Print Friendly HOUSE BILL NO. 675
– Right-of-way preservation fund
HOUSE BILL NO. 675
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H0675...............................................by REVENUE AND TAXATION
HIGHWAYS - Adds to and amends existing law relating to highways and
acquisition of rights-of-way to provide a short title; to provide for
legislative intent; to create the Right-of-Way Preservation Fund; to
provide for distribution; to provide for expenditures; to provide for
appropriation; to provide for reporting; and to provide for remittance of
certain sales and use tax moneys to the Right-of-Way Preservation Fund for
a time certain.
03/19 House intro - 1st rdg - to printing
03/20 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature Second Regular Session - 2008
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 675
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO HIGHWAYS AND ACQUISITION OF RIGHTS-OF-WAY AND DISTRIBUTION OF
3 SALES AND USE TAXES; AMENDING CHAPTER 7, TITLE 40, IDAHO CODE, BY THE
4 ADDITION OF A NEW SECTION 40-701A, IDAHO CODE, TO PROVIDE A SHORT TITLE,
5 TO PROVIDE FOR LEGISLATIVE INTENT, TO CREATE THE RIGHT-OF-WAY PRESERVATION
6 FUND, TO PROVIDE FOR DISTRIBUTION, TO PROVIDE FOR EXPENDITURES, TO PROVIDE
7 FOR APPROPRIATION AND TO PROVIDE FOR REPORTING; AMENDING SECTION 63-3638,
8 IDAHO CODE, TO PROVIDE FOR REMITTANCE OF CERTAIN SALES AND USE TAX MONEYS
9 TO THE RIGHT-OF-WAY PRESERVATION FUND FOR A TIME CERTAIN; AND PROVIDING A
10 SUNSET DATE.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Chapter 7, Title 40, Idaho Code, be, and the same is
13 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
14 ignated as Section 40-701A, Idaho Code, and to read as follows:
15 40-701A. SHORT TITLE -- LEGISLATIVE INTENT -- RIGHT-OF-WAY PRESERVATION
16 FUND CREATED. (1) This act may be known and cited as the "Right-of-Way Preser-
17 vation Fund Act."
18 (2) The legislature finds that the state has grown rapidly in recent
19 years and that there is an urgency to secure the rights-of-way for future
20 highway routes that have been identified in metropolitan transportation plans.
21 Many such routes are likely to be developed with residential subdivisions or
22 commercial developments making future construction of highways along these
23 routes significantly more expensive. The purpose of the right-of-way preserva-
24 tion fund created in subsection (3) of this section, is to provide moneys to
25 buy properties in the identified rights-of-way prior to the preparation of
26 preliminary engineering plans and environmental documents for the identified
28 (3) (a) Moneys remitted pursuant to section 63-3638(12), Idaho Code,
29 shall be placed in the right-of-way preservation fund which is hereby cre-
30 ated in the state treasury. Moneys in the right-of-way preservation fund
31 shall be apportioned as follows:
32 (i) Sixty-six and two-thirds percent (66 2/3%) to the Idaho trans-
33 portation department; and
34 (ii) Thirty-three and one-third percent (33 1/3%) to highway dis-
35 tricts and counties, in counties that have an approved metropolitan
36 transportation plan in the proportion that the amount collected from
37 motor vehicle registrations in each highway district during the last
38 calendar year bears to the total amount of those vehicle registra-
39 tions among all counties with transportation plans approved by a met-
40 ropolitan planning organization pursuant to 49 U.S.C. section 5303.
41 The state controller shall cause the remittance of the moneys in the fund
42 to highway districts and counties not later than January 25 and July 25 of
43 each year, and to the Idaho transportation department as the moneys become
1 available to the right-of-way preservation fund. Such remittance shall be
2 made in the apportionment provided for in this section.
