 22
38 200 - 299.99 ADA.... 13.5..................... 17
39 100 - 199.99 ADA.... 12....................... 9
40 99.99 or fewer Units allowed as follows:
41 Grades 7-12 ......................... 8
42 Grades 9-12 ......................... 6
43 Grades 7- 9 ......................... 1 per 14 ADA
44 Grades 7- 8 ......................... 1 per 16 ADA
45 COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS
46 Average Daily
47 Attendance Attendance Divisor Minimum Units Allowed
48 14 or more .... 14.5..................... 1 or more as computed
49 12 - 13.99.... -....................... 1
50 8 - 11.99.... -....................... .75
51 4 - 7.99.... -....................... .5
52 1 - 3.99.... -....................... .25
5
1 COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS
2 Pupils in Attendance Attendance Divisor Minimum Units Allowed
3 12 or more.......... 12...................... 1 or more as computed
4 In applying these tables to any given separate attendance unit, no school
5 district shall receive less total money than it would receive if it had a
6 lesser average daily attendance in such separate attendance unit. In applying
7 the kindergarten table to a kindergarten program of less days than a full
8 school year, the support unit allowance shall be in ratio to the number of
9 days of a full school year. The tables for exceptional education and alterna-
10 tive school secondary support units shall be applicable only for programs
11 approved by the state department of education following rules established by
12 the state board of education. Moneys generated from computation of support
13 units for alternative schools shall be utilized for alternative school pro-
14 grams. School district administrative and facility costs may be included as
15 part of the alternative school expenditures.
16 7. State Distribution Factor per Support Unit. Divide educational support
17 program distribution funds, after subtracting the amounts necessary to pay the
18 obligations specified in subsection 2. of this section, by the total state
19 support units to secure the state distribution factor per support unit.
20 8. District Share of State Funds for Educational Support Program. Ascer-
21 tain a district's share of state funds for the educational support program as
22 follows:
23 a. District Contribution Calculation. Without including any allowance as
24 a credit for prepaid taxes, as provided in section 63-1607, Idaho Code,
25 the district contribution calculation shall be the rate determined under
26 subsection 3. of this section.
27 b. District Support Units. The number of support units for each school
28 district in the state shall be determined as follows:
29 (1) Divide the actual average daily attendance, excluding students
30 approved for inclusion in the exceptional child educational program,
31 for the administrative schools and each of the separate schools and
32 attendance units by the appropriate divisor from the tables of sup-
33 port units in this section, then add the quotients to obtain the
34 district's support units allowance for regular students, kindergarten
35 through grade 12 including alternative school secondary students.
36 Calculations in application of this subsection shall be carried out
37 to the nearest tenth.
38 (2) Divide the combined totals of the average daily attendance of
39 all preschool, handicapped, kindergarten, elementary, secondary and
40 juvenile detention center students approved for inclusion in the
41 exceptional child program of the district by the appropriate divisor
42 from the table for computation of exceptional education support units
43 to obtain the number of support units allowed for the district's
44 approved exceptional child program. Calculations for this subsection
45 shall be carried out to the nearest tenth when more than one (1) unit
46 is allowed.
47 (3) The total number of support units of the district shall be the
48 sum of the total support units for regular students, subsection
49 8.b.(1) of this section, and the support units allowance for the
50 approved exceptional child program, subsection 8.b.(2) of this sec-
51 tion.
52 c. Total District Allowance Educational Program. Multiply the district's
53 total number of support units, carried out to the nearest tenth, by the
54 state distribution factor per support unit and to this product add the
6
1 approved amount of programs of the district provided in subsection 2. of
2 this section to secure the district's total allowance for the educational
3 support program.
4 d. District Share. To secure the district's share of state apportionment,
5 subtract the amount of the local district contribution calculation, sub-
6 section 3. of this section, from the amount of the total district allow-
7 ance, subsection 8.c. of this section.
8 e. Adjustment of District Share. The contract salary of every noncertifi-
9 cated teacher shall be subtracted from the district's share as calculated
10 from the provisions of subsection 8.d. of this section.
11 9. Property Tax Computation Ratio. In order to receive state funds pursu-
12 ant to this section a charter district shall utilize a school maintenance and
13 operation property tax computation ratio for the purpose of calculating its
14 maintenance and operation levy, that is no greater than that which it uti-
15 lized in tax year 1994, less the difference between the maximum levy rate per-
16 mitted by section 33-802 2., Idaho Code, and four-tenths of one percent (.4%).
