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H0505...............................................by REVENUE AND TAXATION
SALES TAX - SCHOOLS - Amends, repeals and adds to existing law to increase
the sales and use tax by one cent; to provide that the property tax shall
not be used for maintenance and operation levies for the public schools;
and to revise the educational funding formula for public schools.
01/30 House intro - 1st rdg - to printing
01/31 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. 505
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION POLICIES FOR FUNDING PUBLIC SCHOOLS; AMENDING SECTION
3 63-3619, IDAHO CODE, TO INCREASE THE SALES TAX BY ONE CENT; AMENDING SEC-
4 TION 63-3621, IDAHO CODE, TO INCREASE THE USE TAX BY ONE CENT STARTING
5 JUNE 1, 2006; AMENDING SECTION 63-3638, IDAHO CODE, TO REVISE THE DISTRI-
6 BUTION FOR SALES TAX REVENUES, TO PROVIDE A CORRECT CODE REFERENCE AND TO
7 DELETE REFERENCE TO MAINTENANCE AND OPERATION TAXES FOR SCHOOL DISTRICTS
8 AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 33-802, IDAHO CODE,
9 TO DELETE REFERENCE TO SCHOOL DISTRICT LEVIES THAT MAY BE IMPOSED WITHOUT
10 VOTER APPROVAL, TO PROVIDE BUDGET STABILIZATION LEVIES FOR CERTAIN DIS-
11 TRICTS, TO DELETE THE LOCAL DISTRICT CONTRIBUTION FOR SCHOOL FORMULA PUR-
12 POSES, TO CONTINUE IN EFFECT ALL VOTER APPROVED LEVIES FOR THE TERM AUTHO-
13 RIZED AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 33-1002, IDAHO
14 CODE, TO REVISE HOW THE EDUCATIONAL SUPPORT PROGRAM IS CALCULATED, TO PRO-
15 VIDE ELIGIBILITY FOR CHARTER DISTRICTS TO CONTINUE TO RECEIVE SCHOOL FOR-
16 MULA MONEYS AND TO MAKE TECHNICAL CORRECTIONS; REPEALING SECTION 33-1002A,
17 IDAHO CODE, RELATING TO THE LOCAL DISTRICT CONTRIBUTION REDUCTION AND
18 REPEALING SECTION 33-1002D, IDAHO CODE, RELATING TO PROPERTY TAX REPLACE-
19 MENT; AMENDING SECTION 33-1003, IDAHO CODE, TO DELETE REFERENCE TO AN
20 OBSOLETE PROVISION AND TO MAKE TECHNICAL CORRECTIONS; TO PROVIDE THAT THE
21 STATE DEPARTMENT OF EDUCATION SHALL UTILIZE THE PROVISIONS OF SECTIONS
22 33-802, 33-1002, 33-1002A, 33-1002D AND 33-1003, IDAHO CODE, AS THEY
23 EXISTED PRIOR TO AMENDMENT BY THE PROVISIONS OF THIS ACT FOR THE PURPOSES
24 OF FUNDING PUBLIC SCHOOLS THROUGH THE END OF FISCAL YEAR 2006; AMENDING
25 SECTION 33-701, IDAHO CODE, TO DELETE REFERENCE TO SCHOOL MAINTENANCE AND
26 OPERATION LEVIES AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION
27 33-802A, IDAHO CODE, TO CLARIFY REFERENCES TO SCHOOL LEVIES; REPEALING
28 SECTION 33-808, IDAHO CODE, RELATING TO NOTICE OF ADJUSTMENT TO MARKET
29 VALUE FOR ASSESSMENT PURPOSES UPON TERMINATION OF A REVENUE ALLOCATION
30 AREA; AMENDING SECTION 33-905, IDAHO CODE, TO PROVIDE A CORRECT CODE REF-
31 ERENCE; AMENDING SECTION 33-1004, IDAHO CODE, TO PROVIDE A CORRECT CODE
32 REFERENCE; AMENDING SECTION 33-1114, IDAHO CODE, TO DELETE REFERENCE TO
33 SCHOOL DISTRICT MAINTENANCE AND OPERATION LEVIES; AMENDING SECTION
34 33-5208, IDAHO CODE, TO PROVIDE A CORRECT CODE REFERENCE; AMENDING SECTION
35 50-2908, IDAHO CODE, TO DELETE REFERENCE TO PROPERTY TAX FOR SCHOOLS AND
36 TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 63-802, IDAHO CODE, TO
37 DELETE REFERENCE TO CERTAIN LEVIES OF SCHOOL DISTRICTS AS BEING EXEMPT AND
38 TO PROVIDE APPLICATION TO SCHOOL DISTRICTS; AMENDING SECTION 63-802A,
39 IDAHO CODE, TO PROVIDE A CORRECT CODE REFERENCE, TO DELETE REFERENCE TO
40 SCHOOL DISTRICT MAINTENANCE AND OPERATION LEVIES AND TO PROVIDE APPLICA-
41 TION TO SCHOOL DISTRICTS; AMENDING SECTION 63-811, IDAHO CODE, TO DELETE
42 REFERENCE TO PROPERTY TAX ALLOCATED FOR SCHOOLS; TO PROVIDE SEVERABILITY;
43 DECLARING AN EMERGENCY, PROVIDING RETROACTIVE APPLICATION AND PROVIDING
44 EFFECTIVE DATES.
45 Be It Enacted by the Legislature of the State of Idaho:
2
1 SECTION 1. That Section 63-3619, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 63-3619. IMPOSITION AND RATE OF THE SALES TAX. An excise tax is hereby
4 imposed upon each sale at retail at the rate of five six percent (56%) of the
5 sales price of all retail sales subject to taxation under this chapter and
6 such amount shall be computed monthly on all sales at retail within the pre-
7 ceding month.
8 (a) The tax shall apply to, be computed on, and collected for all credit,
9 installment, conditional or similar sales at the time of the sale or, in the
10 case of rentals, at the time the rental is charged.
11 (b) The tax hereby imposed shall be collected by the retailer from the
12 consumer.
13 (c) The state tax commission shall provide schedules for collection of
14 the tax on sales which involve a fraction of a dollar. The retailer shall cal-
15 culate the tax upon the entire amount of the purchases of the consumer made at
16 a particular time and not separately upon each item purchased. The retailer
17 may retain any amount collected under the bracket system prescribed which is
18 in excess of the amount of tax for which he is liable to the state during the
19 period as compensation for the work of collecting the tax.
20 (d) It is unlawful for any retailer to advertise or hold out or state to
21 the public or to any customer, directly or indirectly, that the tax or any
22 part thereof will be assumed or absorbed by the retailer or that it will not
23 be added to the selling price of the property sold or that if added it or any
24 part thereof will be refunded. Any person violating any provision of this sec-
25 tion is guilty of a misdemeanor.
26 (e) The tax commission may by rule provide that the amount collected by
27 the retailer from the customer in reimbursement of the tax be displayed sepa-
28 rately from the list price, the price advertised on the premises, the marked
29 price, or other price on the sales slip or other proof of sale.
30 (f) The taxes imposed by this chapter shall apply to the sales to con-
31 tractors purchasing for use in the performance of contracts with the United
32 States.
33 SECTION 2. That Section 63-3621, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 63-3621. IMPOSITION AND RATE OF THE USE TAX -- EXEMPTIONS. An excise tax
36 is hereby imposed on the storage, use, or other consumption in this state of
37 tangible personal property acquired on or after July June 1, 20056, for stor-
38 age, use, or other consumption in this state at the rate of five six percent
39 (56%) of the value of the property, and a recent sales price shall be presump-
40 tive evidence of the value of the property unless the property is wireless
41 telecommunications equipment, in which case a recent sales price shall be con-
42 clusive evidence of the value of the property.
43 (a) Every person storing, using, or otherwise consuming, in this state,
44 tangible personal property is liable for the tax. His liability is not extin-
45 guished until the tax has been paid to this state except that a receipt from a
46 retailer maintaining a place of business in this state or engaged in business
47 in this state given to the purchaser is sufficient to relieve the purchaser
48 from further liability for the tax to which the receipt refers. A retailer
49 shall not be considered to have stored, used or consumed wireless telecommuni-
50 cations equipment by virtue of giving, selling or otherwise transferring such
51 equipment at a discount as an inducement to a consumer to commence or continue
52 a contract for telecommunications service.
3
1 (b) Every retailer engaged in business in this state, and making sales of
2 tangible personal property for the storage, use, or other consumption in this
3 state, not exempted under section 63-3622, Idaho Code, shall, at the time of
4 making the sales or, if storage, use or other consumption of the tangible per-
5 sonal property is not then taxable hereunder, at the time the storage, use or
6 other consumption becomes taxable, collect the tax from the purchaser and give
7 to the purchaser a receipt therefor in the manner and form prescribed by the
8 state tax commission.
9 (c) The provisions of this section shall not apply when the retailer pays
10 sales tax on the transaction and collects reimbursement for such sales tax
11 from the customer.
12 (d) Every retailer engaged in business in this state or maintaining a
13 place of business in this state shall register with the state tax commission
14 and give the name and address of all agents operating in this state, the loca-
15 tion of all distributions or sales houses or offices or other places of busi-
16 ness in this state, and such other information as the state tax commission may
17 require.
18 (e) For the purpose of the proper administration of this act and to pre-
19 vent evasion of the use tax and the duty to collect the use tax, it shall be
20 presumed that tangible personal property sold by any person for delivery in
21 this state is sold for storage, use, or other consumption in this state. The
22 burden of proving the sale is tax exempt is upon the person who makes the sale
23 unless he obtains from the purchaser a resale certificate to the effect that
24 the property is purchased for resale or rental. It shall be presumed that
25 sales made to a person who has completed a resale certificate for the seller's
26 records are not taxable and the seller need not collect sales or use taxes
27 unless the tangible personal property purchased is taxable to the purchaser
28 as a matter of law in the particular instance claimed on the resale certifi-
29 cate.
