HOUSE BILL NO. 599

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H0599aa,aaS,aaS.....................................by REVENUE AND TAXATION
PERSONAL PROPERTY TAX - Amends and adds to existing law to revise
definitions; to provide a partial exemption from taxation of personal
property; to provide for reimbursement to local governments of personal
property tax; to provide procedures; and to provide for distribution of
sales tax moneys to counties and taxing districts.

03/05    House intro - 1st rdg - to printing
03/06    Rpt prt - to Rev/Tax
03/12    Rpt out - rec d/p - to 2nd rdg
03/13    2nd rdg - to 3rd rdg
03/19    To Gen Ord
    Rpt out amen - to engros
    Rpt engros - 1st rdg - to 2nd rdg as amen
03/20    2nd rdg - to 3rd rdg as amen
03/21    3rd rdg as amen - PASSED - 39-31-0
      AYES -- Anderson, Andrus, Barrett, Bayer, Bilbao, Black, Block,
      Bowers, Brackett, Chadderdon, Clark, Collins, Crane, Hagedorn, Hart,
      Harwood, Henderson, Kren, Labrador, Lake, Marriott, Mathews,
      McGeachin, Mortimer, Moyle, Nielsen, Nonini, Patrick, Raybould,
      Roberts, Ruchti, Schaefer, Shepherd(08), Snodgrass, Stevenson, Vander
      Woude, Wills, Wood(35), Mr. Speaker
      NAYS -- Bedke, Bell, Bock, Boe, Bolz, Bradford, Chavez, Chew, Durst,
      Eskridge, Henbest, Jaquet, Killen, King, LeFavour, Loertscher, Luker,
      Pasley-Stuart, Pence, Ringo, Rusche, Sayler, Shepherd(02), Shirley,
      Shively, Smith(30), Smith(24), Thayn, Thomas, Trail, Wood(27)
      Absent and excused -- None
    Floor Sponsor - Clark
    Title apvd - to Senate
03/24    Senate intro - 1st rdg - to Loc Gov
03/25    Rpt out - rec d/p - to 2nd rdg
03/26    2nd rdg - to 3rd rdg
    To 14th Ord
03/27    Rpt out amen - to 1st rdg as amen
    1st rdg - to 2nd rdg as amen
    Rls susp - PASSED - 35-0-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon(Gannon),
      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 -- None
    Floor Sponsor - Hill
    Title apvd - to House
03/28    House Held at Desk
04/01    Ref'd to Rev/Tax
    House did not concur in Senate amens
    Bill Ref'd to Conference Committee
04/02    Conf. Committee Rpt. ADOPTED by House & Senate
    Conf. Committee Rpt. and bill ref'd to Senate 10th Ord
    Conf. Committee Rpt. filed w/Secretary of Senate
    Bill ref'd to 14th Ord
    Rpt out amen - to 1st rdg as amen
    1st rdg - to 2nd rdg as amen
    Rls susp - PASSED - 34-0-1
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon(Gannon),
      Geddes, Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough,
      Langhorst, Little, Lodge, Malepeai(Sagness), McGee, McKague, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- McKenzie
    Floor Sponsor - Hill
    Title apvd - to House
04/02    House concurred in Senate amens - to engros
    Rpt engros - 1st rdg - to 2nd rdg as amen
    Rls susp - PASSED - 65-0-5
      AYES -- Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black, Block,
      Bock, Boe, Bolz, Bowers, Chavez, Chew, Clark, Collins, Crane, Durst,
      Eskridge, 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), Snodgrass, Stevenson, Thayn, Thomas, Trail,
      Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Anderson, Brackett, Bradford, Chadderdon,
      Smith(24)
    Floor Sponsor - Clark
    Title apvd - to enrol/Rpt enrol - Sp/Pres signed
04/03    To Governor
04/11    Governor signed
         Session Law Chapter 400
         Effective: 01/01/09

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 599

                             BY REVENUE AND TAXATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO TAXATION OF PERSONAL  PROPERTY;  AMENDING  SECTION  63-201,  IDAHO
  3        CODE,  TO REVISE DEFINITIONS; AMENDING SECTION 63-302, IDAHO CODE, TO PRO-
  4        VIDE THAT A TAXPAYER'S LIST OF TAXABLE PERSONAL PROPERTY MAY BE AMENDED TO
  5        PERMIT CERTAIN PROPERTY TO BE LISTED OR TO BE REMOVED FROM THE LIST AND TO
  6        PROVIDE THAT THE STATEMENT MUST BE FILED ON OR BEFORE THE FOURTH MONDAY IN
  7        APRIL 2008; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF A
  8        NEW SECTION 63-602KK, IDAHO CODE, TO PROVIDE THAT PERSONAL PROPERTY  SHALL
  9        BE  EXEMPT  FROM  TAXATION, TO PROVIDE A SCHEDULE FOR PHASE IN, TO PROVIDE
 10        DUTIES OF THE STATE CONTROLLER, TO DEFINE THE TERM "TAXABLE VALUE" AND  TO
 11        PROVIDE  DUTIES  OF  THE  STATE  TAX COMMISSION; AMENDING SECTION 63-3638,
 12        IDAHO CODE, TO PROVIDE FOR DISTRIBUTION OF SALES TAX  MONEYS  TO  COUNTIES
 13        AND OTHER TAXING DISTRICTS FOR REPLACEMENT OF MONEYS FOR PERSONAL PROPERTY
 14        TAX  REDUCTION;  AMENDING SECTIONS 63-510 AND 63-1703, IDAHO CODE, TO PRO-
 15        VIDE CORRECT CODE REFERENCES; PROVIDING SEVERABILITY; DECLARING  AN  EMER-
 16        GENCY, PROVIDING RETROACTIVE APPLICATION AND PROVIDING EFFECTIVE DATES.

