Amends existing law to revise provisions regarding supplemental maintenance and operation levies.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 786 BY EDUCATION COMMITTEE AN ACT1 RELATING TO EDUCATION; AMENDING SECTION 33-802, IDAHO CODE, TO REVISE PRO-2 VISIONS REGARDING SUPPLEMENTAL MAINTENANCE AND OPERATION LEVIES; AND3 DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.4

Be It Enacted by the Legislature of the State of Idaho:5

SECTION 1. That Section 33-802, Idaho Code, be, and the same is hereby6 amended to read as follows:7 33-802. SCHOOL LEVIES. Any tax levied for school purposes shall be a8 lien on the property against which the tax is levied. The board of trustees9 shall determine the levies upon each dollar of taxable property in the dis-10 trict for the ensuing fiscal year as follows:11 (1) Bond, Interest and Judgment Obligation Levies. Such levies as12 shall be required to satisfy all maturing bond, bond interest, and judgment13 obligations.14 (2) Budget Stabilization Levies. School districts not receiving state15 equalization funds in fiscal year 2006 may authorize a budget stabilization16 levy for calendar year 2006 and each year thereafter. Such levies shall not17 exceed the difference between the amount of equalized funds that the state18 department of education estimates the school district will receive in fiscal19 year 2007, based on the school district's fiscal year 2006 reporting data,20 and the combined amount of money the school district would have received from21 its maintenance and operation levy and state property tax replacement funds22 in fiscal year 2007 under the laws of the state of Idaho as they existed prior23 to amendment by the first extraordinary session of the fifty-eighth Idaho24 legislature. The state department of education shall notify the state tax25 commission and affected counties and school districts of the maximum levy26 amounts permitted, by no later than September 1, 2006.27 (3) Supplemental Maintenance and Operation Levies. No levy in excess28 of the levy permitted by this section shall be made by a noncharter district29 unless such a supplemental levy in a specified amount and for a specified30 time not to exceed two (2) years, from one (1) year to a maximum of four (4)31 years, be first authorized through an election held subject to the provi-32 sions of section 34-106, Idaho Code, and pursuant to title 34, Idaho Code,33 and approved by a majority of the district electors voting in such election.34 A levy approved pursuant to this subsection may be reduced by a majority vote35 of the board of trustees in the second year any of the years the levy is autho-36 rized.37 (4) Charter District Supplemental Maintenance and Operation. Levies38 pursuant to the respective charter of any such charter district shall be39 first authorized through an election held subject to the provisions of sec-40 tion 34-106, Idaho Code, and pursuant to title 34, Idaho Code, and approved41 by a majority of the district electors voting in such election.42

2 (5) The board of trustees of any school district that has, for at least1 seven (7) consecutive years, been authorized through an election held to2 certify a supplemental levy that has annually been equal to or greater than3 twenty percent (20%) of the total general maintenance and operation fund,4 may submit the question of an indefinite term supplemental levy to the elec-5 tors of the school district. Such question shall clearly state the dollar6 amount that will be certified annually and that the levy will be for an in-7 definite number of years. The question must be approved by a majority of the8 district electors voting on the question in an election held subject to the9 provisions of section 34-106, Idaho Code, and pursuant to title 34, Idaho10 Code. The levy approved pursuant to this subsection may be reduced by a ma-11 jority vote of the board of trustees during any fiscal year.12 (6) A charter district may levy for maintenance and operations if such13 authority is contained within its charter. In the event property within a14 charter district's boundaries is contained in a revenue allocation area es-15 tablished under chapter 29, title 50, Idaho Code, and such revenue alloca-16 tion area has given notice of termination thereunder, then, only for the pur-17 pose of determining the levy described in this subsection, the district may18 add the increment value, as defined in section 50-2903, Idaho Code, to the19 actual or adjusted market value for assessment purposes of the district as20 such value existed on December 31 of the previous year.21

SECTION 2. An emergency existing therefor, which emergency is hereby22 declared to exist, this act shall be in full force and effect on and after23 July 1, 2026.24