30 A seller may accept a resale certificate from a purchaser prior to the
31 time of sale, at the time of sale, or at any reasonable time after the sale
32 when necessary to establish the privilege of the exemption. The resale certif-
33 icate relieves the person selling the property from the burden of proof only
34 if taken from a person who is engaged in the business of selling or renting
35 tangible personal property and who holds the permit provided for by section
36 63-3620, Idaho Code, or who is a retailer not engaged in business in this
37 state, and who, at the time of purchasing the tangible personal property,
38 intends to sell or rent it in the regular course of business or is unable to
39 ascertain at the time of purchase whether the property will be sold or will be
40 used for some other purpose. Other than as provided elsewhere in this section,
41 when a resale certificate, properly executed, is presented to the seller, the
42 seller has no duty or obligation to collect sales or use taxes in regard to
43 any sales transaction so documented regardless of whether the purchaser prop-
44 erly or improperly claimed an exemption. A seller so relieved of the obliga-
45 tion to collect tax is also relieved of any liability to the purchaser for
46 failure to collect tax or for making any report or disclosure of information
47 required or permitted under this chapter.
48 The resale certificate shall bear the name and address of the purchaser,
49 shall be signed by the purchaser or his agent, shall indicate the number of
50 the permit issued to the purchaser, or that the purchaser is an out-of-state
51 retailer, and shall indicate the general character of the tangible personal
52 property sold by the purchaser in the regular course of business. The certifi-
53 cate shall be substantially in such form as the state tax commission may pre-
54 scribe.
55 (f) If a purchaser who gives a resale certificate makes any storage or
4
1 use of the property other than retention, demonstration or display while hold-
2 ing it for sale in the regular course of business, the storage or use is tax-
3 able as of the time the property is first so stored or used.
4 (g) Any person violating any provision of this section is guilty of a
5 misdemeanor and punishable by a fine not in excess of one hundred dollars
6 ($100), and each violation shall constitute a separate offense.
7 (h) It shall be presumed that tangible personal property shipped or
8 brought to this state by the purchaser was purchased from a retailer, for
9 storage, use or other consumption in this state.
10 (i) It shall be presumed that tangible personal property delivered out-
11 side this state to a purchaser known by the retailer to be a resident of this
12 state was purchased from a retailer for storage, use, or other consumption in
13 this state. This presumption may be controverted by evidence satisfactory to
14 the state tax commission that the property was not purchased for storage, use,
15 or other consumption in this state.
16 (j) When the tangible personal property subject to use tax has been sub-
17 jected to a general retail sales or use tax by another state of the United
18 States in an amount equal to or greater than the amount of the Idaho tax, and
19 evidence can be given of such payment, the property will not be subject to
20 Idaho use tax. If the amount paid the other state was less, the property will
21 be subject to use tax to the extent that the Idaho tax exceeds the tax paid to
22 the other state. For the purposes of this subsection, a registration certifi-
23 cate or title issued by another state or subdivision thereof for a vehicle or
24 trailer or a vessel as defined in section 67-7003, Idaho Code, shall be suffi-
25 cient evidence of payment of a general retail sales or use tax.
26 (k) The use tax herein imposed shall not apply to the use by a nonresi-
27 dent of this state of a motor vehicle which is registered or licensed under
28 the laws of the state of his residence and is not used in this state more than
29 a cumulative period of time totaling ninety (90) days in any consecutive
30 twelve (12) months, and which is not required to be registered or licensed
31 under the laws of this state.
32 (l) The use tax herein imposed shall not apply to the use of household
33 goods, personal effects and personally owned motor vehicles by a resident of
34 this state, if such articles were acquired by such person in another state
35 while a resident of that state and primarily for use outside this state and if
36 such use was actual and substantial, but if an article was acquired less than
37 three (3) months prior to the time he entered this state, it will be presumed
38 that the article was acquired for use in this state and that its use outside
39 this state was not actual and substantial. For purposes of this subsection,
40 "resident" shall be as defined in section 63-3013 or 63-3013A, Idaho Code.
41 (m) The use tax herein imposed shall not apply to the storage, use or
42 other consumption of tangible personal property which is or will be incorpo-
43 rated into real property and which has been donated to and has become the
44 property of:
45 (1) A nonprofit organization as defined in section 63-3622O, Idaho Code;
46 or
47 (2) The state of Idaho; or
48 (3) Any political subdivision of the state.
49 This exemption applies whether the tangible personal property is incorporated
50 in real property by the donee, a contractor or subcontractor of the donee, or
51 any other person.
52 SECTION 3. That Section 63-3638, Idaho Code, be, and the same is hereby
53 amended to read as follows:
5
1 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
2 ter, except as may otherwise be required in sections 63-3203 and 63-3709,
3 Idaho Code, shall be distributed by the tax commission as follows:
4 (1) An amount of money shall be distributed to the state refund account
5 sufficient to pay current refund claims. All refunds authorized under this
6 chapter by the commission shall be paid through the state refund account, and
7 those moneys are continuously appropriated.
8 (2) Five million dollars ($5,000,000) per year is continuously appropri-
9 ated and shall be distributed to the permanent building fund, provided by sec-
10 tion 57-1108, Idaho Code.
11 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
12 continuously appropriated and shall be distributed to the water pollution con-
13 trol account established by section 39-3605, Idaho Code.
14 (4) An amount equal to the sum required to be certified by the chairman
15 of the Idaho housing and finance association to the state tax commission pur-
16 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
17 ated and shall be paid to any capital reserve fund, established by the Idaho
18 housing and finance association pursuant to section 67-6211, Idaho Code. Such
19 amounts, if any, as may be appropriated hereunder to the capital reserve fund
20 of the Idaho housing and finance association shall be repaid for distribution
21 under the provisions of this section, subject to the provisions of section
22 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
23 possible, from any moneys available therefor and in excess of the amounts
24 which the association determines will keep it self-supporting.
25 (5) An amount equal to the sum required by the provisions of section
26 63-709, Idaho Code, is continuously appropriated and shall be paid as provided
27 by section 63-709, Idaho Code.
28 (6) An amount required by the provisions of chapter 53, title 33, Idaho
29 Code.
30 (7) An amount required by the provisions of chapter 87, title 67, Idaho
31 Code.
32 (8) One dollar ($1.00) on each application for certificate of title or
33 initial application for registration of a motor vehicle, snowmobile, all-
34 terrain vehicle or other vehicle processed by the county assessor or the Idaho
35 transportation department excepting those applications in which any sales or
36 use taxes due have been previously collected by a retailer, shall be a fee for
37 the services of the assessor of the county or the Idaho transportation depart-
38 ment in collecting such taxes, and shall be paid into the current expense fund
39 of the county or state highway account established in section 40-702, Idaho
40 Code.
41 (9) Thirteen Eleven and three-quarters five-tenths percent (13.711.5%)
42 is continuously appropriated and shall be distributed to the revenue sharing
43 account which is created in the state treasury, and the moneys in the revenue
44 sharing account will be paid in installments each calendar quarter by the tax
45 commission as follows:
46 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
47 ious cities as follows:
48 (i) Fifty percent (50%) of such amount shall be paid to the various
49 cities, and each city shall be entitled to an amount in the propor-
50 tion that the population of that city bears to the population of all
51 cities within the state; and
52 (ii) Fifty percent (50%) of such amount shall be paid to the various
53 cities, and each city shall be entitled to an amount in the propor-
54 tion that the preceding year's market value for assessment purposes
55 for that city bears to the preceding year's market value for assess-
6
1 ment purposes for all cities within the state.
2 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
3 ious counties as follows:
4 (i) One million three hundred twenty thousand dollars ($1,320,000)
5 annually shall be distributed one forty-fourth (1/44) to each of the
6 various counties; and
7 (ii) The balance of such amount shall be paid to the various coun-
8 ties, and each county shall be entitled to an amount in the propor-
9 tion that the population of that county bears to the population of
10 the state;
11 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
12 ated in this subsection (9) shall be paid to the several counties for dis-
13 tribution to the cities and counties as follows:
14 (i) Each city and county which received a payment under the provi-
15 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
16 calendar year 1999, shall be entitled to a like amount during suc-
17 ceeding calendar quarters.
18 (ii) If the dollar amount of money available under this subsection
19 (9)(c) in any quarter does not equal the amount paid in the fourth
20 quarter of calendar year 1999, each city's and county's payment shall
21 be reduced proportionately.
22 (iii) If the dollar amount of money available under this subsection
23 (9)(c) in any quarter exceeds the amount paid in the fourth quarter
24 of calendar year 1999, each city and county shall be entitled to a
25 proportionately increased payment, but such increase shall not exceed
26 one hundred five percent (105%) of the total payment made in the
27 fourth quarter of calendar year 1999.
28 (iv) If the dollar amount of money available under this subsection
29 (9)(c) in any quarter exceeds one hundred five percent (105%) of the
30 total payment made in the fourth quarter of calendar year 1999, any
31 amount over and above such one hundred five percent (105%) shall be
32 paid fifty percent (50%) to the various cities in the proportion that
33 the population of the city bears to the population of all cities
34 within the state, and fifty percent (50%) to the various counties in
35 the proportion that the population of a county bears to the popula-
36 tion of the state; and
37 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
38 this subsection (9) shall be paid to the several counties for distribution
39 to special purpose taxing districts as follows:
40 (i) Each such district which received a payment under the provi-
41 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
42 calendar year 1999, shall be entitled to a like amount during suc-
43 ceeding calendar quarters.
44 (ii) If the dollar amount of money available under this subsection
45 (9)(d) in any quarter does not equal the amount paid in the fourth
46 quarter of calendar year 1999, each special purpose taxing district's
47 payment shall be reduced proportionately.
48 (iii) If the dollar amount of money available under this subsection
49 (9)(d) in any quarter exceeds the amount distributed under paragraph
50 (i) of this subsection (9)(d), each special purpose taxing district
51 shall be entitled to a share of the excess based on the proportion
52 each such district's current property tax budget bears to the sum of
53 the current property tax budgets of all such districts in the state.
54 The state tax commission shall calculate district current property
55 tax budgets to include any unrecovered foregone amounts as determined
7
1 under section 63-802(1)(ed), Idaho Code. When a special purpose tax-
2 ing district is situated in more than one (1) county, the tax commis-
3 sion shall determine the portion attributable to the special purpose
4 taxing district from each county in which it is situated.
