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H0508aaS............................................by REVENUE AND TAXATION TAXING DISTRICTS - Amends existing law to allow a taxing district to include fifty percent of the value of annexation during the previous calendar year for property tax budget limitation purposes. 01/30 House intro - 1st rdg - to printing 01/31 Rpt prt - to Rev/Tax 02/13 Rpt out - rec d/p - to 2nd rdg 02/14 2nd rdg - to 3rd rdg 02/17 3rd rdg - PASSED - 42-27-1 AYES -- Anderson, Andrus, Barraclough, Barrett, Bayer, Bedke, Bell, Bilbao, Bolz, Brackett, Cannon, Chadderdon, Clark, Collins, Crow, Deal, Denney, Ellsworth, Eskridge, Field(18), Field(23), Hart(Jacobson), Harwood, Lake, Loertscher, Mathews, McGeachin, McKague, Moyle, Nielsen, Nonini, Ring, Roberts, Rydalch, Sali, Schaefer, Shepherd(8), Skippen, Stevenson, Wills, Wood, Mr. Speaker NAYS -- Bastian, Black, Block, Boe, Bradford, Edmunson, Garrett, Henbest, Henderson, Jaquet, Kemp, LeFavour, Martinez, Mitchell, Pasley-Stuart, Pence, Raybould, Ringo, Rusche, Sayler, Shepherd(2), Shirley, Smith(30), Smith(24), Smylie, Snodgrass, Trail Absent and excused -- Miller Floor Sponsor - Roberts Title apvd - to Senate 02/20 Senate intro - 1st rdg - to Loc Gov 03/24 Rpt out - to 14th Ord 03/28 Rpt out amen - to 1st rdg as amen 03/29 1st rdg - to 2nd rdg as amen 03/30 2nd rdg - to 3rd rdg as amen Rls susp - PASSED - 25-7-3 AYES -- Andreason, Brandt, Bunderson, Burkett, Burtenshaw, Corder, Darrington, Davis, Fulcher, Goedde, Hill, Jorgenson, Kelly, Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Richardson, Stegner, Stennett, Werk, Williams NAYS -- Broadsword, Compton, Gannon, Geddes, Keough, Pearce, Schroeder Absent and excused -- Cameron, Coiner, Sweet Floor Sponsor - Corder Title apvd - to House 04/03 House did not concur in Senate amens Filed in Office of the Chief Clerk
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 508 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO LIMITATION ON BUDGET REQUESTS OF TAXING DISTRICTS; AMENDING SEC- 3 TION 63-802, IDAHO CODE, TO ALLOW A TAXING DISTRICT TO INCLUDE FIFTY PER- 4 CENT OF THE VALUE OF ANNEXATION DURING THE PREVIOUS CALENDAR YEAR FOR 5 PROPERTY TAX BUDGET LIMITATION PURPOSES; DECLARING AN EMERGENCY AND PRO- 6 VIDING RETROACTIVE APPLICATION. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 63-802, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 63-802. LIMITATION ON BUDGET REQUESTS -- LIMITATION ON TAX CHARGES -- 11 EXCEPTIONS. (1) Except as provided in subsection (3) of this section for tax 12 year 1995, and each year thereafter, no taxing district shall certify a budget 13 request for an amount of property tax revenues to finance an annual budget 14 that exceeds the greater of: 15 (a) The dollar amount of property taxes certified for its annual budget 16 for any one (1) of the three (3) tax years preceding the current tax year, 17 whichever is greater, which amount may be increased by a growth factor of 18 not to exceed three percent (3%) plus the amount of revenue that would 19 have been generated by applying the levy of the previous year, not includ- 20 ing any levy described in subsection (4) of this section, to any increase 21 in market value subject to taxation resulting from new construction or 22 change of land use classification as evidenced by the value shown on the 23 new construction roll compiled pursuant to section 63-301A, Idaho Code; 24 and by fifty percent (50%) of the value of annexation during the previous 25 calendar year, as certified by the state tax commission for market values 26 of operating property of public utilities and by the county assessor; or 27 (b) The dollar amount of property taxes certified for its annual budget 28 during the last year in which a levy was made; or 29 (c) The dollar amount of the actual budget request, if the taxing dis- 30 trict is newly created except as may be provided in subsection (1)(h) of 31 this section; or 32 (d) In the case of school districts, the restriction imposed in section 33 33-802, Idaho Code; or 34 (e) In the case of a nonschool district for which less than the maximum 35 allowable increase in the dollar amount of property taxes is certified 36 for annual budget purposes in any one (1) year, such a district may, in 37 any following year, recover the foregone increase by certifying, in addi- 38 tion to any increase