2007 Legislation
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HOUSE BILL NO. 274 – Taxing dist, election, notices


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Bill Status

H0274...............................................by REVENUE AND TAXATION
TAXING DISTRICTS - Amends existing law to provide for notification when a
taxing district is holding an election to increase property taxes; and to
provide for the contents of the notices.
03/05    House intro - 1st rdg - to printing
03/06    Rpt prt - to Rev/Tax
03/09    Rpt out - rec d/p - to 2nd rdg
    Rls susp - PASSED - 60-2-8
      AYES -- Anderson, Andrus, Barrett, Bayer, Bell, Bilbao, Block, Bock,
      Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark,
      Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Harwood,
      Henderson, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour,
      Luker, Marriott, Mathews, McGeachin, Moyle, Nielsen, Nonini,
      Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo, Roberts,
      Ruchti, Rusche, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Snodgrass, Stevenson, Thayn, Vander Woude, Wills, Wood(27), Mr.
      NAYS -- Loertscher, Smith(30)
      Absent and excused -- Bedke, Black, Henbest, Mortimer, Shively,
      Smith(24), Trail, Wood(35)
    Floor Sponsor - Labrador
    Title apvd - to Senate
03/12    Senate intro - 1st rdg - to Loc Gov

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 274
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  5        ING AN EMERGENCY.
  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 prior to the election to all residences within the  taxing  dis-
 54    trict  or to residents of the taxing district who are eligible to vote in this
 55    election. The notice shall state with specificity: the purpose  of  the  elec-
  1    tion,  the  date  of  the election, polling places, the time the polls will be
  2    open, the aggregate amount of taxes that will be raised in the taxing district
  3    if the election is successful and the increase that will occur per one hundred
  4    thousand dollars ($100,000) of taxable value of  property,  above  any  exemp-
  5    tions,  of  residential  property, of commercial property, of industrial prop-
  6    erty, of land actively devoted to agriculture and of operating property.
  7        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
  8    declared to exist, this act shall be in full force and effect on and after its
  9    passage and approval.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                            RS 17114C2

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 taxes.

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

STATEMENT OF PURPOSE/FISCAL NOTE                         H 274