5 (iv) If special purpose taxing districts are consolidated, the
6 resulting district is entitled to a base amount equal to the sum of
7 the base amounts which were received in the last calendar quarter by
8 each district prior to the consolidation.
9 (v) If a special purpose taxing district is dissolved or
10 disincorporated, the state tax commission shall continuously distrib-
11 ute to the board of county commissioners an amount equal to the last
12 quarter's distribution prior to dissolution or disincorporation. The
13 board of county commissioners shall determine any redistribution of
14 moneys so received.
15 (vi) Taxing districts formed after January 1, 2001, are not entitled
16 to a payment under the provisions of this subsection (9)(d).
17 (vii) For purposes of this subsection (9)(d), a special purpose tax-
18 ing district is any taxing district which is not a city, a county or
19 a school district.
20 (10) Amounts calculated in accordance with section 2, chapter 356, Llaws
21 of 2001, for annual distribution to counties and other taxing districts begin-
22 ning in October 2001 for replacement of property tax on farm machinery and
23 equipment exempted pursuant to section 63-602EE, Idaho Code. For nonschool
24 districts, the state tax commission shall distribute one-fourth (1/4) of this
25 amount certified quarterly to each county. For school districts, the state tax
26 commission shall distribute one-fourth (1/4) of the amount certified quarterly
27 to each school district. For nonschool districts, the county auditor shall
28 distribute to each district within thirty (30) calendar days from receipt of
29 moneys from the tax commission. Moneys received by each taxing district for
30 replacement shall be utilized in the same manner and in the same proportions
31 as revenues from property taxation. The moneys remitted to the county trea-
32 surer for replacement of property exempt from taxation pursuant to section
33 63-602EE, Idaho Code, may be considered by the counties and other taxing dis-
34 tricts and budgeted at the same time, in the same manner and in the same year
35 as revenues from taxation on personal property which these moneys replace. If
36 taxing districts are consolidated, the resulting district is entitled to an
37 amount equal to the sum of the amounts which were received in the last calen-
38 dar quarter by each district pursuant to this subsection prior to the consoli-
39 dation. If a taxing district is dissolved or disincorporated, the state tax
40 commission shall continuously distribute to the board of county commissioners
41 an amount equal to the last quarter's distribution prior to dissolution or
42 disincorporation. The board of county commissioners shall determine any redis-
43 tribution of moneys so received. If a taxing district annexes territory, the
44 distribution of moneys received pursuant to this subsection shall be unaf-
45 fected. Taxing districts formed after January 1, 2001, are not entitled to a
46 payment under the provisions of this subsection. School districts shall
47 receive an amount determined by multiplying the sum of the year 2000 school
48 district levy plus .001 times the market value on December 31, 2000, in the
49 district of the property exempt from taxation pursuant to section 63-602EE,
50 Idaho Code. For school districts, beginning January 1, 2002, only the portion
51 of property tax replacement received to replace property exempt from taxation
52 pursuant to section 63-602EE, Idaho Code, based on the tax year 2000 tax
53 charges for maintenance and operation. as limited by sections 33-802 2. and
54 33-1002D, Idaho Code, shall not be subtracted from the maximum school district
55 maintenance and operation property taxes permitted in accordance with section
8
1 33-802 2., Idaho Code. For purposes of the limitation provided by section
2 63-802, Idaho Code, moneys received pursuant to this section as property tax
3 replacement for property exempt from taxation pursuant to section 63-602EE,
4 Idaho Code, shall be treated as property tax revenues.
5 (11) Any moneys remaining over and above those necessary to meet and
6 reserve for payments under other subsections of this section shall be distrib-
7 uted to the general fund.
8 SECTION 4. That Section 33-802, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 33-802. SCHOOL LEVIES. Any tax levied for school purposes shall be a lien
11 on the property against which the tax is levied. The board of trustees shall
12 determine the levies upon each dollar of taxable property in the district for
13 the ensuing fiscal year as follows:
14 (1.) Bond, Interest and Judgment Obligation Levies. Such levies as shall
15 be required to satisfy all maturing bond, bond interest, and judgment obliga-
16 tions.
17 (2.) Maximum School Maintenance and Operation Credit Against Prepaid
18 Taxes -- Budget Stabilization Levies. Such levies for maintaining and operat-
19 ing the schools of the district and for the payment of tuition and transporta-
20 tion, that do not exceed an amount equal to four-tenths of one percent (.4%)
21 during tax year 1994, and do not exceed an amount equal to three-tenths of one
22 percent (.3%) during tax year 1995 and thereafter, applied to the actual or
23 adjusted market value for assessment purposes of the district as such valua-
24 tion existed on December 31 of the previous year, but aAllowances necessary as
25 a credit for prepaid taxes, as provided in section 63-1607, Idaho Code, shall
26 not be included in such maximum levies. Provided however, that in the event
27 property within a district's boundaries is contained in a revenue allocation
28 area established under chapter 29, title 50, Idaho Code, and such revenue
29 allocation area has given notice of termination thereunder, then, only for the
30 purpose of determining the levy described in this subsection, the district may
31 add the increment value, as defined in section 50-2903, Idaho Code, to the
32 actual or adjusted market value for assessment purposes of the district as
33 such value existed on December 31 of the previous year.
34 3. Authorized School Maintenance and Operation Levies. Such levies for
35 maintaining and operating the schools of the district and for the payment of
36 tuition and transportation that do not exceed one hundred eleven percent
37 (111%) of the local district's contribution authorized in subsection 2. of
38 section 33-1002, Idaho Code. Implementation of the provisions of this subsec-
39 tion shall be authorized only after approval by a majority of the district's
40 electors voting on the question. Levies otherwise authorized by law shall not
41 require an election.
42 School districts not receiving state equalization funds in fiscal year
43 2006 may authorize a budget stabilization levy for fiscal years 2007 through
44 2011. Such levies shall not exceed the difference between the amount of equal-
45 ized funds that the state department of education estimates the school dis-
46 trict will receive in fiscal year 2007, based on the school district's fiscal
47 year 2006 reporting data, and the combined amount of money the school district
48 received from its maintenance and operations levy and state property tax
49 replacement funds in fiscal year 2006.
50 4.(3) Supplemental Maintenance and Operation Levies. No levy in excess of
51 the levy permitted by subsection 2. or 3. of this section shall be made by a
52 noncharter school district unless such a supplemental levy in a specified
53 amount and for a specified time not to exceed two (2) years be first autho-
9
1 rized through an election held pursuant to chapter 4, title 33, Idaho Code,
2 and approved by a majority of the district electors voting in such election. A
3 levy approved pursuant to this subsection may be reduced by a majority vote of
4 the board of trustees in the second year.
5 5.(4) Charter District Supplemental Maintenance and Operation. Levies
6 pursuant to the respective charter of any such charter district shall be first
7 authorized through an election held pursuant to chapter 4, title 33, Idaho
8 Code, and approved by a majority of the district electors voting in such elec-
9 tion.
10 6. The Local District Contribution. The local school district contribu-
11 tion levy is the amount utilized for calculating local district participation
12 in the educational foundation program, which is applied to the adjusted mar-
13 ket value for assessment purposes, as such valuation existed on December 31 of
14 the previous year, together with the increment value, as defined in section
15 50-2903, Idaho Code, if applicable under the circumstance described in subsec-
16 tion 2. of this section, relating to termination of a revenue allocation area.
17 7.(5) The board of trustees of any school district that has, for at least
18 seven (7) consecutive years, been authorized through an election held pursuant
19 to chapter 4, title 33, Idaho Code, to certify a supplemental levy that has
20 annually been equal to or greater than twenty percent (20%) of the total gen-
21 eral maintenance and operation fund, may submit the question of an indefinite
22 term supplemental levy to the electors of the school district. Such question
23 shall clearly state the dollar amount that will be certified annually and that
24 the levy will be for an indefinite number of years. The question must be
25 approved by a majority of the district electors voting on the question in an
26 election held pursuant to chapter 4, title 33, Idaho Code. The levy approved
27 pursuant to this subsection may be reduced by a majority vote of the board of
28 trustees during any fiscal year.
29 (6) All voter approved levies, whether in charter or noncharter dis-
30 tricts, that were authorized prior to June 30, 2006, are hereby continued in
31 full force and effect for the duration of the term authorized.
32 SECTION 5. That Section 33-1002, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 33-1002. EDUCATIONAL SUPPORT PROGRAM. The educational support program is
35 calculated as follows:
36 (1.) State Educational Support Funds. Add the state appropriation,
37 including the moneys available in the public school income fund, together
38 with all miscellaneous revenues to determine the total state funds.
39 (2.) From the total state funds subtract the following amounts needed for
40 state support of special programs provided by a school district:
41 (a.) Pupil tuition-equivalency allowances as provided in section
42 33-1002B, Idaho Code;
43 (b.) Transportation support program as provided in section 33-1006, Idaho
44 Code;
45 (c.) Feasibility studies allowance as provided in section 33-1007A, Idaho
46 Code;
47 (d.) The approved costs for border district allowance, provided in sec-
48 tion 33-1403, Idaho Code, as determined by the state superintendent of
49 public instruction;
50 (e.) The approved costs for exceptional child approved contract allow-
51 ance, provided in subsection 2. of section 33-2004, Idaho Code, as deter-
52 mined by the state superintendent of public instruction;
53 (f.) Certain expectant and delivered mothers allowance as provided in
10
1 section 33-2006, Idaho Code;
2 (g.) Salary-based apportionment calculated as provided in sections
3 33-1004 through 33-1004F, Idaho Code;
4 (h.) Unemployment insurance benefit payments according to the provisions
5 of section 72-1349A, Idaho Code;
6 (i.) For expenditure as provided by the public school technology program;
7 (j.) For the support of provisions that provide a safe environment condu-
8 cive to student learning and maintain classroom discipline, an allocation
9 of $300 per support unit; and
10 (k.) Any additional amounts as required by statute to effect administra-
11 tive adjustments or as specifically required by the provisions of any bill
12 of appropriation;
13 to secure the state total educational support distribution funds.
