House

Bill 474
2016 Freedom Index Score (+1)
Analyst: Wayne Hoffman
Date: February 16, 2016

ANALYST'S NOTE: House Bill 474 would require a public notice and a specific plan if a local taxing district
plans to utilize forgone balances. Forgone balances occur when a taxing district chooses to not utilize
property tax collections to the full amount it is entitled by Idaho law. For example, if a city council
decides to increase the property tax by 2 percent instead of the full 3 percent allowed by statute, the
extra 1 percent, the amount of potential revenue not collected, becomes part of that taxing district's
forgone balance. The balance grows every time the government budgets conservatively. However, the
law allows the taxing district to recoup that forgone balance later, which could cause a significant
property tax increase for people in that district.

Point No. 8 Does it in any way restrict public access to information related to government activity or
otherwise compromise government transparency or accountability? Conversely, does it increase public
access to information related to government activity or increase government transparency or
accountability?

ANALYSIS: The bill requires greater disclosure and accountability regarding the proposed use of forgone
revenue balances and requires taxing districts to articulate what the money will be used for. (+1)