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H0197...............................................by REVENUE AND TAXATION
SCHOOL DISTRICTS - Amends existing law to revise the value index
calculation for school districts; and to provide application of the three
percent property tax cap to any school district levy reduction resulting
from a distribution of state funds from the sales tax account.
02/14 House intro - 1st rdg - to printing
02/12 Rpt prt - to Rev/Tax
02/19 Rpt out - rec d/p - to 2nd rdg
02/20 2nd rdg - to 3rd rdg
02/22 3rd rdg - PASSED - 67-0-3
AYES -- Anderson, Andrus, Barrett, Bayer, Bell, Bilbao, Black, Block,
Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark,
Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Harwood,
Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador, Lake,
LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer,
Moyle, Nielsen, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo,
Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2), Shepherd(8),
Shirley, Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thayn,
Trail, Vander Woude, Wood(27), Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- Bedke, Nonini, Wills
Floor Sponsor - Roberts
Title apvd - to Senate
02/23 Senate intro - 1st rdg - to Loc Gov
03/07 Rpt out - rec d/p - to 2nd rdg
03/08 2nd rdg - to 3rd rdg
03/13 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
Little, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- None
Floor Sponsor - Heinrich
Title apvd - to House
03/14 To enrol
03/15 Rpt enrol - Sp signed - Pres signed
03/16 To Governor
03/21 Governor signed
Session Law Chapter 144
Effective: 01/01/07 Section 2;
07/01/07 Section 1
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 197
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO SCHOOL DISTRICT FUNDING; AMENDING SECTION 33-906B, IDAHO CODE, TO
3 REVISE THE VALUE INDEX CALCULATION; AMENDING SECTION 63-802, IDAHO CODE,
4 TO PROVIDE APPLICATION TO ANY SCHOOL DISTRICT LEVY REDUCTION RESULTING
5 FROM A DISTRIBUTION OF STATE FUNDS FROM THE SALES TAX ACCOUNT; DECLARING
6 AN EMERGENCY, PROVIDING RETROACTIVE APPLICATION AND PROVIDING AN EFFECTIVE
7 DATE.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 33-906B, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 33-906B. VALUE INDEX CALCULATION. The state department of education shall
12 establish a value index for each school district, based on each school
13 district's market value per support unit for equalization purposes, the aver-
14 age annual seasonally-adjusted unemployment rate in the county in which a plu-
15 rality of the school district's market value for assessment purposes of tax-
16 able property is located and the per capita income in the county in which a
17 plurality of the school district's market value for assessment purposes is
18 located. The value index for each school district shall be calculated as the
19 sum of the following three (3) components:
20 (1) The state department of education shall annually calculate the each
21 school district's market value per support unit, that is used to equalize
22 school funding for each school district in the state based on the market
23 values that would be used to calculate a bond levy, and the statewide average.
24 The first portion of the value index shall be calculated by dividing the
25 school district's market value for equalization purposes per support unit fig-
26 ure by the statewide average market value for equalization per support unit
27 figure and dividing the result of this calculation by two (2).
28 (2) The second portion of the value index shall be calculated by dividing
29 the statewide unemployment rate by the unemployment rate in the county in
30 which a plurality of the school district's market value for assessment pur-
31 poses of taxable property is located, and dividing the result of this calcula-
32 tion by four (4). For the purposes of this subsection, the statewide unemploy-
33 ment rate and county unemployment rates shall be based on the most recent
34 average annual seasonally-adjusted unemployment rate data reported by the
35 United States department of labor, for which there is a complete calendar year
36 of data.
37 (3) The third portion of the value index shall be calculated by dividing
38 the county per capita income in the county in which a plurality of the school
39 district's market value for assessment purposes of taxable property is located
40 by the statewide per capita income, and dividing the result of this calcula-
41 tion by four (4). For the purposes of this subsection, the statewide per cap-
42 ita income and county per capita income shall be based on the most recent data
43 reported by the United States department of commerce, for which there is a
2
1 complete calendar year of data.
