ECS
From the ECS State Policy Database
2006 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 2006. 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
ALApproved by voters 11/2006P-12Proposes an amendment to the state constitution to require at least 10 mills of property tax are levied for every school district in the state.
http://www.sos.state.al.us/downloads/dl3.cfm?trgturl=election/2006/general/statecert-constitutionalamendments-2006-08-31.pdf&trgtfile=statecert-constitutionalamendments-2006-08-31.pdf
Title: Statewide Amendment Number Two
Source: http://www.sos.state.al.us

IDRejected by voters 11/2006P-12Relates to K-12 public school funding. Adds 1% sales tax rate, revenue stream for this component of K-12 local public school funding; creates the Local Public Schools Investment Fund which must be used for supporting students in the classroom and improving local schools; requires annual accountability reports from local school boards on use of increased revenues. http://www.idsos.state.id.us/elect/inits/06init00.htm
Title: Proposition 1
Source: Lexis-Nexis/StateNet

IDApproved by voters 11/2006P-12Submits an advisory vote to the electors regarding whether the state keep the property tax relief adopted in August 2006, reducing property taxes by approximately $260 million, and protecting funding for public schools by keeping the sales tax at 6%. http://www.vote-smart.org/election_ballot_measures_detail.php?ballot_id=M000001537
Title: Advisory Vote
Source: Lexis-Nexis/StateNet

OHRejected by Voters. 11/2006Postsec.(STATE ISSUE 3; Initiative Petition) Proposes a Constitutional amendment to permit up to 31,500 slot machines at seven horse racing tracks and at two Cleveland non-track locations; permits expanded gaming in Cuyahoga County if approved by the county's voters; uses revenues to fund college scholarships, local government, and gambling addiction programs.
Title: V. 3
Source: Lexis-Nexis/StateNet

SDUnofficially approved by Voters. 11/2006P-12(INITIATED MEASURE 2) Increases the tax on cigarettes and tobacco products; dedicates revenue for tobacco prevention and cessation program, for property tax reduction, for education enhancement and for health care; makes an appropriation.
Title: V. 5
Source: Lexis-Nexis/StateNet

UTAdopted 11/2006P-12 Allows a school district to budget an increased amount of ad valorem property tax revenue in addition to revenue from new growth without the required advertising (notice) requirements based on the date of voted leeway approval for Reading Improvement Programs. This amendment brings the rule in compliance with changes in state law. http://www.rules.utah.gov/publicat/bull_pdf/2006/b20061001.pdf (see pg. 21)
Title: R277-422
Source: http://www.rules.utah.gov/main/

WYApproved by voters 11/2006P-12
Postsec.
Proposes an amendment (amendment B) to the Constitution to repeal the current limitation on the amount of property tax revenues that may be redistributed by the state through the School Foundation Program Account from school districts with greater property tax revenues to other school districts in the state. http://soswy.state.wy.us/election/2006/const-b.htm
Title: V. 2
Source: Lexis-Nexis/StateNet

PAVetoed 10/2006P-12Amends the Local Tax Enabling Act of 1965. Authorizes political subdivisions and school districts, including independent school districts, to levy taxes on persons, transactions, occupations and personal property. Provides for exemptions from the head tax and earned income tax. Relates to local services taxes and collection by an employer. Provides for homestead and farmstead exclusions. Regulates tax rates. Deletes provisions regarding occupational privilege taxes. Notes that if a school district levied an emergency and municipal services tax, the school district may continue to levy the local services tax in the same amount the school district collected on the effective date of the subclause. However, if a municipality located in whole or in part within the school district subsequently levies the local services tax, the school district may only collect five dollars $5) on persons employed within the municipality each calendar year. A school district that did not levy an emergency and municipal services tax on the effective date of the subclause is prohibited from levying the local services tax. If a school district and a municipality located in whole or in part within the school district both levy a local services tax at a combined rate exceeding ten dollars ($10), the school district's pro rata share of the aggregate local services taxes levied on persons employed within the municipality is to be collected by the municipality or its tax officer based on payroll periods as provided under subclause (i) and is to be paid to the school district on a quarterly basis within sixty days of receipt by the municipality or its tax officer. Except as provided, no person shall be subject to the payment of the local services tax by more than one political subdivision during each payroll period. http://www.legis.state.pa.us/cfdocs/legis/PN/Public/btCheck.cfm?txtType=HTM&sessYr=2005&sessInd=0&billBody=S&billTyp=B&billNbr=0157&pn=2206
Title: S.B. 157
Source: http://www.legis.state.pa.us