otherwise allowed, an amount not to exceed one hun- 39 dred percent (100%) of the increase originally foregone. Said additional 40 amount shall be included in future calculations for increases as allowed; 41 or 42 (f) In the case of cities, if the immediately preceding year's levy sub- 43 ject to the limitation provided by this section, is less than 0.004, the 2 1 city may increase its budget by an amount not to exceed the difference 2 between 0.004 and actual prior year's levy multiplied by the prior year's 3 market value for assessment purposes. The additional amount must be 4 approved by sixty percent (60%) of the voters voting on the question at an 5 election called for that purpose and held on the date in May or November 6 provided by law, and may be included in the annual budget of the city for 7 purposes of this section; or 8 (g) A taxing district may submit to the electors within the district the 9 question of whether the budget from property tax revenues may be increased 10 beyond the amount authorized in this section, but not beyond the levy 11 authorized by statute. The additional amount must be approved by sixty-six 12 and two-thirds percent (66 2/3%) or more of the voters voting on the ques- 13 tion at an election called for that purpose and held on the May or Novem- 14 ber dates provided by section 34-106, Idaho Code. If approved by the 15 required minimum sixty-six and two-thirds percent (66 2/3%) of the voters 16 voting at the election, the new budget amount shall be the base budget for 17 the purposes of this section; or 18 (h) When a nonschool district consolidates with another nonschool dis- 19 trict or dissolves and a new district performing similar governmental 20 functions as the dissolved district forms with the same boundaries within 21 three (3) years, the maximum amount of a budget of the district from prop- 22 erty tax revenues shall not be greater than the sum of the amounts that 23 would have been authorized by this section for the district itself or for 24 the districts that were consolidated or dissolved and incorporated into a 25 new district; or 26 (i) In the instance or case of cooperative service agencies, the restric- 27 tions imposed in sections 33-315 through 33-318, Idaho Code. 28 (2) In the case of fire districts, during the year immediately following 29 the election of a public utility or public utilities to consent to be provided 30 fire protection pursuant to section 31-1422, Idaho Code, the maximum amount of 31 property tax revenues permitted in subsection (1) of this section may be 32 increased by an amount equal to the current year's taxable value of the con- 33 senting public utility or public utilities multiplied by that portion of the 34 prior year's levy subject to the limitation provided by subsection (1) of this 35 section. 36 (3) No board of county commissioners shall set a levy, nor shall the 37 state tax commission approve a levy for annual budget purposes which exceeds 38 the limitation imposed in subsection (1) of this section, unless authority to 39 exceed such limitation has been approved by a majority of the taxing 40 district's electors voting on the question at an election called for that pur- 41 pose and held pursuant to section 34-106, Idaho Code, provided however, that 42 such voter approval shall be for a period of not to exceed two (2) years. 43 (4) The amount of property tax revenues to finance an annual budget does 44 not include revenues from nonproperty tax sources, and does not include reve- 45 nue from levies that are voter approved for bonds, override levies or supple- 46 mental levies, plant facilities reserve fund levies, school emergency fund 47 levies or for levies applicable to fifty percent (50%) of the market value of 48 newly annexed property or for levies applicable to new construction as evi- 49 denced by the value of property subject to the occupancy tax pursuant to sec- 50 tion 63-317, Idaho Code, for the preceding tax year. 51 SECTION 2. An emergency existing therefor, which emergency is hereby 52 declared to exist, this act shall be in full force and effect on and after its 53 passage and approval, and retroactively to January 1, 2006.