 17    Be It Enacted by the Legislature of the State of Idaho:

 18        SECTION  1.  That  Section  63-201, Idaho Code, be, and the same is hereby
 19    amended to read as follows:

 20        63-201.  DEFINITIONS. As used for property tax purposes in title 63, chap-
 21    ters 1 through 23, Idaho Code, the terms defined in this  section  shall  have
 22    the following meanings, unless the context clearly indicates another meaning:
 23        (1)  "Appraisal" means an estimate of property value for property tax pur-
 24    poses.
 25        (a)  For the purpose of estimated property value to place the value on any
 26        assessment  roll,  the  value estimation must be made by the assessor or a
 27        certified property tax appraiser.
 28        (b)  For the purpose of estimating property value to present for an appeal
 29        filed pursuant to sections 63-501A, 63-407 and  63-409,  Idaho  Code,  the
 30        value  estimation  may  be  made by the assessor, a certified property tax
 31        appraiser, a licensed appraiser, or a certified appraiser or any party  as
 32        specified by law.
 33        (2)  "Bargeline"  means  those  water  transportation tugs, boats, barges,
 34    lighters and other equipment and property used in conjunction  with  waterways
 35    for bulk transportation of freight or ship assist.
 36        (3)  "Cogenerators"  means  facilities  which produce electric energy, and
 37    steam or forms of useful energy which are  used  for  industrial,  commercial,
 38    heating or cooling purposes.
 39        (4)  "Collection  costs"  are  amounts authorized by law to be added after
 40    the date of delinquency and collected in the same manner as property tax.
 41        (5)  "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        (6)  "Fixtures" means those articles that, although once movable chattels,
  2    have become accessory to and a part of improvements to real property by having
  3    been  physically  incorporated therein or annexed or affixed thereto in such a
  4    manner that removing them would cause material injury or damage  to  the  real
  5    property,  the  use  or purpose of such articles is integral to the use of the
  6    real property to which it is affixed, and a person would reasonably be consid-
  7    ered to intend to make the articles permanent additions to the real  property.
  8    "Fixtures"  includes  systems  for the heating, air conditioning, ventilation,
  9    sanitation, lighting and  plumbing  of  such  building.  "Fixtures"  does  not
 10    include  machinery, equipment or other articles that are affixed to real prop-
 11    erty to enable the proper utilization of such articles.
 12        (7)  "Floating home" means a floating structure that is designed and built
 13    to be used, or is modified to be used, as a stationary waterborne  residential
 14    dwelling,  has  no mode of power of its own, is dependent for utilities upon a
 15    continuous utility linkage to a source originating on shore, and has a  perma-
 16    nent continuous connection to a sewage system on shore.
 17        (8)  "Improvements"  means  all buildings, structures, fixtures and fences
 18    manufactured homes, as defined in section 39-4105(8), Idaho Code, mobile homes
 19    as defined in section  39-4105(9),  Idaho  Code,  and  modular  buildings,  as
 20    defined  in  section  39-4301(7),  Idaho  Code, erected upon or affixed to the
 21    land, and fences, water ditches constructed for mining, manufacturing or irri-
 22    gation purposes, fixtures, and floating homes, whether or  not  such  improve-
 23    ments are owned separately from the ownership of the land upon or to which the
 24    same  may  be  erected,  affixed  or  attached.  The  term "improvements" also
 25    includes  all fruit, nut-bearing and ornamental trees or vines not of  natural
 26    growth, growing upon the land, except nursery stock.
 27        (79)  "Late charge" means a charge of two percent (2%) of the delinquency.
 28        (810) "Lawful  money  of the United States" means currency and coin of the
 29    United States at par value and checks and drafts which are payable in  dollars
 30    of the United States at par value, payable upon demand or presentment.
 31        (9)  "Manufactured  home" means a structure defined as a manufactured home
 32    in section 39-4105, Idaho Code.
 33        (101) "Market value" means the amount of United States dollars or  equiva-
 34    lent  for which, in all probability, a property would exchange hands between a
 35    willing seller, under no compulsion to sell, and an informed,  capable  buyer,
 36    with a reasonable time allowed to consummate the sale, substantiated by a rea-
 37    sonable down or full cash payment.
 38        (112) "Operating  property"  means  real and personal property operated in
 39    connection with any public utility, railroad or private railcar fleet,  wholly
 40    or  partly  within  this state, and which property is necessary to the mainte-
 41    nance and operation of the public utility, railroad or private railcar  fleet,
 42    and  the roads or lines thereof, and includes all rights-of-way accompanied by
 43    title; roadbeds; tracks; pipelines; bargelines; equipment  and  docks;  termi-
 44    nals;  rolling  stock;  equipment;  power stations; power sites; lands; reser-
 45    voirs, generating plants, transmission lines, distribution lines  and  substa-
 46    tions;  and  all immovable or movable property operated in connection with any
 47    public utility, railroad or private railcar fleet,  wholly  or  partly  within
 48    this  state,  and  necessary  to the maintenance and operation of such road or
 49    line, or in conducting its business, and shall include all title and  interest
 50    in  such property, as owner, lessee or otherwise. The term includes electrical
 51    generation plants under construction, whether or not owned by or  operated  in
 52    connection  with  any public utility. The term does not include personal prop-
 53    erty exempt from taxation pursuant to section 63-602L For the purpose  of  the
 54    appraisal,  assessment and taxation of operating property, pursuant to chapter
 55    4, title 63, Idaho Code, the value of intangible personal  property  shall  be
 56    excluded  from  the taxable value of operating property in accordance with the

                                       3
  1    provisions of section 63-602L, Idaho Code, and the value of personal property,
  2    other than intangible personal property, shall be excluded  from  the  taxable
  3    value  of  operating  property  in  accordance  with the provisions of section
  4    63-602KK, Idaho Code.
  5        (123) "Party in interest" means a person who  holds  a  properly  recorded
  6    mortgage, deed of trust or security interest.
  7        (134) "Person"  means  any  entity,  individual, corporation, partnership,
  8    firm, association, limited liability company, limited liability partnership or
  9    other such entities as recognized by the state of Idaho.
 10        (145) "Personal property" includes all goods, chattels, stocks and  bonds,
 11    equities  in  state  lands, easements, reservations, leasehold real properties
 12    and all other property which the law defines, or  the  courts  may  interpret,
 13    declare  and hold to be personal property under the letter, spirit, intent and
 14    meaning of the law, for the purposes of property taxation. For the purposes of
 15    payment and collection of property taxes pursuant  to  chapter  9,  title  63,
 16    Idaho  Code, collection of delinquency pursuant to chapter 10, title 63, Idaho
 17    Code, and seizure and sale of personal property for taxes pursuant to  chapter
 18    11,  title  63,  Idaho Code, personal property includes manufactured homes not
 19    declared as real property pursuant to section 63-304, Idaho Code. means every-
 20    thing that is the subject of ownership and that is  not  included  within  the
 21    term "real property."
 22        (156) "Private railcar fleet" means railroad cars or locomotives owned by,
 23    leased  to, occupied by or franchised to any person other than a railroad com-
 24    pany operating a line of railroad in Idaho or  any  company  classified  as  a
 25    railroad  by  the  interstate commerce commission and entitled to possess such
 26    railroad cars and locomotives except those possessed solely for the purpose of
 27    repair, rehabilitation or remanufacturing  of  such  locomotives  or  railroad
 28    cars.
 29        (167) "Public  utility"  means  electrical  companies, pipeline companies,
 30    natural gas distribution companies, or power producers included within federal
 31    law, bargelines, and water companies which are under the jurisdiction  of  the
 32    Idaho  public  utilities commission. The term also includes telephone corpora-
 33    tions, as that term is defined in section 62-603, Idaho Code, except as  here-
 34    inafter  provided, whether or not such telephone corporation has been issued a
 35    certificate of convenience and necessity by the Idaho public utilities commis-
 36    sion.
 37        This term does not include cogenerators, mobile telephone service or  com-
 38    panies,  nor does it include pager service or companies, except when such ser-
 39    vices are an integral part of services provided by a certificated utility com-
 40    pany nor does the term "public utility" include companies or  persons  engaged
 41    in  the business of providing solely on a resale basis, any telephone or tele-
 42    communication service which is purchased from a telephone corporation or  com-
 43    pany.
 44        (178) "Railroad" means every kind of railway, whether its line of rails or
 45    tracks  be  at, above or below the surface of the earth, and without regard to
 46    the kind of power used in moving its rolling stock, and shall be considered to
 47    include every kind of street railway, suburban railway or  interurban  railway
 48    excepting  facilities  established  solely  for  maintenance and rebuilding of
 49    railroad cars or locomotives.
 50        (189) "Real property" means land, improvements  and  all  standing  timber
 51    thereon, including standing timber owned separately from the ownership of  the
 52    land  upon  which  the same may stand, except as modified in chapter 17, title
 53    63, Idaho Code, and all buildings, structures and improvements, or other  fix-
 54    tures of whatsoever kind on land, including water ditches constructed for min-
 55    ing,  manufacturing  or  irrigation  purposes,  water and gas mains, wagon and
 56    turnpike toll roads, and toll bridges, and all rights and  privileges  thereto