MISigned into law 09/2006P-12Provides a local school district property tax exemption for a qualified forest property; requires a filed affidavit or certificate; allows an appeal for review of summer taxes or, if there is not a summer levy of school taxes, with the December board of review; provides for a qualified forest property recapture tax; provides for recission of the exemption after an exempted property is no longer qualified forest property. http://www.legislature.mi.gov/documents/2005-2006/publicact/pdf/2006-PA-0378.pdf
Title: S.B. 912
Source: http://www.michiganlegislature.org

MISigned into law 09/2006P-12Exempts qualified forest property from school district operating mills levied for school operating purposes. http://www.legislature.mi.gov/documents/2005-2006/publicact/pdf/2006-PA-0380.pdf
Title: S.B. 914
Source: http://www.michiganlegislature.org

IDSigned into law 08/2006P-12Creates the Property Tax Relief Act. Eliminates the education maintenance and operation levy on real property, which will reduce property taxes by $260 million, and replaces that amount with a raise in the sales tax, which will generate $ 210 million annually, for a net tax reduction of $ 50 million. Protects education funding by placing $100 million into the Public Education Stabilization Fund by appropriating sufficient funds from the General Fund. Provides for submission to the voters for approval. http://www3.state.id.us/oasis/H0001.html#billtext
Title: H.B. 1A
Source: Lexis-Nexis/StateNet

HIBecame law without governor's signature 07/2006P-12Requires the school impact fee working group to submit supplemental findings and recommendations, including any proposed legislation, to the legislature no less than 20 days before the convening of the 2007 session. Makes an appropriation for the operation of the school impact fee working group. Provides that the sum appropriated must be expended by the office of the auditor which shall oversee and administer any consultant contracts as may be executed on behalf of the working group. http://www.capitol.hawaii.gov/sessioncurrent/bills/sb2708_cd1_.htm
Title: S.B. 2708
Source: Lexis-Nexis/StateNet, www.capitol.hawaii.gov

NJSigned into law 07/2006P-12
Postsec.
Community College
Raises the cigarette tax rate 17 1/2 cents per pack and changes tobacco products wholesale sales tax on moist snuff to a weight-based tax; provides for a portion of the cigarette tax and tobacco products wholesale sales tax revenues to be appropriated annually to the New Jersey Economic Development Authority for payment of debt service incurred by the authority for school facilities projects. http://www.njleg.state.nj.us/2006/Bills/AL06/37_.PDF
Title: A.B. 4705
Source: http://www.njleg.state.nj.us

NYSigned into law 07/2006P-12Includes private elementary or secondary school as eligible premises for purposes of tax abatements in New York city.
Title: A.B. 11797
Source: Lexis-Nexis/StateNet

IASigned into law 06/2006P-12Authorizes a school district to share its portion of incremental property taxes with a contiguous school district. http://coolice.legis.state.ia.us/Cool-ICE/default.asp?Category=billinfo&Service=Billbook&menu=false&hbill=HF2764
Title: H.B. 2764
Source: Lexis-Nexis/StateNet

IASigned into law 06/2006P-12Requests the legislative council to establish an equity in property taxation interim study committee to review the provisions of chapter 257 and develop one or more proposals that will equalize property tax rates applicable pursuant to the basic school foundation aid formula. Requires the review to include finance formulas that specifically address equalizing property tax rates. States that the study committee is authorized for and is to be conducted over a two-year period during the 2006 and 2007 legislative interims. Requires the committee to report its findings and recommendations, including proposed legislation, to the general assembly no later than January 1, 2008. http://coolice.legis.state.ia.us/Cool-ICE/default.asp?Category=billinfo&Service=Billbook&menu=false&hbill=HF2792
Title: H.B. 2792 - Section 48
Source: coolice.legis.state.ia.us

IASigned into law 06/2006P-12Directs each local board to annually develop, maintain, and distribute a financial report. Provides that the objective of the financial report shall be to facilitate public access to a variety of information and statistics relating to the education funding received by the school district, enrollment and employment figures, and additional information.
Requires the financial report to contain, at a minimum, information on:

a. All property tax levies, income surtaxes, and local option sales taxes in place in the school district, listed by type of levy, rate, amount, duration, and notification of the maximum rate and amount limitations permitted by statute.
b. The amount of funding received on a per pupil basis through the operation of the school finance formula, and from any other state appropriation or state funding source.
c. Federal funding received per student or teacher population targeted to receive the funds, and any other federal grants or funding received by the district.
d. Teacher and administrator minimum, maximum, and average salary paid by the district, and the percentage and dollar increase under teacher and administrator salary and benefits settlement agreements.
e. Teacher and administrator health insurance and other alternative health benefit information, including the monthly premium, the percentage of the premium paid by the district, and the percentage of the premium paid by a teacher or administrator for single and family insurance.
f. Teacher and administrator employment statistics, including the annual number of licensed full-time and part-time teachers and administrators employed by the school district during the preceding five years, and including the number of teachers and administrators no longer employed by the district, and new hires.
g. Student enrollment levels during the preceding five years, including regular enrollment, special education enrollment, and enrollment adjustments made pursuant to supplementary weighting.
h. Such additional information as the school district may determine.

