ECS
From the ECS State Policy Database
2004 State Policies / Activities

Education Commission of the States • 700 Broadway, Suite 810 • Denver, CO 80203-3442 • 303.299.3600 • fax 303.296.8332 • www.ecs.org

The following summary includes policies enacted in 2004. This database is made possible by your state's fiscal support of the Education Commission of the States (ECS). Most entries are legislative, although rules/regulations and executive orders that make substantive changes are included. Every effort is made to collect the latest available version of policies; in some instances, recent changes might not be reflected. For expediency purposes minimal attention has been paid to style (capitalization, punctuation) and format. To view the documents, click on the blue triangle next to the topic of interest. To view all, press the button located at the top labeled "Expand All."

Please cite use of the database as: Education Commission of the States (ECS) State Policy Database, retrieved [date].

State Status/Date Level Summary
+ Accountability
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- Finance--Taxes/Revenues
MISigned into law 11/2004P-12Clarifies and limits duration of intermediate school district millages to fund special education and vocational education; relates to the limited use of bonds for special education and vocational education facilities.

http://www.michiganlegislature.org/mileg.asp?page=getObject&objName=2004-HB-5839
Title: H.B. 5839
Source: StateNet

CASigned into law 09/2004P-12Increases the amount of the fees imposed for issuance and renewal of specified special interest license plates approved by the DMV in consultation with the California Arts Council. Requires the council to use the revenue exclusively for arts education and local arts programming. Prohibits the council from using the revenue for its administrative costs. http://www.leginfo.ca.gov/pub/bill/sen/sb_1201-1250/sb_1213_bill_20040909_chaptered.html
Title: S.B. 1213
Source: California Legislative Web site

CAVetoed 09/2004P-12Requires the Controller to collect data regarding the total assessed valuation of all taxable property in each school district and compile the information on a county basis. Requires data to be made available on the Controller's web site. http://www.leginfo.ca.gov/pub/bill/sen/sb_1751-1800/sb_1791_bill_20040826_enrolled.pdf
Veto message: http://www.governor.ca.gov/govsite/pdf/vetoes/SB_1791_veto.pdf
Title: S.B. 1791
Source: www.leginfo.ca.gov

CAVetoed 09/2004P-12Requires the auditor of a qualified county to increase the amount of ad valorem property tax revenue allocated to that county by the county equity amount, and to commensurately reduce the amount of ad valorem property tax revenue allocated to that county's Educational Revenue Augmentation Fund. Requires that ad valorem property tax revenue allocations made in subsequent fiscal years fully incorporate the allocation adjustments required herein.
Bill as sent to governor: http://www.leginfo.ca.gov/pub/03-04//bill/sen/sb_1901-1950/sb_1909_bill_20040827_enrolled.pdf
Veto message: http://www.governor.ca.gov/govsite/pdf/vetoes/SB_1909_veto.pdf
Title: S.B. 1909
Source: StateNet

MEOn November 2004 Ballot 09/2004P-12TITLE: An Act to Impose Limits on Real and Personal Property Taxes
QUESTION: "Do you want to limit property taxes to 1% of the assessed value of the property?"
Title: Ballot Initiative
Source: Maine State Web site

ILSigned into law 08/2004P-12Amends the School Code. In the State aid formula provisions, provides that calculation of Available Local Resources shall exclude tax amnesty funds received as a result of Public Act 93-26. http://www.legis.state.il.us/legislation/publicacts/fulltext.asp?Name=093-0875
Title: S.B. 2362
Source: Illinois Legislative Web site

MISigned into law 08/2004P-12Increases the wagering tax imposed on the adjusted gross receipts of an authorized casino gaming licensee; provides an increase in the taxation of a gaming licensee by a city due as the result of a development agreement; increases the percentage of the moneys collect from such taxation to be deposited in the state school aid fund to provide additional funding for k-12 classroom education and to the cities for certain services including employment and crime prevention programs.

http://www.michiganlegislature.org/documents/2003-2004/publicact/pdf/2004-PA-0306.pdf
Title: H.B. 4612
Source: StateNet

