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@@-LEGISLATURE+ST+A+TEMENTOF-THE-STATE-OF-IDAHO-Sixty-eighth-Legislature-Second-Regular-Session---2026-IN-THE-HOUSE-OF-REPRESENTATIVES-HOUSE-BILL-NO.-765-BY-WAYS-AND-MEANS-COMMITTEE-AN-ACT-1-RELATING-TO-TAXING-DISTRICTS;-AMENDING-SECTION-31---1411,-IDAHO-CODE,-TO-RE---2-VISE-PROVISIONS-REGARDING-THE-DE---ANNEXATION-AND-ANNEXATION-OF-CERTAIN-3-PROPERTY-AND-TO-MAKE-TECHNICAL-CORRECTIONS;-AMENDING-SECTION-63---301A,-4-IDAHO-CODE,-TO-PROVIDE-FOR-CERTAIN-DEDUCTIONS-FROM-THE-NEW-CONSTRUCTION-5-ROLL;-AMENDING-SECTION-63---802,-IDAHO-CODE,-TO-REVISE-PROVISIONS-REGARD---6-ING-CERTAIN-BUDGET-LIMITATIONS-OF-FIRE-DISTRICTS-AND-LIBRARY-DISTRICTS-7-AND-TO-MAKE-A-TECHNICAL-CORRECTION;-AND-DECLARING-AN-EMERGENCY-AND-PRO---8-VIDING-RETROACTIVE-APPLICATION.-9-Be-It-Enacted+PURPOSE+RS33530+/+H0765+This+legislation+addresses+a+current+problem+for+Idaho+Fire+and+Library+Districts.+This+problem+occurs+when+these+special+districts,+with+elected+Board+members,+decide+to+agreeably+adjust+their+boundaries+with+other+neighboring+districts.+This+legislation+revises+the+Idaho+tax+code+provisions+to+address+the+application+of+Idaho+annexation+code+to+these+adjustments.+The+consolidation+of+municipal+fire+departments+with+fire+districts+is+also+addressed+with+the+appropriate+additions+and+subtractions+for+the+increases+and+decreases+for+each+entity’+s+tax+base.+FISCAL+NOTE+This+legislation+causes+no+increase+or+decreases+in+revenue,+or+additional+expenditure+of+funds+at+the+state+or+local+level+of+government;+therefore,+this+legislation+has+no+fiscal+impact.+Contact:+Representative+Mike+Moyle+Representative+Mark+Sauter+(208)+332-1000+DISCLAIMER:+This+statement+of+purpose+and+fiscal+note+ar+e+a+mer+e+attachment+to+this+bill+and+pr+epar+edby-the-Legislature+a+pr+oponentofthe-State+bill.+It+is+neither+intended+as+an+expr+essionof-Idaho:-10-SECTION-1.-That-Section-31---1411,-Idaho-Code,-be,-and-the-same-is-hereby-1-1-amended-to-read-as-follows:-12-31---1411.-ANNEXATION-OF-TERRITORY-IN-SAME-COUNTY-----PETITION-----HEAR---13-ING-----ORDER-----CERTIFICATION-TO-COUNTY-COMMISSIONERS-----ALTERNATE-PROCEDURE-14-----ELECTION-----PETITION-TO-DE---ANNEX-PROPERTY-FROM-EXISTING-DISTRICT-AND-AN---15-NEX-INTO-ANOTHER-DISTRICT.-(1)-After-the-organization-of-a-fire-protection-16-district,-additional-contiguous-or-noncontiguous-territory-lying-within-the-17-same-county-may-be-added-thereto-and-shall-thereupon-and-thenceforth-be-in---18-cluded-in-such-district.-Territory-that-is-not-contained-in-an-existing-fire-19-district,-and-is-not-immediately-adjoining-the-boundaries+legislative+intent+nor+intended+for+any+use+outsideofthe-fire-dis---20-trict-into-which-annexation-is-sought,-may-be-annexed-into-the-district-pro---21-vided-the-territory-consists+legislative+pr+ocess,+including+judicial+r+eview+(Joint+Rule+18).+Statementof-not-less-than-forty-(40)-contiguous-acres.-22-At-least-seventy---five-percent-(75%)-or-more-of-the-owners-or-contract-pur---23-chasers-of-the-land-sought-to-be-annexed-shall-petition-the-fire-protection-24-board-and-request-annexation-of-the-territory-particularly-described-in-said-25-the-petition.-Upon-receipt-of-any-such-a-petition-to-annex,-the-fire-protec---26-tion-board-shall-hold-a-hearing-not-less-than-ten-(10)-nor-more-than-thirty-27-(30)-days-thereafter-,-or-,-upon-the-written-consent-of-the-petitioner-,-within-28-one-hundred-eighty-(180)-days,-and-said-the-board-shall-cause-notice-of-such-29-the-hearing,-designating-the-time-and-place,-to-be-published-in-at-least-one-30-(1)-issue-of-a-newspaper-of-general-circulation-within-the-district.-Any-31-person-supporting-or-objecting-to-such-the-petition-shall-be-heard-at-such-32-the-hearing,-if-in-attendance,-and-at-the-close-of-such-the-hearing-said-,-33-the-board-shall-approve-or-reject-said-the-petition.