The bill amends various sections of the Idaho Code to enhance the processes surrounding the annexation and de-annexation of properties within fire protection and library districts. It specifies that a petition from at least 75% of landowners is required for annexation into fire protection districts and outlines the conditions for de-annexation. Additionally, the bill establishes procedures for public hearings and notifications to ensure community engagement in these processes. It also introduces deductions from the new construction roll for property taxes, particularly for de-annexed territories, and updates budget limitations for fire and library districts to help them manage their finances effectively.

Furthermore, the bill modifies existing tax law to allow exceptions to the maximum allowable budget increase of eight percent for property tax revenue, particularly in cases of urban renewal district modifications and annexations by fire and library districts. It clarifies that cities must adjust their budget limitations when fire protection districts annex city property. The bill also provides guidelines for taxing districts that have not imposed a levy for three or more years, allowing them to use the last certified property tax amount for budget calculations and requiring public hearings for any budget increases beyond the established limits. The bill is declared an emergency and is retroactive to January 1, 2026, emphasizing its immediate significance for the affected districts.

Statutes affected:
Bill Text: 31-1411, 63-301A, 63-802