HOUSE BILL NO. 420
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H0420...................................................by LOCAL GOVERNMENT
PROPERTY TAX - Amends existing law relating to property taxes to provide
that counties may allow for payment of taxes by use of debit cards, credit
cards and electronic funds transfers.
01/25 House intro - 1st rdg - to printing
01/28 Rpt prt - to Rev/Tax
01/30 Rpt out - rec d/p - to 2nd rdg
01/31 2nd rdg - to 3rd rdg
02/06 3rd rdg - PASSED - 68-0-2
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Block,
Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez,
Chew, Clark, Collins, Crane, Durst, Hagedorn, Hart, Harwood, Henbest,
Henderson, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour,
Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ringo,
Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(02),
Shepherd(08), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
Stevenson, Thayn, Thomas, Trail, Vander Woude, Wills, Wood(27),
Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- Black, Eskridge
Floor Sponsor - Jaquet
Title apvd - to Senate
02/07 Senate intro - 1st rdg - to Loc Gov
02/14 Rpt out - rec d/p - to 2nd rdg
02/15 2nd rdg - to 3rd rdg
02/25 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Corder, Darrington, Davis, Fulcher, Geddes, Goedde, Hammond,
Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
Malepeai(Sagness), McGee, McKague, McKenzie, Pearce, Richardson,
Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- Coiner, Gannon
Floor Sponsor - Heinrich
Title apvd - to House
02/26 To enrol
02/27 Rpt enrol - Sp signed
02/28 Pres signed
02/29 To Governor
03/03 Governor signed
Session Law Chapter 53
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature Second Regular Session - 2008
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 420
BY LOCAL GOVERNMENT COMMITTEE
1 AN ACT
2 RELATING TO THE PAYMENT OF PROPERTY TAXES; AMENDING SECTION 63-201, IDAHO
3 CODE, TO DEFINE ADDITIONAL TERMS; AMENDING SECTION 63-901, IDAHO CODE, TO
4 PROVIDE THAT COUNTIES MAY ALLOW FOR PAYMENT OF TAXES BY USE OF DEBIT
5 CARDS, CREDIT CARDS AND ELECTRONIC FUNDS TRANSFERS; AMENDING SECTION
6 63-510, IDAHO CODE, TO PROVIDE A CORRECT CODE REFERENCE; AND AMENDING SEC-
7 TION 63-1703, IDAHO CODE, TO PROVIDE A CORRECT CODE REFERENCE AND TO MAKE
8 TECHNICAL CORRECTIONS.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 63-201, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 63-201. DEFINITIONS. As used for property tax purposes in title 63, chap-
13 ters 1 through 23, Idaho Code, the terms defined in this section shall have
14 the following meanings, unless the context clearly indicates another meaning:
15 (1) "Appraisal" means an estimate of property value for property tax pur-
17 (a) For the purpose of estimated property value to place the value on any
18 assessment roll, the value estimation must be made by the assessor or a
19 certified property tax appraiser.
20 (b) For the purpose of estimating property value to present for an appeal
21 filed pursuant to sections 63-501A, 63-407 and 63-409, Idaho Code, the
22 value estimation may be made by the assessor, a certified property tax
23 appraiser, a licensed appraiser, or a certified appraiser or any party as
24 specified by law.
25 (2) "Bargeline" means those water transportation tugs, boats, barges,
26 lighters and other equipment and property used in conjunction with waterways
27 for bulk transportation of freight or ship assist.
28 (3) "Cogenerators" means facilities which produce electric energy, and
29 steam or forms of useful energy which are used for industrial, commercial,
30 heating or cooling purposes.
31 (4) "Collection costs" are amounts authorized by law to be added after
32 the date of delinquency and collected in the same manner as property tax.
33 (5) "Credit card" means a card or device, whether known as a credit card
34 or by any other name, issued under an arrangement pursuant to which a card
35 issuer gives to a cardholder the privilege of obtaining credit from the card
36 issuer or other person in purchasing or leasing property or services, obtain-
37 ing loans, or otherwise.