                                       4
  1    belonging,  or any way appertaining, all quarries and fossils in and under the
  2    land, and all other property which the law defines, or the courts  may  inter-
  3    pret,  declare  and  hold to be real property under the letter, spirit, intent
  4    and meaning of the law, for the purposes of  property  taxation.  Manufactured
  5    homes  constitute  real  property  when  located  on taxable land, and after a
  6    statement of intent to declare as real property has  been  recorded,  provided
  7    said  statement  has not been revoked. Timber, forest, forest land, and forest
  8    products shall be defined as provided in chapter 17, title 63, Idaho Code.
  9        (1920) "Record owner" means the person or persons in whose name  or  names
 10    the  property  stands  upon the records of the county recorder's office. Where
 11    the record owners are husband and wife at the time of notice of pending  issue
 12    of  tax  deed,  notice to one (1) shall be deemed and imputed as notice to the
 13    other spouse.
 14        (201) "Special assessment" means a charge imposed upon property for a spe-
 15    cific purpose, collected and enforced in the same manner as property taxes.
 16        (212) "System value" means the market value for assessment purposes of the
 17    operating property when considered as a unit.
 18        (223) "Tax code area" means a geographical area made up of one (1) or more
 19    taxing districts with one (1) total levy within the geographic area, except as
 20    otherwise provided by law.
 21        (234) "Taxing district" means  any  entity  or  unit  with  the  statutory
 22    authority to levy a property tax.
 23        (245) "Taxable  value"  means  market  value for assessment purposes, less
 24    applicable exemptions or other statutory provisions.
 25        (256) "Transient personal property"  is  personal  property,  specifically
 26    such  construction,  logging or mining machinery and equipment  which is kept,
 27    moved, transported, shipped, hauled into or remaining for periods of not  less
 28    than  thirty  (30)  days,  in more than one (1) county in the state during the
 29    same year.
 30        (267) "Warrant of distraint" means a warrant ordering the seizure of  per-
 31    sonal  property  to  enforce  payment  of  property  tax,  special assessment,
 32    expense, fee, collection cost or charge collected in the same manner  as  per-
 33    sonal property tax.

 34        SECTION  2.  That  Section  63-302, Idaho Code, be, and the same is hereby
 35    amended to read as follows:

 36        63-302.  LIST OF TAXABLE PERSONAL PROPERTY. (1) The assessor  shall  leave
 37    at the office, place of business or residence of each personal property owner,
 38    or mail to such personal property owner at his last known post office address,
 39    a  form  with  notice requiring such personal property owner to make a correct
 40    list of taxable personal property. Every personal property owner  so  required
 41    shall  enter  a  true  and correct statement of such personal property and the
 42    ownership thereof, which statement shall be signed and verified by the oath of
 43    the personal property owner or his agent listing such personal  property,  and
 44    shall be delivered to the assessor, not later than March 15. Provided however,
 45    the  statement required to be filed not later than March 15, 2008, pursuant to
 46    this section, may be amended to permit property affected  by  the  definitions
 47    set forth in section 63-201, Idaho Code, to be listed or removed from the list
 48    of personal property by the taxpayer. The amended statement shall be delivered
 49    to  the  assessor  on  or before the fourth Monday in April 2008. The assessor
 50    shall thereupon determine the market value for  assessment  purposes  of  such
 51    personal property and enter the same on the property roll. However, if for any
 52    reason  the  assessor  shall fail to contact such personal property owner, the
 53    failure shall not impair or invalidate any assessment, nor will  such  failure
 54    relieve  the  personal  property  owner  or his agent of the responsibility to

                                       5
  1    obtain such declaration and to comply with the requirements of this title. Any
  2    willful failure to personally contact each personal property owner,  shall  be
  3    deemed  malfeasance in office and grounds for the removal of the assessor from
  4    office.
  5        (2)  If such person fails to make and deliver the list  as  required,  the
  6    assessor  may  list  and  assess  such personal property according to his best
  7    judgment and information.
  8        (3)  Whenever a taxpayer's list of  taxable  personal  property  discloses
  9    personal property having a situs for purposes of taxation in another county in
 10    this  state, the assessor must immediately make a copy of that portion of such
 11    list for each county in which such personal property is situated, and transmit
 12    the same by mail to the assessor of the proper county, who must, upon  receipt
 13    of  such  copy,  enter  such personal property upon the property roll therein,
 14    unless such personal property has already been  entered.  The  assessor  shall
 15    strike  from  the original list all personal property so disclosed as having a
 16    situs in another county, and shall assess and enter only the  balance  of  the
 17    personal property in his county.

 18        SECTION  3.  That  Chapter  6,  Title  63, Idaho Code, be, and the same is
 19    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 20    ignated as Section 63-602KK, Idaho Code, and to read as follows:

 21        63-602KK.  PROPERTY  EXEMPT  FROM  TAXATION -- PERSONAL PROPERTY. (1) Com-
 22    mencing January 1, 2008, personal property that was first acquired by a person
 23    after 12:01 a.m., January 1, 2008, shall be exempt from property  taxation  by
 24    any taxing district.
 25        (2)  (a) On  January  1, 2009, the taxable value of personal property held
 26        by the taxpayer at 12:01 a.m., January 1, 2008, shall be reduced by twenty
 27        percent (20%), and on January  1  of  each  taxable  year  thereafter  the
 28        remaining  taxable  value shall be reduced by an additional twenty percent
 29        (20%), unless reduction in taxable value is withheld as provided in  para-
 30        graph (c) of this subsection.
 31        (b)  The  state  controller  shall, on or before September 1 of each year,
 32        certify to the state tax commission whether receipts to the  general  fund
 33        for  the  fiscal year just ended have or have not exceeded the receipts of
 34        the previous year by more than four percent (4%). The state tax commission
 35        shall notify county auditors of the certification by the state  controller
 36        and the effect thereof.
 37        (c)  If  the  state  controller certifies that the receipts to the general
 38        fund for the fiscal year ending June 30, 2008, or for fiscal years  ending
 39        June  30  of  any year thereafter through June 30, 2012, have not exceeded
 40        the receipts to the general fund during the previous fiscal year  by  more
 41        than  four  percent (4%), the reduction in taxable value of personal prop-
 42        erty set forth in paragraph (a) of this subsection scheduled to  occur  on
 43        January 1 of the year following such certification shall be withheld. Not-
 44        withstanding  the  provisions of this paragraph, the taxable value of per-
 45        sonal property shall be reduced to zero (0) for tax  year  2014,  and  for
 46        each tax year thereafter.
 47        (d)  In the event that the state controller certifies that the receipts to
 48        the  general  fund  for  the fiscal year ending immediately preceding such
 49        certification have exceeded the receipts of the previous  fiscal  year  by
 50        more  than four percent (4%), the then taxable value of personal property,
 51        if any, shall be reduced by twenty percent (20%) on the following  January
 52        1,  and  such  scheduled reductions in taxable value shall occur in subse-
 53        quent tax years, as scheduled, unless withheld as  provided  in  paragraph
 54        (c) of this subsection.