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006 Moved by Bunderson Seconded by Corder IN THE SENATE SENATE AMENDMENT TO H.B. NO. 508 1 AMENDMENT TO THE BILL 2 On page 1 of the printed bill, delete lines 8 through 43, and on page 2 3 delete lines 1 through 53 and insert: 4 "SECTION 1. That Chapter 8, Title 63, Idaho Code, be, and the same is 5 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 6 ignated as Section 63-802B, Idaho Code, and to read as follows: 7 63-802B. TRUTH IN TAXATION -- NOTICE OF INCREASES IN PROPERTY TAXES. (1) 8 No taxing district shall certify to the board of county commissioners or to 9 the state tax commission an amount of property tax revenues to finance its 10 annual budget that exceeds by more than three percent (3%) of the amount of 11 the property tax rate or of the property tax revenues certified to finance 12 that district's annual budget for the tax year preceding the current tax year 13 until the taxing district shall advertise its intent to adopt such a budget or 14 increase in tax rate in a newspaper qualified for publication of legal 15 notices by that taxing district under section 60-106, Idaho Code. 16 (2) The notice shall be published in a prominent location in the main 17 news section of the newspaper once each week for the two (2) weeks preceding 18 the date, if any, of the budget hearing set pursuant to section 63-802A, Idaho 19 Code, or if no budget hearing is required, the adoption of the final budget. 20 (3) The notice shall include: 21 (a) A prominent bold typeface heading in type larger than the text of the 22 notice, the words: "NOTICE OF TAX INCREASE, ....(name of taxing dis- 23 trict)....". The taxing district shall supply an estimate in the notice 24 for typical homes with a one hundred thousand dollar ($100,000) taxable 25 value, typical farms with a one hundred fifty thousand dollar ($150,000) 26 taxable value and typical businesses with a two hundred thousand dollar 27 ($200,000) taxable value, all valued during the past tax year with the 28 following estimates: last year's taxable value, this year's estimated tax- 29 able value, last year's actual taxes and this year's estimated taxes. The 30 taxing district may consult with the state tax commission in obtaining 31 necessary estimates for purposes of this notice. 32 (b) The fact that the taxing district has proposed to increase the amount 33 of property tax revenue to fund its annual budget and the percentage of 34 the increase over the prior year's budget; 35 (c) The total amount of property tax revenue certified and approved by 36 the district under section 63-803, Idaho Code, for the prior year and the 37 total amount proposed to be so certified for the current year; and 38 (d) The time and place of the district's budget hearing, if a hearing is 39 required, that the hearings shall be open to the public, and, whether or 40 not a hearing is required, the means by which any person may submit writ- 41 ten comments on the budget at or before the time of the hearing. 2 1 (4) As used in this section, the term "amount of property tax revenues" 2 means the amount determined without regard to amounts applicable to voter 3 approved levies. The amount of property tax revenues to finance an annual 4 budget does not include revenues from nonproperty tax sources, and does not 5 include revenue from levies that are voter approved for bonds, override 6 levies or supplemental levies, plant facilities reserve fund levies, school 7 emergency fund levies or for levies applicable to newly annexed property or 8 for levies applicable to new construction as evidenced by the value of prop- 9 erty subject to the occupancy tax pursuant to section 63-317, Idaho Code, for 10 the preceding tax year. As used in this section "taxing district" means any 11 county, any political subdivision of the state, any municipal corporation, 12 including specially chartered cities, any school districts, including spe- 13 cially chartered school districts, any quasi-municipal corporation, or any 14 other public corporation authorized by law to levy taxes, now or hereafter 15 organized. 16 (5) Alternatively to the required newspaper notice, a taxing district may 17 substitute a single mailing notice to all district residents, providing that 18 the same information is given and providing that the notice shall be mailed at 19 least fourteen (14) days before the budget hearing set pursuant to section 20 63-802A, Idaho Code, or if no budget hearing is required, the adoption of the 21 final budget. 