38 (6) "Debit card" means any instrument or device, whether known as a debit
39 card or by any other name, issued with or without a fee by an issuer for the
40 use of the cardholder in depositing, obtaining or transferring funds.
41 (7) "Delinquency" means any property tax, special assessment, fee, col-
42 lection cost, or charge collected in the same manner as property tax, that has
43 not been paid in the manner and within the time limits provided by law.
1 (8) "Electronic funds transfer" means any transfer of funds that is ini-
2 tiated by electronic means, such as an electronic terminal, telephone, com-
3 puter, ATM or magnetic tape.
4 ( 69) "Improvements" means all buildings, structures, fixtures and fences
5 erected upon or affixed to the land, and all fruit, nut-bearing and ornamental
6 trees or vines not of natural growth, growing upon the land, except nursery
8 ( 710) "Late charge" means a charge of two percent (2%) of the delinquency.
9 ( 811) "Lawful money of the United States" means currency and coin of the
10 United States at par value and checks and drafts which are payable in dollars
11 of the United States at par value, payable upon demand or presentment.
12 (12) "Legal tender" means lawful money as defined in subsection (11) of
13 this section.
14 ( 913) "Manufactured home" means a structure defined as a manufactured home
15 in section 39-4105, Idaho Code.
16 (1 04) "Market value" means the amount of United States dollars or equiva-
17 lent for which, in all probability, a property would exchange hands between a
18 willing seller, under no compulsion to sell, and an informed, capable buyer,
19 with a reasonable time allowed to consummate the sale, substantiated by a rea-
20 sonable down or full cash payment.
21 (1 15) "Operating property" means all rights-of-way accompanied by title;
22 roadbeds; tracks; pipelines; bargelines; equipment and docks; terminals;
23 rolling stock; equipment; power stations; power sites; lands; reservoirs, gen-
24 erating plants, transmission lines, distribution lines and substations; and
25 all immovable or movable property operated in connection with any public util-
26 ity, railroad or private railcar fleet, wholly or partly within this state,
27 and necessary to the maintenance and operation of such road or line, or in
28 conducting its business, and shall include all title and interest in such
29 property, as owner, lessee or otherwise. The term includes electrical genera-
30 tion plants under construction, whether or not owned by or operated in connec-
31 tion with any public utility. The term does not include personal property
32 exempt from taxation pursuant to section 63-602L, Idaho Code.
33 (1 26) "Party in interest" means a person who holds a properly recorded
34 mortgage, deed of trust or security interest.
35 (1 37) "Person" means any entity, individual, corporation, partnership,
36 firm, association, limited liability company, limited liability partnership or
37 other such entities as recognized by the state of Idaho.
38 (1 48) "Personal property" includes all goods, chattels, stocks and bonds,
39 equities in state lands, easements, reservations, leasehold real properties
40 and all other property which the law defines, or the courts may interpret,
41 declare and hold to be personal property under the letter, spirit, intent and
42 meaning of the law, for the purposes of property taxation. For the purposes of
43 payment and collection of property taxes pursuant to chapter 9, title 63,
44 Idaho Code, collection of delinquency pursuant to chapter 10, title 63, Idaho
45 Code, and seizure and sale of personal property for taxes pursuant to chapter
46 11, title 63, Idaho Code, personal property includes manufactured homes not
47 declared as real property pursuant to section 63-304, Idaho Code.