                                       6
  1        (3)  As used in this section, the term "taxable value" shall mean:
  2        (a)  The  taxable  value  of  personal  property  not included in the term
  3        "operating property," held by the taxpayer at 12:01 a.m., January 1, 2008,
  4        and with reference to which personal property an assessment  is  made  and
  5        taxes  levied  for  tax year 2008, pursuant to section 63-205, Idaho Code;
  6        and
  7        (b)  The taxable value of that portion of operating property held  by  the
  8        taxpayer at 12:01 a.m., January 1, 2008, that qualifies for exclusion from
  9        the taxable value of operating property pursuant to subsection (4) of this
 10        section  and  which  personal property is included in the certification of
 11        taxable value of operating property by the state  tax  commission  to  the
 12        county  auditors of the several counties pursuant to section 63-410, Idaho
 13        Code, for tax year 2008 and, on which taxable value taxes  are  levied  by
 14        the several counties for tax year 2008.
 15        (4)  The  state  tax commission shall promulgate rules which shall provide
 16    for the exclusion of the taxable value of personal property from  the  taxable
 17    value of operating property. Such rules shall allow each taxpayer the right to
 18    elect  one  (1)  of  the following three (3) methods for exclusion of personal
 19    property from its taxable value:
 20        (a)  Separate exclusion of the taxable value of personal property  at  the
 21        system level value;
 22        (b)  Separate  exclusion  of the taxable value of personal property at the
 23        state allocated level value; or
 24        (c)  Exclusion of the taxable value of personal property by  valuation  of
 25        only  nonexempt  property  using  valuation models which do not impound or
 26        include values of the personal property.
 27        (5)  (a) The county commissioners in each  county  shall  certify  to  the
 28        state  tax commission on or before the fourth Monday in November 2008, the
 29        year 2008 total tax charge applicable to the  taxable  value  of  personal
 30        property for the portion of each taxing district or unit within the county
 31        which  has  been  entered  onto the property roll for tax year 2008 by the
 32        county assessor. The state tax commission shall calculate the amount  that
 33        each  county  assessed  in  taxes in tax year 2008 on the taxable value of
 34        personal property held by the taxpayer at 12:01  a.m.,  January  1,  2008,
 35        with  reference  to  which personal property taxes are levied for tax year
 36        2008 pursuant to section 63-205, Idaho Code. Further, the state  tax  com-
 37        mission shall calculate the amount that each county levied in taxes in tax
 38        year  2008 on the taxable value of that portion of operating property con-
 39        stituting personal property and held by the taxpayer at 12:01 a.m.,  Janu-
 40        ary 1, 2008, and certified by the commission to the county auditors of the
 41        several  counties  pursuant  to  section  63-410, Idaho Code, for tax year
 42        2008.
 43        (b)  The state tax commission shall compute the percentage the  amount  of
 44        taxes  levied on personal property for each county for tax year 2008 bears
 45        to the total amount of taxes levied on personal property by  all  counties
 46        in  the  state  for  the  year 2008. The percentage so determined for each
 47        county shall be applied to the amount distributed by the commission pursu-
 48        ant to section 63-3638, Idaho Code, and the resulting sum shall be paid to
 49        the county treasurer of each county for distribution to each  taxing  dis-
 50        trict in the county as follows:
 51             (i)   The  board of county commissioners in each county shall compute
 52             the percentage the amount of taxes levied on  the  taxable  value  of
 53             personal  property  for the year 2008 for each taxing district in the
 54             county bears to the total amount of taxes levied on the taxable value
 55             of personal property for all taxing districts in the county  for  the
 56             year  2008.  The percentage so determined for each taxing district in

                                       7
  1             the county shall be applied to the sum paid to the  county  treasurer
  2             by  the state tax commission pursuant to this section and the result-
  3             ing amount shall be distributed to each taxing district in the county
  4             by the county auditor within thirty (30) calendar days  from  receipt
  5             of  moneys  from  the  state  tax  commission. The amount which would
  6             otherwise be attributable to tax revenues derived from tax levies  on
  7             taxable personal property within an existing revenue allocation area,
  8             as  defined in section 50-2903(15), Idaho Code, and for which revenue
  9             allocation area a legal description of the boundaries  of  such  area
 10             was filed in accordance with the provisions of section 50-2907, Idaho
 11             Code,  on  or  before  January 1, 2008, shall be paid directly by the
 12             county treasurer to such public body or agency  entitled  thereto  in
 13             accordance  with  the formula for such distribution set forth in sec-
 14             tion 50-2908, Idaho Code.
 15             (ii)  The moneys remitted to the county treasurer for replacement  of
 16             taxes  on  property exempt from taxation pursuant to this section may
 17             be considered by the counties and other taxing districts and budgeted
 18             at the same time, in the same manner and in the same year as revenues
 19             from taxation on personal property that these moneys replace.
 20             (iii) If taxing districts are consolidated, the resulting district is
 21             entitled to an amount equal to the sum  of  the  amounts  which  were
 22             received  in  the  last calendar quarter by each district pursuant to
 23             this section prior to consolidation. If a  taxing  district  is  dis-
 24             solved  or  disincorporated,  the state tax commission shall continu-
 25             ously distribute to the board of county commissioners an amount equal
 26             to  the  last  quarter's  distribution  prior   to   dissolution   or
 27             disincorporation.  The  board of county commissioners shall determine
 28             any redistribution of  moneys  so  received.  If  a  taxing  district
 29             annexes  territory,  the  distribution of moneys received pursuant to
 30             this section shall be unaffected. Taxing districts formed after Janu-
 31             ary 1, 2008, are not entitled to payments  under  the  provisions  of
 32             this section.
 33             (iv)  For  purposes  of  the  limitation  provided by section 63-802,
 34             Idaho Code, moneys received from distributions  pursuant  to  section
 35             63-3638,  Idaho  Code,  as  property  tax replacement for the taxable
 36             value of property exempt from taxation pursuant to this section shall
 37             be treated as property tax revenues.
 38        (6)  Nothing contained in this section shall affect the taxation of forest
 39    lands or forest products pursuant to chapter 17, title 63, Idaho Code, or  the
 40    taxation  of  the net profits of mines pursuant to chapter 28, title 63, Idaho
 41    Code.

 42        SECTION 4.  That Section 63-3638, Idaho Code, be, and the same  is  hereby
 43    amended to read as follows:

 44        63-3638.  SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
 45    ter,  except  as  may  otherwise  be required in sections 63-3203 and 63-3709,
 46    Idaho Code, shall be distributed by the tax commission as follows:
 47        (1)  An amount of money shall be distributed to the state  refund  account
 48    sufficient  to  pay  current  refund claims. All refunds authorized under this
 49    chapter by the commission shall be paid through the state refund account,  and
 50    those moneys are continuously appropriated.
 51        (2)  Five  million dollars ($5,000,000) per year is continuously appropri-
 52    ated and shall be distributed to the permanent building fund, provided by sec-
 53    tion 57-1108, Idaho Code.
 54        (3)  Four million eight hundred thousand dollars ($4,800,000) per year is

