Taxation, school facilities funds
TAXATION – Amends, repeals, and adds to existing law to revise provisions regarding tax rates, school facilities funding, and school district bond and tax levy elections.

RS31287 / H0521

This legislation provides the largest state investment in school facilities through three main avenues. First, it dedicates $125 million in ongoing sales tax revenue to the new School Modernization Facilities Fund for bonding, while providing the legislature with expanded options to cover annual service on the bonds in the event of economic downturns.

Second, this legislation increases the funding to the School District Facility Fund in two ways. It increases the sales tax revenue directed to the fund from 2.25% to 3.25% which is projected to be $25 million in FY 2025, and redirects existing lottery dividends to the fund, which is projected to be approximately $50 million in FY 2025. This fund will help school districts with paying down school bonds, levies, and plant facility levies, with any remaining funds being used at the district level for additional school facility projects.

Third, this legislation reduces income taxes from 5.8% to 5.695%, allowing Idahoans to have more money to better support local bonds and levies related to school facilities.

Additional changes and technical edits are made to related Code provisions. Combined, this bill provides unprecedented state support for school facility improvements in every school district in the state while ensuring appropriate accountability.

Bill Events
Date Description
02/08 Introduced, read first time, referred to JRA for Printing
02/09 Reported Printed and Referred to Revenue & Taxation
02/20 Reported out of Committee with Do Pass Recommendation, Filed for Second Reading
02/21 Read second time; Filed for Third Reading
02/22 U.C. to hold place on third reading calendar one legislative day
02/23 Read Third Time in Full – PASSED - 61-6-3
AYES – Achilles, Allgood, Andrus, Barbieri, Blanksma, Boyle, Bundy, Burns, Cannon, Cheatum, Clow, Cornilles, Crane(12), Crane(13), Dixon(1), Dixon(24), Durrant, Ehardt, Ehlers, Erickson, Furniss, Galaviz, Gallagher, Garner, Handy, Hawkins, Healey, Hill, Holtzclaw, Horman, Kingsley, Lanting, Manwaring, McCann, Mendive, Mickelsen, Miller, Mitchell, Monks, Nelsen, Palmer, Petzke, Pickett, Price, Raybould, Raymond, Redman, Roberts, Sauter, Scott, Shepherd, Skaug, Tanner, Vander Woude, Weber, Wheeler, Wisniewski, Wroten, Yamamoto, Young, Mr. Speaker
NAYS – Berch, Chew(Egbert), Gannon, Mathias, Necochea, Rubel
Absent – Alfieri, Green, Lambert
Floor Sponsor - Monks
Title apvd - to Senate
02/26 Received from the House passed; filed for first reading
02/26 Introduced, read first time; referred to: Local Government & Taxation
03/06 Reported out of Committee with Do Pass Recommendation; Filed for second reading
03/07 Read second time; filed for Third Reading
03/13 Retained on calendar
03/14 Retained on calendar
03/18 Retained on calendar
03/19 Retained on calendar
03/20 Retained on calendar
03/21 Read third time in full – PASSED - 23-11-1
AYES – Anthon, Bernt, Bjerke, Burtenshaw, Cook, Grow, Harris, Hart, Hartgen, Herndon, Just, Lakey, Lee, Lent, Nichols, Okuniewicz, Ricks, Ruchti, Schroeder, Taylor, Toews, VanOrden, Ward-Engelking
NAYS – Adams, Carlson, Den Hartog, Foreman, Guthrie, Lenney, Rabe, Semmelroth, Trakel, Wintrow, Zuiderveld
Absent and excused – Winder
Floor Sponsor - Ricks
Title apvd - to House
03/22 Returned from Senate Passed; to JRA for Enrolling
03/25 Reported Enrolled; Signed by Speaker; Transmitted to Senate
03/25 Received from the House enrolled/signed by Speaker
03/25 Signed by President; returned to House
03/25 Returned Signed by the President; Ordered Transmitted to Governor
03/26 Delivered to Governor at 3:51 p.m. on March 25, 2024
04/02 Reported Signed by Governor on March 29, 2024
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