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H0468...............................................by REVENUE AND TAXATION HIGHWAY DISTRICTS - Amends existing law relating to property taxes to permit certain highway districts to levy up to certain dollar amount limitations, under certain circumstances and subject to voter approval. 02/06 House intro - 1st rdg - to printing 02/07 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 468 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO PROPERTY TAXES; AMENDING SECTION 63-802, IDAHO CODE, TO PERMIT 3 CERTAIN TAXING ENTITIES TO LEVY UP TO CERTAIN DOLLAR AMOUNT LIMITATIONS, 4 UNDER CERTAIN CONDITIONS AND SUBJECT TO VOTER APPROVAL. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 63-802, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 63-802. LIMITATION ON BUDGET REQUESTS -- LIMITATION ON TAX CHARGES -- 9 EXCEPTIONS. (1) Except as provided in subsection (3) of this section for tax 10 year 1995, and each year thereafter, no taxing district shall certify a budget 11 request for an amount of property tax revenues to finance an annual budget 12 that exceeds the greater of: 13 (a) The dollar amount of property taxes certified for its annual budget 14 for any one (1) of the three (3) tax years preceding the current tax year, 15 whichever is greater, which amount may be increased by a growth factor of 16 not to exceed three percent (3%) plus the amount of revenue that would 17 have been generated by applying the levy of the previous year, not includ- 18 ing any levy described in subsection (4) of this section, or any school 19 district levy reduction resulting from a distribution of state funds pur- 20 suant to section 63-3638(10), Idaho Code, to any increase in market value 21 subject to taxation resulting from new construction or change of land use 22 classification as evidenced by the value shown on the new construction 23 roll compiled pursuant to section 63-301A, Idaho Code; and by the value of 24 annexation during the previous calendar year, as certified by the state 25 tax commission for market values of operating property of public utilities 26 and by the county assessor; or 27 (b) The dollar amount of property taxes certified for its annual budget 28 during the last year in which a levy was made; or 29 (c) The dollar amount of the actual budget request, if the taxing dis- 30 trict is newly created except as may be provided in subsection (1)(h) of 31 this section; or 32 (d) In the case of school districts, the restriction imposed in section 33 33-802, Idaho Code; or 34 (e) In the case of a nonschool district for which less than the maximum 35 allowable increase in the dollar amount of property taxes is certified 36 for annual budget purposes in any one (1) year, such a district may, in 37 any following year, recover the foregone increase by certifying, in addi- 38 tion to any increase otherwise allowed, an amount not to exceed one hun- 39 dred percent (100%) of the increase originally foregone. Said additional 40 amount shall be included in future calculations for increases as allowed; 41 or 42 (f) In the case of cities, if the immediately preceding year's levy sub- 43 ject to the limitation provided by this section, is less than 0.004, the 2 1 city may increase its budget by an amount not to exceed the difference 2 between 0.004 and actual prior year's levy multiplied by the prior year's 3 market value for assessment purposes. The additional amount must be 4 approved by sixty percent (60%) of the voters voting on the question at an 5 election called for that purpose and held on the date in May or November 6 provided by law, and may be included in the annual budget of the city for 7 purposes of this section; or 8 (g) A taxing district may submit to the electors within the district the 9 question of whether the budget from property tax revenues may be increased 10 beyond the amount authorized in this section, but not beyond the levy 11 authorized by statute. The additional amount must be approved by sixty-six 12 and two-thirds percent (66 2/3%) or more of the voters voting on the ques- 13 tion at an election called for that purpose and held on the May or Novem- 14 ber dates provided by section 34-106, Idaho Code. If approved by the 15 required minimum sixty-six and two-thirds percent (66 2/3%) of the voters 16 voting at the election, the new budget amount shall be the base budget for 17 the purposes of this section; or 18 (h) When a nonschool district consolidates with another nonschool dis- 19 trict or dissolves and a new district performing similar governmental 20 functions as the dissolved district forms with the same boundaries within 21 three (3) years, the maximum amount of a budget of the district from prop- 22 erty tax revenues shall not be greater than the sum of the amounts that 23 would have been authorized by this section for the district itself or for 24 the districts that were consolidated or dissolved and incorporated into a 25 new district; or 26 (i) In the instance or case of cooperative service agencies, the restric- 27 tions imposed in sections 33-315 through 33-318, Idaho Code; or 28 (j) In the case of a county highway system, countywide highway district 29 or highway district, when, for the immediate preceding ten (10) years or 30 more, the district: 31 (i) Has certified a levy rate of less than fifty percent (50%) of 32 the levy limit provided in section 40-801(1)(b), Idaho Code, the dis- 33 trict may levy for an increase not to exceed ten percent (10%) of the 34 dollar amount levied pursuant to section 40-801(1)(b), Idaho Code, in 35 the preceding year in addition to the increase allowed in subsection 36 (1)(a) of this section, provided that the district must first use its 37 foregone amount, and further provided that such increase must be 38 approved by a majority of the voters voting on the question at an 39 election called for that purpose and held on the date in May or 40 November, as provided by law, and if approved, such voter approval 41 shall be for a period of not to exceed ten (10) years. The increase 42 provided in this subparagraph shall not be included in the annual 43 budget for purposes of this section; or 44 (ii) Has not certified a levy subject to the provisions of subsec- 45 tion (1) of this section, the district may levy a dollar amount not 46 to exceed fifty percent (50%) of the maximum levy rate authorized in 47 section 40-801(1)(b), Idaho Code, and this new budget amount shall be 48 the base budget for the purposes of this section, provided that such 49 increase must be approved by a majority of the voters voting on the 50 question at an election called for that purpose and held on the date 51 in May or November, as provided by law. 52 (2) In the case of fire districts, during the year immediately following 53 the election of a public utility or public utilities to consent to be provided 54 fire protection pursuant to section 31-1425, Idaho Code, the maximum amount of 55 property tax revenues permitted in subsection (1) of this section may be 3 1 increased by an amount equal to the current year's taxable value of the con- 2 senting public utility or public utilities multiplied by that portion of the 3 prior year's levy subject to the limitation provided by subsection (1) of this 4 section. 5 (3) No board of county commissioners shall set a levy, nor shall the 6 state tax commission approve a levy for annual budget purposes which exceeds 7 the limitation imposed in subsection (1) of this section, unless authority to 8 exceed such limitation has been approved by a majority of the taxing 9 district's electors voting on the question at an election called for that pur- 10 pose and held pursuant to section 34-106, Idaho Code, provided however, that 11 such voter approval shall be for a period of not to exceed two (2) years. 12 (4) The amount of property tax revenues to finance an annual budget does 13 not include revenues from nonproperty tax sources, and does not include reve- 14 nue from levies that are voter approved for bonds, override levies or supple- 15 mental levies, plant facilities reserve fund levies, school emergency fund 16 levies or for levies applicable to newly annexed property or for levies appli- 17 cable to new construction as evidenced by the value of property subject to the 18 occupancy tax pursuant to section 63-317, Idaho Code, for the preceding tax 19 year.
STATEMENT OF PURPOSE
RS 17780
This legislation amends Title 63-802, Idaho Code, by
inserting language that allows a county highway system, a
countywide highway district, or a highway district that has
operated with a levy rate of less than 50% of the limit
established by law for the construction and maintenance of
highways and bridges to increase the budget amount for that
purpose by ten percent (10%). This legislation specifies that an
election must be held for the budget increase, specifies dates
for the election, and places a ten (10) year sunset on the
increased levy. This legislation is necessary given the current
conditions of those counties and highway districts that had very
low levy rates prior to the imposition of the 5% budget cap in
1979.
FISCAL NOTE
There is no fiscal impact to the State general fund.
Contact
Name: Rep. Jim Clark
Phone: 332-1000
Rep. George Sayler
Stuart O. Davis, 345-5176
STATEMENT OF PURPOSE/FISCAL NOTE H 468