-If-the-board-approves-34-said-the-petition-,-it-shall-make-an-order-to-that-effect-and-certify-a-copy-of-35-said-the-order-containing-an-accurate-legal-description-of-the-annexed-ter---36-ritory-to-the-board-of-county-commissioners-of-the-county-where-said-the-fire-37-district-is-situated.-Said-The-board-of-county-commissioners-shall-there---38-upon-enter-an-order-of-annexation-and-cause-the-same-to-be-recorded-so-as-to-39-include-the-annexed-property-on-the-tax-rolls-as-provided-in-this-chapter-40-provided-.-41--2-(2)-In-the-event-that-more-than-twenty---five-percent-(25%)-of-the-owners-1-or-contract-purchasers-of-the-land-sought-to-be-annexed-do-not-join-in-said-2-the-petition,-and-the-board-determines-by-resolution-,-entered-on-the-min---3-utes-of-the-board,-that-the-annexation-would-be-in-the-best-interests-of-the-4-district-and-that-an-election-on-the-issue-should-be-held,-additional-terri---5-tory-may-nevertheless-be-annexed-by-the-affirmative-vote-of-a-majority-of-the-6-qualified-electors-of-such-the-additional-territory-voting-on-the-question-7-at-an-election-held-therefor,-which-vote-may-be-taken-at-an-election-held-as-8-provided-in-section-31---1405,-Idaho-Code.-The-same-procedure-shall-be-adopted-9-as-provided-in-sections-31---1402-through-31---1406,-Idaho-Code.-10-(3)-Any-area-embraced-within-the-limits-of-any-fire-protection-district-1-1-may-be-de---annexed-by-such-fire-protection-district-and-annexed-into-another-12-fire-protection-district:-13-(a)-If-owners-or-contract-purchasers-of-territory-located-within-an-14-existing-fire-protection-district-seek-to-petition-to-be-annexed-into-15-another-fire-protection-district,-they-must-demonstrate-that-they-are-16-likely-to-receive-an-improved-response-to-requests-for-services-from-17-the-other-fire-protection-district-,-and-obtain-written-approval-of-the-18-board-of-the-fire-protection-district-within-which-the-territory-is-al---19-ready-located.-The-written-approval-must-be-attached-to-their-petition-20-to-annex.-The-procedure-for-the-annexation-petition-shall-be-the-same-as-21-otherwise-provided-in-this-section.-Upon-receipt-of-a-petition-to-an---22-nex,-the-fire-protection-board-shall-hold-a-hearing-no-less-than-ten-(10)-23-nor-more-than-thirty-(30)-days-thereafter-or,-upon-the-written-consent-24-of-the-petitioner,-within-one-hundred-eighty-(180)-days,-and-the-board-25-shall-cause-notice-of-such-hearing,-designating-the-time-and-place,-to-26-be-published-in-at-least-one-(1)-issue-of-a-newspaper-of-general-circu---27-lation-within-the-district.-Any-person-supporting-or-objecting-to-the-28-petition-shall-be-heard-at-the-hearing,-if-in-attendance,-and-at-the-29-close-of-the-hearing,-the-board-shall-approve-or-reject-the-petition.-If-30-the-board-approves-the-petition,-it-shall-make-an-order-to-that-effect-31-and-certify-a-copy-of-the-order-containing-an-accurate-legal-descrip---32-tion-of-the-annexed-territory-to-the-board-of-county-commissioners-of-33-the-county-where-the-fire-district-is-situated-and-to-the-state-tax-com---34-mission-pursuant-to-section-63---215,-Idaho-Code.-The-board-of-county-35-commissioners-shall-thereupon-enter-an-order-of-annexation-and-cause-36-the-same-to-be-recorded-so-as-to-include-the-annexed-property-on-the-tax-37-rolls-as-provided-in-this-chapter;-or-38-(b)-With-the-consent-of-the-governing-boards-of-each-fire-protection-39-district,-expressed-by-ordinance-or-resolution-of-each-district.-If-the-40-boards-approve-any-annexation-and-corresponding-de---annexation-of-ter---41-ritory,-the-fire-protection-district-annexing-territory-shall-make-an-42-order-to-that-effect-and-certify-a-copy-of-the-order-containing-an-accu---43-rate-legal-description-of-the-annexed-territory-to-the-board-of-county-44-commissioners-of-the-county-where-the-fire-district-is-situated-and-to-45-the-state-tax-commission-pursuant-to-section-63---215,-Idaho-Code.