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H0040...............................................by REVENUE AND TAXATION
TAXING DISTRICTS - Amends existing law to provide that when a taxing
district is holding an election to increase the property tax portion of its
budget, it shall mail a notice of the election to every property taxpayer
in the taxing district in a similar manner that property tax notices are
sent out; to provide that the notice shall state with specificity the date
of the election, polling places, the time the polls will open, the
aggregate amount of taxes that will be raised in the taxing district if the
election is successful and the increased taxes that will occur to the
median valued property of residential property, of business property and of
agricultural property.
01/22 House intro - 1st rdg - to printing
01/23 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 40
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAXES; AMENDING SECTION 63-802, IDAHO CODE, TO REQUIRE
3 MAILED NOTICES OF ELECTIONS TO PROPERTY TAXPAYERS WHEN A TAXING DISTRICT
4 IS HOLDING AN ELECTION TO INCREASE PROPERTY TAXES AND TO PROVIDE FOR THE
5 CONTENTS OF THE NOTICES.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 63-802, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 63-802. LIMITATION ON BUDGET REQUESTS -- LIMITATION ON TAX CHARGES --
10 EXCEPTIONS. (1) Except as provided in subsection (3) of this section for tax
11 year 1995, and each year thereafter, no taxing district shall certify a budget
12 request for an amount of property tax revenues to finance an annual budget
13 that exceeds the greater of:
14 (a) The dollar amount of property taxes certified for its annual budget
15 for any one (1) of the three (3) tax years preceding the current tax year,
16 whichever is greater, which amount may be increased by a growth factor of
17 not to exceed three percent (3%) plus the amount of revenue that would
18 have been generated by applying the levy of the previous year, not includ-
19 ing any levy described in subsection (4) of this section, to any increase
20 in market value subject to taxation resulting from new construction or
21 change of land use classification as evidenced by the value shown on the
22 new construction roll compiled pursuant to section 63-301A, Idaho Code;
23 and by the value of annexation during the previous calendar year, as cer-
24 tified by the state tax commission for market values of operating property
25 of public utilities and by the county assessor; or
26 (b) The dollar amount of property taxes certified for its annual budget
27 during the last year in which a levy was made; or
28 (c) The dollar amount of the actual budget request, if the taxing dis-
29 trict is newly created except as may be provided in subsection (1)(h) of
30 this section; or
31 (d) In the case of school districts, the restriction imposed in section
32 33-802, Idaho Code; or
33 (e) In the case of a nonschool district for which less than the maximum
34 allowable increase in the dollar amount of property taxes is certified
35 for annual budget purposes in any one (1) year, such a district may, in
36 any following year, recover the foregone increase by certifying, in addi-
37 tion to any increase otherwise allowed, an amount not to exceed one hun-
38 dred percent (100%) of the increase originally foregone. Said additional
39 amount shall be included in future calculations for increases as allowed;
40 or
41 (f) In the case of cities, if the immediately preceding year's levy sub-
42 ject to the limitation provided by this section, is less than 0.004, the
43 city may increase its budget by an amount not to exceed the difference
2
1 between 0.004 and actual prior year's levy multiplied by the prior year's
2 market value for assessment purposes. The additional amount must be
3 approved by sixty percent (60%) of the voters voting on the question at an
4 election called for that purpose and held on the date in May or November
5 provided by law, and may be included in the annual budget of the city
6 for purposes of this section; or
7 (g) A taxing district may submit to the electors within the district the
8 question of whether the budget from property tax revenues may be increased
9 beyond the amount authorized in this section, but not beyond the levy
10 authorized by statute. The additional amount must be approved by sixty-six
11 and two-thirds percent (66 2/3%) or more of the voters voting on the ques-
12 tion at an election called for that purpose and held on the May or Novem-
13 ber dates provided by section 34-106, Idaho Code. If approved by the
14 required minimum sixty-six and two-thirds percent (66 2/3%) of the voters
15 voting at the election, the new budget amount shall be the base budget for
16 the purposes of this section; or
17 (h) When a nonschool district consolidates with another nonschool dis-
18 trict or dissolves and a new district performing similar governmental
19 functions as the dissolved district forms with the same boundaries within
20 three (3) years, the maximum amount of a budget of the district from prop-
21 erty tax revenues shall not be greater than the sum of the amounts that
22 would have been authorized by this section for the district itself or for
23 the districts that were consolidated or dissolved and incorporated into a
24 new district; or
25 (i) In the instance or case of cooperative service agencies, the restric-
26 tions imposed in sections 33-315 through 33-318, Idaho Code.
27 (2) In the case of fire districts, during the year immediately following
28 the election of a public utility or public utilities to consent to be provided
29 fire protection pursuant to section 31-1425, Idaho Code, the maximum amount of
30 property tax revenues permitted in subsection (1) of this section may be
31 increased by an amount equal to the current year's taxable value of the con-
32 senting public utility or public utilities multiplied by that portion of the
33 prior year's levy subject to the limitation provided by subsection (1) of this
34 section.
35 (3) No board of county commissioners shall set a levy, nor shall the
36 state tax commission approve a levy for annual budget purposes which exceeds
37 the limitation imposed in subsection (1) of this section, unless authority to
38 exceed such limitation has been approved by a majority of the taxing
39 district's electors voting on the question at an election called for that pur-
40 pose and held pursuant to section 34-106, Idaho Code, provided however, that
41 such voter approval shall be for a period of not to exceed two (2) years.
42 (4) The amount of property tax revenues to finance an annual budget does
43 not include revenues from nonproperty tax sources, and does not include reve-
44 nue from levies that are voter approved for bonds, override levies or supple-
45 mental levies, plant facilities reserve fund levies, school emergency fund
46 levies or for levies applicable to newly annexed property or for levies appli-
47 cable to new construction as evidenced by the value of property subject to the
48 occupancy tax pursuant to section 63-317, Idaho Code, for the preceding tax
49 year.
50 (5) When a taxing district is holding an election pursuant to subsection
51 (1)(f) or (1)(g) of this section, to increase the property tax portion of its
52 budget, it shall mail a notice of the election to every property taxpayer in
53 the taxing district in a similar manner that property tax notices are sent out
54 and shall state with specificity the date of the election, polling places, the
55 time the polls will be open, the aggregate amount of taxes that will be raised
3
1 in the taxing district if the election is successful and the increased taxes
2 that will occur to the median valued property of residential property, of
3 business property and of agricultural property.
STATEMENT OF PURPOSE
RS 16702
This legislation requires taxing districts, when holding an
election to increase property taxes, to mail notices of such
elections to property taxpayers.
FISCAL NOTE
There is no fiscal impact to general funds. There will be a cost
to districts that hold elections to raise property taxes.
Contact
Name: Rep. Mike Moyle
Rep. Raul Labrador
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 40