14 (3.) Local Districts' Contribution Calculation. Without including any
15 allowance as a credit for prepaid taxes as provided by section 63-1607, Idaho
16 Code, the local districts' contribution shall be the amount appropriated
17 remitted pursuant to section 33-1002D, Idaho Code, plus three-tenths percent
18 (.3%) during fiscal year 2003-04 and each year thereafter, of the total state
19 adjusted market value for assessment purposes for the previous year with such
20 value being determined by the provisions of section 63-315, Idaho Code, and
21 four-tenths percent (.4%) during fiscal year 1994-95 and each year thereafter,
22 of the cooperative electrical associations' property values that have been
23 derived from the taxes paid in lieu of ad valorem taxes for the previous year
24 as provided in section 63-3502, Idaho Code.
25 4. Educational Support Program Distribution Funds. Add the local dis-
26 tricts' contribution, subsection 3. of this section, and the state educational
27 support program funds, subsection 1. of this section, together to secure the
28 total educational support program distribution funds.
29 5. Average Daily Attendance. The total state average daily attendance
30 shall be the sum of the average daily attendance of all of the school dis-
31 tricts of the state. The state board of education shall establish rules set-
32 ting forth the procedure to determine average daily attendance and the time
33 for, and method of, submission of such report. Average daily attendance calcu-
34 lation shall be carried out to the nearest hundredth. Computation of average
35 daily attendance shall also be governed by the provisions of section 33-1003A,
36 Idaho Code.
37 6.(4) Support Units. The total state support units shall be determined by
38 using the tables set out hereafter called computation of kindergarten support
39 units, computation of elementary support units, computation of secondary sup-
40 port units, computation of exceptional education support units, and computa-
41 tion of alternative school secondary support units. The sum of all of the
42 total support units of all school districts of the state shall be the total
43 state support units.
44 COMPUTATION OF KINDERGARTEN SUPPORT UNITS
45 Average Daily
46 Attendance Attendance Divisor Units Allowed
47 41 or more .... 40....................... 1 or more as computed
48 31 - 40.99 ADA.... -....................... 1
49 26 - 30.99 ADA.... -....................... .85
50 21 - 25.99 ADA.... -....................... .75
51 16 - 20.99 ADA.... -....................... .6
52 8 - 15.99 ADA.... -....................... .5
53 1 - 7.99 ADA.... -....................... count as elementary
11
1 COMPUTATION OF ELEMENTARY SUPPORT UNITS
2 Average Daily
3 Attendance Attendance Divisor Minimum Units Allowed
4 300 or more ADA........................................ 15
5 ..23...grades 4,5 & 6....
6 ..22...grades 1,2 & 3....1994-95
7 ..21...grades 1,2 & 3....1995-96
8 ..20...grades 1,2 & 3....1996-97
9 and each year thereafter.
10 160 to 299.99 ADA... 20..................... 8.4
11 110 to 159.99 ADA... 19..................... 6.8
12 71.1 to 109.99 ADA... 16..................... 4.7
13 51.7 to 71.0 ADA... 15..................... 4.0
14 33.6 to 51.6 ADA... 13..................... 2.8
15 16.6 to 33.5 ADA... 12..................... 1.4
16 1.0 to 16.5 ADA... n/a.................... 1.0
17 COMPUTATION OF SECONDARY SUPPORT UNITS
18 Average Daily
19 Attendance Attendance Divisor Minimum Units Allowed
20 750 or more .... 18.5..................... 47
21 400 - 749.99 ADA.... 16....................... 28
22 300 - 399.99 ADA.... 14.5..................... 22
23 200 - 299.99 ADA.... 13.5..................... 17
24 100 - 199.99 ADA.... 12....................... 9
25 99.99 or fewer Units allowed as follows:
26 Grades 7-12 ......................... 8
27 Grades 9-12 ......................... 6
28 Grades 7- 9 ......................... 1 per 14 ADA
29 Grades 7- 8 ......................... 1 per 16 ADA
30 COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS
31 Average Daily
32 Attendance Attendance Divisor Minimum Units Allowed
33 14 or more .... 14.5..................... 1 or more as computed
34 12 - 13.99.... -....................... 1
35 8 - 11.99.... -....................... .75
36 4 - 7.99.... -....................... .5
37 1 - 3.99.... -....................... .25
38 COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS
39 Pupils in Attendance Attendance Divisor Minimum Units Allowed
40 12 or more.......... 12...................... 1 or more as computed
41 In applying these tables to any given separate attendance unit, no school
42 district shall receive less total money than it would receive if it had a
43 lesser average daily attendance in such separate attendance unit. In applying
44 the kindergarten table to a kindergarten program of less days than a full
45 school year, the support unit allowance shall be in ratio to the number of
46 days of a full school year. The tables for exceptional education and alterna-
47 tive school secondary support units shall be applicable only for programs
48 approved by the state department of education following rules established by
49 the state board of education. Moneys generated from computation of support
50 units for alternative schools shall be utilized for alternative school pro-
51 grams. School district administrative and facility costs may be included as
12
1 part of the alternative school expenditures.
2 7.(5) State Distribution Factor per Support Unit. Divide educational sup-
3 port program distribution funds, after subtracting the amounts necessary to
4 pay the obligations specified in subsection (2.) of this section, by the total
5 state support units to secure the state distribution factor per support unit.
6 8.(6) District Share of State Funds for Educational Support Program.
7 Ascertain a district's share of state funds for the educational support pro-
8 gram as follows:
9 a. District Contribution Calculation. Without including any allowance as
10 a credit for prepaid taxes, as provided in section 63-1607, Idaho Code,
11 the district contribution calculation shall be the rate determined under
12 subsection 3. of this section.
13 b. District Support Units. The number of support units for each school
14 district in the state shall be determined as follows:
15 (a) (1i) Divide the actual average daily attendance, excluding students
16 approved for inclusion in the exceptional child educational program,
17 for the administrative schools and each of the separate schools and
18 attendance units by the appropriate divisor from the tables of sup-
19 port units in this section, then add the quotients to obtain the
20 district's support units allowance for regular students, kindergarten
21 through grade 12 including alternative school secondary students.
22 Calculations in application of this subsection shall be carried out
23 to the nearest tenth.
24 (2ii) Divide the combined totals of the average daily attendance of
25 all preschool, handicapped, kindergarten, elementary, secondary and
26 juvenile detention center students approved for inclusion in the
27 exceptional child program of the district by the appropriate divisor
28 from the table for computation of exceptional education support units
29 to obtain the number of support units allowed for the district's
30 approved exceptional child program. Calculations for this subsection
31 shall be carried out to the nearest tenth when more than one (1) unit
32 is allowed.
33 (3iii) The total number of support units of the district shall be the
34 sum of the total support units for regular students, subsection
35 8.b.(1) (6)(a)(i) of this section, and the support units allowance
36 for the approved exceptional child program, subsection 8.b.(2)
37 (6)(a)(ii) of this section.
38 c.(b) Total District Allowance Educational Program. Multiply the
39 district's total number of support units, carried out to the nearest
40 tenth, by the state distribution factor per support unit and to this prod-
41 uct add the approved amount of programs of the district provided in sub-
42 section (2.) of this section to secure the district's total allowance for
43 the educational support program.
44 d.(c) District Share. To secure tThe district's share of state apportion-
45 ment, subtract the amount of the local district contribution calculation,
46 subsection 3. of this section, from is the amount of the total district
47 allowance, subsection 8.c. (6)(b) of this section.
48 e.(d) Adjustment of District Share. The contract salary of every noncer-
49 tificated teacher shall be subtracted from the district's share as calcu-
50 lated from the provisions of subsection 8.d. (6)(c) of this section.
51 (7) In order to receive state funds pursuant to this section a charter
52 district shall utilize a school maintenance and operation property tax compu-
53 tation ratio for the purpose of calculating the moneys to be raised, that is
54 no greater than that which it utilized in tax year 1994, less four-tenths of
55 one percent (.4%). As used herein, the term "property tax computation ratio"
13
1 shall mean a ratio determined by dividing the district's certified property
2 tax maintenance and operation budget by the actual or adjusted market value
3 for assessment purposes as such values existed on December 31, l993.
4 SECTION 6. That Sections 33-1002A and 33-1002D, Idaho Code, be, and the
5 same are hereby repealed.
6 SECTION 7. That Section 33-1003, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 33-1003. SPECIAL APPLICATIONS OF EDUCATIONAL SUPPORT PROGRAM. (1.)
9 Decrease in Average Daily Attendance. -- Any school district which has a
10 decrease in total average daily attendance of one percent (1%) of its average
11 daily attendance in the then current school year from the total average daily
12 attendance used for determining the allowance in the educational support pro-
13 gram for the school year immediately preceding, the allowance of funds from
14 the educational support program may be based on the average daily attendance
15 of the school year immediately preceding, less one percent (1%). When this
16 provision is applied, the decrease in average daily attendance shall be pro-
17 portionately distributed among the various categories of support units that
18 are appropriate for the district.
19 (2.) Application of Support Program to Separate Schools/Attendance Units
20 in District.
21 (a.) Separate Elementary School. -- Any separate elementary school shall
22 be allowed to participate in the educational support program as though
23 the school were the only elementary school operated by the district.
24 (b.) Hardship Elementary School. -- Upon application of the board of
25 trustees of a school district, the state board of education is empowered
26 to determine that a given elementary school or elementary schools within
27 the school district, not otherwise qualifying, are entitled to be counted
28 as a separate elementary school as defined in section 33-1001, Idaho Code,
29 when, in the discretion of the state board of education, special condi-
30 tions exist warranting the retention of the school as a separate atten-
31 dance unit and the retention results in a substantial increase in cost per
32 pupil in average daily attendance above the average cost per pupil in
33 average daily attendance of the remainder of the district's elementary
34 grade school pupils. An elementary school operating as a previously
35 approved hardship elementary school shall continue to be considered as a
36 separate attendance unit, unless the hardship status of the elementary
37 school is rescinded by the state board of education.
38 (c.) Separate Secondary School. -- Any separate secondary school shall be
39 allowed to participate in the educational support program as though the
40 school were the only secondary school operated by the district.
41 (d.) Elementary/Secondary School Attendance Units. -- Elementary grades
42 in an elementary/secondary school will be funded as a separate attendance
43 unit if all elementary grades served are situated more than ten (10) miles
44 distance from both the nearest like elementary grades within the same
45 school district and from the location of the office of the superintendent
46 of schools of such district, or from the office of the chief administra-
47 tive officer of such district if the district employs no superintendent of
48 schools. Secondary grades in an elementary/secondary school will be funded
49 as a separate attendance unit if all secondary grades served are located
50 more than fifteen (15) miles by an all-weather road from the nearest like
51 secondary grades operated by the district.