                                       8
  1    continuously appropriated and shall be distributed to the water pollution con-
  2    trol account established by section 39-3605, Idaho Code.
  3        (4)  An amount equal to the sum required to be certified by  the  chairman
  4    of  the Idaho housing and finance association to the state tax commission pur-
  5    suant to section 67-6211, Idaho Code, in each year is  continuously  appropri-
  6    ated  and  shall be paid to any capital reserve fund, established by the Idaho
  7    housing and finance association pursuant to section 67-6211, Idaho Code.  Such
  8    amounts,  if any, as may be appropriated hereunder to the capital reserve fund
  9    of the Idaho housing and finance association shall be repaid for  distribution
 10    under  the  provisions  of  this section, subject to the provisions of section
 11    67-6215, Idaho Code, by the Idaho housing and finance association, as soon  as
 12    possible,  from  any  moneys  available  therefor and in excess of the amounts
 13    which the association determines will keep it self-supporting.
 14        (5)  An amount equal to the sum required by  the  provisions  of  sections
 15    63-709  and 63-717, Idaho Code, after allowance for the amount appropriated by
 16    section  63-718(3), Idaho Code, is continuously appropriated and shall be paid
 17    as provided by sections 63-709 and 63-717, Idaho Code.
 18        (6)  An amount required by the provisions of chapter 53, title  33,  Idaho
 19    Code.
 20        (7)  An  amount  required by the provisions of chapter 87, title 67, Idaho
 21    Code.
 22        (8)  One dollar ($1.00) on each application for certificate  of  title  or
 23    initial  application  for  registration  of  a motor vehicle, snowmobile, all-
 24    terrain vehicle or other vehicle processed by the county assessor or the Idaho
 25    transportation department excepting those applications in which any  sales  or
 26    use taxes due have been previously collected by a retailer, shall be a fee for
 27    the services of the assessor of the county or the Idaho transportation depart-
 28    ment in collecting such taxes, and shall be paid into the current expense fund
 29    of  the  county  or state highway account established in section 40-702, Idaho
 30    Code.
 31        (9)  Eleven and five-tenths percent (11.5%) is  continuously  appropriated
 32    and  shall  be  distributed to the revenue sharing account which is created in
 33    the state treasury, and the moneys in the revenue sharing account will be paid
 34    in installments each calendar quarter by the tax commission as follows:
 35        (a)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 36        ious cities as follows:
 37             (i)   Fifty percent (50%) of such amount shall be paid to the various
 38             cities, and each city shall be entitled to an amount in  the  propor-
 39             tion  that the population of that city bears to the population of all
 40             cities within the state; and
 41             (ii)  Fifty percent (50%) of such amount shall be paid to the various
 42             cities, and each city shall be entitled to an amount in  the  propor-
 43             tion  that  the preceding year's market value for assessment purposes
 44             for that city bears to the preceding year's market value for  assess-
 45             ment purposes for all cities within the state.
 46        (b)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 47        ious counties as follows:
 48             (i)   One  million three hundred twenty thousand dollars ($1,320,000)
 49             annually shall be distributed one forty-fourth (1/44) to each of  the
 50             various counties; and
 51             (ii)  The  balance  of such amount shall be paid to the various coun-
 52             ties, and each county shall be entitled to an amount in  the  propor-
 53             tion  that  the  population of that county bears to the population of
 54             the state;
 55        (c)  Thirty-five and nine-tenths percent (35.9%) of the  amount  appropri-
 56        ated    in  this  subsection (9) shall be paid to the several counties for

                                       9
  1        distribution to the cities and counties as follows:
  2             (i)   Each city and county which received a payment under the  provi-
  3             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
  4             calendar  year  1999,  shall be entitled to a like amount during suc-
  5             ceeding calendar quarters.
  6             (ii)  If the dollar amount of money available under  this  subsection
  7             (9)(c)  in  any  quarter does not equal the amount paid in the fourth
  8             quarter of calendar year 1999, each city's and county's payment shall
  9             be reduced proportionately.
 10             (iii) If the dollar amount of money available under  this  subsection
 11             (9)(c)  in  any quarter exceeds the amount paid in the fourth quarter
 12             of calendar year 1999, each city and county shall be  entitled  to  a
 13             proportionately increased payment, but such increase shall not exceed
 14             one  hundred  five  percent  (105%)  of the total payment made in the
 15             fourth quarter of calendar year 1999.
 16             (iv)  If the dollar amount of money available under  this  subsection
 17             (9)(c)  in any quarter exceeds one hundred five percent (105%) of the
 18             total payment made in the fourth quarter of calendar year  1999,  any
 19             amount  over  and above such one hundred five percent (105%) shall be
 20             paid fifty percent (50%) to the various cities in the proportion that
 21             the population of the city bears to  the  population  of  all  cities
 22             within  the state, and fifty percent (50%) to the various counties in
 23             the proportion that the population of a county bears to  the  popula-
 24             tion of the state; and
 25        (d)  Seven  and  seven-tenths percent (7.7%) of the amount appropriated in
 26        this subsection (9) shall be paid to the several counties for distribution
 27        to special purpose taxing districts as follows:
 28             (i)   Each such district which received a payment  under  the  provi-
 29             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 30             calendar  year  1999,  shall be entitled to a like amount during suc-
 31             ceeding calendar quarters.
 32             (ii)  If the dollar amount of money available under  this  subsection
 33             (9)(d)  in  any  quarter does not equal the amount paid in the fourth
 34             quarter of calendar year 1999, each special purpose taxing district's
 35             payment shall be reduced proportionately.
 36             (iii) If the dollar amount of money available under  this  subsection
 37             (9)(d)  in any quarter exceeds the amount distributed under paragraph
 38             (i) of this subsection (9)(d), each special purpose  taxing  district
 39             shall  be  entitled  to a share of the excess based on the proportion
 40             each such district's current property tax budget bears to the sum  of
 41             the  current property tax budgets of all such districts in the state.
 42             The state tax commission shall calculate  district  current  property
 43             tax budgets to include any unrecovered foregone amounts as determined
 44             under section 63-802(1)(e), Idaho Code. When a special purpose taxing
 45             district  is situated in more than one (1) county, the tax commission
 46             shall determine the portion attributable to the special purpose  tax-
 47             ing district from each county in which it is situated.
 48             (iv)  If  special  purpose  taxing  districts  are  consolidated, the
 49             resulting district is entitled to a base amount equal to the  sum  of
 50             the  base amounts which were received in the last calendar quarter by
 51             each district prior to the consolidation.
 52             (v)   If  a  special  purpose  taxing  district   is   dissolved   or
 53             disincorporated, the state tax commission shall continuously distrib-
 54             ute  to the board of county commissioners an amount equal to the last
 55             quarter's distribution prior to dissolution or disincorporation.  The
 56             board of county commissioners shall determine any  redistribution  of

