Current through September 2, 2024
Sections 63-602G(5), 63-802, 63-803, 63-3029B(4), 63-3502B, 50-2903A, 50-2913, 63-3638(11), and (13), 63- 1305C, 33-802, 39-2812, 27-121, Idaho Code
01.
Definitions.
a. The Dollar Certification Form (L-2 Form) is the form used by taxing districts to certify their budgets to the county. This form is presumed to be a true and correct representation of the budget previously prepared and approved by a taxing district. The budget is presumed adopted according to appropriate statutory procedures.
b. Prior year's net taxable value is the value used to calculate levies during the immediate prior year. This value is used for calculating the permanent increase permitted for cities, pursuant to Section 63-802(1)(g), Idaho Code.
c. The annual budget includes any permanent override approved as a result of an election held pursuant to Sections 63-802(1)(g) or 63-802(1)(h), Idaho Code, provided that said amount is certified on the L-2 Form as part of the budget request. If the amount certified does not include the entire amount approved as a result of the election held pursuant to Sections 63-802(1)(g) or 63-802(1)(h), Idaho Code, then the amount not used is eligible to be added to the forgone increase balance for the taxing district.
d. Property tax funded budget means that portion of any taxing district's budget certified to the board of county commissioners and approved by the Tax Commission.
e. Recovered/recaptured property tax and refund list means the report sent by the county auditor to the appropriate taxing district(s) by the first Monday in August and to the Tax Commission with the L-2 Forms, listing the amount of revenue distributed, or refunds charged, to each appropriate taxing district during the twelve (12) month period ending June 30 each year as provided in the following:
i. Section 63-602G(5), Idaho Code;
ii. Section 63-3029B(4), Idaho Code;
iii. Section 63-602KK(7), Idaho Code, for personal property exempted after 2013 for which no replacement money was paid;
iv. Section 63-3502B(2), Idaho Code, for distributions of gross earnings tax on solar farms;
v. Section 50-2903A(3), Idaho Code, for distributions of funds derived from revenue allocation areas in excess of the amount necessary to pay indebtedness;
vi. Section 50-2913(3)(c), Idaho Code, for distributions of funds derived from revenue allocation areas in excess of the amount received during the immediate prior tax year;
vii. Section 63-1305C(3), Idaho Code, for revoked provisional property tax exemptions; and
viii. Section 63-1305C(6), Idaho Code, for refunds related to provisional property tax exemptions.
f. Taxing district/unit means any governmental entity with authority to levy property taxes as defined in Section 63-201, Idaho Code, and those governmental entities without authority to levy property taxes but on whose behalf such taxes are levied by an authorized entity such as the county.
g. New taxing district means any taxing district for which no property tax revenue has previously been levied.
02.
Budget Certification. The budget is certified to each board of county commissioners representing each county in which the district is located by submitting the completed and signed L-2 Form. Budget requests for the property tax funded portions of the budget will not exceed the amount published in the notice of budget hearing.
03.
Budget Certification Requested Documents. The completed L-2 Form certified to the county is submitted to the Tax Commission for each taxing district with an amount to finance the property tax funded portion of its budget and a copy of the published budget.
a. Forgone Increase Reservation. For any taxing district reserving additional forgone property taxes as provided in Section 63-802(1)(f), Idaho Code, the required resolution must be submitted to the Tax Commission and the board of county commissioners representing each county in which the district is located by the end of the calendar year during which the most recent L-2 Form was submitted. Consolidating districts may add previously existing forgone amounts by resolution.
b. Forgone Increase Recovery. Any resolution to recover previously accrued forgone amounts is submitted to the board of county commissioners representing each county in which the district is located along with the L-2 Form. A copy of the resolution is submitted to the Tax Commission with the L-2 Form.
04.
L-2 Form Contents. Each taxing district will use the L-2 Form as prescribed the Tax Commission.
a. Fund Name. Identify the department or fund requesting a budget for the current tax year.
b. Total Approved Budget. List the dollar amount of the total budget for each department or fund identified. Include all money that a taxing district intends to spend, regardless of whether funds are to be raised from property tax. Funds without support from property tax levies may be combined and noted as non-levying funds.
c. Cash Forward Balance. List any money retained or money brought forward from a prior year intended to fund the approved budget.
d. Other Revenue not Shown in Column 5. List the revenue included in the total approved budget to be derived from sources other than property tax or money brought forward from a prior year.
e. Property Tax Replacement. Report the following amounts received for the twelve (12) month period ending June 30 of the current tax year:
i. The amount of money received under Section 63-3638(11), Idaho Code, as replacement revenue for the agricultural equipment exemption under Section 63-602EE, Idaho Code;
ii. The amount of money received under Section 63-3638(13), Idaho Code, for the personal property exemption under 63-602KK(2), Idaho Code;
iii. The amount of money reported on the "Recovered/Recaptured Property Tax and Refund List";
f. Report the amount of money to be levied from property tax.
g. Other Information:
i. The name of the taxing district or unit;
ii. The voter approved fund tracker showing date of voter approval, starting date, and, except for permanent increases, the effective period for any new or increased fund which is exempt from the budget limitations in Section 63-802, Idaho Code;
iii. The signature, date signed, printed name, mailing address, email address, and phone number of an authorized representative of the taxing district; and
iv. For a hospital district which has held a public hearing, a signature certifying such action;
v. For any taxing district including forgone increases in their budget, an attestation to having held the required public hearing; and
vi. Judgments to be levied pursuant to Section 63-1305, Idaho Code, including the amount and the court or Board of Tax Appeals order providing for the judgment.