52 (e.) Hardship Secondary School. -- Any district which operated two (2)
14
1 secondary schools separated by less than fifteen (15) miles, but which
2 district was created through consolidation subsequent to legislative
3 action pursuant to chapter 111, laws of 1947, and which school buildings
4 were constructed prior to 1935, shall be entitled to count the schools as
5 separate attendance units.
6 (f.) Minimum Pupils Required. -- Any elementary school having less than
7 ten (10) pupils in average daily attendance shall not be allowed to par-
8 ticipate in the state or county support program unless the school has been
9 approved for operation by the state board of education.
10 (3.) Remote Schools. -- The board of trustees of any Idaho school dis-
11 trict which operates and maintains a school which is remote and isolated from
12 the other schools of the state because of geographical or topographical condi-
13 tions may petition the state board of education to recognize and approve the
14 school as a remote and necessary school. The petition shall be in form and
15 content approved by the state board of education and shall provide such infor-
16 mation as the state board of education may require. Petitions for the recogni-
17 tion of a school as a remote and necessary school shall be filed annually at
18 least ninety (90) days prior to the date of the annual meeting of the board of
19 trustees as established in section 33-510, Idaho Code.
20 Within forty-five (45) days after the receipt of a petition for the recog-
21 nition of a remote and necessary school, the state board of education shall
22 either approve or disapprove the petition and notify the board of trustees of
23 its decision. Schools which the state board of education approves as being
24 necessary and remote shall be allowed adequate funding within the support pro-
25 gram for an acceptable educational program for the students of the school. In
26 the case of a remote and necessary secondary school, grades 7-12, the educa-
27 tional program shall be deemed acceptable when, in the opinion of the state
28 board of education, the accreditation standard relating to staff size, estab-
29 lished in accordance with section 33-119, Idaho Code, has been met. The final
30 determination of an acceptable program and adequate funding in the case of a
31 remote and necessary elementary school shall be made by the state board of
32 education.
33 (4.) Support Program When District Boundaries are Changed.
34 (a.) In new districts formed by the division of a district, the support
35 program computed for the district divided in its last year of operation,
36 shall be apportioned to the new districts created by the division, in the
37 proportion that the average daily attendance of pupils, elementary and
38 secondary combined, residing in the area of each new district so created,
39 is to the average daily attendance of all pupils, elementary and secondary
40 combined, in the district divided in its last year of operation before the
41 division.
42 (b.) When boundaries of districts are changed by excision or annexation
43 of territory, the support program of any district from which territory is
44 excised for the last year of operation before such excision shall be
45 divided, and apportioned among the districts involved, as prescribed in
46 subsection 4a. (4)(a) of this section.
47 (c.) In new districts formed by consolidation of former districts, the
48 support program allowance for a seven (7) year period following the forma-
49 tion of the new district, shall not be less than the combined support pro-
50 gram allowances of the component districts in the last year of operation
51 before consolidation.
52 5. For the fiscal year which commences on July 1, 1986, and for each suc-
53 ceeding fiscal year, any school district whose adjusted market value for
54 assessment purposes decreases forty percent (40%) or more from the previous
55 year's adjusted market value for assessment purposes as such valuation existed
15
1 on December 31, is eligible to receive an adjustment to its educational sup-
2 port program entitlement, subject to qualifications as follows:
3 a. The adjusted market value for assessment purposes has decreased forty
4 percent (40%) or more from the previous year's adjusted market value for
5 assessment purposes as such valuation existed on December 31; and
6 b. The school levy to be certified for the general maintenance and opera-
7 tion fund shall be no less than four-tenths of one percent (.4%); and
8 c. An eligible school district has made application to the state depart-
9 ment of education for an adjustment to entitlement from the state educa-
10 tional support program on or before June 1 of the fiscal year. Such appli-
11 cation must document the need for additional funds and must include a dis-
12 trict plan to minimize impact of a reduced local tax base.
13 SECTION 8. The State Department of Education shall utilize the provisions
14 of Sections 33-802, 33-1002, 33-1002A, 33-1002D and 33-1003, Idaho Code, as
15 they existed prior to amendment by the provisions of this act for the purposes
16 of funding public schools through the end of fiscal year 2006.
17 SECTION 9. That Section 33-701, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 33-701. FISCAL YEAR -- PAYMENT AND ACCOUNTING OF FUNDS. The fiscal year
20 of each school district shall be a period of twelve (12) months commencing on
21 the first day of July in each year.
22 The board of trustees of each school district shall have the following
23 powers and duties:
24 1. To determine and order paid all lawful expenses for salaries, wages
25 and purchases, whether or not there be money in the treasury for payment of
26 warrants drawn against any fund of the district. Warrants shall be signed by
27 the treasurer of the district and countersigned by the chairman or vice-chair-
28 man of the board of trustees.
29 Whenever any school district has sufficient funds on deposit so to do, it
30 may pay any allowed claim for salaries, wages or purchases by regular bank
31 check signed by the treasurer or assistant treasurer of the district and coun-
32 tersigned by the chairman, or vice-chairman, of the board of trustees.
33 The total amount of warrants or orders for warrants drawn on any fund,
34 together with disbursements from such fund in any other manner made, shall not
35 exceed ninety-five percent (95%) of the estimated income and revenue accrued
36 or accruing to such fund for the same school year, until such income and reve-
37 nue shall have been paid into the treasury to the credit of the district;
38 2. To invest all or part of any plant facilities reserve fund, or any
39 fund accumulated for the payment of interest on, and the redemption of, out-
40 standing bonds, or other obligations of the district in bonds or certificates
41 of indebtedness of the United States of America, or in bonds or warrants of
42 the state of Idaho, or in warrants or tax anticipation notes of any county or
43 school district of the state of Idaho, when such investments shall be due and
44 payable on or before the date any plant facilities reserve fund shall be
45 required to be expended or any bonds or other obligations, or interest
46 thereon, of the investing district shall become payable.
47 Whenever in the judgment of the board of trustees, the proceeds of any
48 bond issue should be temporarily invested pending the expenditure of such
49 proceeds for the purposes for which such bonds were issued, the proceeds may
50 be invested in the manner and form hereinabove prescribed. Any interest, or
51 profits accruing from such investments shall be used for the purposes for
52 which the bonds were issued. Unless otherwise provided by law, any interest or
16
1 profits accruing from the investment of any funds shall be credited to the
2 general fund of the district;
3 3. To insure any school house schoolhouse and other property, and the
4 district, against any loss by fire, casualty, or liability, and the board, its
5 officers and employees, and to preserve its property for the benefit of the
6 district. In case of loss of any insured property, any proceeds from insur-
7 ance:
8 (a) mMay be expended in constructing a temporary or permanent structure,
9 but no sum greater than the insurance proceeds shall be so expended except
10 upon approval of a majority of the school district electors voting in an
11 election called for that purpose; or
12 (b) mMay be placed in and made a part of the school plant facilities
13 reserve fund of the district, if the district has such a fund; or
14 (c) mMay be placed in a separate account in the bond interest and redemp-
15 tion fund of the district to repay any kind of obligation incurred by the
16 district in replacing or restoring the property for which the insurance
17 proceeds were received, and shall not be included in the computations of
18 bond and bond interest levies as provided in section 33-802A, Idaho Code.
19 If the proceeds of any insurance received by a school district by reason
20 of loss on real property shall be less than five thousand dollars ($5,000),
21 such proceeds may be credited to the general fund of the district;
22 4. To pay from the general fund of the district the expense of any member
23 of the board incurred while traveling on the business of the board, or attend-
24 ing any meeting called by the state board of education or by the state super-
25 intendent of public instruction, or attending any annual or special meetings
26 of the state school trustees association, and to pay the membership fee of the
27 board of trustees in said association. Whenever any member of the board of
28 trustees resides at such distance from the meeting place of the board as to
29 require, in the judgment of the board, such member to incur extraordinary
30 expense in traveling from his home to and from said meeting place, the board
31 may approve payment to such member of the extraordinary expense incurred in
32 attending any meeting of the board.
33 For the purpose of this paragraph, the term "expense" or "extraordinary
34 expense" shall include allowance for mileage or actual travel expense incur-
35 red;
36 5. To prepare, or cause to be prepared and published, in the manner here-
37 inafter prescribed, within one hundred twenty (120) days from the last day of
38 each fiscal year, an annual statement of financial condition and report of the
39 school district as of the end of such fiscal year in a form prescribed by the
40 state superintendent of public instruction. Such annual statement shall
41 include, but not be limited to, the amounts of money budgeted and received and
42 from what sources, and the amounts budgeted and expended for salaries and
43 other expenses by category. Salaries may be reported in gross amount. Each
44 school district shall have available at the administrative office, upon
45 request, a full and complete list of vendors and the amount paid to each and a
46 list of the number of teachers paid at each of the several stated gross salary
47 levels in effect in the district.
48 Nothing herein provided shall be construed as limiting any school district
49 as to any additional or supplementary statements and reports it may elect to
50 make for the purpose of informing the public of its financial operations,
51 either as to form, content, method, or frequency; and if all the information
52 required herein to be published shall have been published as provided herein
53 at regular intervals during the fiscal year covering successive portions of
54 the fiscal year, then such information may be omitted from the annual state-
55 ment of financial condition and report for such portions of the fiscal year as
17
1 already have been reported.
2 The annual statement of financial condition and report shall be published
3 within the time above prescribed in one (1) issue of a newspaper printed and
4 published within the district, or, if there be none, then in a newspaper as
5 provided in section 60-106, Idaho Code, published within the district, or, if
6 there be none, then in a newspaper as provided in section 60-106, Idaho Code,
7 in the county in which the school district is located, or, if more than one
8 (1) newspaper is published in said district or county, then in the newspaper
9 most likely to give best general notice of the contents of such annual state-
10 ment of financial condition and report to the residents of said district; pro-
11 vided, that if no newspaper is published in the district or county, then such
12 statement of financial condition and report shall be published in a newspaper
13 as provided in section 60-106, Idaho Code, most likely to give best general
14 notice of the contents to the residents of said district.