48 (1 59) "Private railcar fleet" means railroad cars or locomotives owned by,
49 leased to, occupied by or franchised to any person other than a railroad com-
50 pany operating a line of railroad in Idaho or any company classified as a
51 railroad by the interstate commerce commission and entitled to possess such
52 railroad cars and locomotives except those possessed solely for the purpose of
53 repair, rehabilitation or remanufacturing of such locomotives or railroad
55 ( 1620) "Public utility" means electrical companies, pipeline companies,
1 natural gas distribution companies, or power producers included within federal
2 law, bargelines, and water companies which are under the jurisdiction of the
3 Idaho public utilities commission. The term also includes telephone corpora-
4 tions, as that term is defined in section 62-603, Idaho Code, except as here-
5 inafter provided, whether or not such telephone corporation has been issued a
6 certificate of convenience and necessity by the Idaho public utilities commis-
8 This term does not include cogenerators, mobile telephone service or com-
9 panies, nor does it include pager service or companies, except when such ser-
10 vices are an integral part of services provided by a certificated utility com-
11 pany nor does the term "public utility" include companies or persons engaged
12 in the business of providing solely on a resale basis, any telephone or tele-
13 communication service which is purchased from a telephone corporation or com-
15 ( 1721) "Railroad" means every kind of railway, whether its line of rails
16 or tracks be at, above or below the surface of the earth, and without regard
17 to the kind of power used in moving its rolling stock, and shall be considered
18 to include every kind of street railway, suburban railway or interurban rail-
19 way excepting facilities established solely for maintenance and rebuilding of
20 railroad cars or locomotives.
21 ( 1822) "Real property" means land, and all standing timber thereon,
22 including standing timber owned separately from the ownership of the land
23 upon which the same may stand, except as modified in chapter 17, title 63,
24 Idaho Code, and all buildings, structures and improvements, or other fixtures
25 of whatsoever kind on land, including water ditches constructed for mining,
26 manufacturing or irrigation purposes, water and gas mains, wagon and turnpike
27 toll roads, and toll bridges, and all rights and privileges thereto belonging,
28 or any way appertaining, all quarries and fossils in and under the land, and
29 all other property which the law defines, or the courts may interpret, declare
30 and hold to be real property under the letter, spirit, intent and meaning of
31 the law, for the purposes of property taxation. Manufactured homes constitute
32 real property when located on taxable land, and after a statement of intent to
33 declare as real property has been recorded, provided said statement has not
34 been revoked. Timber, forest, forest land, and forest products shall be
35 defined as provided in chapter 17, title 63, Idaho Code.
36 ( 1923) "Record owner" means the person or persons in whose name or names
37 the property stands upon the records of the county recorder's office. Where
38 the record owners are husband and wife at the time of notice of pending issue
39 of tax deed, notice to one (1) shall be deemed and imputed as notice to the
40 other spouse.
41 (2 04) "Special assessment" means a charge imposed upon property for a spe-
42 cific purpose, collected and enforced in the same manner as property taxes.
43 (2 15) "System value" means the market value for assessment purposes of the
44 operating property when considered as a unit.
45 (2 26) "Tax code area" means a geographical area made up of one (1) or more
46 taxing districts with one (1) total levy within the geographic area, except as
47 otherwise provided by law.
48 (2 37) "Taxing district" means any entity or unit with the statutory
49 authority to levy a property tax.
50 (2 48) "Taxable value" means market value for assessment purposes, less
51 applicable exemptions or other statutory provisions.
52 (2 59) "Transient personal property" is personal property, specifically
53 such construction, logging or mining machinery and equipment which is kept,
54 moved, transported, shipped, hauled into or remaining for periods of not less
55 than thirty (30) days, in more than one (1) county in the state during the
1 same year.
2 ( 2630) "Warrant of distraint" means a warrant ordering the seizure of per-
3 sonal property to enforce payment of property tax, special assessment,
4 expense, fee, collection cost or charge collected in the same manner as per-
5 sonal property tax.
6 SECTION 2. That Section 63-901, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 63-901. PROPERTY TAXES PAYABLE ONLY IN LEGAL TENDER. All property taxes
9 must be paid in lawful money of the United States. Notwithstanding the provi-
10 sions of this section, a county may allow for payment of taxes by use of a
11 debit card, credit card or electronic funds transfer.
12 SECTION 3. That Section 63-510, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 63-510. NOTIFICATION OF VALUATION DUE TO STATE TAX COMMISSION. (1) Prior
15 to the first Monday of August the auditor of each county in the state shall
16 notify the state tax commission of the net taxable value of all property situ-
17 ated within each taxing unit or district in the county from the property roll
18 for the current year and shall provide an estimate of the net taxable value
19 for each taxing unit or district from the current year's estimated subsequent
20 and missed property rolls. Such notification shall also include an estimate of
21 the net taxable value within any area annexed during the immediate prior year
22 to any taxing unit or district.