-The-46-board-of-county-commissioners-shall-thereupon-enter-an-order-of-annexa---47-tion-and-cause-the-same-to-be-recorded-so-as-to-include-the-annexed-prop---48-erty-on-the-tax-rolls-as-provided-in-this-chapter.-49--3-SECTION-2.-That-Section-63---301A,-Idaho-Code,-be,-and-the-same-is-hereby-1-amended-to-read-as-follows:-2-63---301A.-NEW-CONSTRUCTION-ROLL.-(1)-The-county-assessor-shall-prepare-3-a-new-construction-roll,-which-shall-be-in-addition-to-the-property-roll,-4-which-new-construction-roll-shall-show:-5-(a)-The-name-of-the-taxpayer;-6-(b)-The-description-of-the-new-construction,-suitably-detailed-to-meet-7-the-requirements-of-the-individual-county;-8-(c)-The-amount-of-taxable-market-value-added-to-the-property-on-the-cur---9-rent-year's-property-roll-that-is-directly-the-result-of-new-construc---10-tion;-1-1-(d)-The-amount-of-taxable-market-value-added-as-provided-in-subsection-12-(3)(f)-of-this-section-as-a-result-of-dissolution-of-any-revenue-alloca---13-tion-area;-and-14-(e)-The-amount-of-taxable-market-value-to-be-deducted-to-reflect-the-ad---15-justments-required-in-this-paragraph:-16-(i)-Any-board-of-tax-appeals-or-court---ordered-value-change,-if-17-property-has-a-taxable-value-lower-than-that-shown-on-any-new-con---18-struction-roll-in-any-one-(1)-of-the-immediate-five-(5)-tax-years-19-preceding-the-current-tax-year;-20-(ii)-Any-reduction-in-value-resulting-from-correction-of-value-im---21-properly-included-on-any-previous-new-construction-roll-as-a-re---22-sult-of-double-or-otherwise-erroneous-assessment;-23-(iii)-Any-reduction-in-value-resulting-from-the-exemption-provided-24-in-section-63---602W(4),-Idaho-Code,-in-any-one-(1)-of-the-immediate-25-five-(5)-tax-years-preceding-the-current-tax-year;-and-26-(iv)-Any-voluntary-reduction-in-value-reflecting-a-portion-of-27-certain-homestead-exemptions-as-provided-in-section-63---602G(10),-28-Idaho-Code-.-;-and-29-(v)-Any-reduction-in-value-resulting-from-a-fire-protection-dis---30-trict-de---annexing-territory-pursuant-to-section-31---1411(3),-Idaho-31-Code,-or-library-district-de---annexing-territory-pursuant-to-sec---32-tion-33---2711A,-Idaho-Code.-The-full-taxable-market-value-for-as---33-sessment-purposes-of-such-de---annexed-territory,-as-certified-by-34-the-county-assessor,-shall-be-deducted-from-the-new-construction-35-roll-for-the-de---annexing-district-in-the-year-following-the-de---an---36-nexation.-37-(2)-As-soon-as-possible,-but-in-any-event-by-no-later-than-the-first-Mon---38-day-in-June,-the-new-construction-roll-shall-be-certified-to-the-county-audi---39-tor-and-a-listing-showing-the-amount-of-value-on-the-new-construction-roll-in-40-each-taxing-district-or-unit-shall-be-forwarded-to-the-state-tax-commission-41-on-or-before-the-fourth-Monday-in-July.-Provided-however,-the-value-shown-42-in-subsection-(3)(e)-of-this-section-shall-be-reported-to-the-appropriate-43-county-auditor-by-the-state-tax-commission-by-the-third-Monday-in-July-and-the-44-value-sent-by-the-county-auditor-to-each-taxing-district.-The-value-estab---45-lished-pursuant-to-subsection-(3)(e)-of-this-section-is-subject-to-correc---46-tion-by-the-state-tax-commission-until-the-first-Monday-in-September,-and-any-47-such-corrections-shall-be-sent-to-the-appropriate-county-auditor,-who-shall-48-notify-any-affected-taxing-districts.