2006 Legislation
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SENATE BILL NO. 1468 – Taxing dist budget increase, notice

SENATE BILL NO. 1468

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Bill Status



S1468......................................................by STATE AFFAIRS
TAXING DISTRICT BUDGET NOTICE - Repeals, adds to and amends existing law to
repeal the three percent property tax cap effective January 1, 2008; to
require notice of proposed property tax budget increases of taxing
districts beyond a certain level; to provide requirements for notice; to
define a term; to provide alternatives to newspaper notice; to provide for
State Tax Commission rules; to limit legal actions to certain time periods
after the adoption of a taxing district's budget to which the notice
related; and to require that property tax notices supply an estimate for
the property of last year's assessed market value for assessment purposes,
this year's assessed market value for assessment purposes, last year's
actual taxes and this year's estimated taxes.
                                                                        
03/23    Senate intro - 1st rdg - to printing
03/24    Rpt prt - to Loc Gov

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1468
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PROPERTY TAXES; REPEALING SECTION 63-802, IDAHO CODE, RELATING  TO
  3        LIMITATION  OF  BUDGET  REQUESTS  OF TAXING DISTRICTS; AMENDING CHAPTER 8,
  4        TITLE 63, IDAHO CODE, BY THE ADDITION OF  A  NEW  SECTION  63-802B,  IDAHO
  5        CODE,  TO REQUIRE NOTICE OF PROPOSED PROPERTY TAX BUDGET INCREASES OF TAX-
  6        ING DISTRICTS BEYOND A CERTAIN LEVEL,  TO  PROVIDE  REQUIREMENTS  FOR  THE
  7        NOTICE,  TO DEFINE A TERM, TO PROVIDE ALTERNATIVES TO NEWSPAPER NOTICE, TO
  8        PROVIDE FOR STATE TAX COMMISSION RULES AND TO LIMIT LEGAL ACTIONS TO  CER-
  9        TAIN  TIME  PERIODS  AFTER  THE  ADOPTION OF A TAXING DISTRICT'S BUDGET TO
 10        WHICH THE NOTICE RELATED AND THE REGULARITY OF SUCH NOTICE SHALL  BE  CON-
 11        CLUSIVELY  PRESUMED; AMENDING SECTION 63-308, IDAHO CODE, TO PROVIDE ADDI-
 12        TIONAL INFORMATION TO BE INCLUDED ON  VALUATION  ASSESSMENT  NOTICES  FUR-
 13        NISHED TO PROPERTY TAXPAYERS; AND PROVIDING EFFECTIVE DATES.
                                                                        
 14    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 15        SECTION  1.  That  Section  63-802, Idaho Code, be, and the same is hereby
 16    repealed.
                                                                        
 17        SECTION 2.  That Chapter 8, Title 63, Idaho Code,  be,  and  the  same  is
 18    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 19    ignated as Section 63-802B, Idaho Code, and to read as follows:
                                                                        
 20        63-802B.  TRUTH IN TAXATION -- NOTICE OF INCREASES IN PROPERTY TAXES.  (1)
 21    No  taxing  district  shall certify to the board of county commissioners or to
 22    the state tax commission an amount of property tax  revenues  to  finance  its
 23    annual  budget  that  exceeds by more than three percent (3%) of the amount of
 24    property tax revenues certified to finance that district's annual  budget  for
 25    the  tax  year  preceding the current tax year until the taxing district shall
 26    advertise its intent to adopt such a budget in a newspaper qualified for  pub-
 27    lication  of legal notices by that taxing district under section 60-106, Idaho
 28    Code.
 29        (2)  The notice shall be published in a prominent  location  in  the  main
 30    news  section  of the newspaper once each week for the two (2) weeks preceding
 31    the date, if any, of the budget hearing set pursuant to section 63-802A, Idaho
 32    Code, or if no budget hearing is required, the adoption of the final budget.
 33        (3)  The notice shall include:
 34        (a)  A prominent bold typeface heading in type larger than the text of the
 35        notice, the words: "NOTICE OF  TAX  INCREASE,  ....(name  of  taxing  dis-
 36        trict)....".  The  taxing  district shall supply an estimate in the notice
 37        for typical homes with a $100,000 taxable  value,  typical  farms  with  a
 38        $150,000  taxable  value,  and  typical  businesses  with $200,000 taxable
 39        value, all valued during the past tax year, with the following  estimates:
 40        last  year's  taxable  value,  this  year's  estimated taxable value, last
 41        year's actual taxes and this year's estimated taxes. The  taxing  district
 42        may consult with the state tax commission in obtaining necessary estimates
                                                                        
