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LEGISLATURE
OF
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
by
the
Legislature
of
the
State
of
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
of
the
fire
dis
-
20
trict
into
which
annexation
is
sought,
may
be
annexed
into
the
district
pro
-
21
vided
the
territory
consists
of
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