15 The chairman, clerk and treasurer of each school district shall certify
16 the annual statement of financial condition and report to be true and correct,
17 and the certification shall be included in each published statement.
18 In the event the board of trustees of any school district shall fail to
19 prepare or cause to be prepared or to publish the annual statement of finan-
20 cial condition and report as herein required, the state superintendent of pub-
21 lic instruction shall cause the same to be prepared and published, and the
22 cost thereof shall be an obligation of the school district. One (1) copy of
23 the annual statement of financial condition and report shall be retained in
24 the office of the clerk of the board of school trustees, where the same shall
25 be open at all times to examination and inspection by any person;
26 6. To cause to be made a full and complete audit of the financial state-
27 ments of the district as required in section 67-450B, Idaho Code.
28 The auditor shall be employed on written contract.
29 One (1) copy of the audit report shall be filed with the state department
30 of education, after its acceptance by the board of trustees, but not later
31 than October 15;
32 7. To file annually with the state department of education such financial
33 and statistical reports as said state superintendent of public instruction may
34 require;
35 8. To order and have destroyed any canceled check or warrant, or any form
36 of claim or voucher which has been paid, at any time after five (5) years from
37 the date the same was canceled and paid;
38 9. To review the school district budget periodically and make appropriate
39 budget adjustments to reflect the availability of funds and the requirements
40 of the school district. Revenue derived from maintenance and operation levies
41 made pursuant to section 33-802 2, Idaho Code, shall be excluded from budget
42 adjustments as provided in this paragraph. Any person or persons proposing a
43 budget adjustment under this section shall notify in writing each member of
44 the board of trustees one (1) week prior to the meeting at which such proposal
45 will be made. Prior to the final vote on such a proposal, notice shall be
46 posted and published once, as prescribed in section 33-402, Idaho Code. A bud-
47 get adjustment shall not be approved unless voted affirmatively by sixty per-
48 cent (60%) of the members of the board of trustees. Such amended budgets shall
49 be submitted to the state superintendent of public instruction;
50 10. To invest any money coming into the hands of the school district in
51 investments permitted by section 67-1210, Idaho Code. Unless otherwise pro-
52 vided by law, any interest or profits accruing from the investment of any
53 funds shall be credited to the general fund of the district.
54 SECTION 10. That Section 33-802A, Idaho Code, be, and the same is hereby
18
1 amended to read as follows:
2 33-802A. COMPUTATION OF BOND AND BOND INTEREST LEVIES. When the board of
3 trustees of any school district determines and makes the a levy required
4 allowed by section 33-802, Idaho Code, and incorporates such levy as a part of
5 the school district's budget to service all maturing bond and bond interest
6 payments for the ensuing fiscal year, it shall take into consideration any
7 state bond levy equalization funds provided pursuant to section 33-906, Idaho
8 Code, and any balances remaining or that may remain in its bond interest and
9 redemption fund after meeting its bond and bond interest obligations for its
10 current fiscal year. The levy so made for the ensuing fiscal year shall be an
11 amount which, together with any state bond levy equalization funds provided
12 pursuant to section 33-906, Idaho Code, and the balance in its bond interest
13 and redemption fund remaining after meeting its current fiscal year bond and
14 bond interest obligations, shall satisfy all maturing bond and bond interest
15 payments for at least the ensuing twelve (12) months, and not to exceed the
16 ensuing twenty-one (21) months counted from July 1 of the current calendar
17 year.
18 SECTION 11. That Section 33-808, Idaho Code, be, and the same is hereby
19 repealed.
20 SECTION 12. That Section 33-905, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 33-905. SCHOOL DISTRICT BUILDING ACCOUNT -- PAYMENTS TO ACCOUNT -- MONEYS
23 APPROPRIATED TO STATE BOARD -- APPLICATION FOR MONEYS -- PAYMENTS TO DISTRICTS
24 -- REPORTS ON APPLICATIONS -- USES OF MONEYS. 1. The state of Idaho, recogniz-
25 ing its responsibility to establish and maintain a general, uniform and thor-
26 ough system of public, free common schools, in an effort to partially fulfill
27 this responsibility, hereby creates and establishes the school district build-
28 ing account in the state treasury. The school district building account shall
29 have paid into it such appropriations or revenues as may be provided by law.
30 2. Moneys in the school district building account are hereby appropriated
31 to and may be expended by the state board of education at any time for the
32 purposes provided in this section, any provision of chapter 35, title 67,
33 Idaho Code, or chapter 36, title 67, Idaho Code, notwithstanding.
34 3. (a) As to any moneys in the account other than lottery dividends dis-
35 tributed pursuant to subsection 4. of this section, the board of trustees
36 of any school district may apply to the state board of education to
37 receive a payment or payments from the school district building account;
38 provided, a district demonstrates to the state board of education that it
39 has a substantial and serious need based upon the district's classroom
40 student-teacher ratios, past efforts to levy for such construction, physi-
41 cal condition of existing structures, and the total assessed market value
42 of the district, all of which shall be further defined by actual need
43 criteria established by the state board of education.
44 (b) When an application for moneys from the account is approved by the
45 state board of education, the state board shall inform the school district
46 that the application has been approved, citing the amount approved for
47 payment and an estimate of the time when the payment can actually be made
48 to the school district.
49 4. By not later than August 31, moneys in the account pursuant to distri-
50 bution from section 67-7434, Idaho Code, the lottery dividends and interest
51 earned thereon, shall be distributed to each of the several school districts,
19
1 in the proportion that the average daily attendance of that district for the
2 previous school year bears to the total average daily attendance of the state
3 during the previous school year. For the purposes of this subsection 4. only,
4 the Idaho school for the deaf and blind shall be considered a school district,
5 and shall receive a distribution based upon the average daily attendance of
6 the school. Average daily attendance shall be calculated as provided in sec-
7 tion 33-1002 4.(3), Idaho Code.
8 5. All payments from the school district building account shall be paid
9 out directly to the school district in warrants drawn by the state controller
10 upon presentation of proper vouchers from the state board of education. Pend-
11 ing payments out of the school district building account, the moneys in the
12 account shall be invested by the state treasurer in the same manner as pro-
13 vided under section 67-1210, Idaho Code, with respect to other idle moneys in
14 the state treasury. Interest earned on the investments shall be returned to
15 the school district building account.
16 6. Payments from the school district building account received by a
17 school district may be used by the school district for the purposes authorized
18 in section 33-1102, Idaho Code.
19 7. (a) By not later than December 1, each school district shall report to
20 the state department of education the projects on which moneys received
21 from the school district building account were expended. The state depart-
22 ment of education shall transmit a summary of such reports to the legisla-
23 ture by not later than January 15 of the following year.
24 (b) By not later than December 1, each school district shall report to
25 the state department of education the planned uses for the moneys received
26 from the school district building account. The state department of educa-
27 tion shall transmit a summary of the reports to the legislature by not
28 later than January 15 of the following year.
29 SECTION 13. That Section 33-1004, Idaho Code, be, and the same is hereby
30 amended to read as follows:
31 33-1004. STAFF ALLOWANCE. For each school district, a staff allowance
32 shall be determined as follows:
33 1. Using the daily attendance reports that have been submitted for com-
34 puting the February 15th apportionment of state funds as provided in section
35 33-1009, Idaho Code, determine the total support units for the district in the
36 manner provided in section 33-1002 8.b. (6)(a), Idaho Code;
37 2. Determine the instructional staff allowance by multiplying the support
38 units by 1.1. A district must demonstrate that it actually employs the number
39 of certificated instructional staff allowed. If the district does not employ
40 the number allowed, the staff allowance shall be reduced to the actual number
41 employed;
42 3. Determine the administrative staff allowance by multiplying the sup-
43 port units by .075;
44 4. Determine the classified staff allowance by multiplying the support
45 units by .375;
46 5. Additional conditions governing staff allowance:
47 a. In determining the number of staff in subsections 2., 3. and 4. of
48 this section, a district may contract separately for services to be ren-
49 dered by nondistrict employees and such employees may be counted in the
50 staff allowance. A "nondistrict employee" means a person for whom the
51 school district does not pay the employer's obligations for employee bene-
52 fits. When a district contracts for the services of a nondistrict
53 employee, only the salary portion of the contract shall be allowable for
20
1 computations.
2 b. If there are circumstances preventing eligible use of staff allowance
3 to which a district is entitled as provided in subsections 2. and 3. of
4 this section, an appeal may be filed with the state department of educa-
5 tion outlining the reasons and proposed alternative use of these funds,
6 and a waiver may be granted.
7 c. For any district with less than forty (40) support units:
8 (1) The instructional staff allowance shall be calculated applying
9 the actual number of support units. If the actual instructional staff
10 employed in the school year is greater than the instructional staff
11 allowance, then the instructional staff allowance shall be increased
12 by one-half (1/2) staff allowance; and
13 (2) The administrative staff allowance shall be calculated applying
14 the actual number of support units. If the actual administrative
15 staff employed in the school year is greater than the administrative
16 staff allowance, then the administrative staff allowance shall be
17 increased by one-half (1/2) staff allowance.
18 (3) Additionally, for any district with less than twenty (20) sup-
19 port units, the instructional staff allowance shall be calculated
20 applying the actual number of support units. If the number of
21 instructional staff employed in the school year is greater than the
22 instructional staff allowance, the staff allowance shall be increased
23 as provided in paragraphs (1) and (2) of this subsection, and by an
24 additional one-half (1/2) instructional staff allowance.
25 d. Only instructional, administrative and classified personnel compen-
26 sated by the school district from the general maintenance and operation
27 fund of the district shall be included in the calculation of staff allow-
28 ance or in any other calculations based upon staff, including determina-
29 tion of the experience and education multiplier, the reporting require-
30 ments, or the district's salary-based apportionment calculation. No food
31 service staff or transportation staff shall be included in the staff
32 allowance.
33 6. In the event that the staff allowance in any category is insufficient
34 to meet accreditation standards, a district may appeal to the state board of
35 education, demonstrating the insufficiency, and the state board may grant a
36 waiver authorizing sufficient additional staff to be included within the staff
37 allowance to meet accreditation standards. Such a waiver shall be limited to
38 one (1) year, but may be renewed upon showing of continuing justification.