17 As used herein, the term "property tax computation ratio" shall mean a ratio
18 determined by dividing the district's certified property tax maintenance and
19 operation budget by the actual or adjusted market value for assessment pur-
20 poses as such values existed on December 31, 1993. Such maintenance and opera-
21 tion levy shall be based on the property tax computation ratio multiplied by
22 the actual or adjusted market value for assessment purposes as such values
23 existed on December 31 of the prior calendar year.
24 SECTION 4. SEVERABILITY. The provisions of this act are hereby declared
25 to be severable and if any provision of this act or the application of such
26 provision to any person or circumstance is declared invalid for any reason,
27 such declaration shall not affect the validity of the remaining portions of
28 this act.
29 SECTION 5. An emergency existing therefor, which emergency is hereby
30 declared to exist, this act shall be in full force and effect on and after its
31 passage and approval, and retroactively to January 1, 2006.".
32 CORRECTION TO TITLE
33 On page 1, delete lines 2 and 3 and insert:
34 "RELATING TO PROPERTY TAXES; STATING LEGISLATIVE FINDINGS, SUBMITTING AN
35 ADVI-"; and in line 7, following "EXPENDITURES" insert: "; AMENDING SEC-
36 TION 33-802, IDAHO CODE, TO REVISE HOW MAXIMUM SCHOOL MAINTENANCE AND
37 OPERATION LEVIES ARE CALCULATED FOR TAX YEAR 2006, AND EACH YEAR THEREAF-
38 TER; AMENDING SECTION 33-1002, IDAHO CODE, TO REVISE THE LOCAL DISTRICTS'
39 CONTRIBUTION CALCULATION, TO PROVIDE A PROPERTY TAX COMPUTATION RATIO FOR
40 CHARTER SCHOOL DISTRICTS THAT MUST BE UTILIZED FOR THE CHARTER DISTRICT TO
41 BE ELIGIBLE TO RECEIVE STATE FUNDS AND TO DEFINE "PROPERTY TAX COMPUTATION
42 RATIO"; PROVIDING SEVERABILITY; DECLARING AN EMERGENCY AND PROVIDING RET-
43 ROACTIVE APPLICATION".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE SENATE
SENATE BILL NO. 1501, As Amended in the House
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAXES; STATING LEGISLATIVE FINDINGS, SUBMITTING AN ADVI-
3 SORY VOTE TO THE ELECTORS, DIRECTING THE SECRETARY OF STATE AND ATTORNEY
4 GENERAL TO PERFORM SPECIFIED DUTIES, STATING THE QUESTION TO BE SUBMITTED,
5 DECLARING THE ADVISORY QUESTION A MEASURE, AND MAKING APPLICABLE CERTAIN
6 PROVISIONS GOVERNING ELECTION CAMPAIGN CONTRIBUTIONS AND EXPENDITURES;
7 AMENDING SECTION 33-802, IDAHO CODE, TO REVISE HOW MAXIMUM SCHOOL MAINTE-
8 NANCE AND OPERATION LEVIES ARE CALCULATED FOR TAX YEAR 2006, AND EACH YEAR
9 THEREAFTER; AMENDING SECTION 33-1002, IDAHO CODE, TO REVISE THE LOCAL DIS-
10 TRICTS' CONTRIBUTION CALCULATION, TO PROVIDE A PROPERTY TAX COMPUTATION
11 RATIO FOR CHARTER SCHOOL DISTRICTS THAT MUST BE UTILIZED FOR THE CHARTER
12 DISTRICT TO BE ELIGIBLE TO RECEIVE STATE FUNDS AND TO DEFINE "PROPERTY TAX
13 COMPUTATION RATIO"; PROVIDING SEVERABILITY; DECLARING AN EMERGENCY AND
14 PROVIDING RETROACTIVE APPLICATION.
15 Be It Enacted by the Legislature of the State of Idaho:
16 SECTION 1. The Legislature finds that the issue of property taxes is of
17 importance to the citizens of the state of Idaho. As a representative body,
18 members of the Legislature desire to be responsive and responsible to these
19 citizens. For this reason, the Legislature herewith submits an advisory ballot
20 to the electors of the state of Idaho, and the results will guide the Legisla-
21 ture as to reducing property taxes and replacing the funds with an increase in
22 the state sales tax.