3 (b) Moneys from the right-of-way preservation fund shall be used for the
4 acquisition of properties for known future or present highway corridors
5 within the state of Idaho and which are identified in transportation plans
6 approved by a metropolitan transportation organization pursuant to 49
7 U.S.C. section 5303. The state treasurer shall invest all idle moneys in
8 the right-of-way preservation fund as provided in section 67-1210, Idaho
9 Code. Interest earned on the investment of idle moneys shall be returned
10 to the fund.
11 (c) Moneys in the right-of-way preservation fund are hereby continuously
12 appropriated and may be expended by the Idaho transportation department
13 pursuant to transportation board approval. Such expenditures may include
14 the use of such moneys to match other moneys, including moneys of local
15 jurisdictions, for the purpose of acquisition of rights-of-way identified
16 in transportation plans approved by a metropolitan transportation organi-
17 zation pursuant to 49 U.S.C. section 5303. The purpose of these moneys is
18 to provide for acquisition of properties for known future or present high-
19 way corridors in advance of the development of preliminary engineering
20 plans and advance approval of environmental documents. Routes that qualify
21 for these funds for the purchase of rights-of-way include current or
22 future interstate highways, U.S. highways, state highways or other princi-
23 pal arterials. In the event a qualifying route extends into a county or
24 counties adjacent to a county with a transportation plan approved by a
25 metropolitan transportation organization, expenditures from the fund may
26 be used to acquire rights-of-way in such adjacent county or counties for
27 the qualifying route. Properties purchased in an identified future right-
28 of-way in advance of the construction of the roadway may be leased to the
29 previous owner or any other party who wishes to lease the property. The
30 previous owner shall have a right of first refusal on the opportunity to
31 lease the property as long as fair market value is paid for the lease and
32 the use of the property is for a lawful purpose. The competitive bidding
33 statutes or leasing statutes of this state shall not apply to such lease.
34 Proceeds from any lease entered into pursuant to this subsection shall be
35 deposited to the credit of the right-of-way preservation fund.
36 (d) Any property that is rendered unusable because of zoning ordinances
37 relating to transportation planning and right-of-way planning may be pur-
38 chased using moneys from the fund to preclude a regulatory takings action
39 from being filed against the state of Idaho or a political subdivision.
40 (e) The Idaho transportation department shall provide an annual report to
41 the joint finance-appropriations committee and the transportation commit-
42 tees of the senate and the house of representatives that identifies prop-
43 erties that have been purchased with moneys from the right-of-way preser-
44 vation fund. The report shall identify the future or current highway
45 corridors for which such moneys have been expended and shall identify
46 which purchases will likely be eligible for reimbursement by the federal
47 government's early acquisition program pursuant to 23 CFR 710.501. Any
48 such reimbursements received from the federal government shall be depos-
49 ited to the credit of the right-of-way preservation fund. Further, local
50 jurisdictions which expend moneys from the right-of-way preservation fund
51 shall report to the department, no later than July 1 of each year and
52 identify those projects purchased with moneys from the fund.
53 SECTION 2. That Section 63-3638, Idaho Code, be, and the same is hereby
54 amended to read as follows:
1 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
2 ter, except as may otherwise be required in sections 63-3203 and 63-3709,
3 Idaho Code, shall be distributed by the tax commission as follows:
4 (1) An amount of money shall be distributed to the state refund account
5 sufficient to pay current refund claims. All refunds authorized under this
6 chapter by the commission shall be paid through the state refund account, and
7 those moneys are continuously appropriated.
8 (2) Five million dollars ($5,000,000) per year is continuously appropri-
9 ated and shall be distributed to the permanent building fund, provided by sec-
10 tion 57-1108, Idaho Code.
11 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
12 continuously appropriated and shall be distributed to the water pollution con-
13 trol account established by section 39-3605, Idaho Code.
