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H0694.....................................................by WAYS AND MEANS TAXING DISTRICT BUDGETS - Amends and adds to existing law relating to levy and apportionment of taxes and highways and bridges; to revise limitations on property tax revenues to finance taxing districts annual budgets; to provide that property tax revenues to finance an annual budget do not include certain levies; to revise the calculation a county or city must use in certifying a budget request increasing the dollar amount of property taxes and to provide for distribution of the budget increase; to direct certain cities and counties to deposit moneys into road construction funds and to direct the use of such moneys; to direct certain cities and counties to deposit moneys into local transportation matching funds; to direct such cities and counties to create a local transportation matching fund and to authorize the use of moneys for certain purposes; and to provide for penalties. 03/28 House intro - 1st rdg - to printing 03/31 Rpt prt - to W/M
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 694 BY WAYS AND MEANS COMMITTEE 1 AN ACT 2 RELATING TO LEVY AND APPORTIONMENT OF TAXES AND HIGHWAYS AND BRIDGES; AMENDING 3 SECTION 63-802, IDAHO CODE, TO REVISE LIMITATIONS ON PROPERTY TAX REVENUES 4 TO FINANCE A TAXING DISTRICT'S ANNUAL BUDGET, TO PROVIDE THAT PROPERTY TAX 5 REVENUES TO FINANCE AN ANNUAL BUDGET DO NOT INCLUDE CERTAIN LEVIES, TO 6 REVISE THE CALCULATION A COUNTY OR CITY MUST USE IN CERTIFYING A BUDGET 7 REQUEST INCREASING THE DOLLAR AMOUNT OF PROPERTY TAXES AND TO PROVIDE FOR 8 DISTRIBUTION OF THE BUDGET INCREASE; AMENDING CHAPTER 7, TITLE 40, IDAHO 9 CODE, BY THE ADDITION OF A NEW SECTION 40-701A, IDAHO CODE, TO DIRECT CER- 10 TAIN CITIES AND COUNTIES TO DEPOSIT MONEYS INTO ROAD CONSTRUCTION FUNDS 11 AND TO DIRECT THE USE OF SUCH MONEYS, TO DIRECT CERTAIN CITIES AND COUN- 12 TIES TO DEPOSIT MONEYS INTO LOCAL TRANSPORTATION MATCHING FUNDS, TO DIRECT 13 SUCH CITIES AND COUNTIES TO CREATE SUCH A FUND AND TO AUTHORIZE THE USE OF 14 MONEYS FOR CERTAIN PURPOSES; AMENDING SECTION 63-802A, IDAHO CODE, TO PRO- 15 VIDE FOR PENALTIES; AND TO PROVIDE EFFECTIVE DATES. 16 Be It Enacted by the Legislature of the State of Idaho: 17 SECTION 1. That Section 63-802, Idaho Code, be, and the same is hereby 18 amended to read as follows: 19 63-802. LIMITATION ON BUDGET REQUESTS -- LIMITATION ON TAX CHARGES -- 20 EXCEPTIONS. (1) Except as provided in subsection (3) of this section for tax 21 year 1995, and each year thereafter, no taxing district shall certify a budget 22 request for an amount of property tax revenues to finance an annual budget 23 that exceeds the greater of: 24 (a) The dollar amount of property taxes certified for its annual budget 25 for any one (1) of the three (3) tax years preceding the current tax year, 26 whichever is greater, which amount may be increased by a growth factor of 27 not to exceed three percent (3%) plus the amount of revenue that would 28 have been generated by applying the levy of the previous year, not includ- 29 ing any levy described in subsection (4) of this section, or any school 30 district levy reduction resulting from a distribution of state funds pur- 31 suant to section 63-3638(10), Idaho Code, to any increase in market value 32 subject to taxation resulting from new construction or change of land use 33 classification as evidenced by the value shown on the new construction 34 roll compiled pursuant to section 63-301A, Idaho Code, except as provided 35 in subsection (5) of this section; and by the value of annexation during 36 the previous calendar year, as certified by the state tax commission for 37 market values of operating property of public utilities and by the county 38 assessor; or 39 (b) The dollar amount of property taxes certified for its annual budget 40 during the last year in which a levy was made; or 41 (c) The dollar amount of the actual budget request, if the taxing dis- 42 trict is newly created except as may be provided in subsection (1)(h) of 43 this section; or 2 1 (d) In the case of school districts, the restriction imposed in section 2 33-802, Idaho Code; or 3 (e) In the case of a nonschool district for which less than the maximum 4 allowable increase in the dollar amount of property taxes is certified 5 for annual budget purposes in any one (1) year, such a district may, in 6 any following year, recover the foregone increase by certifying, in addi- 7 tion to any increase otherwise allowed, an amount not to exceed one hun- 8 dred percent (100%) of the increase originally foregone. Said additional 9 amount shall be included in future calculations for increases as allowed; 10 or 11 (f) In the case of cities, if the immediately preceding year's levy sub- 12 ject to the limitation provided by this section, is less than 0.004, the 13 city may increase its budget by an amount not to exceed the difference 14 between 0.004 and actual prior year's levy multiplied by the prior year's 15 market value for assessment purposes. The additional amount must be 16 approved by sixty percent (60%) of the voters voting on the question at an 17 election called for that purpose and held on the date in May or November 18 provided by law, and may be included in the annual budget of the city for 19 purposes of this section; or 20 (g) A taxing district may submit to the electors within the district the 21 question of whether the budget from property tax revenues may be increased 22 beyond the amount authorized in this section, but not beyond the levy 23 authorized by statute. The additional amount must be approved by sixty-six 24 and two-thirds percent (66 2/3%) or more of the voters voting on the ques- 25 tion at an election called for that purpose and held on the May or Novem- 26 ber dates provided by section 34-106, Idaho Code. If approved by the 27 required minimum sixty-six and two-thirds percent (66 2/3%) of the voters 28 voting at the election, the new budget amount shall be the base budget for 29 the purposes of this section; or 30 (h) When a nonschool district consolidates with another nonschool dis- 31 trict or dissolves and a new district performing similar governmental 32 functions as the dissolved district forms with the same boundaries within 33 three (3) years, the maximum amount of a budget of the district from prop- 34 erty tax revenues shall not be greater than the sum of the amounts that 35 would have been authorized by this section for the district itself or for 36 the districts that were consolidated or dissolved and incorporated into a 37 new district; or 38 (i) In the instance or case of cooperative service agencies, the restric- 39 tions imposed in sections 33-315 through 33-318, Idaho Code. 40 (2) In the case of fire districts, during the year immediately following 41 the election of a public utility or public utilities to consent to be provided 42 fire protection pursuant to section 31-1425, Idaho Code, the maximum amount of 43 property tax revenues permitted in subsection (1) of this section may be 44 increased by an amount equal to the current year's taxable value of the con- 45 senting public utility or public utilities multiplied by that portion of the 46 prior year's levy subject to the limitation provided by subsection (1) of this 47 section. 48 (3) No board of county commissioners shall set a levy, nor shall the 49 state tax commission approve a levy for annual budget purposes which exceeds 50 the limitation imposed in subsection (1) of this section, unless authority to 51 exceed such limitation has been approved by a majority of the taxing 52 district's electors voting on the question at an election called for that pur- 53 pose and held pursuant to section 34-106, Idaho Code, provided however, that 3 1 such voter approval shall be for a period of not to exceed two (2) years. 2 (4) The amount of property tax revenues to finance an annual budget does 3 not include revenues from nonproperty tax sources, and does not include reve- 4 nue from levies that are voter approved for bonds, override levies or supple- 5 mental levies, plant facilities reserve fund levies, school emergency fund 6 levies, levies funding deposits set forth in section 40-701A, Idaho Code, or 7 for levies applicable to newly annexed property or for levies applicable to 8 new construction as evidenced by the value of property subject to the occu- 9 pancy tax pursuant to section 63-317, Idaho Code, for the preceding tax year. 10 (5) If, pursuant to this section, any county or city chooses to certify a 11 budget request increasing the dollar amount of property taxes certified in the 12 highest of the preceding three (3) tax years, such increase must first be cal- 13 culated using the increased