HOUSE BILL NO. 420

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Bill Status



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
         Effective: 07/01/08

Bill Text




                                                                       
  ]]]]              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-
 16    poses.
 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.

                                       2

  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
  7    stock.
  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        (104) "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        (115) "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        (126) "Party in interest" means a person who  holds  a  properly  recorded
 34    mortgage, deed of trust or security interest.
 35        (137) "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        (148) "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        (159) "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
 54    cars.
 55        (1620) "Public utility" means electrical  companies,  pipeline  companies,

                                       3

  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-
  7    sion.
  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-
 14    pany.
 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        (204) "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        (215) "System value" means the market value for assessment purposes of the
 44    operating property when considered as a unit.
 45        (226) "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        (237) "Taxing district" means  any  entity  or  unit  with  the  statutory
 49    authority to levy a property tax.
 50        (248) "Taxable  value"  means  market  value for assessment purposes, less
 51    applicable exemptions or other statutory provisions.
 52        (259) "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

                                       4

  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(227), 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

                                       5

  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

                                       6

  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-
  9    ance.
 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-
 19    tion.
 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-
 25    tion.
 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 / Fiscal Impact


                            STATEMENT OF PURPOSE
     
                                  RS 17572
     
     
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.
     
     
     
     
                               FISCAL IMPACT
     
     
No fiscal impact to the state s general fund. No fiscal impact to local 
government.
     
         
     
     
     
                                  CONTACT
     
     
Names:  Daniel G. Chadwick, Idaho Association of Counties
        Tony Poinelli
        Sharon Burke
        Kerry Ellen Elliott
Phone:  (208)345-9126
     
STATEMENT OF PURPOSE/FISCAL NOTE                                       H 420