23 At the election to be held on November 7, 2006, the question provided
24 herein shall be placed on the ballot as an advisory vote. The Secretary of
25 State and the Attorney General shall perform the duties as prescribed for an
26 initiative in Chapter 18, Title 34, Idaho Code. The question shall be as fol-
27 lows:
28 "Shall property taxes be reduced and the funds be replaced by an
29 increase in the state sales tax?".
30 The advisory question provided for in this act is hereby declared to
31 be a "measure" for purposes of Chapter 66, Title 67, Idaho Code, and the
32 provisions of Chapter 66, Title 67, Idaho Code, shall apply thereto.
33 SECTION 2. That Section 33-802, Idaho Code, be, and the same is
34 hereby amended to read as follows:
35 33-802. SCHOOL LEVIES. Any tax levied for school purposes shall be a
36 lien on the property against which the tax is levied. The board of
37 trustees shall determine the levies upon each dollar of taxable property
38 in the district for the ensuing fiscal year as follows:
39 1. Bond, Interest and Judgment Obligation Levies. Such levies as
40 shall be required to satisfy all maturing bond, bond interest, and judg-
41 ment obligations.
42 2. Maximum School Maintenance and Operation Levies. Such levies for
2
1 maintaining and operating the schools of the district and for the payment
2 of tuition and transportation, that do not exceed an amount equal to
3 four-tenths of one percent (.4%) during tax year 1994, and do not exceed
4 an amount equal to three-tenths of one percent (.3%) during tax year 1995
5 and thereafter through tax year 2005, applied to the actual or adjusted
6 market value for assessment purposes of the district as such valuation
7 existed on December 31 of the previous year, but allowances necessary as
8 a credit for prepaid taxes, as provided in section 63-1607, Idaho Code,
9 shall not be included in such maximum levies. Provided however, that in
10 the event property within a district's boundaries is contained in a reve-
11 nue allocation area established under chapter 29, title 50, Idaho Code,
12 and such revenue allocation area has given notice of termination thereun-
13 der, then, only for the purpose of determining the levy described in this
14 subsection, the district may add the increment value, as defined in sec-
15 tion 50-2903, Idaho Code, to the actual or adjusted market value for
16 assessment purposes of the district as such value existed on December 31
17 of the previous year. For tax year 2006, and each year thereafter, the
18 maximum levy of this subsection 2. shall not exceed an amount equal to
19 the following percentage as applied pursuant to this section:
20 (a) Multiply the amount of money raised statewide in the prior year,
21 pursuant to this section, by 1.03;
22 (b) Subtract the value of any increase in statewide market value for
23 assessment purposes resulting from new construction or change of land
24 use classification as evidenced by the value shown on the prior
25 year's new construction roll compiled pursuant to section 63-301A,
26 Idaho Code, from the actual or adjusted statewide market value as
27 such valuation existed on December 31 of the previous year;
28 (c) Divide the amount in subsection 2.(a) of this section by the
29 amount in subsection 2.(b) of this section.
30 3. Authorized School Maintenance and Operation Levies. Such levies
31 for maintaining and operating the schools of the district and for the
32 payment of tuition and transportation that do not exceed one hundred
33 eleven percent (111%) of the local district's contribution authorized in
34 subsection 2. of section 33-1002, Idaho Code. Implementation of the pro-
35 visions of this subsection shall be authorized only after approval by a
36 majority of the district's electors voting on the question. Levies other-
37 wise authorized by law shall not require an election.
38 4. Supplemental Maintenance and Operation Levies. No levy in excess
39 of the levy permitted by subsection 2. or 3. of this section shall be
40 made by a noncharter school district unless such a supplemental levy in a
41 specified amount and for a specified time not to exceed two (2) years be
42 first authorized through an election held pursuant to chapter 4, title
43 33, Idaho Code, and approved by a majority of the district electors vot-
44 ing in such election. A levy approved pursuant to this subsection may be
45 reduced by a majority vote of the board of trustees in the second year.
46 5. Charter District Supplemental Maintenance and Operation. Levies
47 pursuant to the respective charter of any such charter district shall be
48 first authorized through an election held pursuant to chapter 4, title
49 33, Idaho Code, and approved by a majority of the district electors vot-
50 ing in such election.