budget authority attributable to new construction 14 or change in land use classification; provided however, that at least one-half 15 (1/2) of the budget increase so attributable must be deposited as set forth in 16 section 40-701A, Idaho Code. In any year the maximum amount that can be levied 17 for purposes of this subsection shall equal the sum of the amounts levied for 18 this purpose for the preceding two (2) years and the amount to be levied for 19 such purpose for the current year. 20 SECTION 2. That Chapter 7, Title 40, Idaho Code, be, and the same is 21 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 22 ignated as Section 40-701A, Idaho Code, and to read as follows: 23 40-701A. NEW CONSTRUCTION AND REZONING REVENUES FOR TRANSPORTATION PUR- 24 POSES. For the purposes of this section, the term "public highways" shall be 25 as defined in section 40-117, Idaho Code. Cities or counties receiving moneys 26 affected by section 63-802(5), Idaho Code, shall deposit and utilize such 27 moneys as follows: 28 (1) Cities and counties with the responsibility of providing for and 29 maintaining public highways shall annually deposit such moneys into their road 30 construction fund, to be utilized as permitted for other moneys deposited to 31 said fund, or as permitted in subsection (2)(a) and (2)(b) of this section. 32 (2) Cities and counties without the responsibility of providing for and 33 maintaining public highways shall annually deposit such moneys into a local 34 transportation matching fund, which shall be created by each such city or 35 county receiving such moneys. Moneys in the local transportation matching 36 fund may be used for any of the following purposes, at the discretion of the 37 city or county: 38 (a) To remit to the Idaho transportation department or highway district 39 as matching funds to pay for the actual construction costs associated with 40 the construction, expansion or maintenance of public highways, or the cost 41 of right-of-way acquisition for future public highways. If the expendi- 42 tures are to take place in an area that is not served by a highway dis- 43 trict, such matching remittances may be made to the city or county charged 44 with the maintenance of public highways in said area. 45 (b) To remit to a regional public transportation authority that provides 46 service to the city or county, pursuant to chapter 21, title 40, Idaho 47 Code, as matching funds to pay for the capital outlay costs associated 48 with the construction, expansion or maintenance of public transportation 49 services, or the cost of right-of-way acquisition for future public trans- 50 portation service. The term "public transportation service" shall be as 51 defined in section 40-2103, Idaho Code. 4 1 SECTION 3. That Section 63-802A, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 63-802A. NOTICE OF BUDGET HEARING. (1) Not later than April 30 of each 4 year, each taxing district shall set and notify the county clerk of the date 5 and location set for the budget hearing of the district. If no budget hearing 6 is required by law, the county clerk shall be so notified. If a taxing dis- 7 trict fails to comply with the requirements of section 63-802(5), Idaho Code, 8 it shall be subject to the penalty provided in subsection (2) of this section. 9 (2) Beginning in 2003, a taxing district that fails to comply with sub- 10 section (1) of this section shall be prohibited from including in its budget 11 any budget increase otherwise permitted by either subsection (1)(a) or (1)(e) 12 of section 63-802, Idaho Code. 13 (3) If a taxing district wishes to change the time and location of such 14 budget hearing as stated on the assessment notice, it shall publish such 15 change of time and location in advance of such hearing as provided by law. 16 SECTION 4. Sections 1 and 2 of this act shall be in full force and effect 17 on and after July 1, 2008; and Section 3 of this act shall be in full force 18 and effect on and after January 1, 2009.
STATEMENT OF PURPOSE
RS 17685
This legislation requires that half of the new construction
revenue from a city or county be used for roads and public
transportation and the spending of such moneys will be
controlled by the city and county.
FISCAL NOTE
There is no fiscal impact to the General Fund.
Contact
Name: Representative Mike Moyle
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 694