14 (4) An amount equal to the sum required to be certified by the chairman
15 of the Idaho housing and finance association to the state tax commission pur-
16 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
17 ated and shall be paid to any capital reserve fund, established by the Idaho
18 housing and finance association pursuant to section 67-6211, Idaho Code. Such
19 amounts, if any, as may be appropriated hereunder to the capital reserve fund
20 of the Idaho housing and finance association shall be repaid for distribution
21 under the provisions of this section, subject to the provisions of section
22 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
23 possible, from any moneys available therefor and in excess of the amounts
24 which the association determines will keep it self-supporting.
25 (5) An amount equal to the sum required by the provisions of sections
26 63-709 and 63-717, Idaho Code, after allowance for the amount appropriated by
27 section 63-718(3), Idaho Code, is continuously appropriated and shall be paid
28 as provided by sections 63-709 and 63-717, Idaho Code.
29 (6) An amount required by the provisions of chapter 53, title 33, Idaho
31 (7) An amount required by the provisions of chapter 87, title 67, Idaho
33 (8) One dollar ($1.00) on each application for certificate of title or
34 initial application for registration of a motor vehicle, snowmobile, all-
35 terrain vehicle or other vehicle processed by the county assessor or the Idaho
36 transportation department excepting those applications in which any sales or
37 use taxes due have been previously collected by a retailer, shall be a fee for
38 the services of the assessor of the county or the Idaho transportation depart-
39 ment in collecting such taxes, and shall be paid into the current expense fund
40 of the county or state highway account established in section 40-702, Idaho
42 (9) Eleven and five-tenths percent (11.5%) is continuously appropriated
43 and shall be distributed to the revenue sharing account which is created in
44 the state treasury, and the moneys in the revenue sharing account will be paid
45 in installments each calendar quarter by the tax commission as follows:
46 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
47 ious cities as follows:
48 (i) Fifty percent (50%) of such amount shall be paid to the various
49 cities, and each city shall be entitled to an amount in the propor-
50 tion that the population of that city bears to the population of all
51 cities within the state; and
52 (ii) Fifty percent (50%) of such amount shall be paid to the various
53 cities, and each city shall be entitled to an amount in the propor-
54 tion that the preceding year's market value for assessment purposes
55 for that city bears to the preceding year's market value for assess-
1 ment purposes for all cities within the state.
2 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
3 ious counties as follows:
4 (i) One million three hundred twenty thousand dollars ($1,320,000)
5 annually shall be distributed one forty-fourth (1/44) to each of the
6 various counties; and
7 (ii) The balance of such amount shall be paid to the various coun-
8 ties, and each county shall be entitled to an amount in the propor-
9 tion that the population of that county bears to the population of
10 the state;
11 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
12 ated in this subsection (9) shall be paid to the several counties for dis-
13 tribution to the cities and counties as follows:
14 (i) Each city and county which received a payment under the provi-
15 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
16 calendar year 1999, shall be entitled to a like amount during suc-
17 ceeding calendar quarters.
18 (ii) If the dollar amount of money available under this subsection
19 (9)(c) in any quarter does not equal the amount paid in the fourth
20 quarter of calendar year 1999, each city's and county's payment shall
21 be reduced proportionately.
22 (iii) If the dollar amount of money available under this subsection
23 (9)(c) in any quarter exceeds the amount paid in the fourth quarter
24 of calendar year 1999, each city and county shall be entitled to a
25 proportionately increased payment, but such increase shall not exceed
26 one hundred five percent (105%) of the total payment made in the
27 fourth quarter of calendar year 1999.
28 (iv) If the dollar amount of money available under this subsection
29 (9)(c) in any quarter exceeds one hundred five percent (105%) of the
30 total payment made in the fourth quarter of calendar year 1999, any
31 amount over and above such one hundred five percent (105%) shall be
32 paid fifty percent (50%) to the various cities in the proportion that
33 the population of the city bears to the population of all cities
34 within the state, and fifty percent (50%) to the various counties in
35 the proportion that the population of a county bears to the popula-
36 tion of the state; and
37 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
38 this subsection (9) shall be paid to the several counties for distribution
39 to special purpose taxing districts as follows:
40 (i) Each such district which received a payment under the provi-
41 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
42 calendar year 1999, shall be entitled to a like amount during suc-
43 ceeding calendar quarters.