                                           2
                                                                        
  1        for the purposes of this notice;
  2        (b)  The fact that the taxing district has proposed to increase the amount
  3        of  property  tax revenue to  fund its annual budget and the percentage of
  4        the increase over the prior year's budget;
  5        (c)  The total amount of property tax revenue certified  and  approved  by
  6        the  district under section 63-803, Idaho Code, for the prior year and the
  7        total amount proposed to be so certified for the current year; and
  8        (d)  The time and place of the district's budget hearing, if a hearing  is
  9        required,  that  the hearings shall be open to the public, and, whether or
 10        not a hearing is required, the means by which any person may submit  writ-
 11        ten comments on the budget at or before the time of the hearing.
 12        (4)  As  used  in this section, the term "amount of property tax revenues"
 13    means the amount determined without regard  to  amounts  applicable  to  voter
 14    approved levies.
 15        (5)  Alternatively to the required newspaper notice, a taxing district may
 16    substitute  a  single mailing notice to all district residents, providing that
 17    the same information is given and providing that the notice shall be mailed at
 18    least fourteen (14) days before the budget hearing  set  pursuant  to  section
 19    63-802A,  Idaho Code, or if no budget hearing is required, the adoption of the
 20    final budget.
 21        (6)  The state tax commission may by rule  establish  additional  require-
 22    ments relating to content or form of the notice required by this section.
 23        (7)  No direct or collateral action attacking or otherwise questioning the
 24    validity of any notice under this section shall be brought in any court by any
 25    person for any cause whatsoever, after the expiration of thirty (30) days from
 26    the  adoption  of the budget to which the notice related and the regularity of
 27    such notice shall be conclusively presumed.
                                                                        
 28        SECTION 3.  That Section 63-308, Idaho Code, be, and the  same  is  hereby
 29    amended to read as follows:
                                                                        
 30        63-308.  VALUATION  ASSESSMENT  NOTICE  TO  BE FURNISHED TAXPAYER. (1) The
 31    valuation assessment notice required under  the  provisions  of  this  chapter
 32    shall  be  delivered  to  the  taxpayer, or to his agent or representative, or
 33    mailed to the taxpayer, or to his agent or representative at  his  last  known
 34    post office address no later than the first Monday in June. The original valu-
 35    ation  assessment  notice  so  mailed or delivered must contain notices of all
 36    meetings of the board of equalization prescribed by this title  for  the  pur-
 37    poses  of equalizing assessments of property, and for granting exemptions from
 38    taxation. The notice shall,  in  clear  terms,  inform  the  taxpayer  of  the
 39    assessed  market value for assessment purposes of his property for the current
 40    year, and his right to appeal to the county board of equalization. The notice,
 41    at a minimum, shall show last year's assessed market value for assessment pur-
 42    poses of the property, this year's assessed market value for  assessment  pur-
 43    poses, last year's actual taxes and this year's estimated taxes. The state tax
 44    commission may require that other data or information be shown on the form.
 45        (2)  In  case any changes or corrections are made by the assessor from the
 46    original valuation assessment notice, the assessor shall  immediately  deliver
 47    or  mail a corrected valuation assessment notice to the taxpayer, or his agent
 48    or representative.
 49        (3)  If the taxpayer is one other than the equitable titleholder, such  as
 50    an  escrowee,  trustee  of trust deed or other third party, the taxpayer shall
 51    deliver to the equitable  titleholder a true copy of the valuation  assessment
 52    notice on or before the second Monday in June.
 53        (4)  For  property  entered  and  assessed on the subsequent property roll
                                                                        
                                           3
                                                                        
  1    pursuant to section 63-311, Idaho Code, the valuation assessment notice  shall
  2    be  delivered  to  the taxpayer, his agent or representative, or mailed to the
  3    taxpayer, or to his agent or representative at  his  last  known  post  office
  4    address  as  soon  as  possible  after  it is prepared, but not later than the
  5    fourth Monday in November.
  6        (5)  For property entered and assessed on the missed property roll  pursu-
  7    ant  to  section  63-311, Idaho Code, the valuation assessment notice shall be
  8    delivered to the taxpayer, his agent or representative, or mailed to the  tax-
  9    payer, or to his agent or representative at his last known post office address
 10    as  soon as possible after it is prepared, but not later than the first Monday
 11    of January of the following year.
                                                                        
 12        SECTION 4.  Section 1 of this act shall be in full force and effect on and
 13    after January 1, 2008. Sections 2 and 3 of this act shall be in full force and
 14    effect on and after January 1, 2007.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 16267

The purpose of this legislation is to replace Idaho Code, Section
63-802 with a new section and to amend Idaho Code, Section 63-308. 
Newly enacted Idaho Code, Section 63-302B would require a taxing
district to provide notice, by newspaper or mail, if the property
tax revenue portion of its annual budget increases by more than
three percent from the prior tax year.  The amendment to Idaho
Code, Section 63-308 would require additional information on the
valuation notice sent to taxpayers.



                           FISCAL NOTE

Enactment of this legislation would have a neutral impact on the
state's general fund.  Publication of notice in a newspaper of
general circulation would have a minimal cost to taxing districts. 
Providing additional information on valuation assessment sent to
taxpayers would have a minimal cost to the counties.





Contact
Name: Senator Curt McKenzie 
Phone: 332-1000
Senator Gerry Sweet
Senator Russ Fulcher


STATEMENT OF PURPOSE/FISCAL NOTE                       S 1468