FLEmergency Rule Adoption 07/2004P-12Implements the provisions of the law specifying a period during which the sale of certain books, clothing, and school supplies are exempt from sales and use tax. Ensures that the public is notified in the most expedient and appropriate means regarding the exemption during the period from 12:01 a.m., July 24, 2004, through midnight, August 1, 2004, for sales of books, clothing, wallets, or bags having a selling price of $50 or less per item and for sales of school supplies having a selling price of $10 per item or less. FLORIDA REG 28608 (SN) http://faw.dos.state.fl.us/newfaw/FawVolumeFolders2004/3027/SECTIV.pdf
Title: FAC 12AER04-5
Source: Florida State Web site

NYSigned into law 07/2004P-12Enacts provisions of law necessary to implement emergency appropriations for the support of government; amends the property tax law relating to improving the administration of the school tax relief program and other laws; extends the quick draw lottery game; extends provisions of the Loft Law in relation to interim multiple dwellings; relates to the designation of empire zones.
Title: A.B. 11761
Source: StateNet

RIBecame law without GOVERNOR'S signature. 07/2004P-12Adds a new chapter: the Education Equity and Property Tax Relief Act; creates a joint legislative committee to establish a permanent education foundation and education formula for the state.
Title: H.B. 8318
Source: http://www.rilin.state.ri.us/gen_assembly

RIBecame law without GOVERNOR'S signature. 07/2004P-12Creates the "Education Equity and Property Tax Relief Act, " and would create a joint legislative committee of ten members to establish a permanent education foundation and education formula for the state - the committee's final report is due October 1, 2005..
Title: S.B. 3182
Source: StateNet

AZSigned into law 06/2004P-12Requires the Arizona Department of Transportation (ADOT) to issue character education special license plates if the Department of Education (DOE) pays $32,000 by January 1, 2005; provides for allocation of monies through a private nonprofit foundation; provides for State Treasurer's investment of fund monies; provides criteria for implementation.
http://www.azleg.state.az.us/FormatDocument.asp?inDoc=/legtext/46leg/2r/laws/0316.htm
Title: H.B. 2206
Source: Arizona Legislative Web site

OKSigned into law 06/2004P-12Relates to Ad Valorem Reimbursement Fund to reimburse counties for school districts that claim a loss of revenues due to a tax exemption granted for a new or expanded manufacturing or research and development facility. http://www2.lsb.state.ok.us/2003-04SB/sb912_enr.rtf
Title: S.B. 912
Source: http://www2.lsb.state.ok.us/

TNSigned into law 06/2004P-12Creates tax credit for qualified contributions for qualified public school support organizations; provides that seventy-five percent of the operating and implementation costs shall be satisfied from any increase in local sales tax revenues and twenty-five percent of such costs from increases in state sales tax revenues. http://www.legislature.state.tn.us/bills/currentga/Chapter/PC0835.pdf
Title: H.B. 1302
Source: http://www.legislature.state.tn.us

FLSigned into law 05/2004P-12
Postsec.
Community College
Specifies the period each year during which sales of clothing, books and school supplies are exempt from sales tax; provides definitions and exceptions; provides reduction in motor fuel tax for one month; provides dealer requirements; authorizes dealers to manage motor fuel inventory to maximize tax reduction benefits; provides for revocation of licenses for violations.
http://www.flsenate.gov/cgi-bin/view_page.pl?Tab=session&Submenu=1&FT=D&File=hb0237er.html&Directory=session/2004/House/bills/billtext/html/
Title: H.B. 237
Source: Florida Legislative Web site

GASigned into law 05/2004P-12Renewed the exemptions from state sales and use tax, so as to provide for an exemption with respect to the sale of certain school supplies, clothing, footwear, computers, and computer related accessories for a limited period of time in 2004. http://www.legis.state.ga.us/legis/2003_04/fulltext/hb1184.htm
Title: H.B. 1184
Source: Georgia Legislative Web site