h. Attached Information. Other information submitted with the L-2 Form:
i. For newly formed recreation or auditorium districts, a copy of the petition forming the district showing levy restrictions imposed by that petition;
ii. For any new ballot measures a copy of the ballot and canvass of votes;
iii. For fire districts levying against utility property or changing exemptions as provided in Section 31- 1425, Idaho Code, a copy of any new agreements with utility companies providing for payment of property taxes by that utility company to that fire district and a copy of any new ordinances changing locally assessed property categories subject to taxation.
iv. For cities being annexed by fire districts, the amount of property tax spent on fire protection services during the last year the city funded these services;
v. For any city with city funded library operations and services at the time of consolidation with any library district, a certification reporting the dedicated portion of that city's property tax funded library budget and separately reporting any portion of its property tax funded general fund budget used to fund library operations or services at the time of the election for consolidation;
vi. For any library district consolidating with any city that had any portion of its property tax funded budget(s) dedicated to library operations or services at the time of the election for consolidation, a copy of the certification from that city reporting the information provided for in Subparagraph 803.04.h.vi. of this rule; and
vii. For any taxing district including forgone increases in their budget, a copy of the resolution describing the amount and specific purpose of the forgone amount.
05.
Special Provisions for Property Tax Replacement and Refunds Pursuant to Section 63-1305C(6), Idaho Code. Property tax replacement monies must be reported on the L-2 Form and separately identified on accompanying worksheets. Except as provided in Paragraph 803.05.e. of this rule, for all taxing districts, replacement these monies must be subtracted from or, in the case of refunds, not included in, the "balance to be levied". The reduced balance will be used to compute levies. The maximum amount permitted pursuant to Section 63-802(1), Idaho Code, will be based on the sum of these property tax replacement monies including recoveries received pursuant to Section 63-1305C(3), Idaho Code, but excluding monies received pursuant to Section 63-3502B(2), Idaho Code, and the amount actually levied. Each taxing district's proportionate share of refunds pursuant to Section 63-1305C(6), Idaho Code, as reported in Paragraph 803.01.e. of this rule, must be subtracted from the maximum amount permitted pursuant to Section 63-802(1), Idaho Code.
a. The Tax Commission will, by the fourth Monday of July, notify each county clerk if the amount of property tax replacement money, pursuant to Sections 63-3638(11) and (13), Idaho Code, to be paid to a taxing district changes from the amount paid in the preceding year. By the first Monday of May, the Tax Commission will notify each school district and each county clerk of any changes in the amount of property tax replacement money to be received by that school district pursuant to Sections 63-3638(11) and (13), Idaho Code.
b. By the first Monday of August of each year, each county clerk will notify each appropriate taxing district or unit of the total amount of property tax replacement monies, and the type of replacement money, as described in Paragraph 803.04.e. of this rule. For charter school districts subject to the provisions of Paragraph 803.05.e. of this rule, the amount to be subtracted is reported.
c. Except as provided in Paragraph 803.05.d. of this rule, the subtraction required in Subsection 803.05 of this rule may be from any fund(s) subject to the limitations of Section 63-802, Idaho Code. For school districts, these subtractions are first from funds subject to the limitations of Section 63-802, Idaho Code, then from other property tax funded budgets.
d. For taxing districts receiving distributions of the gross earning tax on solar farms described in Section 63-3502B(2), Idaho Code, the amount of any such distribution received during the twelve (12) months ending June 30 of the current tax year is subtracted from the maximum amount of property tax revenue permitted pursuant to Section 63-802, Idaho Code.
e. For charter school districts with a levy in 2013 and 2022 for maintenance and operations, as provided in Section 33-802(6), Idaho Code, there is no subtraction for a portion of the property tax replacement money received for property subject to the exemption in Section 63-602KK, Idaho Code. Said portion is the amount calculated by applying the 2013 and 2022 levy rates for the maintenance and operations levy, as authorized in the district's charter, to the 2013 and 2022 exempt value of personal property used to compute replacement money provided to the school district.
06.
Special Provisions for Library Districts Consolidating with Any City's Existing Library Operations or Services. For any library district consolidating with any city's existing library operations or services, the amount of the dedicated property tax funded general fund and library fund budgets certified by the city under Subparagraph 803.04.h.vi., of this rule is added to that library district's property tax funded budget in effect at the time of the election for consolidation. This total constitutes the district's property tax funded budget for the most recent year of the three (3) years preceding the current tax year.
07.
Special Provisions for Cities with Existing Library Operations or Services Consolidating with Any Library District and Cities Annexed by Fire Districts. For any city with existing library operations or services at the time of consolidation with any library district, the amount of the dedicated property tax funded library fund budget included in the certification by the city under Subparagraph 803.04.h.vi., of this rule is subtracted from that city's maximum allowable property tax to be levied after the calculation of the annual budget increases described in Section 63-802, Idaho Code. For cities annexed by fire districts, the city will subtract the amount spent on fire protection services from its maximum allowable property tax to be levied after the calculation of the annual budget increases described in Section 63-802, Idaho Code.
08.
Special Provisions for Interim Abatement Districts. When an interim abatement district transitions into an abatement district under Section 39-2812, Idaho Code, the abatement district will not be considered a new taxing district for the purposes of Section 63-802, Idaho Code. For the abatement district, the annual budget subject to the limitations of Section 63-802, Idaho Code, is the most recent amount of property tax revenue approved for the interim abatement district.
09.
Cross Reference for School Districts with Tuition Funds. For exemption from limitations of Section 63-802, Idaho Code, for school district tuition funds, see Section 33-1408, Idaho Code.
Effective July 1, 2024
