2007 Legislation
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HOUSE BILL NO. 212 – Taxing dist, tax increase, election


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Bill Status

H0212...............................................by REVENUE AND TAXATION
TAXING DISTRICTS - Amends existing law to require mailed notices of
elections to residents when a taxing district is holding an election to
increase property taxes; and to provide contents of the notices.
02/20    House intro - 1st rdg - to printing
02/21    Rpt prt - to Rev/Tax

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 212
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  5        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:
 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
  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 for
  6        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,  a  notice of the election shall be mailed not less than fourteen (14)
 53    calendar days to every resident in  the taxing district in  a  similar  manner
 54    that  property  tax notices are sent out and shall state with specificity: the
 55    date of the election, polling places, the time the polls  will  be  open,  the
  1    aggregate  amount  of  taxes that will be raised in the taxing district if the
  2    election is successful and the increase that will occur per one hundred  thou-
  3    sand dollars ($100,000) of taxable value of property, above any exemptions, of
  4    residential  property, of commercial property, of industrial property, of land
  5    actively devoted to agriculture and of operating property.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                            RS 16894C2

This legislation requires taxing districts, when holding an
election to increase property taxes, to mail notices within
fourteen (14) days of such elections to property taxpayers.

                           FISCAL NOTE

There is no fiscal impact to the general funds.  There will
be a cost to districts that hold elections to raise property

Name:  Representative Mike Moyle 
       Representative Raul Labrador
       Representative John Vander Woude
Phone: 332-1000

STATEMENT OF PURPOSE/FISCAL NOTE                         H 212