22 (6) The state tax commission may by rule establish additional require- 23 ments relating to content or form of the notice required by this section. 24 (7) No direct or collateral action attacking or otherwise questioning the 25 validity of any notice under this section shall be brought in any court by any 26 person for any cause whatsoever, after the expiration of thirty (30) days from 27 the adoption of the budget to which the notice related and the regularity of 28 such notice shall be conclusively presumed. 29 SECTION 2. That Section 63-308, Idaho Code, be, and the same is hereby 30 amended to read as follows: 31 63-308. VALUATION ASSESSMENT NOTICE TO BE FURNISHED TAXPAYER. (1) The 32 valuation assessment notice required under the provisions of this chapter 33 shall be delivered to the taxpayer, or to his agent or representative, or 34 mailed to the taxpayer, or to his agent or representative at his last known 35 post office address no later than the first Monday in June. The original valu- 36 ation assessment notice so mailed or delivered must contain notices of all 37 meetings of the board of equalization prescribed by this title for the pur- 38 poses of equalizing assessments of property, and for granting exemptions from 39 taxation. The notice shall, in clear terms, inform the taxpayer of the 40 assessed market value for assessment purposes of his property for the current 41 year, and his right to appeal to the county board of equalization. The notice, 42 at a minimum, shall show last year's assessed market value for assessment pur- 43 poses of the property, this year's assessed market value for assessment pur- 44 poses, last year's actual taxes and this year's estimated taxes. The state tax 45 commission may require that other data or information be shown on the form. 46 (2) In case any changes or corrections are made by the assessor from the 47 original valuation assessment notice, the assessor shall immediately deliver 48 or mail a corrected valuation assessment notice to the taxpayer, or his agent 49 or representative. 50 (3) If the taxpayer is one other than the equitable titleholder, such as 51 an escrowee, trustee of trust deed or other third party, the taxpayer shall 52 deliver to the equitable titleholder a true copy of the valuation assessment 53 notice on or before the second Monday in June. 3 1 (4) For property entered and assessed on the subsequent property roll 2 pursuant to section 63-311, Idaho Code, the valuation assessment notice shall 3 be delivered to the taxpayer, his agent or representative, or mailed to the 4 taxpayer, or to his agent or representative at his last known post office 5 address as soon as possible after it is prepared, but not later than the 6 fourth Monday in November. 7 (5) For property entered and assessed on the missed property roll pursu- 8 ant to section 63-311, Idaho Code, the valuation assessment notice shall be 9 delivered to the taxpayer, his agent or representative, or mailed to the tax- 10 payer, or to his agent or representative at his last known post office address 11 as soon as possible after it is prepared, but not later than the first Monday 12 of January of the following year. 13 SECTION 3. This act shall be in full force and effect on and after Janu- 14 ary 1, 2007.". 15 CORRECTION TO TITLE 16 On page 1, delete lines 2 through 6 and insert: 17 "RELATING TO BUDGETS OF TAXING DISTRICTS; AMENDING CHAPTER 8, TITLE 63, IDAHO 18 CODE, BY THE ADDITION OF A NEW SECTION 63-802B, IDAHO CODE, TO REQUIRE 19 NOTICE OF PROPOSED PROPERTY TAX BUDGET INCREASES OR PROPERTY TAX RATE 20 INCREASES OF TAXING DISTRICTS BEYOND A CERTAIN LEVEL, TO PROVIDE REQUIRE- 21 MENTS FOR THE NOTICE, TO DEFINE TERMS, TO PROVIDE ALTERNATIVES TO NEWS- 22 PAPER NOTICE, TO PROVIDE FOR STATE TAX COMMISSION RULES AND TO LIMIT LEGAL 23 ACTIONS TO CERTAIN TIME PERIODS AFTER THE ADOPTION OF A TAXING DISTRICT'S 24 BUDGET TO WHICH THE NOTICE RELATED AND THE REGULARITY OF SUCH NOTICE SHALL 25 BE CONCLUSIVELY PRESUMED; AMENDING SECTION 63-308, IDAHO CODE, TO PROVIDE 26 ADDITIONAL INFORMATION ON THE VALUATION ASSESSMENT NOTICE FURNISHED TO THE 27 PROPERTY TAXPAYER; AND PROVIDING AN EFFECTIVE DATE.".
STATEMENT OF PURPOSE RS 15811 The purpose of this legislation is to place a limit on the value of annexations. FISCAL IMPACT There is no fiscal impact to the state general fund. Contact Name: Rep. Ken Roberts Phone: 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 508