44 (ii) If the dollar amount of money available under this subsection
45 (9)(d) in any quarter does not equal the amount paid in the fourth
46 quarter of calendar year 1999, each special purpose taxing district's
47 payment shall be reduced proportionately.
48 (iii) If the dollar amount of money available under this subsection
49 (9)(d) in any quarter exceeds the amount distributed under paragraph
50 (i) of this subsection (9)(d), each special purpose taxing district
51 shall be entitled to a share of the excess based on the proportion
52 each such district's current property tax budget bears to the sum of
53 the current property tax budgets of all such districts in the state.
54 The state tax commission shall calculate district current property
55 tax budgets to include any unrecovered foregone amounts as determined
1 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
2 district is situated in more than one (1) county, the tax commission
3 shall determine the portion attributable to the special purpose tax-
4 ing district from each county in which it is situated.
5 (iv) If special purpose taxing districts are consolidated, the
6 resulting district is entitled to a base amount equal to the sum of
7 the base amounts which were received in the last calendar quarter by
8 each district prior to the consolidation.
9 (v) If a special purpose taxing district is dissolved or
10 disincorporated, the state tax commission shall continuously distrib-
11 ute to the board of county commissioners an amount equal to the last
12 quarter's distribution prior to dissolution or disincorporation. The
13 board of county commissioners shall determine any redistribution of
14 moneys so received.
15 (vi) Taxing districts formed after January 1, 2001, are not entitled
16 to a payment under the provisions of this subsection (9)(d).
17 (vii) For purposes of this subsection (9)(d), a special purpose tax-
18 ing district is any taxing district which is not a city, a county or
19 a school district.
20 (10) Amounts calculated in accordance with section 2, chapter 356, laws of
21 2001, for annual distribution to counties and other taxing districts beginning
22 in October 2001 for replacement of property tax on farm machinery and equip-
23 ment exempted pursuant to section 63-602EE, Idaho Code. For nonschool dis-
24 tricts, the state tax commission shall distribute one-fourth (1/4) of this
25 amount certified quarterly to each county. For school districts, the state tax
26 commission shall distribute one-fourth (1/4) of the amount certified quarterly
27 to each school district. For nonschool districts, the county auditor shall
28 distribute to each district within thirty (30) calendar days from receipt of
29 moneys from the tax commission. Moneys received by each taxing district for
30 replacement shall be utilized in the same manner and in the same proportions
31 as revenues from property taxation. The moneys remitted to the county trea-
32 surer for replacement of property exempt from taxation pursuant to section
33 63-602EE, Idaho Code, may be considered by the counties and other taxing dis-
34 tricts and budgeted at the same time, in the same manner and in the same year
35 as revenues from taxation on personal property which these moneys replace. If
36 taxing districts are consolidated, the resulting district is entitled to an
37 amount equal to the sum of the amounts which were received in the last calen-
38 dar quarter by each district pursuant to this subsection prior to the consoli-
39 dation. If a taxing district is dissolved or disincorporated, the state tax
40 commission shall continuously distribute to the board of county commissioners
41 an amount equal to the last quarter's distribution prior to dissolution or
42 disincorporation. The board of county commissioners shall determine any redis-
43 tribution of moneys so received. If a taxing district annexes territory, the
44 distribution of moneys received pursuant to this subsection shall be unaf-
45 fected. Taxing districts formed after January 1, 2001, are not entitled to a
46 payment under the provisions of this subsection. School districts shall
47 receive an amount determined by multiplying the sum of the year 2000 school
48 district levy minus .004 times the market value on December 31, 2000, in the
49 district of the property exempt from taxation pursuant to section 63-602EE,
50 Idaho Code, provided that the result of these calculations shall not be less
51 than zero (0). The result of these school district calculations shall be fur-
52 ther increased by six percent (6%). For purposes of the limitation provided by
53 section 63-802, Idaho Code, moneys received pursuant to this section as prop-
54 erty tax replacement for property exempt from taxation pursuant to section
55 63-602EE, Idaho Code, shall be treated as property tax revenues.
