A civics lesson on tort levies

A concern was brought to the Finance Committee during its meeting Thursday, Feb. 12, about the tort levy appearing on the county tax statement regarding the recent settlement of a lawsuit. The term “levy” has more than one meaning. The most familiar use of the term “levy” is when the community has the opportunity to vote on taxing itself for a reason stated on the ballot. The less familiar use of the term “levy” is when a tax is placed on, or levied against, the user. An example of this use of “levy” would be riding on a ferry across a body of water.

The tort levy is a tax defined by the Idaho Tort Claims Act (I.C. § 6‑927) that allows local taxing districts to fund liability‑related costs and pay for comprehensive liability insurance premiums to their risk management pool.

The tort levy is intended to assure the school district has consistent funding to cover its liabilities. The concern brought forth was about the recent settlement with a former employee. The risk management pool guided the Board of Trustees on the litigation and what a settlement would be according to the risk management pool guidelines.

Another recent example of the risk management pool insurance was the replacement of the boiler last year at Priest River Elementary School. Without consistent funding through a tort levy, paying a risk management pool premium would be at risk due to a lack of funding.

Kim Spacek is the superintendent of the West Bonner County School District. He can be reached at [email protected] or by calling 208-448-4439.