23 (2) Prior to the first Monday of March the auditor of each county in the
24 state shall notify the state tax commission of the net taxable value of all
25 property situated within each taxing unit or district in the county from the
26 subsequent and missed property rolls. Such notification shall also include an
27 estimate of the net taxable value within any area annexed during the immediate
28 prior year, and listed on the subsequent or missed property roll, to any tax-
29 ing unit or district.
30 (3) The notification required in subsections (1) and (2) of this section
31 shall be on forms prescribed and provided by the state tax commission and
32 shall list separately the value exempt from property taxation in accordance
33 with section 63-602G, Idaho Code, and the value in excess of the equalized
34 assessment valuation as shown on the base assessment roll in any revenue allo-
35 cation area, pursuant to chapters 20 and 29, title 50, Idaho Code.
36 (4) For the purposes of this section, "taxing district," as defined in
37 section 63-201(2 27), Idaho Code, shall include each incorporated city in each
38 county, regardless of whether said city certifies a property tax budget.
39 SECTION 4. That Section 63-1703, Idaho Code, be, and the same is hereby
40 amended to read as follows:
41 63-1703. CERTAIN FOREST LANDS TO BE DESIGNATED FOR TAXATION BY OWNER --
42 LIMITATIONS. For the purposes of appraisal, assessment and taxation under the
43 provisions of this chapter, all forest lands in parcels of five (5) or more
44 acres but less than five thousand (5,000), whether contiguous or not, as long
45 as such parcels are held in common ownership, must be designated by the forest
46 landowner to be subject to the provisions of either subsection (a) or (b) of
47 this section. A forest landowner cannot have parcels designated under the pro-
48 visions of both subsections (a) and (b) of this section at one (1) time. If
49 the forest landowner fails to make a designation, his forest lands shall be
1 subject to appraisal, assessment and taxation under the provisions of section
2 63-1702, Idaho Code. Once a designation is made by the forest landowner, such
3 designation must remain in effect until the designation period expires, unless
4 the forest lands are transferred to another owner using a different taxing
5 category; in such case, the taxing category of the transferred forest lands
6 shall be the same as that maintained by the new owner.
7 A forest landowner may change the designation of all forest lands in com-
8 mon ownership at the end of any designation period, subject to the recapture
9 of any deferred taxes due as a result of such change. After January 1 and by
10 December 31 of the tenth year of each designation period the forest landowner
11 must notify the county assessor of any change in forest land designation.
12 Failure to notify the county assessor will result in the continuation of the
13 landowner's present designation until the end of the next designation period.
14 Any substantial change in the use of forest lands not conforming with the
15 definition of forest land in section 63-1701, Idaho Code, during such ten (10)
16 year period under the designations made in subsection (a) or (b) of this sec-
17 tion shall be reported by the landowner to the county assessor within thirty
18 (30) days of the change in use. Upon notification of the change in use, the
19 assessor shall appraise, assess and tax those acres as provided by applicable
20 laws and rules. Failure to notify the assessor of the change in use when for-
21 est lands have been designated as subject to the provisions of subsection (a)
22 or (b) of this section shall cause forfeiture of such designation, and cause
23 that property to be appraised, assessed and taxed as provided in section
24 63-1702, Idaho Code.
25 Forest lands designated for assessment pursuant to the provisions of sec-
26 tion 63-1706, Idaho Code, shall be subject to the recapture of deferred taxes
27 upon removal of such designation, a substantial change in use, or ownership
28 transfer, except that there shall be no recapture initiated upon ownership
29 transfer of forest lands designated as subject to the provisions of section
30 63-1706, Idaho Code, to a landowner with forest lands already designated as
31 subject to the provisions of section 63-1706, Idaho Code, prior to the trans-
32 fer, or who so designates his lands to be subject to the provisions of section
33 63-1706, Idaho Code. In the event payment is offered or made, it shall be
34 accepted by the county treasurer and applied in the manner of payment of other
35 property tax.