IAVetoed 05/2004P-12Allows individual income tax credits for contributions made to certain school tuition organizations and including an applicability date provision. http://coolice.legis.state.ia.us/Cool-ICE/default.asp?Category=billinfo&Service=Billbook&hbill=SF2295
Title: S.F. 2295
Source: StateNet

MESigned into law 05/2004P-12The bill provides that by fiscal year 2009-10 the state share of kindergarten to grade 12 education funding, as described by essential programs and services, must be 55%. It also establishes a local cost share expectation for property tax years beginning on or after April 1, 2005. The Commissioner of Education shall annually notify each school administrative unit of its expectation. This expectation must decline over the period from fiscal year 2005-06 to fiscal year 2009-10. The expectation may not exceed 9.0 mills in fiscal year 2005-06. It may not exceed 8.0 mills in fiscal year 2009-10. The legislative body of a school administrative unit may not adopt a property tax rate that exceeds its mill expectation unless, in a vote separate from its adoption of the school budget, it votes to increase the property tax rate.

The bill also places transportation operating costs into the essential programs and services funding formula. It also states that special education costs will be included in essential programs and services starting in fiscal year 2005-06. Beginning in fiscal year 2004-05, the Department of Education will provide training in state-approved guidelines for identification of special education students. The bill also places early childhood education program costs and vocational education program costs into essential programs and services no later than fiscal year 2007-08.

Note Sec. 16:
Basis for funding costs of education from kindergarten to grade 12. Notwithstanding any other provision of law, beginning in fiscal year 2005-06, funding of the costs of education from kindergarten to grade 12 must be based on the cost of providing essential programs and services as described in the Maine Revised Statutes, Title 20-A, chapter 606-B.

http://www.mainelegislature.org/legis/bills/ld_title.asp?ld=1924
Title: S.P. 761
Source: StateNet

MISigned into law 05/2004P-12Revises reimbursement for collection of State Education Tax to certain cities and counties; provides that the cities and counties may keep $2.50 each parcel for property in the county for the tax collected before transmitting the tax collected to the State Treasurer.

http://www.michiganlegislature.org/documents/2003-2004/publicact/pdf/2004-PA-0108.pdf
Title: H.B. 5545
Source: StateNet

TXRule Adoption 05/2004P-12Amends rules concerning the foundation school program. Relates to rules for the definition of tax and levy and tax collection. TEXAS REG 95053 (SN) http://www.tea.state.tx.us/rules/tacupdates/may2004/ch062.pdf
Title: 19 TAC 105.A.105.1
Source: http://www.tea.state.tx.us/rules

VTSigned into law 05/2004P-12Authorizes the Rutland school commissioners to adopt annual general fund budgets without voter approval provided that the actual homestead tax rate in a year does not exceed the adjusted equalized homestead rate established by the state; authorizes the board of aldermen to assess upon the grand list of the city taxes necessary to meet the educational or school purposes of the city.
Title: H.B. 774
Source: StateNet

KYSigned into law 04/2004P-12Amends KRS 160.615 to require payments and returns to be submitted to the Revenue Cabinet rather than the school districts.

Creates new sections of KRS 160.613 to 160.617 to provide for the administration of the tax by the Revenue Cabinet and provides for the distribution of the tax revenues to the school districts imposing the tax.

Creates a new section of KRS 160.613 to 160.617 to require school districts to report school district boundaries to the Revenue Cabinet and to each entity providing utility services within the school district

http://www.lrc.ky.gov/RECORD/04RS/HB163.htm
Title: H.B. 163
Source: StateNet

KYSigned into law 04/2004P-12Amend KRS 67.750 to revise the definitions of "employee," "gross receipts," and "internal revenue code"; define "sales revenue" and add school districts and other special taxing districts to the definition of "tax district"; amend KRS 67.753, 67.755, 67.760, 67.770, 67.778, 67.780, and 67.788 to make technical changes; amend KRS 67.790 to add penalties for violating unauthorized inspection provisions or divulging confidential taxpayer information.