39 SECTION 14. That Section 33-1114, Idaho Code, be, and the same is hereby
40 amended to read as follows:
41 33-1114. LEVY FOR LIQUIDATION OF BONDED INDEBTEDNESS. Whenever it shall
42 appear that the board of trustees of any school district has failed to certify
43 to the board of county commissioners the levy required in section 33-802,
44 Idaho Code, said The board of county commissioners shall, in addition to all
45 other levies set by them, set levies sufficient to meet all accruing bond,
46 bond interest and judgment obligations of the district maturing during the
47 year when such levies shall be collected and paid.
48 SECTION 15. That Section 33-5208, Idaho Code, be, and the same is hereby
49 amended to read as follows:
50 33-5208. PUBLIC CHARTER SCHOOL FINANCIAL SUPPORT. Except as provided in
51 subsection (8) of this section, from the state educational support program the
21
1 state department of education shall make the following apportionment to each
2 public charter school for each fiscal year based on attendance figures submit-
3 ted in a manner and time as required by the department of education:
4 (1) Per student support. Computation of support units for each public
5 charter school shall be calculated as if it were a separate school according
6 to the schedules in section 33-1002 6. (4), Idaho Code, except that public
7 charter schools with fewer than one hundred (100) secondary ADA shall use a
8 divisor of twelve (12) and the minimum units shall not apply, and no public
9 charter school shall receive an increase in support units that exceeds the
10 support units it received in the prior year by more than twenty (20). Funding
11 from the state educational support program shall be equal to the total distri-
12 bution factor, plus the salary-based apportionment provided in chapter 10,
13 title 33, Idaho Code. Provided however, any public charter school that is
14 formed by the conversion of an existing traditional public school shall be
15 assigned divisors, pursuant to section 33-1002, Idaho Code, that are no lower
16 than the divisors of the school district in which the traditional public
17 school is located, for each category of pupils listed.
18 (2) Special education. For each student enrolled in the public charter
19 school who is entitled to special education services, the state and federal
20 funds from the exceptional child education program for that student that would
21 have been apportioned for that student to the school district in which the
22 public charter school is located.
23 (3) Alternative school support. Public charter schools may qualify under
24 the provisions of sections 33-1002 and 33-1002C, Idaho Code, provided the pub-
25 lic charter school meets the necessary statutory requirements, and students
26 qualify for attendance at an alternative school as provided by rule of the
27 state board of education.
28 (4) Transportation support. Support shall be paid to the public charter
29 school as provided in chapter 15, title 33, Idaho Code, and section 33-1006,
30 Idaho Code. Each public charter school shall furnish the department with an
31 enrollment count as of the first Friday in November, of public charter school
32 students living more than one and one-half (1 1/2) miles from the school. For
33 charter schools in the initial year of operation, the petition shall include a
34 proposal for transportation services with an estimated first year cost. The
35 state department of education is authorized to include in the annual appropri-
36 ation to the charter school eighty percent (80%) of the estimated transporta-
37 tion cost. The final appropriation payment in July shall reflect eighty-five
38 percent (85%) of the actual cost.
39 (5) Payment schedule. The state department of education is authorized to
40 make an advance payment of twenty-five percent (25%) of a public charter
41 school's estimated annual apportionment for its first year of operation, and
42 each year thereafter, provided the public charter school has an increase of
43 student population in any given year of twenty (20) students or more, to
44 assist the school with initial start-up costs or payroll obligations.
45 (a) For a state public charter school to receive the advance payment, the
46 school shall submit its anticipated fall membership for each grade level
47 to the state department of education by June 1.
48 (b) Using the figures provided by the public charter school, the state
49 department of education shall determine an estimated annual apportionment
50 from which the amount of the advance payment shall be calculated. Advance
51 payment shall be made to the school on or after July 1 but no later than
52 July 31.
53 (c) All subsequent payments, taking into account the one-time advance
54 payment made for the first year of operation, shall be made to the public
55 charter school in the same manner as other traditional public schools in
22
1 accordance with the provisions of section 33-1009, Idaho Code.
2 A public charter school shall comply with all applicable fiscal requirements
3 of law, except that the following provisions shall not be applicable to public
4 charter schools: section 33-1003B, Idaho Code, relating to guaranteed minimum
5 support; that portion of section 33-1004, Idaho Code, relating to reduction of
6 the administrative and instructional staff allowance when there is a discrep-
7 ancy between the number allowed and the number actually employed; and section
8 33-1004E, Idaho Code, for calculation of district staff indices.
9 (6) Nothing in this chapter shall be construed to prohibit any private
10 person or organization from providing funding or other financial assistance to
11 the establishment or operation of a public charter school.
12 (7) Nothing in this chapter shall prevent a public charter school from
13 applying for federal grant moneys.
14 (8) (a) For the period July 1, 2003, through June 30, 2005, all public
15 virtual schools shall be assigned divisors, pursuant to section 33-1002,
16 Idaho Code, that are no higher than the median divisor shown for each
17 respective category of pupils, among the possible divisors listed, for
18 each respective category of pupils that contains more than one (1) divi-
19 sor. If there is an even number of possible divisors listed for a particu-
20 lar category of pupils, then the lesser of the two (2) median divisors
21 shall be used. For the period July 1, 2005, through June 30, 2007, all
22 public virtual schools shall be assigned divisors, pursuant to section
23 33-1002, Idaho Code, that are no higher than the second highest divisor
24 shown, among the possible divisors listed, for each respective category of
25 pupils that contains more than one (1) divisor. The divisor provisions
26 contained herein shall only be applicable to the number of pupils in aver-
27 age daily attendance in such public virtual schools for the period July 1,
28 2003, through June 30, 2004. If the number of pupils in average daily
29 attendance in any particular category of pupils increases, during the
30 period July 1, 2004, through June 30, 2005, to a number above that which
31 existed in the prior fiscal year, then those additional pupils in average
32 daily attendance shall be assigned the divisor, pursuant to section
33 33-1002, Idaho Code, that would have otherwise been assigned to the school
34 district or public charter school had this section not been in force.
35 (b) Each student in attendance at a public virtual school shall be funded
36 based upon either the actual hours of attendance in the public virtual
37 school on a flexible schedule, or the percentage of coursework completed,
38 whichever is more advantageous to the school, up to the maximum of one (1)
39 full-time equivalent student.
40 (c) All federal educational funds shall be administered and distributed
41 to public charter schools, including public virtual schools, that have
42 been designated by the state board of education as a local education
43 agency (LEA), as provided in section 33-5203(7), Idaho Code.
44 (9) Nothing in this section prohibits separate face-to-face learning
45 activities or services.
46 SECTION 16. That Section 50-2908, Idaho Code, be, and the same is hereby
47 amended to read as follows:
48 50-2908. DETERMINATION OF TAX LEVIES -- CREATION OF SPECIAL FUND. (1) For
49 purposes of calculating the rate at which taxes shall be levied by or for each
50 taxing district in which a revenue allocation area is located, the county com-
51 missioners shall, with respect to the taxable property located in such revenue
52 allocation area, use the equalized assessed value of such taxable property as
53 shown on the base assessment roll rather than on the current equalized
23
1 assessed valuation of such taxable property.
2 (2) With respect to each such taxing district, the tax rate calculated
3 under subsection (1) of this section shall be applied to the current equalized
4 assessed valuation of all taxable property in the taxing district, including
5 the taxable property in the revenue allocation area. The tax revenues thereby
6 produced shall be allocated as follows:
7 (a) To the taxing district shall be allocated and shall be paid by the
8 county treasurer:
9 (i) All taxes levied by the taxing district or on its behalf on
10 taxable property located within the taxing district but outside the
11 revenue allocation area;
12 (ii) A portion of the taxes levied by the taxing district or on its
13 behalf on the taxable property located within the revenue allocation
14 area, which portion is the amount produced by applying the taxing
15 district's tax rate determined under subsection (1) of this section
16 to the equalized assessed valuation, as shown on the base assessment
17 roll, of the taxable property located within the revenue allocation
18 area; and
19 (iii) If such taxing district is a school district, a further portion
20 of the taxes levied by such district or on its behalf on the taxable
21 property located within the revenue allocation area, which portion is
22 the amount equal to the percentage specified in section
23 33-1002(7)(a), Idaho Code, multiplied by the difference between the
24 current equalized assessed valuation of such taxable property and the
25 equalized assessed valuation of such taxable property as shown on the
26 base assessment roll.
27 (b) To the urban renewal agency shall be allocated the balance, if any,
28 of the taxes levied on the taxable property located within the revenue
29 allocation area.
30 (3) Upon enactment of an ordinance adopting a revenue allocation financ-
31 ing provision as part of an urban renewal plan, the urban renewal agency shall
32 create a special fund or funds to be used for the purposes enumerated in this
33 chapter. The revenues allocated to the urban renewal agency pursuant to this
34 chapter, shall be paid to the agency by the treasurer of the county in which
35 the revenue allocation district is located and shall be deposited by the
36 agency into one (1) or more of such special funds. The agency may, in addi-
37 tion, deposit into such special fund or funds such other income, proceeds,
38 revenues and funds it may receive from sources other than the revenues allo-
39 cated to it under subsection (2)(b) of this section.
40 (4) For the purposes of section 63-803, Idaho Code, during the period
41 when revenue allocation under this chapter is in effect, and solely with
42 respect to any taxing district in which a revenue allocation area is located,
43 the county commissioners shall, in fixing any tax levy, take into consider-
44 ation the equalized assessed valuation of the taxable property situated in the
45 revenue allocation area as shown in the base assessment roll, rather than the
46 current equalized assessed value of such taxable property.
47 (5) For all other purposes, including, without limitation, for purposes
48 of sections 33-802, 33-1002 and 63-1313, Idaho Code, reference in the Idaho
49 Code to the term "market value for assessment purposes" (or any other such
50 similar term) shall mean market value for assessment purposes as defined in
51 section 63-208, Idaho Code.