51 6. The Local District Contribution. The local school district con-
52 tribution levy is the amount utilized for calculating local district par-
53 ticipation in the educational foundation program, which is applied to the
54 adjusted market value for assessment purposes, as such valuation existed
55 on December 31 of the previous year, together with the increment value,
3
1 as defined in section 50-2903, Idaho Code, if applicable under the cir-
2 cumstance described in subsection 2. of this section, relating to termi-
3 nation of a revenue allocation area.
4 7. The board of trustees of any school district that has, for at
5 least seven (7) consecutive years, been authorized through an election
6 held pursuant to chapter 4, title 33, Idaho Code, to certify a supplemen-
7 tal levy that has annually been equal to or greater than twenty percent
8 (20%) of the total general maintenance and operation fund, may submit the
9 question of an indefinite term supplemental levy to the electors of the
10 school district. Such question shall clearly state the dollar amount that
11 will be certified annually and that the levy will be for an indefinite
12 number of years. The question must be approved by a majority of the dis-
13 trict electors voting on the question in an election held pursuant to
14 chapter 4, title 33, Idaho Code. The levy approved pursuant to this sub-
15 section may be reduced by a majority vote of the board of trustees during
16 any fiscal year.
17 SECTION 3. That Section 33-1002, Idaho Code, be, and the same is
18 hereby amended to read as follows:
19 33-1002. EDUCATIONAL SUPPORT PROGRAM. The educational support pro-
20 gram is calculated as follows:
21 1. State Educational Support Funds. Add the state appropriation,
22 including the moneys available in the public school income fund, together
23 with all miscellaneous revenues to determine the total state funds.
24 2. From the total state funds subtract the following amounts needed
25 for state support of special programs provided by a school district:
26 a. Pupil tuition-equivalency allowances as provided in section
27 33-1002B, Idaho Code;
28 b. Transportation support program as provided in section 33-1006,
29 Idaho Code;
30 c. Feasibility studies allowance as provided in section 33-1007A,
31 Idaho Code;
32 d. The approved costs for border district allowance, provided in
33 section 33-1403, Idaho Code, as determined by the state superintend-
34 ent of public instruction;
35 e. The approved costs for exceptional child approved contract allow-
36 ance, provided in subsection 2. of section 33-2004, Idaho Code, as
37 determined by the state superintendent of public instruction;
38 f. Certain expectant and delivered mothers allowance as provided in
39 section 33-2006, Idaho Code;
40 g. Salary-based apportionment calculated as provided in sections
41 33-1004 through 33-1004F, Idaho Code;
42 h. Unemployment insurance benefit payments according to the provi-
43 sions of section 72-1349A, Idaho Code;
44 i. For expenditure as provided by the public school technology pro-
45 gram;
46 j. For the support of provisions that provide a safe environment
47 conducive to student learning and maintain classroom discipline, an
48 allocation of $300 per support unit; and
49 k. Any additional amounts as required by statute to effect adminis-
50 trative adjustments or as specifically required by the provisions of
51 any bill of appropriation;
52 to secure the state educational support funds.
53 3. Local Districts' Contribution Calculation. Without including any
4
1 allowance as a credit for prepaid taxes as provided by section 63-1607,
2 Idaho Code, the local districts' contribution shall be the amount appro-
3 priated pursuant to section 33-1002D, Idaho Code, plus three-tenths per-
4 cent (.3%) during fiscal year 2003-04 and each year thereafter, a per-
5 centage of the total state adjusted market value for assessment purposes
6 for the previous year, with such percentage being determined pursuant to
7 section 33-802, Idaho Code, and with such value being determined by the
8 provisions of section 63-315, Idaho Code, and four-tenths percent (.4%)
9 during fiscal year 1994-95 and each year thereafter, of the cooperative
10 electrical associations' property values that have been derived from the
11 taxes paid in lieu of ad valorem taxes for the previous year as provided
12 in section 63-3502, Idaho Code.
13 4. Educational Support Program Distribution Funds. Add the local
14 districts' contribution, subsection 3. of this section, and the state
15 educational support program funds, subsection 1. of this section,
16 together to secure the total educational support program distribution
17 funds.
18 5. Average Daily Attendance. The total state average daily atten-
19 dance shall be the sum of the average daily attendance of all of the
20 school districts of the state. The state board of education shall estab-
21 lish rules setting forth the procedure to determine average daily atten-
22 dance and the time for, and method of, submission of such report. Average
23 daily attendance calculation shall be carried out to the nearest
24 hundredth. Computation of average daily attendance shall also be governed
25 by the provisions of section 33-1003A, Idaho Code.
