Bill Description: Senate Bill 1055 would reduce how much extra property tax money school districts can collect for future bond payments.
NOTE: The Senate amendment to Senate Bill 1055 to adjust percentages and terminology as indicated below. The amendment does not change the rating of the bill.
Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?
Under Idaho law, school districts can set their levies higher than is required to pay their bonds. This means increased property taxes. The extra money districts receive, which can be in the millions, goes to savings accounts and is not used to immediately pay down the bonds.
Districts are currently allowed to levy up to 75% more each year than what is needed to pay their bonds.
Senate Bill 1055 would reduce the maximum annual over-collection to just 17% above what is required to meet "all maturing bond and bond interest payments."
Senate Bill 1055, as amended, would limit a taxing district's "balance in its bond interest and redemption fund remaining after meeting its current fiscal year bond and bond interest obligations" to 120% of "the amount required for the payments for the ensuing twelve (12) months."
This change would, at least in some districts, reduce the annual property taxes collected to satisfy school district bonds.
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