2006 Legislation
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Bill Status

SCR133.....................................................by STATE AFFAIRS
PROPERTY TAX STUDY - Stating findings of the Legislature and authorizing
the Legislative Council to appoint a committee to undertake a study on
property taxation.
03/20    Senate intro - 1st rdg - to printing
03/21    Rpt prt - to 10th Ord
03/22    10th Ord - ADOPTED - 34-0-1
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett(Clark),
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
      Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Goedde
    Floor Sponsor - Bunderson
    Title apvd - to House
03/23    House intro - 1st rdg - to W/M

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                       IN THE SENATE
                            SENATE CONCURRENT RESOLUTION NO. 133
                                 BY STATE AFFAIRS COMMITTEE
  1                               A CONCURRENT RESOLUTION
  4        ERTY TAXATION.
  5    Be It Resolved by the Legislature of the State of Idaho:
  6        WHEREAS,  the  excessive growth in property taxes is a significant concern
  7    in many parts of the state; and
  8        WHEREAS, over the past three decades, there has been  a  cyclic  array  of
  9    property tax capping initiatives, laws and repeals, followed by different leg-
 10    islative  enactments that, evidenced by the continued public concern, have not
 11    identified and resolved core problems of property tax growth; and
 12        WHEREAS, the Legislature recognizes that property tax problems and  conse-
 13    quences  are  multifaceted  and no single purpose law or initiative will solve
 14    the diverse problems of excessive growth in property taxes; and
 15        WHEREAS, the 2005  Legislative  Interim  Committee  on  Property  Taxation
 16    received  significant testimony throughout the state regarding growth in prop-
 17    erty taxes and legislation was passed in 2006 addressing certain, but not all,
 18    of the concerns; and
 19        WHEREAS, resolution of the property tax problem  will  require  additional
 20    investigation  and  evaluation  options  by the Legislature including, but not
 21    limited to:
 22        (1)  Creation of a new category of revenue sharing that would target  part
 23        of  the annual growth in general fund dollars of approximately twenty per-
 24        cent and distribute it to the counties  in  proportion  to  each  county's
 25        share  of the total state growth for the same year, measured by individual
 26        income tax collections, essentially, returning a portion of the  new  gen-
 27        eral  fund  revenues  that a taxing district's residents produced for that
 28        year. This new revenue to local taxing districts, including schools, would
 29        be distributed to pay targeted costs of growth and backfill  property  tax
 30        cash flow delay, with each year providing a new distribution calculation.
 31        (2)  Bring  back  an improved version of Truth in Taxation. Idaho had this
 32        law for three years, in 1992 through 1994, and replaced it with  the  cur-
 33        rent  three  percent  property  tax cap. With one extraordinary exception,
 34        Idaho is the only state which enacted Truth in Taxation and later repealed
 35        it.
 36        (3)  Consider repealing Section 63-802, Idaho Code, or the  three  percent
 37        budget  cap.  One  size fits all statewide caps cannot solve diverse local
 38        problems and needs.
 39        (4)  Consider local impact fees with a two-thirds vote for schools, cities
 40        and counties.
 41        (5)  Expand the local option sales tax law to  cover  all  counties  while
 42        still requiring a two-thirds vote with fifty percent of the proceeds dedi-
 43        cated for property tax relief.
 44        (6)  Consider  taking the next step in phasing out personal property taxes
  1        by phasing out furniture and fixtures replaced by sales tax as  was  simi-
  2        larly done in 2001 for agricultural equipment.
  3        (7)  Establish  a  mechanism  to  evaluate the underlying public policy of
  4        each tax exemption to ensure that each one is useful and has not  outlived
  5        its usefulness.
  6        (8)  Access  more  complete information regarding taxpayer classifications
  7        and amounts paid by classification, thus enabling better analysis  of  the
  8        effects  and consequences and thus resulting in development of better pub-
  9        lic policy.
 10        NOW, THEREFORE, BE IT RESOLVED by the members of the Second  Regular  Ses-
 11    sion of the Fifty-eighth Idaho Legislature, the Senate and the House of Repre-
 12    sentatives  concurring  therein, that the Legislative Council is authorized to
 13    appoint a committee to undertake and complete a  study  of  property  taxation
 14    with  the  committee  using the work of the 2005 Interim Committee on Property
 15    Taxes and the work of the Legislature in 2006 as a starting point. The  Legis-
 16    lative  Council  shall determine the number of legislators and membership from
 17    each house appointed to the committee and shall  authorize  the  committee  to
 18    receive  input, advice and assistance from interested and affected parties who
 19    are not members of the Legislature.
 20        BE IT FURTHER RESOLVED that nonlegislative members of the committee may be
 21    appointed by the cochairs of the committee who are appointed by  the  Legisla-
 22    tive  Council.  Nonlegislative  members of the advisory committee shall not be
 23    reimbursed from legislative funds for per diem, mileage or other expenses  and
 24    shall  not have voting privileges regarding the committee's recommendations or
 25    proposed legislation.
 26        BE IT FURTHER RESOLVED that the committee shall report its findings,  rec-
 27    ommendations and proposed legislation, if any, to the First Regular Session of
 28    the Fifty-ninth Idaho Legislature.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                             SCR 133

This legislation authorizes Legislative Council to appoint a
committee to continue the study of property taxes.  However, the
scope of this interim committee's study is significantly
different from the scope of the 2005 Interim Committee. 
The focus of this interim committee's work will be to take the
information gathered from the valuable work of last year's
interim committee's statewide hearings as well as testimony
received in germane committee meetings this session and identify
and evaluate the core reasons there is excessive growth in
property taxes in many parts of the state and make
As a starting point, the concurrent resolution lists eight (8)
potential core reasons property taxes are increasing rapidly in
many parts of the state.  The Interim Committee will consider
these and other potential core reasons and will make
recommendations to the 2007 legislature.

                          FISCAL NOTE

The fiscal impact is not known because it is subject to the
direction of the Legislative Council. 
However, costs should be minimized as statewide public hearings
have already been held last year. Much of the work of this
Interim Committee could be conducted in Boise accompanied by
statewide release of exposure drafts of the Committee's findings
and recommendations for public comment. 

Senator Hal Bunderson (208) 332-1320

STATEMENT OF PURPOSE/FISCAL NOTE                       SCR 133