-49--4-(3)-Except-as-otherwise-provided-in-this-subsection,-the-value-shown-on-1-the-new-construction-roll-shall-include-ninety-percent-(90%)-of-the-taxable-2-market-value-increase-from:-3-(a)-Construction-of-any-new-structure-that-previously-did-not-exist,-4-once-it-is-completed-and-taxable;-5-(b)-Additions-or-alterations-to-existing-nonresidential-structures;-6-(c)-Installation-of-new-or-used-manufactured-housing-that-did-not-pre---7-viously-exist-within-the-county;-8-(d)-Property-newly-taxable-as-a-result-of-loss-of-the-exemption-provided-9-by-section-63---602W(3)-or-(4),-Idaho-Code;-10-(e)-The-construction-of-any-improvement-or-installation-of-any-equip---1-1-ment-used-for-or-in-conjunction-with-the-generation-of-electricity-and-12-the-addition-of-any-improvement-or-equipment-intended-to-be-so-used,-ex---13-cept-property-that-has-a-value-allocated-or-apportioned-pursuant-to-sec---14-tion-63---405,-Idaho-Code,-or-that-is-owned-by-a-cooperative-or-municipal---15-ity-as-those-terms-are-defined-in-section-61---332A,-Idaho-Code,-or-that-16-is-owned-by-a-public-utility-as-that-term-is-defined-in-section-61---332A,-17-Idaho-Code,-owning-any-other-property-that-is-allocated-or-apportioned.-18-No-replacement-equipment-or-improvements-may-be-included;-19-(f)-Provided-such-increases-do-not-include-increases-already-reported-20-on-the-new-construction-roll-as-permitted-in-paragraphs-(i)-and-(j)-of-21-this-subsection,-increases-in-value-over-the-base-value-of-property-22-on-the-base-assessment-roll-within-an-urban-renewal-revenue-alloca---23-tion-area-that-has-been-terminated-pursuant-to-section-50---2914,-Idaho-24-Code,-to-the-extent-that-this-increment-exceeds-the-incremental-value-25-as-of-December-31,-2006,-or,-for-revenue-allocation-areas-formed-af---26-ter-December-31,-2006,-eighty-percent-(80%)-of-the-increment-value.-27-Notwithstanding-other-provisions-of-this-section,-the-new-construction-28-roll-shall-not-include-new-construction-located-within-an-urban-renewal-29-district's-revenue-allocation-area,-except-as-provided-in-this-para---30-graph-or-paragraph-(k)-of-this-subsection;-31-(g)-New-construction,-in-any-one-(1)-of-the-immediate-five-(5)-tax-years-32-preceding-the-current-tax-year,-allowable-but-never-included-on-a-new-33-construction-roll,-provided-however,-that-for-such-property-the-value-34-on-the-new-construction-roll-shall-reflect-the-taxable-value-that-would-35-have-been-included-on-the-new-construction-roll-for-the-first-year-in-36-which-the-property-should-have-been-included;-37-(h)-Formerly-exempt-improvements-on-state-college---owned-or-state-uni---38-versity---owned-land-for-student-dining,-housing,-or-other-education---re---39-lated-purposes-approved-by-the-state-board-of-education-and-board-of-40-regents-of-the-university-of-Idaho-as-proper-for-the-operation-of-such-41-state-college-or-university,-provided-such-improvements-were-never-in---42-cluded-on-any-previous-new-construction-roll;-43-(i)-Increases-in-base-value-when-due-to-previously-determined-incre---44-ment-value-added-to-the-base-value-as-required-in-sections-50---2903-and-45-50---2903A,-Idaho-Code,-due-to-a-modification-of-the-urban-renewal-plan.-46-In-this-case,-the-amount-added-to-the-new-construction-roll-will-equal-47-eighty-percent-(80%)-of-the-amount-by-which-the-increment-value-in-the-48-year-immediately-preceding-the-year-in-which-the-base-value-adjustment-49-described-in-this-subsection-occurs-exceeds-the-incremental-value-as-of-50--5-December-31,-2006,-or,-for-revenue-allocation-areas-formed-after-Decem---1-ber-31,-2006,-the-entire-increment-value;-and-2-(j)-Increases-in-base-value-when-due-to-previously-determined-incre---3-ment-value-added-to-the-base-value-as-a-result-of-a-de---annexation-within-4-a-revenue-allocation-area-as-defined-in-section-50---2903,-Idaho-Code.-5-In-this-case,-the-amount-added-to-the-new-construction-roll-will-equal-6-eighty-percent-(80%)-of-the-amount-by-which-the-increment-value-in-the-7-year-immediately-preceding-the-year-in-which-the-de---annexation-de---8-scribed-in-this-subsection-occurs-exceeds-the-incremental-value-as-of-9-December-31,-2006,-or,-for-revenue-allocation-areas-formed-after-Decem---10-ber-31,-2006,-the-entire-increment-value-within-the-area-subject-to-the-1-1-de---annexation.