1 (11) Amounts necessary to pay refunds as provided in subsection (3) of
2 section 63-3641, Idaho Code, to a developer of a retail commercial complex
3 whose stores sell tangible personal property or taxable services subject to
4 the sales and use tax up to an aggregate total of thirty-five million dollars
5 ($35,000,000) per project shall be remitted to the demonstration pilot project
6 fund created in subsection (3) of section 63-3641, Idaho Code, and shall be
7 specific to and accounted for by each project.
8 (12) An amount per year equal to five percent (5%) in calendar year 2010,
9 ten percent (10%) in calendar year 2011 and fifteen percent (15%) per year in
10 calendar years 2012 through 2019, of sales and use taxes collected from new
11 and used automobile dealerships in this state is continuously appropriated and
12 shall be distributed annually to the right-of-way preservation fund created in
13 section 40-701A, Idaho Code, for the purpose of purchasing future rights-of-
14 way of selected highways identified in a metropolitan transportation plan pur-
15 suant to section 40-701A, Idaho Code.
16 (13) Any moneys remaining over and above those necessary to meet and
17 reserve for payments under other subsections of this section shall be distrib-
18 uted to the general fund.
19 SECTION 3. Section 1 of this act shall be null, void and of no force and
20 effect on and after June 30, 2020.
STATEMENT OF PURPOSE
The purpose of the "Right of Way Preservation Fund Act" is to
provide funds to purchase right-of-way properties for future highway
expansion. The properties eligible for purchase with this fund are
properties within right-of-ways that have been identified for future
or current highways by a metropolitan transportation plan (MTP)
developed by a metropolitan planning organization.
Such right-of-ways identified by metropolitan transportation plans
are for routes that have been studied by the metropolitan planning
organization, have been through a public hearing process, and have
been approved by the metropolitan planning organization's board.
Projects may extend into neighboring counties when they are an
extension of a project that is identified by these MTPs. These routes
typically do not have the right-of-way purchased nor have the
preliminary engineering plans or the environmental documents been
prepared. As such, they are not eligible for federal funding, which
normally funds about 80% of the project. Federal funding can not be
extended to these routes until preliminary engineering plans have been
prepared and the required environmental studies/documents have been
In most cases, early purchase of right-of-way properties will eventually
be eligible for federal government reimbursement if certain precautions
have been taken as identified in 22 CFR 710.501. Therefore, most of the
funds expended by the Right of Way Preservation Fund account should
ultimately be reimbursed by the federal government.
However, Idaho does not currently have a practice of purchasing right-of-
ways prior to the development of preliminary engineering and environmental
documents. Consequently, raw land that has been identified for future
right-of-way can be developed by private interests, increasing the
ultimate cost right-of-way purchases.
The Right of Way Preservation Fund will sunset in June 30, 2019.
For fiscal year 2007, the state tax commission tracked $178 million in
sales tax revenue from "automotive" type spending. This amount does not
include automotive type purchases from retailers, like big box stores, that
sell goods in addition to automotive products. Of this amount, $120 million
in sales tax revenue was collected from new and used car sales. This
legislation will require 15% of the $120 million in sales tax revenue to be
placed in the Right of Way Preservation Fund, or $20 million in the calendar
year 2011, assuming a 4% annual growth rate in automobile sales. The first
year of funding will be fiscal year 2010.
For fiscal year 2010, assuming an annual 4% annual growth rate in automotive
type spending from 2007, $6,450,000 will be put into the Right of Way
Name: Representative Phil Hart
STATEMENT OF PURPOSE/FISCAL NOTE H 675