2 SECTION 2. That Section 63-802, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 63-802. LIMITATION ON BUDGET REQUESTS -- LIMITATION ON TAX CHARGES --
5 EXCEPTIONS. (1) Except as provided in subsection (3) of this section for tax
6 year 1995, and each year thereafter, no taxing district shall certify a bud-
7 get request for an amount of property tax revenues to finance an annual budget
8 that exceeds the greater of:
9 (a) The dollar amount of property taxes certified for its annual budget
10 for any one (1) of the three (3) tax years preceding the current tax year,
11 whichever is greater, which amount may be increased by a growth factor of
12 not to exceed three percent (3%) plus the amount of revenue that would
13 have been generated by applying the levy of the previous year, not includ-
14 ing any levy described in subsection (4) of this section, or any school
15 district levy reduction resulting from a distribution of state funds pur-
16 suant to section 63-3638(10), Idaho Code, to any increase in market value
17 subject to taxation resulting from new construction or change of land use
18 classification as evidenced by the value shown on the new construction
19 roll compiled pursuant to section 63-301A, Idaho Code; and by the value of
20 annexation during the previous calendar year, as certified by the state
21 tax commission for market values of operating property of public utilities
22 and by the county assessor; or
23 (b) The dollar amount of property taxes certified for its annual budget
24 during the last year in which a levy was made; or
25 (c) The dollar amount of the actual budget request, if the taxing dis-
26 trict is newly created except as may be provided in subsection (1)(h) of
27 this section; or
28 (d) In the case of school districts, the restriction imposed in section
29 33-802, Idaho Code; or
30 (e) In the case of a nonschool district for which less than the maximum
31 allowable increase in the dollar amount of property taxes is certified
32 for annual budget purposes in any one (1) year, such a district may, in
33 any following year, recover the foregone increase by certifying, in addi-
34 tion to any increase otherwise allowed, an amount not to exceed one hun-
35 dred percent (100%) of the increase originally foregone. Said additional
36 amount shall be included in future calculations for increases as allowed;
37 or
38 (f) In the case of cities, if the immediately preceding year's levy sub-
39 ject to the limitation provided by this section, is less than 0.004, the
40 city may increase its budget by an amount not to exceed the difference
41 between 0.004 and actual prior year's levy multiplied by the prior year's
42 market value for assessment purposes. The additional amount must be
43 approved by sixty percent (60%) of the voters voting on the question at an
44 election called for that purpose and held on the date in May or November
45 provided by law, and may be included in the annual budget of the city for
46 purposes of this section; or
47 (g) A taxing district may submit to the electors within the district the
48 question of whether the budget from property tax revenues may be increased
49 beyond the amount authorized in this section, but not beyond the levy
50 authorized by statute. The additional amount must be approved by sixty-six
51 and two-thirds percent (66 2/3%) or more of the voters voting on the ques-
52 tion at an election called for that purpose and held on the May or Novem-
53 ber dates provided by section 34-106, Idaho Code. If approved by the
3
1 required minimum sixty-six and two-thirds percent (66 2/3%) of the voters
2 voting at the election, the new budget amount shall be the base budget for
3 the purposes of this section; or
4 (h) When a nonschool district consolidates with another nonschool dis-
5 trict or dissolves and a new district performing similar governmental
6 functions as the dissolved district forms with the same boundaries within
7 three (3) years, the maximum amount of a budget of the district from prop-
8 erty tax revenues shall not be greater than the sum of the amounts that
9 would have been authorized by this section for the district itself or for
10 the districts that were consolidated or dissolved and incorporated into a
11 new district; or
12 (i) In the instance or case of cooperative service agencies, the restric-
13 tions imposed in sections 33-315 through 33-318, Idaho Code.
14 (2) In the case of fire districts, during the year immediately following
15 the election of a public utility or public utilities to consent to be provided
16 fire protection pursuant to section 31-1425, Idaho Code, the maximum amount of
17 property tax revenues permitted in subsection (1) of this section may be
18 increased by an amount equal to the current year's taxable value of the con-
19 senting public utility or public utilities multiplied by that portion of the
20 prior year's levy subject to the limitation provided by subsection (1) of this
21 section.
22 (3) No board of county commissioners shall set a levy, nor shall the
23 state tax commission approve a levy for annual budget purposes which exceeds
24 the limitation imposed in subsection (1) of this section, unless authority to
25 exceed such limitation has been approved by a majority of the taxing
26 district's electors voting on the question at an election called for that pur-
27 pose and held pursuant to section 34-106, Idaho Code, provided however, that
28 such voter approval shall be for a period of not to exceed two (2) years.
29 (4) The amount of property tax revenues to finance an annual budget does
30 not include revenues from nonproperty tax sources, and does not include reve-
31 nue from levies that are voter approved for bonds, override levies or supple-
32 mental levies, plant facilities reserve fund levies, school emergency fund
33 levies or for levies applicable to newly annexed property or for levies appli-
34 cable to new construction as evidenced by the value of property subject to the
35 occupancy tax pursuant to section 63-317, Idaho Code, for the preceding tax
36 year.
37 SECTION 3. An emergency existing therefor, which emergency is hereby
38 declared to exist, Section 2 of this act shall be in full force and effect on
39 and after its passage and approval, and retroactively to January 1, 2007. Sec-
40 tion 1 of this act shall be in full force and effect on and after July 1,
41 2007.
STATEMENT OF PURPOSE
RS 16825
This legislation makes two technical changes made necessary by
the passage and implementation of the special session's HB1. The
first, involving the public school's Bond Levy Equalization
calculation, was not part of the HB1 because the calculation for
FY 2007 still needed to be made using the old formula. The
second is necessary due to the way that Ag Replacement monies are
handled, and is needed to allow the 3% cap for school district
tort levies to be calculated correctly.
FISCAL NOTE
No fiscal impact to the state.
Contact
Name: Rep. Ken Roberts
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 197