-12-(k)-In-the-case-of-a-fire-protection-district-or-ambulance-service-13-district-that-encompasses-all-or-part-of-any-urban-renewal-revenue-14-allocation-area-that-such-district-withdrew-from-pursuant-to-section-15-50---2906(5),-Idaho-Code,-eighty-percent-(80%)-of-the-increment-value-may-16-be-included-on-the-new-construction-roll-for-the-year-in-which-the-dis---17-trict-withdrew-from-such-urban-renewal-revenue-allocation-area.-Each-18-year-thereafter,-ninety-percent-(90%)-of-the-taxable-value-of-otherwise-19-qualifying-new-construction-shall-be-included-in-the-new-construction-20-roll-for-such-fire-protection-district-or-ambulance-service-district,-21-even-if-such-new-construction-would-not-otherwise-qualify-because-it-was-22-located-within-a-revenue-allocation-area.-23-(4)-The-amount-of-taxable-market-value-of-new-construction-shall-be-the-24-change-in-net-taxable-market-value-that-is-attributable-directly-to-the-new-25-construction-or-loss-of-the-exemption-provided-by-section-63---602W(3)-or-(4),-26-Idaho-Code.-It-shall-not-include-any-change-in-value-of-existing-property-27-that-is-due-to-external-market-forces-such-as-general-or-localized-inflation,-28-except-as-provided-in-subsection-(3)(f)-of-this-section.-29-(5)-The-amount-of-taxable-market-value-of-new-construction-shall-not-in---30-clude-any-new-construction-of-property-that-has-been-granted-a-provisional-31-property-tax-exemption,-pursuant-to-section-63---1305C,-Idaho-Code.-A-prop---32-erty-owner-may-apply-to-the-board-of-county-commissioners,-if-an-application-33-is-required-pursuant-to-section-63---602,-Idaho-Code,-for-an-exemption-from-34-property-tax-at-the-time-the-initial-building-permits-are-applied-for-or-at-35-the-time-construction-of-the-property-has-begun,-whichever-is-earlier,-or-at-36-any-time-thereafter.-37-(6)-The-amount-of-taxable-market-value-of-new-construction-shall-not-in---38-clude-any-new-construction-of-property-for-which-an-exemption-from-sales-and-39-use-tax-has-been-granted-pursuant-to-section-63---3622VV,-Idaho-Code.-40-SECTION-3.-That-Section-63---802,-Idaho-Code,-be,-and-the-same-is-hereby-41-amended-to-read-as-follows:-42-63---802.-LIMITATION-ON-BUDGET-REQUESTS-----LIMITATION-ON-TAX-CHARGES-----43-EXCEPTIONS.-(1)-Except-as-otherwise-provided-in-this-section,-no-taxing-dis---44-trict-shall-certify-a-budget-request-for-an-amount-of-property-tax-revenues-45-to-finance-an-annual-budget-that-exceeds-the-maximum-sum-permitted-under-this-46-section:-47-(a)(i)-The-highest-dollar-amount-of-property-taxes-certified-for-48-its-annual-budget-for-any-one-(1)-of-the-three-(3)-tax-years-preced---49--6-ing-the-current-tax-year,-which-amount-may-be-increased-by-a-growth-1-factor-of-not-to-exceed-three-percent-(3%)-plus-the-amount-of-rev---2-enue-calculated-as-described-in-this-subsection.-The-taxing-dis---3-trict-shall-determine-what-portion-of-the-three-percent-(3%)-in---4-crease-permitted-under-this-subparagraph-that-it-requires-and-then-5-calculate-a-preliminary-levy-rate-based-on-the-percent-chosen.-In-6-calculating-the-preliminary-levy-rate,-the-most-current-taxable-7-market-value-shall-be-used,-except-that-for-taxable-market-values-8-of-centrally-assessed-operating-property,-the-prior-year's-valua---9-tion-may-be-used-instead-of-the-current-year's-taxable-market-val---10-ues.