                                       10
  1             moneys so received.
  2             (vi)  Taxing districts formed after January 1, 2001, are not entitled
  3             to a payment under the provisions of this subsection (9)(d).
  4             (vii) For  purposes of this subsection (9)(d), a special purpose tax-
  5             ing district is any taxing district which is not a city, a county  or
  6             a school district.
  7        (10) Amounts calculated in accordance with section 2, chapter 356, laws of
  8    2001, for annual distribution to counties and other taxing districts beginning
  9    in  October  2001 for replacement of property tax on farm machinery and equip-
 10    ment exempted pursuant to section 63-602EE, Idaho  Code.  For  nonschool  dis-
 11    tricts,  the  state  tax  commission shall distribute one-fourth (1/4) of this
 12    amount certified quarterly to each county. For school districts, the state tax
 13    commission shall distribute one-fourth (1/4) of the amount certified quarterly
 14    to each school district. For nonschool districts,  the  county  auditor  shall
 15    distribute  to  each district within thirty (30) calendar days from receipt of
 16    moneys from the tax commission. Moneys received by each  taxing  district  for
 17    replacement  shall  be utilized in the same manner and in the same proportions
 18    as revenues from property taxation. The moneys remitted to  the  county  trea-
 19    surer  for  replacement  of  property exempt from taxation pursuant to section
 20    63-602EE, Idaho Code, may be considered by the counties and other taxing  dis-
 21    tricts  and budgeted at the same time, in the same manner and in the same year
 22    as revenues from taxation on personal property which these moneys replace.  If
 23    taxing  districts  are  consolidated, the resulting district is entitled to an
 24    amount equal to the sum of the amounts which were received in the last  calen-
 25    dar quarter by each district pursuant to this subsection prior to the consoli-
 26    dation.  If  a  taxing district is dissolved or disincorporated, the state tax
 27    commission shall continuously distribute to the board of county  commissioners
 28    an  amount  equal  to  the last quarter's distribution prior to dissolution or
 29    disincorporation. The board of county commissioners shall determine any redis-
 30    tribution of moneys so received.  If a taxing district annexes territory,  the
 31    distribution  of  moneys  received  pursuant to this subsection shall be unaf-
 32    fected. Taxing districts formed after January 1, 2001, are not entitled  to  a
 33    payment  under  the  provisions  of  this  subsection.  School districts shall
 34    receive an amount determined by multiplying the sum of the  year  2000  school
 35    district  levy  minus .004 times the market value on December 31, 2000, in the
 36    district of the property exempt from taxation pursuant  to  section  63-602EE,
 37    Idaho  Code,  provided that the result of these calculations shall not be less
 38    than zero (0). The result of these school district calculations shall be  fur-
 39    ther increased by six percent (6%). For purposes of the limitation provided by
 40    section  63-802, Idaho Code, moneys received pursuant to this section as prop-
 41    erty tax replacement for property exempt from  taxation  pursuant  to  section
 42    63-602EE, Idaho Code, shall be treated as property tax revenues.
 43        (11) Amounts  necessary  to  pay  refunds as provided in subsection (3) of
 44    section 63-3641, Idaho Code, to a developer of  a  retail  commercial  complex
 45    whose   stores sell tangible personal property or taxable services  subject to
 46    the sales and use tax up to an aggregate total of thirty-five million  dollars
 47    ($35,000,000) per project shall be remitted to the demonstration pilot project
 48    fund  created  in  subsection (3) of section 63-3641, Idaho Code, and shall be
 49    specific to and accounted for by each project.
 50        (12) (a) Amounts calculated in  accordance  with  section  63-602KK(5)(a),
 51        Idaho  Code,  for  distribution to counties and other taxing districts for
 52        replacement of property tax revenues from personal property exempted  from
 53        taxation  pursuant  to section 63-602KK, Idaho Code. For state fiscal year
 54        2010 through fiscal year 2014, and each fiscal year thereafter,  distribu-
 55        tions  shall be subject to the provisions of paragraph (b) of this subsec-
 56        tion but shall not exceed the following amounts:

                                       11
  1             Fiscal year 2010--twenty percent (20%) of the  amount  calculated  in
  2             accordance with section 63-602KK(5)(a), Idaho Code;
  3             Fiscal  year  2011--forty  percent  (40%) of the amount calculated in
  4             accordance with section 63-602KK(5)(a), Idaho Code;
  5             Fiscal year 2012--sixty percent (60%) of  the  amount  calculated  in
  6             accordance with section 63-602KK(5)(a), Idaho Code;
  7             Fiscal  year  2013--eighty  percent (80%) of the amount calculated in
  8             accordance with section 63-602KK(5)(a), Idaho Code;
  9             Fiscal year 2014 and for each fiscal  year  thereafter,  one  hundred
 10             percent  (100%)  of  the amount calculated in accordance with section
 11             63-602KK(5)(a), Idaho Code.
 12        The state tax commission shall distribute one-fourth (1/4) of the distrib-
 13        utable amounts quarterly to each county.
 14        (b)  In any taxable year in which the reduction in taxable value  of  per-
 15        sonal  property  is  withheld pursuant to section 63-602KK(2), Idaho Code,
 16        distributions in excess of distributions previously authorized to be  made
 17        during  the last fiscal year in which distributions occurred, shall not be
 18        made during the immediately succeeding state fiscal year. At the beginning
 19        of each state fiscal year following an allowed reduction in taxable  value
 20        of  personal  property  as  of the first day of January preceding the com-
 21        mencement of the state's succeeding fiscal year,  distributions  shall  be
 22        equal  to the amount distributed in previous years, together with an addi-
 23        tional amount equal to twenty percent (20%) of the  amount  calculated  in
 24        accordance  with section 63-602KK(5)(a), Idaho Code. Notwithstanding with-
 25        held distributions in prior fiscal years, commencing not later than fiscal
 26        year 2015, and for each fiscal year thereafter, one hundred percent (100%)
 27        of the amount calculated in accordance with section 63-602KK(5)(a),  Idaho
 28        Code, shall be made to counties and other taxing districts for replacement
 29        of  property tax revenues from personal property exempted pursuant to sec-
 30        tion 63-602KK, Idaho Code.
 31        (13) Any moneys remaining over and  above  those  necessary  to  meet  and
 32    reserve for payments under other subsections of this section shall be distrib-
 33    uted to the general fund.

 34        SECTION  5.  That  Section  63-510, Idaho Code, be, and the same is hereby
 35    amended to read as follows:

 36        63-510.  NOTIFICATION OF VALUATION DUE TO STATE TAX COMMISSION. (1)  Prior
 37    to  the  first  Monday of August the auditor of each county in the state shall
 38    notify the state tax commission of the net taxable value of all property situ-
 39    ated within each taxing unit or district in the county from the property  roll
 40    for  the  current  year and shall provide an estimate of the net taxable value
 41    for each taxing unit or district from the current year's estimated  subsequent
 42    and missed property rolls. Such notification shall also include an estimate of
 43    the  net taxable value within any area annexed during the immediate prior year
 44    to any taxing unit or district.
 45        (2)  Prior to the first Monday of March the auditor of each county in  the
 46    state  shall  notify  the state tax commission of the net taxable value of all
 47    property situated within each taxing unit or district in the county  from  the
 48    subsequent  and missed property rolls. Such notification shall also include an
 49    estimate of the net taxable value within any area annexed during the immediate
 50    prior year, and listed on the subsequent or missed property roll, to any  tax-
 51    ing unit or district.
 52        (3)  The  notification required in subsections (1) and (2) of this section
 53    shall be on forms prescribed and provided by  the  state  tax  commission  and
 54    shall  list  separately  the value exempt from property taxation in accordance

                                       12
  1    with section 63-602G, Idaho Code, and the value in  excess  of  the  equalized
  2    assessment valuation as shown on the base assessment roll in any revenue allo-
  3    cation area, pursuant to chapters 20 and 29, title 50, Idaho Code.
  4        (4)  For  the  purposes  of this section, "taxing district," as defined in
  5    section 63-201(224), Idaho Code, shall include each incorporated city in  each
  6    county, regardless of whether said city certifies a property tax budget.

