HB 1437 Summary

• Creates new county sales tax authority allowing county commissioners to place a ballot measure for up to 1% sales tax on unincorporated areas to fund school district bonds, requiring 60% voter approval.

• Creates new city sales tax authority allowing city governing bodies to place a ballot measure for up to 1% sales tax to fund school district bonds when the district contains 50% or more of city territory, requiring 60% voter approval.

• Requires tax revenue to be deposited in special funds and transferred quarterly to school districts in proportion to their bonded debt obligations under state law.

• Allows unused tax revenue at fiscal year-end to be transferred to county or city general funds, and makes school districts responsible for any funding shortfalls after tax revenue is applied.

• Repeals previous prohibitions on transferring city and county sales tax revenue to school districts (sections 11-09.1-05.1 and 40-05.1-06.1).