36 The dollar amount of deferred taxes subject to recapture shall be deter-
37 mined by the county assessor by applying current tax levies against the cur-
38 rent values that would have been in effect if the lands were subject to
39 appraisal and assessment during the current year under the provisions of sec-
40 tion 63-1705, Idaho Code, if there has been a change in ownership or a removal
41 of designation, or section 63-1702, Idaho Code, if there has been a change in
42 use with no change in ownership, which amount shall be multiplied by the num-
43 ber of years that the lands have been subject to the designation under section
44 63-1706, Idaho Code. The amount of the deferred tax shall accrue through des-
45 ignation periods, up to a maximum of ten (10) years, and shall apply to the
46 most recent ten (10) years in which the parcel has been designated under the
47 provisions of section 63-1706, Idaho Code. A credit shall be allowed for taxes
48 actually paid under the provisions of section 63-1706, Idaho Code, for an
49 identical ten (10) year period, up to the total amount of the deferred taxes.
50 All deferred amounts shall be a lien against the land. Deferred tax amounts
51 shall be calculated by the county assessor on forms prescribed by the state
52 tax commission. Deferred tax amounts shall be supplied by the county assessor
53 to the county treasurer by May 15 of the year following conveyance or within
54 thirty (30) days of removal of designation, or of learning of a change in use.
55 All deferred tax amounts shall be due and payable to the county treasurer on
1 demand and shall become delinquent if not paid by the demand due date speci-
2 fied by the county treasurer on the forms prescribed by the state tax commis-
3 sion. If the deferred tax is not paid as provided above, the payment becomes
4 delinquent and subject to late charges, and interest in the amounts provided
5 in sections 63-201( 710) and 63-1001, Idaho Code, and subject to collection in
6 the manner as set forth in chapter 10, title 63, Idaho Code. Estimated
7 deferred tax amounts may be held by the county treasurer in a tax anticipation
8 account from the date of conveyance until June 1 of the year following convey-
10 The county treasurer shall cause the deferred taxes and any penalty and
11 interest paid pursuant to the provisions of this section to be apportioned to
12 the various taxing authorities within which the property subject to the tax is
13 located in the same manner as property taxes.
14 (a) A forest landowner may choose to have his forest land assessed,
15 appraised and taxed under the provisions of section 63-1705, Idaho Code, by
16 filing such choice with the county assessor on a form prescribed by the state
17 tax commission. Designation filed pursuant to section 63-1705, Idaho Code,
18 shall become effective the first day of January following the year of designa-
20 (b) A forest landowner may choose to have his forest land assessed,
21 appraised and taxed under the provisions of section 63-1706, Idaho Code, by
22 filing such choice with the county assessor on a form prescribed by the state
23 tax commission. Designation filed pursuant to section 63-1706, Idaho Code,
24 shall become effective the first day of January following the year of designa-
26 (c) All forest products or timber harvested from investment lands not
27 designated as subject to the provisions of section 63-1702, 63-1705 or
28 63-1706, Idaho Code, and delivered to a point of utilization as logs or
29 semiprocessed forest products, (except those forest products harvested for the
30 domestic use of the landowner under the provisions of section 63-1708, Idaho
31 Code, ) shall be subject to the yield tax at the time of harvest in the same
32 manner provided for in section 63-1706, Idaho Code.
STATEMENT OF PURPOSE
The purpose of this legislation is to update the code to incorporate current
methods of payment utilized by taxpayers. The bill expands the definitions
section in Idaho Code 63-201 to include debit card, credit card and electronic
funds transfer and updates Idaho Code 63-901 to allow for payment of taxes by
these methods. Currently, the Idaho Code only allows for the use of currency,
checks and drafts for payment of taxes. This amendment provides an option for
these other methods of payment but does not require counties to accept them.
No fiscal impact to the state s general fund. No fiscal impact to local
Names: Daniel G. Chadwick, Idaho Association of Counties
Kerry Ellen Elliott
STATEMENT OF PURPOSE/FISCAL NOTE H 420