  7        SECTION  6.  That  Section 63-1703, Idaho Code, be, and the same is hereby
  8    amended to read as follows:

  9        63-1703.  CERTAIN FOREST LANDS TO BE DESIGNATED FOR TAXATION BY  OWNER  --
 10    LIMITATIONS.  For the purposes of appraisal, assessment and taxation under the
 11    provisions of this chapter, all forest lands in parcels of five  (5)  or  more
 12    acres  but less than five thousand (5,000), whether contiguous or not, as long
 13    as such parcels are held in common ownership, must be designated by the forest
 14    landowner to be subject to the provisions of either subsection (a) or  (b)  of
 15    this section. A forest landowner cannot have parcels designated under the pro-
 16    visions  of  both  subsections (a) and (b) of this section at one (1) time. If
 17    the forest landowner fails to make a designation, his forest  lands  shall  be
 18    subject  to appraisal, assessment and taxation under the provisions of section
 19    63-1702, Idaho Code. Once a designation is made by the forest landowner,  such
 20    designation must remain in effect until the designation period expires, unless
 21    the  forest  lands  are  transferred to another owner using a different taxing
 22    category; in such case, the taxing category of the  transferred  forest  lands
 23    shall be the same as that maintained by the new owner.
 24        A  forest landowner may change the designation of all forest lands in com-
 25    mon ownership at the end of any designation period, subject to  the  recapture
 26    of  any  deferred taxes due as a result of such change. After January 1 and by
 27    December 31 of the tenth year of each designation period the forest  landowner
 28    must  notify  the  county  assessor  of any change in forest land designation.
 29    Failure to notify the county assessor will result in the continuation  of  the
 30    landowner's present designation until the end of the next designation period.
 31        Any  substantial change in the use of forest lands not conforming with the
 32    definition of forest land in section 63-1701, Idaho Code, during such ten (10)
 33    year period under the designations made in subsection  (a)  or  (b)  shall  be
 34    reported  by  the  landowner to the county assessor within thirty (30) days of
 35    the change in use. Upon notification of the change in use, the assessor  shall
 36    appraise, assess and tax those acres as provided by applicable laws and rules.
 37    Failure  to  notify  the  assessor of the change in use when forest lands have
 38    been designated as subject to the provisions of subsection (a)  or  (b)  shall
 39    cause forfeiture of such designation, and cause that property to be appraised,
 40    assessed and taxed as provided in section 63-1702, Idaho Code.
 41        Forest  lands designated for assessment pursuant to the provisions of sec-
 42    tion 63-1706, Idaho Code, shall be subject to the recapture of deferred  taxes
 43    upon  removal  of  such designation, a substantial change in use, or ownership
 44    transfer, except that there shall be no  recapture  initiated  upon  ownership
 45    transfer  of  forest  lands designated as subject to the provisions of section
 46    63-1706, Idaho Code, to a landowner with forest lands  already  designated  as
 47    subject  to the provisions of section 63-1706, Idaho Code, prior to the trans-
 48    fer, or who so designates his lands to be subject to the provisions of section
 49    63-1706, Idaho Code. In the event payment is offered  or  made,  it  shall  be
 50    accepted by the county treasurer and applied in the manner of payment of other
 51    property tax.
 52        The  dollar  amount of deferred taxes subject to recapture shall be deter-
 53    mined by the county assessor by applying current tax levies against  the  cur-
 54    rent  values  that  would  have  been  in  effect if the lands were subject to

                                       13
  1    appraisal and assessment during the current year under the provisions of  sec-
  2    tion 63-1705, Idaho Code, if there has been a change in ownership or a removal
  3    of  designation, or section 63-1702, Idaho Code, if there has been a change in
  4    use with no change in ownership, which amount shall be multiplied by the  num-
  5    ber of years that the lands have been subject to the designation under section
  6    63-1706,  Idaho Code. The amount of the deferred tax shall accrue through des-
  7    ignation periods, up to a maximum of ten (10) years, and shall  apply  to  the
  8    most  recent  ten (10) years in which the parcel has been designated under the
  9    provisions of section 63-1706, Idaho Code. A credit shall be allowed for taxes
 10    actually paid under the provisions of section  63-1706,  Idaho  Code,  for  an
 11    identical  ten (10) year period, up to the total amount of the deferred taxes.
 12    All deferred amounts shall be a lien against the land.  Deferred  tax  amounts
 13    shall  be  calculated  by the county assessor on forms prescribed by the state
 14    tax commission. Deferred tax amounts shall be supplied by the county  assessor
 15    to  the  county treasurer by May 15 of the year following conveyance or within
 16    thirty (30) days of removal of designation, or of learning of a change in use.
 17    All deferred tax amounts shall be due and payable to the county  treasurer  on
 18    demand  and  shall become delinquent if not paid by the demand due date speci-
 19    fied by the county treasurer on the forms prescribed by the state tax  commis-
 20    sion.  If  the deferred tax is not paid as provided above, the payment becomes
 21    delinquent and subject to late charges, and interest in  the amounts  provided
 22    in  sections  63-201(79) and 63-1001, Idaho Code, and subject to collection in
 23    the manner as set forth  in  chapter  10,  title  63,  Idaho  Code.  Estimated
 24    deferred tax amounts may be held by the county treasurer in a tax anticipation
 25    account from the date of conveyance until June 1 of the year following convey-
 26    ance.
 27        The  county  treasurer  shall cause the deferred taxes and any penalty and
 28    interest paid pursuant to the provisions of this section to be apportioned  to
 29    the various taxing authorities within which the property subject to the tax is
 30    located in the same manner as property taxes.
 31        (a)  A  forest  landowner  may  choose  to  have his forest land assessed,
 32    appraised and taxed under the provisions of section 63-1705,  Idaho  Code,  by
 33    filing  such choice with the county assessor on a form prescribed by the state
 34    tax commission. Designation filed pursuant to  section  63-1705,  Idaho  Code,
 35    shall become effective the first day of January following the year of designa-
 36    tion.
 37        (b)  A  forest  landowner  may  choose  to  have his forest land assessed,
 38    appraised and taxed under the provisions of section 63-1706,  Idaho  Code,  by
 39    filing  such choice with the county assessor on a form prescribed by the state
 40    tax commission. Designation filed pursuant to  section  63-1706,  Idaho  Code,
 41    shall become effective the first day of January following the year of designa-
 42    tion.
 43        (c)  All  forest  products  or  timber harvested from investment lands not
 44    designated as subject  to  the  provisions  of  section  63-1702,  63-1705  or
 45    63-1706,  Idaho  Code,  and  delivered  to  a  point of utilization as logs or
 46    semiprocessed forest products (except those forest products harvested for  the
 47    domestic  use  of the landowner under the provisions of section 63-1708, Idaho
 48    Code) shall be subject to the yield tax at the time of  harvest  in  the  same
 49    manner provided for in section 63-1706, Idaho Code.

 50        SECTION  7.  SEVERABILITY.  The provisions of this act are hereby declared
 51    to be severable and if any provision of this act or the  application  of  such
 52    provision  to  any  person or circumstance is declared invalid for any reason,
 53    such declaration shall not affect the validity of the  remaining  portions  of
 54    this act.

                                       14
  1        SECTION  8.  An  emergency  existing  therefor,  which emergency is hereby
  2    declared to exist, Sections 1, 2, 3 and 7 of this act shall be in  full  force
  3    and  effect on and after passage and approval, and retroactively to January 1,
  4    2008. Sections 4, 5 and 6 of this act shall be in full force and effect on and
  5    after July 1, 2008.

Amendment




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                                                     Moved by    Hill

                                                     Seconded by Stegner


                                       IN THE SENATE
            SENATE AMENDMENT TO THE SENATE AMENDMENT TO H.B. NO. 599, As Amended


  1                       AMENDMENT TO THE AMENDMENT TO SECTION 3
  2        On page 1 of the printed  amendment,  delete  lines  13  through  16,  and
  3    insert:  "(1)  On and after January 1, 2009, subject to subsection (2) of this
  4    section, each taxpayer's personal property, located in the  county,  which  is
  5    not  otherwise  exempt and which is not operating property, shall be exempt to
  6    the extent of one hundred thousand dollars ($100,000).  For  the  purposes  of
  7    this section, a taxpayer includes two (2) or"; delete lines 20 through 27, and
  8    insert:  "as  defined  in  section  63-3004,  Idaho Code."; following line 27,
  9    insert:
 10        "(2)  This section shall not take effect on January 1, 2009, if on Septem-
 11    ber 1, 2008, the state controller certifies that the receipts to  the  general
 12    fund  for  the fiscal year ending June 30, 2008, have not exceeded receipts to
 13    the general fund from the previous fiscal year by five percent (5%)  or  more.
 14    This  section   shall take effect on the first year  when the state controller
 15    certifies to the state tax commission that receipts to the  general  fund  for
 16    the  fiscal  year  just  ended have exceeded the receipts to  the general fund
 17    during the previous fiscal year by five percent (5%) or more.";
 18    in line 28, delete "(2)" and insert: "(3)";  in  line  39,  delete  "(3)"  and
 19    insert: "(4)".
 20        On  page  2,  in line 2, delete "(2)" and insert: "(3)"; in line 4, delete
 21    "(2)" and insert: "(3)"; in line 20, delete "(2)" and insert:  "(3)";  and  in
 22    line 26, delete "(4)" and insert: "(5)".