52 SECTION 17. That Section 63-802, Idaho Code, be, and the same is hereby
53 amended to read as follows:
24
1 63-802. LIMITATION ON BUDGET REQUESTS -- LIMITATION ON TAX CHARGES --
2 EXCEPTIONS. (1) Except as provided in subsection (3) of this section for tax
3 year 1995, and each year thereafter, 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 greater of:
6 (a) The dollar amount of property taxes certified for its annual budget
7 for any one (1) of the three (3) tax years preceding the current tax year,
8 whichever is greater, which amount may be increased by a growth factor of
9 not to exceed three percent (3%) plus the amount of revenue that would
10 have been generated by applying the levy of the previous year, not includ-
11 ing any levy described in subsection (4) of this section, to any increase
12 in market value subject to taxation resulting from new construction or
13 change of land use classification as evidenced by the value shown on the
14 new construction roll compiled pursuant to section 63-301A, Idaho Code;
15 and by the value of annexation during the previous calendar year, as cer-
16 tified by the state tax commission for market values of operating property
17 of public utilities and by the county assessor; or
18 (b) The dollar amount of property taxes certified for its annual budget
19 during the last year in which a levy was made; or
20 (c) The dollar amount of the actual budget request, if the taxing dis-
21 trict is newly created except as may be provided in subsection (1)(hg) of
22 this section; or
23 (d) In the case of school districts, the restriction imposed in section
24 33-802, Idaho Code; or
25 (e) In the case of a nonschool taxing district for which less than the
26 maximum allowable increase in the dollar amount of property taxes is cer-
27 tified for annual budget purposes in any one (1) year, such a district
28 may, in any following year, recover the foregone increase by certifying,
29 in addition to any increase otherwise allowed, an amount not to exceed one
30 hundred percent (100%) of the increase originally foregone. Said addi-
31 tional amount shall be included in future calculations for increases as
32 allowed; or
33 (fe) In the case of cities, if the immediately preceding year's levy sub-
34 ject to the limitation provided by this section, is less than 0.004, the
35 city may increase its budget by an amount not to exceed the difference
36 between 0.004 and actual prior year's levy multiplied by the prior year's
37 market value for assessment purposes. The additional amount must be
38 approved by sixty percent (60%) of the voters voting on the question at an
39 election called for that purpose and held on the date in May or November
40 provided by law, and may be included in the annual budget of the city for
41 purposes of this section; or
42 (gf) A taxing district may submit to the electors within the district the
43 question of whether the budget from property tax revenues may be increased
44 beyond the amount authorized in this section, but not beyond the levy
45 authorized by statute. The additional amount must be approved by sixty-six
46 and two-thirds percent (66 2/3%) or more of the voters voting on the ques-
47 tion at an election called for that purpose and held on the May or Novem-
48 ber dates provided by section 34-106, Idaho Code. If approved by the
49 required minimum sixty-six and two-thirds percent (66 2/3%) of the voters
50 voting at the election, the new budget amount shall be the base budget for
51 the purposes of this section; or
52 (hg) When a nonschool taxing district consolidates with another non-
53 school taxing district or dissolves and a new district performing similar
54 governmental functions as the dissolved district forms with the same
55 boundaries within three (3) years, the maximum amount of a budget of the
25
1 district from property tax revenues shall not be greater than the sum of
2 the amounts that would have been authorized by this section for the dis-
3 trict itself or for the districts that were consolidated or dissolved and
4 incorporated into a new district; or
5 (ih) In the instance or case of cooperative service agencies, the
6 restrictions imposed in sections 33-315 through 33-318, Idaho Code.
7 (2) In the case of fire districts, during the year immediately following
8 the election of a public utility or public utilities to consent to be provided
9 fire protection pursuant to section 31-1422, Idaho Code, the maximum amount of
10 property tax revenues permitted in subsection (1) of this section may be
11 increased by an amount equal to the current year's taxable value of the con-
12 senting public utility or public utilities multiplied by that portion of the
13 prior year's levy subject to the limitation provided by subsection (1) of this
14 section.
15 (3) No board of county commissioners shall set a levy, nor shall the
16 state tax commission approve a levy for annual budget purposes which exceeds
17 the limitation imposed in subsection (1) of this section, unless authority to
18 exceed such limitation has been approved by a majority of the taxing
19 district's electors voting on the question at an election called for that pur-
20 pose and held pursuant to section 34-106, Idaho Code, provided however, that
21 such voter approval shall be for a period of not to exceed two (2) years.
22 (4) The amount of property tax revenues to finance an annual budget does
23 not include revenues from nonproperty tax sources, and does not include reve-
24 nue from levies that are voter approved for bonds, override levies or supple-
25 mental levies, plant facilities reserve fund levies, school emergency fund
26 levies or for levies applicable to newly annexed property or for levies appli-
27 cable to new construction as evidenced by the value of property subject to the
28 occupancy tax pursuant to section 63-317, Idaho Code, for the preceding tax
29 year.
30 SECTION 18. That Section 63-802A, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 63-802A. NOTICE OF BUDGET HEARING. (1) Not later than April 30 of each
33 year, each taxing district shall set and notify the county clerk of the date
34 and location set for the budget hearing of the district. If no budget hearing
35 is required by law, the county clerk shall be so notified.
36 (2) Beginning in 2003, a nonschool taxing district that fails to comply
37 with subsection (1) of this section shall be prohibited from including in its
38 budget any budget increase otherwise permitted by either subsection (1)(a) or
39 (1)(ed) of section 63-802, Idaho Code.
40 (3) Beginning in 2003, a school district that fails to comply with sub-
41 section (1) of this section shall be prohibited, in the year of such failure,
42 from increasing the portion of its property tax budget raised under section
43 33-802 2., Idaho Code, over the amount of the immediately preceding year.
44 (4) If a taxing district wishes to change the time and location of such
45 budget hearing as stated on the assessment notice, they shall publish such
46 change of time and location in advance of such hearing as provided by law.
47 SECTION 19. That Section 63-811, Idaho Code, be, and the same is hereby
48 amended to read as follows:
49 63-811. COMPUTATION OF PROPERTY TAXES -- DUTY OF COUNTY AUDITOR. (1) The
50 county auditor must cause to be computed the amount of the local property
51 taxes levied on the total of the taxable value as entered on the property and
26
1 operating property rolls, and must deliver the property and operating property
2 rolls to the tax collector on or before the first Monday of November.
3 (2) The county auditor must cause to be computed the amount of the local
4 property taxes levied on the total of the taxable value as entered on the sub-
5 sequent property roll, and must deliver the subsequent property roll to the
6 tax collector as soon as possible, without delay, after the first Monday of
7 December.
8 (3) The county auditor must cause to be computed the amount of the state
9 property tax and the amount of the local property taxes levied on the total
10 taxable value as entered on the missed property roll, and must deliver the
11 missed property roll to the tax collector as soon as possible, without delay,
12 after the first Monday of March of the year following the year in which the
13 assessment was entered on the missed property roll.
14 (4) For the purpose of this section, "taxable value" shall mean the por-
15 tion of the equalized assessed value, less any exemptions and the value that
16 exceeds the value of the base assessment roll for the portion of any taxing
17 district within a revenue allocation area of an urban renewal district,
18 located within each taxing district which certifies a budget to be raised from
19 a property tax levy. When the portion of the property tax to be allocated to
20 school districts as required in sections 33-1002 and 50-2908, Idaho Code, is
21 calculated, the taxable value must include the value that exceeds the value of
22 the base assessment roll.
23 (5) The county auditor, at the time of delivery to the county tax collec-
24 tor of the property roll, subsequent property roll, missed property roll or
25 operating property roll with all property taxes computed, must subscribe an
26 affidavit to such roll that he has to the best of his knowledge and ability
27 computed the proper amount of property taxes due, and recorded such orders of
28 the board of equalization as have been made and have made no other changes.
29 (6) Failure of the auditor to make the affidavit shall not affect the
30 validity of any entry on the roll. The making of such affidavit, however, is
31 declared to be a duty pertaining to the office of the county auditor. In every
32 case where the said affidavit is omitted from the real property assessment
33 roll, completed and delivered as aforesaid, the board of county commissioners
34 must require the county auditor to make the same, and upon refusal or neglect
35 of such county auditor to make and subscribe to such affidavit forthwith, the
36 chairman of the said board must immediately file in the district court in the
37 county, an information in writing, verified by his oath, charging such county
38 auditor with refusal or neglect to perform the official duties pertaining to
39 his office, and thereupon he must be proceeded against as in such cases pro-
40 vided by law.
41 SECTION 20. SEVERABILITY. The provisions of this act are hereby declared
42 to be severable and if any provision of this act or the application of such
43 provision to any person or circumstance is declared invalid for any reason,
44 such declaration shall not affect the validity of the remaining portions of
45 this act.
46 SECTION 21. An emergency existing therefor, which emergency is hereby
47 declared to exist, Sections 1 and 2 of this act shall be in full force and
48 effect on and after June 1, 2006; Section 3 shall be in full force and effect
49 on and after July 1, 2006; and Sections 4 through 20 shall be in full force
50 and effect on and after passage and approval, and retroactively to January 1,
51 2006.
STATEMENT OF PURPOSE
RS 15786
The purpose of this legislation is to provide meaningful and
substantial property tax relief to all Idaho property owners by
repealing the school maintenance and operations(M&O)levy. These
funds would be replaced, up to the equalized funding level, by an
increased General Fund appropriation to public schools. The
source of such additional General Funds would be provided by an
increase in the state Sales Tax rate from 5% to 6%.
FISCAL NOTE
This legislation would have no impact on 110 of the state's
114 school districts, as well as no impact on charter schools. It
removes nearly $290 million in FY 2007 School M&O property taxes.
Of this, the state would replace approximately $244 million, up
to the equalized funding level provided to 110 of the state's 114
school districts, assuming that funding is provided for a 3%
increase in per support unit discretionary funds for school
districts
The legislation provided the state's four wealthiest school
districts with the ability to levy the difference between what
they are receiving now from their M&O levy and what the state
will provide in equalized funding. (They currently receive no
state equalization funding).
The $244 million state cost would be mostly covered through
the $210 million raised by increasing the Sales Tax from 5% to
6%, with the balance to be covered by future economics growth.
The result is a net $34 million tax reduction.
Contact
Name: Rep. Ken Roberts
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 505