26 6. Support Units. The total state support units shall be determined
27 by using the tables set out hereafter called computation of kindergarten
28 support units, computation of elementary support units, computation of
29 secondary support units, computation of exceptional education support
30 units, and computation of alternative school secondary support units. The
31 sum of all of the total support units of all school districts of the
32 state shall be the total state support units.
33 COMPUTATION OF KINDERGARTEN SUPPORT UNITS
34 Average Daily
35 Attendance Attendance Divisor Units Allowed
36 41 or more .... 40....................... 1 or more as computed
37 31 - 40.99 ADA.... -....................... 1
38 26 - 30.99 ADA.... -....................... .85
39 21 - 25.99 ADA.... -....................... .75
40 16 - 20.99 ADA.... -....................... .6
41 8 - 15.99 ADA.... -....................... .5
42 1 - 7.99 ADA.... -....................... count as elementary
43 COMPUTATION OF ELEMENTARY SUPPORT UNITS
44 Average Daily
45 Attendance Attendance Divisor Minimum Units Allowed
46 300 or more ADA........................................ 15
47 ..23...grades 4,5 & 6....
48 ..22...grades 1,2 & 3....1994-95
49 ..21...grades 1,2 & 3....1995-96
50 ..20...grades 1,2 & 3....1996-97
51 and each year thereafter.
52 160 to 299.99 ADA... 20..................... 8.4
53 110 to 159.99 ADA... 19..................... 6.8
54 71.1 to 109.99 ADA... 16..................... 4.7
5
1 51.7 to 71.0 ADA... 15..................... 4.0
2 33.6 to 51.6 ADA... 13..................... 2.8
3 16.6 to 33.5 ADA... 12..................... 1.4
4 1.0 to 16.5 ADA... n/a.................... 1.0
5 COMPUTATION OF SECONDARY SUPPORT UNITS
6 Average Daily
7 Attendance Attendance Divisor Minimum Units Allowed
8 750 or more .... 18.5..................... 47
9 400 - 749.99 ADA.... 16....................... 28
10 300 - 399.99 ADA.... 14.5..................... 22
11 200 - 299.99 ADA.... 13.5..................... 17
12 100 - 199.99 ADA.... 12....................... 9
13 99.99 or fewer Units allowed as follows:
14 Grades 7-12 ......................... 8
15 Grades 9-12 ......................... 6
16 Grades 7- 9 ......................... 1 per 14 ADA
17 Grades 7- 8 ......................... 1 per 16 ADA
18 COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS
19 Average Daily
20 Attendance Attendance Divisor Minimum Units Allowed
21 14 or more .... 14.5..................... 1 or more as computed
22 12 - 13.99.... -....................... 1
23 8 - 11.99.... -....................... .75
24 4 - 7.99.... -....................... .5
25 1 - 3.99.... -....................... .25
26 COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS
27 Pupils in Attendance Attendance Divisor Minimum Units Allowed
28 12 or more.......... 12...................... 1 or more as computed
29 In applying these tables to any given separate attendance unit, no
30 school district shall receive less total money than it would receive if
31 it had a lesser average daily attendance in such separate attendance
32 unit. In applying the kindergarten table to a kindergarten program of
33 less days than a full school year, the support unit allowance shall be in
34 ratio to the number of days of a full school year. The tables for excep-
35 tional education and alternative school secondary support units shall be
36 applicable only for programs approved by the state department of educa-
37 tion following rules established by the state board of education. Moneys
38 generated from computation of support units for alternative schools shall
39 be utilized for alternative school programs. School district administra-
40 tive and facility costs may be included as part of the alternative school
41 expenditures.
42 7. State Distribution Factor per Support Unit. Divide educational
43 support program distribution funds, after subtracting the amounts neces-
44 sary to pay the obligations specified in subsection 2. of this section,
45 by the total state support units to secure the state distribution factor
46 per support unit.
47 8. District Share of State Funds for Educational Support Program.
48 Ascertain a district's share of state funds for the educational support
49 program as follows:
50 a. District Contribution Calculation. Without including any allow-
51 ance as a credit for prepaid taxes, as provided in section 63-1607,
6
1 Idaho Code, the district contribution calculation shall be the rate
2 determined under subsection 3. of this section.