http://www.lrc.ky.gov/RECORD/04RS/HB458.htm
Title: H.B. 458
Source: StateNet

WIVetoed 04/2004Community CollegeFrom Legislative Reference Bureau: This bill authorizes a technical college district board, with the approval of the state Technical College System Board, to enter into a contract with a business to provide job training, adult basic education, vocational and professional services, and
training facilities, equipment, and material to the business. A contract may not provide more than $3,500 in services to a trainee unless the Joint Committee on Finance (JCF) approves a higher limit. In addition, the state board must ensure that the total cost of such contracts does not exceed $10,000,000 in any fiscal year unless JCF approves a higher limit. (In both cases, approval by JCF may be by passive review; i.e., if the cochairpersons of JCF do not schedule a meeting to review the request, it is considered approved.) The bill allows a district board to issue revenue bonds to finance the costs of providing these services and materials to a business. http://www.legis.state.wi.us/2003/data/SB-384.pdf
Title: S.B. 384
Source: http://www.legis.state.wi.us

CTSigned into law 03/2004Postsec.Concerns an authorization of bonds of the state for higher education capital improvements and other purposes; implements the Governors budget recommendations. http://www.cga.state.ct.us/2004/act/Pa/2004PA-00003-R00SB-00030-PA.htm
Title: S.B. 30
Source: Connecticut Legislative Web site

ARSigned into law 02/2004P-12Creates a State Tax Penalty and Interest Amnesty Program for taxpayers who make a voluntary payment of State taxes during the period of July 1, 2004 through December 31, 2004; provides all moneys collected under the program would be deposited in a special Public School Facilities Fund to be used for improvements, construction or repair of school facilities. http://www.arkleg.state.ar.us/ftproot/bills/2003s2/public/HB1100.pdf
Title: H.B. 1100
Source: Arkansas Legislative Web site

ARSigned into law 02/2004P-12Increases the uniform rate of ad valorem property tax by three mills subject to the approval of the voters in this state to be used solely for maintenance and operation of public schools. http://www.arkleg.state.ar.us/ftproot/bills/2003s2/public/HB1162.pdf
Title: H.B. 1162
Source: Arkansas Legislative Web site

ARSigned into law 02/2004P-12Amends the procedures to implement Amendment 74 (SB 36) to the State Constitution relating to whether or not a school district is currently in compliance with the uniform tax rate. http://www.arkleg.state.ar.us/ftproot/bills/2003s2/public/SB36.pdf and http://www.arkleg.state.ar.us/ftproot/bills/2003s2/public/SB73.pdf
Title: S.B. 73
Source: Arkansas Legislative Web site

ARBecame law without GOVERNOR'S signature. 02/2004P-12Provides additional revenue to fund the education system; increases sales and wholesale vending tax; imposes sales tax on certain services; creates the Educational Adequacy Trust Fund. http://www.arkleg.state.ar.us/ftproot/bills/2003s2/public/HB1030.pdf
Title: H.B. 1030
Source: Arkansas Legislative web site

ARSigned into law 01/2004P-12Proposes a constitutional amendment; relates to the approval of school tax rates; amends provisions regarding sale of bonds; known as the Amendment 74 Enabling Act of 2003. Amended by SB 73. http://www.arkleg.state.ar.us/ftproot/bills/2003s2/public/SB36.pdf and http://www.arkleg.state.ar.us/ftproot/bills/2003s2/public/SB73.pdf
Title: S.B. 36
Source: Arkansas Legislative Web site

ARSigned into law 01/2004P-12Clarifies the exemption of sales tax to the sale of textbooks and instructional materials to state school districts and state public schools that receive state funding or state purchases for free distribution. http://www.arkleg.state.ar.us/ftproot/bills/2003s2/public/HB1028.pdf
Title: H.B. 1028
Source: Arkansas Legislative Web site

ARSigned into law 01/2004P-12Clarifies the computation of the value of assessed property within a school district and a redevelopment district; amends state funding to the school district with regard to such assessments. http://www.arkleg.state.ar.us/ftproot/bills/2003s2/public/SB21.pdf
Title: S.B. 21
Source: Arkansas Legislative Web site

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