REVISED
STATEMENT OF PURPOSE
RS27503 / H0408
The purpose of this legislation is to correct the inequities that exist with regards to how much each city receives
from the sales tax distribution formula. The current formula for determining how much each city receives
is partially based on the antiquated system of historical calculations based on the now non-existent personal
property tax assessed to every Idaho citizen which included among other things, the number of pigs, chickens,
cows, silverware and other personal items. The current system creates additional inequities because it relies on
property values. This has created a situation where some cities receive ten times the amount than other cities
and counties receive when compared to how much they would receive if calculated based solely on population.
This legislation establishes a new base amount using the previous year's distribution to each city. If sales tax
collections increase, the first 1% of the increase is divided amongst all of the cities. If the state collects more
than a 1% revenue increase than the previous year, the excess funds are only distributed to cities that receive
less than their respective counterparts based on per capita calculation.
FISCAL NOTE
There will be no fiscal impact to the state. However, cities will see changes to their portion of the sales tax
distribution.
Contact:
Representative Jason A. Monks
Representative Wendy Horman
Representative Doug Ricks
(208) 332-1000
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN REVISED: 02/19/2020, 8:23 AM


Statutes affected:
Bill Text: 63-3638, 63-316