Requires copies of a district's financial report for the previous school year to be posted on the district Web site at the beginning of the school year. Provides that if the district does not maintain or develop a Web site, the school district must either distribute or post written copies of the financial report at specified locations throughout the school district.

Provides that, prior to certifying any levy by board approval, or submitting a levy for voter approval, local boards must facilitate public access to a complete listing of all outstanding levies within the school district by rate, amount, duration, and the applicable maximum levy limitations. Requires that the information on outstanding levies be posted on the district Web site at the beginning of the school year, and updated prior to board approval or submission for voter approval of any levy during the school year. Provides that if the district does not maintain or develop a Web site, the district must either distribute or post written copies of the listing at specified locations throughout the district. http://coolice.legis.state.ia.us/Cool-ICE/default.asp?Category=billinfo&Service=Billbook&menu=false&hbill=SF2272
Title: S.B. 2272 - Section 14-15
Source: coolice.legis.state.ia.us

LASigned into law 06/2006P-12Recognizes that the parish of Cameron has suffered wide-spread devastation and crippling disruption from the effects of Hurricane Rita prohibiting normal recovery and restoration. Creates the Parishwide School District of the Parish of Cameron. Provides that the special district is to be administered by a board of directors composed of the president of the Cameron Parish School Board, the superintendent of the Cameron Parish School System, and three other directors selected by the school board of such parish, who themselves may be members of the school board. Authorizes the special district to levy only for the 2006 tax year a property tax not to exceed 10 mills for the purpose of giving additional support to public schools in the parish. http://www.legis.state.la.us/billdata/streamdocument.asp?did=403725
Title: S.B. 32
Source: www.legis.state.la.us

PASigned into law 06/2006P-12Provides for taxation by school districts, the state funds formula, tax relief in first class cities, school district choice, voter participation and other school district options. Makes an appropriation. Prohibits prior authorized taxation. Provides for installment payment of taxes. Restricts the power of certain school districts to levy, assess and collect taxes.
Title: H.B. 39A
Source: Pennsylvania Legislature

TXSigned into law 05/2006P-12Relates to public school finance, property tax relief, public school accountability and programs. Requires school districts to reduce their M&O tax rates in 2006 to 88.67 percent of their 2005 M&O tax rate. School districts would receive "hold harmless" funding of the amount of state revenue necessary to maintain state and local revenue per weighted student equal to either the amount the district would have been entitled for the 2006-07 school year under current law or 2005-2006 revenue per weighted student, including state aid received for property value decline and "recapture" arrangements under Chapter 42. The bill appropriates $2.39 billion to school districts for fiscal 2007 in "hold harmless" funds.

For school districts subject to "recapture" of local property tax revenue under Education Code, ch. 41, M&O tax revenue on tax rates greater than $1.33 per $100 of valuation would not be subject to recapture. School districts that qualify for the "guaranteed yield" would receive the
current allotment of $27.14 per weighted student for every penny of tax effort above their new compressed rate (up to $1.50).

http://www.capitol.state.tx.us/data/docmodel/793/billtext/pdf/HB00001F.PDF

Bill Analysis
http://www.capitol.state.tx.us/data/hrofr/pdf/ba793/HB0001.PDF
Title: H.B. 1C
Source: Texas Legislature

VTBecame law without GOVERNOR'S signature. 05/2006P-12Relates to education finance simplification; entitles a homestead owner to an additional property tax adjustment amount equal to one percent of the amount of income tax refund which the claimant elects to allocate to payment of homestead property tax; establishes an Education Finance Advisory Working Group to advise the department of taxes and town officials on issues related to implementation of this act. http://www.leg.state.vt.us/docs/legdoc.cfm?URL=/docs/2006/acts/ACT185.HTM
Title: H.B. 880
Source: Lexis-Nexis/StateNet

ALSigned into law 04/2006P-12Exempts any athletic event conducted by a public or nonpublic primary or secondary school under the auspices of the Alabama High School Athletic Association from 4% sales tax. The tax amount which would have been collected pursuant to this subdivision will continue to be collected by the school, but will be retained by the school which collected it and used for school purposes.
http://alisdb.legislature.state.al.us/acas/searchableinstruments/2006rs/bills/hb564.htm
Title: H.B. 564
Source: Lexis-Nexis/StateNet