-The-preliminary-levy-rate-shall-be-multiplied-by-the-value-1-1-shown-on-the-new-construction-roll-compiled-pursuant-to-section-12-63---301A,-Idaho-Code,-and-by-ninety-percent-(90%)-of-the-value-of-13-annexation-during-the-previous-calendar-year,-as-certified-by-the-14-state-tax-commission-for-taxable-market-values-of-operating-prop---15-erty-of-public-utilities-and-by-the-county-assessor-;-except-for-a-16-fire-protection-district-annexing-property-prior-to-July-1,-2021,-17-pursuant-to-section-31---1429,-Idaho-Code,-the-new-levy-rate-shall-be-18-multiplied-by-one-hundred-percent-(100%)-of-the-value-of-any-such-19-property-annexed-prior-to-July-1,-2021-.-20-(ii)-The-total-budget-increase-calculated-under-this-paragraph-21-must-not-exceed-eight-percent-(8%),-except-that-any-increase-in-the-22-amount-of-property-tax-revenue-to-finance-an-annual-budget-added-as-23-a-result-of-the-following-shall-not-be-subject-to-such-limitation:-24-1.-The-termination,-de---annexation,-plan-modification-of,-25-or-the-withdrawal-of-certain-taxing-districts-from,-a-rev---26-enue-allocation-area-of-an-urban-renewal-district-pursuant-27-to-section-63---301A(3)(f),-(i),-(j),-or-(k),-Idaho-Code,-or-28-section-50---2908(1)(g),-Idaho-Code-,-shall-not-be-subject-to-29-such-limitation-;-30-2.-A-fire-protection-district-annexing-territory-pursuant-31-to-section-31---1411(3)-or-31---1429,-Idaho-Code;-or-32-3.-A-library-district-annexing-territory-of-another-library-33-district-pursuant-to-section-33---2711A,-Idaho-Code-.-34-(iii)-Following-the-first-year-in-which-a-fire-protection-district-35-has-annexed-city-property-pursuant-to-section-31---1429,-Idaho-Code,-36-the-city-shall-subtract-an-amount-equal-to-the-moneys-spent-on-fire-37-protection-services-during-the-last-full-year-the-city-provided-38-fire-protection-services-to-its-residents-from-its-budget-limita---39-tion-under-this-section.-40-(b)-If-the-taxing-district-has-not-imposed-a-levy-for-three-(3)-or-more-41-years,-the-highest-dollar-amount-of-property-taxes-certified-for-its-an---42-nual-budget-for-the-purpose-of-paragraph-(a)(i)-of-this-subsection-shall-43-be-the-dollar-amount-of-property-taxes-certified-for-its-annual-budget-44-during-the-last-year-in-which-a-levy-was-made.-45-(c)-The-dollar-amount-of-the-actual-budget-request-may-be-substituted-46-for-the-amount-in-paragraph-(a)-of-this-subsection-if-the-taxing-dis---47-trict-is-newly-created,-except-as-may-be-provided-in-paragraph-(i)-of-48-this-subsection.-49--7-(d)-This-section-does-not-apply-to-school-district-levies-imposed-in-1-section-33---802,-Idaho-Code.-2-(e)(i)-In-the-case-of-a-nonschool-district-for-which-less-than-the-3-maximum-allowable-increase-in-the-dollar-amount-of-property-taxes-4-is-certified-for-annual-budget-purposes-in-any-one-(1)-year,-such-a-5-district-may,-in-any-following-year,-recover-the-forgone-increase-6-by-certifying,-in-addition-to-any-increase-otherwise-allowed,-any-7-or-all-of-the-increase-originally-forgone.-Provided-however,-that-8-prior-to-budgeting-any-forgone-increase,-the-district-must-provide-9-notice-of-its-intent-to-do-so,-hold-a-public-hearing-that-may-be-in-10-conjunction-with-its-annual-budget-hearing,-and-certify-by-resolu---1-1-tion-the-amount-of-forgone-increase-to-be-budgeted-and-the-specific-12-purpose-for-which-the-forgone-increase-is-being-budgeted.-Upon-13-adoption-of-the-resolution,-the-clerk-of-the-district-shall-file-a-14-copy-of-the-resolution-with-the-county-clerk-and-the-state-tax-com---15-mission.-Said-additional-amount-shall-be-included-in-future-cal---16-culations-for-increases-as-allowed,-except-as-provided-in-subpara---17-graph-(iii)-of-this-paragraph.-18-(ii)-If-the-forgone-increase-is-budgeted-for-the-purpose-of-main---19-tenance-and-operations,-the-rate-of-recovering-the-reserved-for---20-gone-moneys-may-increase-the-taxing-district's-budget-by-no-more-21-than-one-percent-(1%)-per-year.-22-(iii)-If-the-forgone-increase-is-budgeted-for-a-capital-project-or-23-projects,-the-rate-of-recovering-the-reserved-forgone-moneys-may-24-not-exceed-three-percent-(3%)-of-the-taxing-district's-budget-for-25-the-year-in-which-the-forgone-increase-is-budgeted.