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H0478...............................................by REVENUE AND TAXATION TAXING DISTRICTS - Amends existing law to provide that no taxing district shall certify a budget request for an amount of property tax revenues to finance an annual budget that exceeds the dollar amount of property taxes certified for its annual budget for any one of the three tax years preceding the current tax year, whichever is greater, which amount may be increased by a growth factor of not to exceed three percent, unless an election is held to exceed the amount authorized. 01/26 House intro - 1st rdg - to printing 01/27 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 478 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO PROPERTY TAXES AND TAXING DISTRICTS; AMENDING SECTION 63-802, 3 IDAHO CODE, TO PROVIDE THAT NO TAXING DISTRICT SHALL CERTIFY A BUDGET 4 REQUEST FOR AN AMOUNT OF PROPERTY TAX REVENUES TO FINANCE AN ANNUAL BUDGET 5 THAT EXCEEDS THE DOLLAR AMOUNT OF PROPERTY TAXES CERTIFIED FOR ITS ANNUAL 6 BUDGET FOR ANY ONE OF THE THREE TAX YEARS PRECEDING THE CURRENT TAX YEAR, 7 WHICHEVER IS GREATER, WHICH AMOUNT MAY BE INCREASED BY A GROWTH FACTOR OF 8 NOT TO EXCEED THREE PERCENT UNLESS AN ELECTION IS HELD TO EXCEED THE 9 AMOUNT AUTHORIZED BY THIS ACT; DECLARING AN EMERGENCY AND PROVIDING RETRO- 10 ACTIVE APPLICATION. 11 Be It Enacted by the Legislature of the State of Idaho: 12 SECTION 1. That Section 63-802, Idaho Code, be, and the same is hereby 13 amended to read as follows: 14 63-802. LIMITATION ON BUDGET REQUESTS -- LIMITATION ON TAX CHARGES -- 15 EXCEPTIONS. (1) Except as provided in subsection (32) of this section for tax 16 year19952006, and each year thereafter, no taxing district shall certify a 17 budget request for an amount of property tax revenues to finance an annual 18 budget that exceedsthe greater of:19(a) Tthe dollar amount of property taxes certified for its annual budget 20 for any one (1) of the three (3) tax years preceding the current tax year, 21 whichever is greater, which amount may be increased by a growth factor of 22 not to exceed three percent (3%);plus the amount of revenue that would23have been generated by applying the levy of the previous year, not includ-24ing any levy described in subsection (4) of this section, to any increase25in market value subject to taxation resulting from new construction or26change of land use classification as evidenced by the value shown on the27new construction roll compiled pursuant to section 63-301A, Idaho Code;28and by the value of annexation during the previous calendar year, as cer-29tified by the state tax commission for market values of operating property30of public utilities and by the county assessor; or31(b) The dollar amount of property taxes certified for its annual budget32during the last year in which a levy was made; or33(c) The dollar amount of the actual budget request, if the taxing dis-34trict is newly created except as may be provided in subsection (1)(h) of35this section; or36(d) In the case of school districts, the restriction imposed in section3733-802, Idaho Code; or38(e) In the case of a nonschool district for which less than the maximum39allowable increase in the dollar amount of property taxes is certified40for annual budget purposes in any one (1) year, such a district may, in41any following year, recover the foregone increase by certifying, in addi-42tion to any increase otherwise allowed, an amount not to exceed one hun-43dred percent (100%) of the increase originally foregone. Said additional2 1amount shall be included in future calculations for increases as allowed;2or3(f) In the case of cities, if the immediately preceding year's levy sub-4ject to the limitation provided by this section, is less than 0.004, the5city may increase its budget by an amount not to exceed the difference6between 0.004 and actual prior year's levy multiplied by the prior year's7market value for assessment purposes. The additional amount must be8approved by sixty percent (60%) of the voters voting on the question at an9election called for that purpose and held on the date in May or November10provided by law, and may be included in the annual budget of the city for11purposes of this section;or 12 (g2) A taxing district may submit to the electors within the district the 13 question of whether the budget from property tax revenues may be increased 14 beyond the amount authorized in this section, but not beyond the levy 15 authorized by statute. The additional amount must be approved by sixty-six 16 and two-thirds percent (66 2/3%) or more of the voters voting on the ques- 17 tion at an election called for that purpose and held on the May or Novem- 18 ber dates provided by section 34-106, Idaho Code. If approved by the 19 required minimum sixty-six and two-thirds percent (66 2/3%) of the voters 20 voting at the election, the new budget amount shall be the base budget for 21 the purposes of this section.; or22(h) When a nonschool district consolidates with another nonschool dis-23trict or dissolves and a new district performing similar governmental24functions as the dissolved district forms with the same boundaries within25three (3) years, the maximum amount of a budget of the district from prop-26erty tax revenues shall not be greater than the sum of the amounts that27would have been authorized by this section for the district itself or for28the districts that were consolidated or dissolved and incorporated into a29new district; or30(i) In the instance or case of cooperative service agencies, the restric-31tions imposed in sections 33-315 through 33-318, Idaho Code.32(2) In the case of fire districts, during the year immediately following33the election of a public utility or public utilities to consent to be provided34fire protection pursuant to section 31-1422, Idaho Code, the maximum amount of35property tax revenues permitted in subsection (1) of this section may be36increased by an amount equal to the current year's taxable value of the con-37senting public utility or public utilities multiplied by that portion of the38prior year's levy subject to the limitation provided by subsection (1) of this39section.40(3) No board of county commissioners shall set a levy, nor shall the41state tax commission approve a levy for annual budget purposes which exceeds42the limitation imposed in subsection (1) of this section, unless authority to43exceed such limitation has been approved by a majority of the taxing44district's electors voting on the question at an election called for that pur-45pose and held pursuant to section 34-106, Idaho Code, provided however, that46such voter approval shall be for a period of not to exceed two (2) years.47(4) The amount of property tax revenues to finance an annual budget does48not include revenues from nonproperty tax sources, and does not include reve-49nue from levies that are voter approved for bonds, override levies or supple-50mental levies, plant facilities reserve fund levies, school emergency fund51levies or for levies applicable to newly annexed property or for levies appli-52cable to new construction as evidenced by the value of property subject to the53occupancy tax pursuant to section 63-317, Idaho Code, for the preceding tax54year.3 1 SECTION 2. An emergency existing therefor, which emergency is hereby 2 declared to exist, this act shall be in full force and effect on and after its 3 passage and approval, and retroactively to January 1, 2006.
STATEMENT OF PURPOSE RS 15814 The proposed legislation limits all property tax portions of any budget to a three percent (3%) increase per year. FISCAL NOTE There is no fiscal impact. Contact Name: Rep. Mike Moyle Rep. Dolores Crow Rep. Jim Clark Phone: (208) 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 478