2007 Legislation
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HOUSE BILL NO. 197 – School dist, value index calculatn

HOUSE BILL NO. 197

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact



                       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