-Forgone-moneys-26-budgeted-for-a-capital-project-must-be-deducted-from-the-taxing-27-district's-forgone-balance-in-the-year-in-which-it-is-budgeted.-28-Upon-completion-of-such-a-capital-project,-the-taxing-district-29-shall-certify-such-completion-to-the-state-tax-commission-and-30-county-clerk.-If,-upon-certification,-the-state-tax-commission-31-finds-that-the-taxing-district-included-forgone-moneys-for-a-capi---32-tal-project-in-calculating-the-increase-permitted-under-paragraph-33-(a)-of-this-subsection,-the-state-tax-commission-shall-direct-the-34-taxing-district-to-reduce-its-property-tax-budget-for-any-year-35-in-which-the-forgone-moneys-were-used-to-calculate-a-budget-in---36-crease,-in-an-amount-equal-to-the-forgone-moneys-budgeted-plus-any-37-increases-attributed-to-the-forgone-moneys-improperly-included-in-38-the-taxing-district's-property-tax-budget.-For-the-purpose-of-this-39-paragraph,-a-capital-project-includes:-40-1.-The-construction,-expansion,-renovation,-or-replacement-41-of-public-facilities,-including-the-acquisition-of-land-and-42-other-site-improvements;-43-2.-The-construction,-expansion,-or-reconstruction-of-public-44-works-improvements,-including-roads,-bridges,-water-sys---45-tems,-sewer-systems,-and-broadband-systems;-and-46-3.-The-purchase-of-equipment-with-a-useful-life-of-ten-(10)-47-years-or-more.-48-(f)-If-a-taxing-district-elects-to-budget-less-than-the-maximum-allow---49-able-increase-in-the-dollar-amount-of-property-taxes,-the-taxing-dis---50--8-trict-may-reserve-the-right-to-recover-all-or-any-portion-of-that-year's-1-forgone-increase-in-a-subsequent-year-by-adoption-of-a-resolution-spec---2-ifying-the-dollar-amount-of-property-taxes-being-reserved.-Otherwise,-3-that-year's-forgone-increase-may-not-be-recovered-under-paragraph-(e)-of-4-this-subsection.-The-district-must-provide-notice-of-its-intent-to-do-so-5-and-hold-a-public-hearing-that-may-be-in-conjunction-with-its-annual-bud---6-get-hearing,-if-applicable.-The-resolution-to-reserve-the-right-to-re---7-cover-the-forgone-increase-for-that-year-shall-be-adopted-at-the-annual-8-budget-hearing-of-the-taxing-district-if-the-district-has-a-budget-hear---9-ing-requirement.-10-(g)-In-the-case-of-cities,-if-the-immediately-preceding-year's-levy-sub---1-1-ject-to-the-limitation-provided-by-this-section-is-less-than-0.004,-the-12-city-may-increase-its-budget-by-an-amount-not-to-exceed-the-difference-13-between-0.004-and-the-actual-prior-year's-levy-multiplied-by-the-prior-14-year's-market-value-for-assessment-purposes.-The-additional-amount-15-must-be-approved-by-sixty-percent-(60%)-of-the-voters-voting-on-the-ques---16-tion-at-an-election-called-for-that-purpose-and-held-on-the-date-in-May-or-17-November-provided-by-law-and-may-be-included-in-the-annual-budget-of-the-18-city-for-purposes-of-this-section.-19-(h)-A-taxing-district-may-submit-to-the-electors-within-the-district-20-the-question-of-whether-the-budget-from-property-tax-revenues-may-be-21-increased-beyond-the-amount-authorized-in-this-section,-but-not-beyond-22-the-levy-authorized-by-statute.-The-additional-amount-must-be-approved-23-by-sixty---six-and-two---thirds-percent-(66-2/3%)-or-more-of-the-voters-24-voting-on-the-question-at-an-election-called-for-that-purpose-and-held-25-on-the-May-or-November-dates-provided-by-section-34---106,-Idaho-Code.-26-If-approved-by-the-required-minimum-sixty---six-and-two---thirds-percent-27-(66-2/3%)-of-the-voters-voting-at-the-election,-the-new-budget-amount-28-shall-be-the-base-budget-for-the-purposes-of-this-section.