3 b. District Support Units. The number of support units for each
4 school district in the state shall be determined as follows:
5 (1) Divide the actual average daily attendance, excluding stu-
6 dents approved for inclusion in the exceptional child educa-
7 tional program, for the administrative schools and each of the
8 separate schools and attendance units by the appropriate divisor
9 from the tables of support units in this section, then add the
10 quotients to obtain the district's support units allowance for
11 regular students, kindergarten through grade 12 including alter-
12 native school secondary students. Calculations in application of
13 this subsection shall be carried out to the nearest tenth.
14 (2) Divide the combined totals of the average daily attendance
15 of all preschool, handicapped, kindergarten, elementary, second-
16 ary and juvenile detention center students approved for inclu-
17 sion in the exceptional child program of the district by the
18 appropriate divisor from the table for computation of excep-
19 tional education support units to obtain the number of support
20 units allowed for the district's approved exceptional child pro-
21 gram. Calculations for this subsection shall be carried out to
22 the nearest tenth when more than one (1) unit is allowed.
23 (3) The total number of support units of the district shall be
24 the sum of the total support units for regular students, subsec-
25 tion 8.b.(1) of this section, and the support units allowance
26 for the approved exceptional child program, subsection 8.b.(2)
27 of this section.
28 c. Total District Allowance Educational Program. Multiply the
29 district's total number of support units, carried out to the nearest
30 tenth, by the state distribution factor per support unit and to this
31 product add the approved amount of programs of the district provided
32 in subsection 2. of this section to secure the district's total
33 allowance for the educational support program.
34 d. District Share. To secure the district's share of state appor-
35 tionment, subtract the amount of the local district contribution cal-
36 culation, subsection 3. of this section, from the amount of the total
37 district allowance, subsection 8.c. of this section.
38 e. Adjustment of District Share. The contract salary of every non-
39 certificated teacher shall be subtracted from the district's share as
40 calculated from the provisions of subsection 8.d. of this section.
41 9. Property Tax Computation Ratio. In order to receive state funds
42 pursuant to this section a charter district shall utilize a school main-
43 tenance and operation property tax computation ratio for the purpose of
44 calculating its maintenance and operation levy, that is no greater than
45 that which it utilized in tax year 1994, less the difference between the
46 maximum levy rate permitted by section 33-802 2., Idaho Code, and four-
47 tenths of one percent (.4%). As used herein, the term "property tax com-
48 putation ratio" shall mean a ratio determined by dividing the district's
49 certified property tax maintenance and operation budget by the actual or
50 adjusted market value for assessment purposes as such values existed on
51 December 31, 1993. Such maintenance and operation levy shall be based on
52 the property tax computation ratio multiplied by the actual or adjusted
53 market value for assessment purposes as such values existed on December
54 31 of the prior calendar year.
7
1 SECTION 4. SEVERABILITY. The provisions of this act are hereby
2 declared to be severable and if any provision of this act or the applica-
3 tion of such provision to any person or circumstance is declared invalid
4 for any reason, such declaration shall not affect the validity of the
5 remaining portions of this act.
6 SECTION 5. An emergency existing therefor, which emergency is hereby
7 declared to exist, this act shall be in full force and effect on and
8 after its passage and approval, and retroactively to January 1, 2006.
STATEMENT OF PURPOSE
RS 16258
Advisory vote to be placed on the November 7, 2006 ballot - The
public policy regarding Idaho's public school's funding for
maintenance and operation (M&O) expenses has been a matter of
significant debate and proposed legislation. The public policy
question is, should public school M&O be paid with local property
taxes or be shifted to the state general fund which would require
a commensurate increase in the sales tax rate sufficient to offset
the cash flow from property taxes?
This proposed action is a major public policy change. The long-
term consequences would affect the way local public schools are
funded and could affect the manner in which local public schools
are operated.
Because of the magnitude of this public policy change, this
legislation requests the citizens of Idaho to provide an advisory
vote to the legislature in the November 7, 2006 general election.
FISCAL NOTE
The cost of placing the advisory vote on the November 7, 2006
ballot with pro and con arguments to be supplied by the Secretary
of State and Attorney General in the voters guide should not exceed
$50,000.
Contact
Name: Senator Brad Little
Phone: (208) 332- 1304
Name: Senator Hal Bunderson
Phone: (208) 332-1320
Name: Senator Brent Hill
Phone: (208) 332-1347
STATEMENT OF PURPOSE/FISCAL NOTE S 1501