AZVetoed 04/2006P-12Establishes a maximum tax rate that school districts can impose on taxpayers. Prohibits school boardsto fix, levy or assess a primary property tax rate that is higher than the current year's rate if the district meets the following criteria: 1. The total primary property taxes levied for all taxing jurisdictions results in at least 50% of the homeowners exceeding the 1% constitutional cap; 2.The primary property tax rate exceeds 150% of the QTR. Requires the Property Tax Oversight Commission (PTOC) to determine which school districts are affected and to notify those districts by December 31. The PTOC will also notify the county school superintendent and     the county board of supervisors.
http://www.azleg.gov/legtext/47leg/2r/bills/sb1206s.pdf
Title: S.B. 1206
Source: Arizona State Legislature

IDSigned into law 04/2006P-12Allows a partial exemption from property tax if property is used for nonprofit school or educational purposes. http://www3.state.id.us/oasis/H0778.html#engr
Title: H.B. 778
Source: www3.state.id.us

VASigned into law 04/2006P-12Provides a sales and use tax exemption, beginning in 2006, for certain school-related items purchased during a specific three-day period during August each year. The exempt items are (i) school supplies, where the selling price of each item is $20 or less, and (ii) footwear and clothing where the selling price of each item is $100 or less. The bill also authorizes dealers to absorb the sales and use tax on all other items sold during the same time period and thereby relieve the purchaser of the obligation to pay such tax. Dealers who absorb such taxes are liable for payment of the same to the Tax Commissioner.
http://leg1.state.va.us/cgi-bin/legp504.exe?061+ful+CHAP0579
Title: S.B. 571
Source: http://leg1.state.va.us

UTSigned into law 03/2006P-12Creates an Education Fund to receive all revenues from taxes on intangible property or from a tax on income; and makes technical corrections. http://www.le.state.ut.us/~2006/bills/hbillenr/hb0294.pdf
Title: H.B. 294
Source: http://www.le.state.ut.us

VASigned into law 03/2006P-12Provides a sales and use tax exemption, beginning in 2006, for certain school supplies, clothing and footwear purchased during a three-day period each year beginning on the first Friday in August. The exempt items are: each school supply item with a selling price of $20 or less and each article of clothing or footwear with a selling price of $100 or less.  The bill also authorizes dealers to absorb the sales and use tax on all other items sold during the same time period and thereby relieve the purchasers of the obligation to pay such tax. Dealers who absorb such taxes are liable for payment of the same to the Tax Commissioner.
http://leg1.state.va.us/cgi-bin/legp504.exe?061+ful+CHAP0593
Title: H.B. 532
Source: http://leg1.state.va.us

WASigned into law 03/2006P-12The temporary increase in the levy base authorized by the 2004 Legislature for calendar years 2005 through 2007 is continued for 2008 and thereafter. The temporary increase in the levy base was to account for the difference between the state funds that school districts could have received had Initiatives 728 and 732 been implemented as originally passed by the voters and the lower amounts they actually received as a result of amendments made to both initiatives in 2003.
http://www.leg.wa.gov/pub/billinfo/2005-06/Pdf/Bills/Session%20Law%202006/2812-S.SL.pdf
Fiscal note: http://www.ofm.wa.gov/fns/legsearch.asp?BillNumber=2812&SessionNumber=59

Title: H.B. 2812
Source: http://www.leg.wa.gov/

NHSigned into law 02/2006P-12Repeals the education property tax effective March 31, 2005; distributes state education assistance in the form of state education grants, which are determined on a municipality-by-municipality basis under a formula that calculates a municipality's need for assistance based on a broad range of factors, including fiscal capacity, resource challenges, performance, and student population, with the state education grants being adjusted in future years by the consumer price index.

http://www.gencourt.state.nh.us/legislation/2006/HB0100.html
Title: H.B. 100
Source: Lexis/nexis, StateNet

WISigned into law 01/2006P-12Relates to the forfeiture of money derived from a drug crime; provides that forfeiture expenses includes all expenses of the
proceedings for forfeiture and sale, including expenses of seizure, maintenance of custody, advertising, court costs, investigation costs and prosecution costs; provides that if the forfeited property is money, the sum shall be retained for payment of forfeiture expenses and the remainder deposited in the school fund.
http://www.legis.state.wi.us/2005/data/acts/05Act91.pdf
Title: A.B. 40 (Act No. 91)
Source: http://www.legis.state.wi.us

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