-29-(i)-When-a-nonschool-district-consolidates-with-another-nonschool-30-district-or-dissolves-and-a-new-district-performing-similar-governmen---31-tal-functions-as-the-dissolved-district-forms-with-the-same-boundaries-32-within-three-(3)-years,-the-maximum-amount-of-a-budget-of-the-district-33-from-property-tax-revenues-shall-not-be-greater-than-the-sum-of-the-34-amounts-that-would-have-been-authorized-by-this-section-for-the-district-35-itself-or-for-the-districts-that-were-consolidated-or-dissolved-and-in---36-corporated-into-a-new-district.-37-(j)-This-section-does-not-apply-to-cooperative-service-agency-levies-38-imposed-in-sections-33---317-and-33---317A,-Idaho-Code.-39-(k)-The-amount-of-money-received-in-the-twelve-(12)-months-immediately-40-preceding-June-30-of-the-current-tax-year-as-a-result-of-distributions-of-41-the-tax-provided-in-section-63---3502B(2),-Idaho-Code.-42-(2)-In-the-case-of-fire-districts,-during-the-year-immediately-follow---43-ing-the-election-of-a-public-utility-or-public-utilities-to-consent-to-be-pro---44-vided-fire-protection-pursuant-to-section-31---1425,-Idaho-Code,-the-maximum-45-amount-of-property-tax-revenues-permitted-in-subsection-(1)-of-this-section-46-may-be-increased-by-an-amount-equal-to-the-current-year's-taxable-value-of-the-47-consenting-public-utility-or-public-utilities-multiplied-by-that-portion-of-48-the-prior-year's-levy-subject-to-the-limitation-provided-by-subsection-(1)-of-49-this-section.-50--9-(3)-No-board-of-county-commissioners-shall-set-a-levy,-nor-shall-the-1-state-tax-commission-approve-a-levy-for-annual-budget-purposes,-which-ex---2-ceeds-the-limitation-imposed-in-subsection-(1)-of-this-section-unless-au---3-thority-to-exceed-such-limitation-has-been-approved-by-a-majority-of-the-tax---4-ing-district's-electors-voting-on-the-question-at-an-election-called-for-that-5-purpose-and-held-pursuant-to-section-34---106,-Idaho-Code,-provided-however,-6-that-such-voter-approval-shall-be-for-a-period-of-not-to-exceed-two-(2)-years.-7-(4)-The-amount-of-property-tax-revenues-to-finance-an-annual-budget-does-8-not-include-revenues-from-nonproperty-tax-sources-and-does-not-include-rev---9-enue-from-levies-for-the-payment-of-judicially-confirmed-obligations-pur---10-suant-to-sections-63---1315-and-63---1316,-Idaho-Code,-and-revenue-from-levies-1-1-that-are-voter---approved-for-bonds,-override-levies-or-supplemental-levies,-12-plant-facilities-reserve-fund-levies,-school-emergency-fund-levies,-or-for-13-levies-applicable-to-newly-annexed-property-or-for-levies-applicable-to-new-14-construction-as-evidenced-by-the-value-of-property-subject-to-the-occupancy-15-tax-pursuant-to-section-63---317,-Idaho-Code,-for-the-preceding-tax-year.-The-16-amount-of-property-tax-revenues-to-finance-an-annual-budget-does-not-include-17-any-property-taxes-that-were-collected-and-refunded-on-property-that-is-ex---18-empt-from-taxation,-pursuant-to-section-63---1305C,-Idaho-Code.-19-(5)-The-amount-of-property-tax-revenues-to-finance-an-annual-budget-20-shall-include-moneys-received-as-recovery-of-property-tax-for-a-revoked-pro---21-visional-property-tax-exemption-under-section-63---1305C,-Idaho-Code.-22-(6)-For-tax-year-2023,-before-calculating-the-amount-required-in-sub---23-section-(1)(a)(i)-of-this-section,-the-board-of-county-commissioners-shall-24-reduce-the-approved-property-tax-levy-portion-of-its-budget-for-the-immedi---25-ate-prior-three-(3)-years-in-an-amount-equal-to-the-amount-levied-for-indigent-26-public-defense.-The-reduced-budget-amount-shall-be-the-base-budget-for-the-27-purpose-of-subsection-(1)(a)(i)-of-this-section.-28-SECTION-4.-An-emergency-existing-therefor,-which-emergency-is-hereby-29-declared-to-exist,-this-act-shall-be-in-full-force-and-effect-on-and-after-its-30-passage-and-approval,-and-retroactively-to-January-1,-2026.-31+Purpose+/+Fiscal+Note+Bill+SOP/FN+INTRODUCED:+02/25/2026,+9:43+AM
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