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H0429...............................................by REVENUE AND TAXATION
SCHOOLS - Amends existing law to remove the $75,000,000 cap for property
tax replacement for school districts.
01/19 House intro - 1st rdg - to printing
01/20 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 429
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAX REPLACEMENT FOR PUBLIC SCHOOLS; AMENDING SECTION
3 33-1002D, IDAHO CODE, TO REMOVE THE SEVENTY-FIVE MILLION DOLLAR CAP FOR
4 PROPERTY TAX REPLACEMENT.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 33-1002D, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 33-1002D. PROPERTY TAX REPLACEMENT. The purpose of this section is to
9 replace a portion of the authorized school maintenance and operation property
10 tax levy with state sales tax receipts. As used in this section, the term
11 "property tax computation ratio" shall mean a ratio determined by dividing the
12 district's certified property tax maintenance and operation budget by the
13 actual or adjusted market value for assessment purposes as such values existed
14 on December 31 of the previous calendar year, together with the increment
15 value, as defined in section 50-2903, Idaho Code, if applicable under the cir-
16 cumstance described in section 33-802 2., Idaho Code, relating to termination
17 of a revenue allocation area.
18 (1) (a) In the case of a school district that had a property tax computa-
19 tion ratio of not less than four-tenths of one percent (.4%) in tax year
20 1994, that school district shall receive from the appropriations made for
21 that purpose, an amount equal to the greater of the district's actual or
22 adjusted market value for assessment purposes as such valuation existed on
23 December 31 of the previous calendar year, together with the increment
24 value, as defined in section 50-2903, Idaho Code, if applicable under the
25 circumstance described in section 33-802 2., Idaho Code, relating to ter-
26 mination of a revenue allocation area, multiplied by one-tenth of one per-
27 cent (.1%).
28 (b) In the case of a school district that had a property tax computation
29 ratio of less than four-tenths of one percent (.4%) in tax year 1994, the
30 greater of the 1992, 1993 or 1994 property tax computation ratio less
31 three-tenths of one percent (.3%) shall be designated the district's base
32 multiplier. In no case shall the base multiplier be less than zero (0).
33 Four-tenths of one percent (.4%) less the greater of the district's 1992,
34 1993 or 1994 property tax computation ratio shall be designated the
35 district's adjustment factor. In no case shall the adjustment factor be
36 greater than one-tenth of one percent (.1%) or less than zero (0). Each
37 school district's actual multiplier shall be the base multiplier plus one-
38 fifth (1/5) of the adjustment factor in tax year 1995, the base multiplier
39 plus two-fifths (2/5) of the adjustment factor in tax year 1996, the base
40 multiplier plus three-fifths (3/5) of the adjustment factor in tax year
41 1997, the base multiplier plus four-fifths (4/5) of the adjustment factor
42 in tax year 1998, and the base multiplier plus the adjustment factor in
43 tax year 1999 and beyond. Each school district shall receive, from the
2
1 appropriations made for that purpose, an amount equal to the district's
2 actual or adjusted market value for assessment purposes as such valuation
3 existed on December 31 of the previous calendar year, together with the
4 increment value, as defined in section 50-2903, Idaho Code, if applicable
5 under the circumstance described in section 33-802 2., Idaho Code, relat-
6 ing to termination of a revenue allocation area, multiplied by the
7 district's actual multiplier.
8 (c) The preceding provisions of this subsection notwithstanding, appro-
9 priations from the state for the value of one-tenth of one percent (.1%)
10 of the greater of the district's actual or adjusted market value for
11 assessment purposes as such valuation existed on December 31 of the previ-
12 ous calendar year, together with the increment value, as defined in sec-
13 tion 50-2903, Idaho Code, if applicable under the circumstance described
14 in section 33-802 2., Idaho Code, relating to termination of a revenue
15 allocation area, shall not exceed seventy-five million dollars
16 ($75,000,000) in any fiscal year. If the amount school districts would
17 otherwise be entitled to receive pursuant to the preceding provisions of
18 this subsection exceeds seventy-five million dollars ($75,000,000), then
19 each school district shall receive its share of seventy-five million dol-
20 lars ($75,000,000) based on the formulas contained in this section.
21 (2) (a) Participation in this property tax reduction program is voluntary
22 for a charter district. If a charter district participates, in addition to
23 the provisions of subsection (1) of this section it shall not have a prop-
24 erty tax computation ratio that is above three-tenths of one percent (.3%)
25 or the district's property tax computation ratio in tax year 1994, less
26 one-tenth of one percent (.1%), whichever is greater.
27 (b) If in any year the charter district's property tax computation ratio
28 used to calculate its maintenance and operation budget is increased above
29 the limit specified in this subsection the district shall not be eligible
30 for the distribution pursuant to subsection (1) of this section for that
31 year.
32 (3) Limitations imposed upon a school district's property tax computation
33 ratio under the provisions of this section do not apply to any levy approved
34 by electors of the school district as provided by law.
35 (4) Distributions calculated as provided in this section shall be made to
36 school districts of this state in two (2) equal installments on the due dates
37 as specified in section 63-903(1), Idaho Code, for the property taxes being
38 replaced.
39 (5) For purposes of section 33-1002, Idaho Code, moneys distributed pur-
40 suant to this section shall not be included in determining total state funds.
STATEMENT OF PURPOSE
RS 15608
This legislation repeals the $75 million dollar cap placed in
fiscal year 2005 on Governor Batt's property tax replacement
legislation/statute of 1995. The statute authorized the state of
Idaho to compensate Idaho school districts 1/10th of 1% of market
value for district maintenance and operations (M&O). Tied to
market value, with the rapidly escalating home values across
Idaho, districts have been unable to access additional dollars
from property tax replacement because of the cap.
FISCAL NOTE
In the current fiscal year districts would have received
$83,911,452 instead of the $75,000,000
Contact
Name: Representative Wendy Jaquet
Phone: 208-332-1130
STATEMENT OF PURPOSE/FISCAL NOTE H 429