 23                       AMENDMENT TO THE AMENDMENT TO SECTION 4
 24        On page 2, in line 33, delete "(3)" and insert: "(4)".

 25                        AMENDMENT TO THE AMENDMENT TO THE BILL
 26        On page 3, delete lines 33 and 34, and insert:
 27        "(5)  For  transient personal property valued at over one hundred thousand
 28    dollars ($100,000), any exemption in section 63-602KK, Idaho  Code,  available
 29    to".

 30                        CORRECTION TO THE CORRECTIONS TO TITLE
 31        On page 5, in line 29, following "PROPERTY," insert: "TO PROVIDE A TRIGGER
 32    WHEN  THE  SECTION IS FIRST EFFECTIVE,"; and in line 33, delete "SEVENTY-FIVE"
 33    and insert: "ONE HUNDRED".

                                       2

                                                     Moved by    Hill

                                                     Seconded by Stegner


                                       IN THE SENATE
                        SENATE AMENDMENT TO H.B. NO. 599, As Amended



  1                                AMENDMENT TO SECTION 1
  2        On page 3 of the engrossed bill, in line  52,  following  "land"   insert:
  3    "and  all rights and privileges thereto belonging or any way appertaining, all
  4    quarries and fossils in and under the land, and all other property  which  the
  5    law defines, or the courts may interpret, declare and hold to be real property
  6    under  the  letter,  spirit, intent and meaning of the law"; and on page 4, in
  7    lines 3 and 4, delete "all quarries and fossils in and  under  the  land"  and
  8    insert: "all quarries and fossils in and under the land".

  9                                AMENDMENT TO SECTION 3
 10        On page 5, delete lines 23 through 54, delete page 6 and on page 7, delete
 11    lines 1 through 36 and insert:
 12        "63-602KK.  PROPERTY  EXEMPT  FROM  TAXATION -- CERTAIN PERSONAL PROPERTY.
 13    (1) On and after January 1, 2009, each taxpayer's personal  property,  located
 14    at   a business site, which is not otherwise exempt and which is not operating
 15    property,  shall be exempt to the  extent  of  seventy-five  thousand  dollars
 16    ($75,000).  For  the  purposes of this section, a taxpayer includes two (2) or
 17    more individuals using the property in a common enterprise or a related  group
 18    of  two  (2)  or  more organizations when the individuals or organizations are
 19    within a relationship described in section 267 of the Internal  Revenue  Code,
 20    as  defined  in section 63-3004, Idaho Code. A taxpayer may have more than one
 21    (1) exemption pursuant to this section if the taxpayer has more than  one  (1)
 22    business  site  and  personal property used in the taxpayer's business or com-
 23    merce endeavor is located at the taxpayer's business site.  As  used  in  this
 24    section  "business site" means a place of business owned or leased by a single
 25    taxpayer or in the case of mobile property other than transient personal prop-
 26    erty as defined in section 63-201(26), Idaho Code,  from  which  the  business
 27    operates without regard to the number of real property parcels involved.
 28        (2)  No  later  than the third Monday of November of each year, the county
 29    clerk of each county shall certify to the state tax commission the  amount  of
 30    exemption  from  property  taxes under subsection (1) of this section, in that
 31    county for that year. The certification shall identify the property  receiving
 32    tax reductions, the value of the property, the property's location, the amount
 33    of  the  tax levy applicable to personal property in the location, and the tax
 34    before and after the exemption allowed in subsection (1) of this section.  The
 35    certification  shall be in the form prescribed by the state tax commission and
 36    shall include such additional information as the  commission  may  require  by
 37    rule  as  needed  to  implement the purpose of this section. The certification
 38    shall be reviewed and if necessary, corrected by the state tax commission.
 39        (3)  (a) Subject to the limitations of this section, the state tax commis-
 40        sion shall reimburse from the amount appropriated  for  personal  property
 41        tax  replacement  in  section 63-3638, Idaho Code, the county treasurer of
 42        each county for the reduction on the certification provided in  subsection
 43        (2)  of this section. The county treasurer shall reimburse from the amount
 44        received to each taxing district within the county an amount in proportion

                                       3

  1        to the amount of reduction shown on the certification in subsection (2) of
  2        this section as corrected. The amount that would otherwise be attributable
  3        to tax revenues derived from  tax  levies  on  taxable  personal  property
  4        within   an  existing  revenue  allocation  area  as  defined  in  section
  5        50-2903(15), Idaho Code, on or before  January  1,  2009,  shall  be  paid
  6        directly  by  the county treasurer to such public  body or agency entitled
  7        therein in accordance with the formula for such distribution set forth  in
  8        section 50-2908, Idaho Code.
  9        (b)  The  state  tax commission shall pay one-half (1/2) of the reimburse-
 10        ment provided in this section no later than December 20 of each year,  and
 11        the  second  one-half  (1/2) shall be paid by no later than June 20 of the
 12        following year. The money received by the county tax collector  under  the
 13        provisions  of this section may be considered by counties and other taxing
 14        districts and budgeted against at the same time, and in the  same  manner,
 15        and  in  the same year as revenues from taxation. The total amount paid to
 16        the county treasurers shall not exceed the amount certified to  the  state
 17        tax commission under subsection (2) of this section.
 18        (c)  For  purposes  of  the  limitation  provided by section 63-802, Idaho
 19        Code, moneys received from  distributions  pursuant  to  section  63-3638,
 20        Idaho  Code, as property tax replacement for the taxable value of property
 21        exempt from taxation pursuant to this section shall be treated as property
 22        tax revenues.
 23        (4)  Nothing contained in this section shall affect the taxation of forest
 24    lands or forest products pursuant to chapter 17, title 63, Idaho Code, or  the
 25    taxation  of  the net profits of mines pursuant to chapter 28, title 63, Idaho
 26    Code.".

 27                                AMENDMENT TO SECTION 4
 28        On page 10, delete lines 45 through 56, and on page  11,  delete  lines  1
 29    through 25, and insert:
 30        "(12) Amounts  calculated  in  accordance  with  subsection (3) of section
 31    63-602KK, Idaho Code, for annual distribution to  counties  and  other  taxing
 32    districts  for replacement of property tax on personal property tax exemptions
 33    pursuant to subsection (1) of section 63-602KK, Idaho Code, which amounts  are
 34    continuously appropriated unless the legislature enacts a different appropria-
 35    tion for a particular fiscal year.".

 36                                AMENDMENT TO SECTION 7
 37        On  page 13, delete lines 52 and 53, and insert: "63-602G, Idaho Code, and
 38    property exempt from taxation pursuant to section 63-602KK, Idaho Code,".

 39                                AMENDMENT TO THE BILL
 40        On page 4, delete lines 36 through 54; and  on  page  5,  delete  lines  1
 41    through 19; in line 20, delete "SECTION 3" and insert: "SECTION 2"; on page 7,
 42    in  line  37,  delete "SECTION 4" and insert: "SECTION 3"; on page 11, in line
 43    29, delete "SECTION 5" and insert: "SECTION 4"; on page 12, in line 2,  delete
 44    "SECTION  6"  and insert: "SECTION 5"; on page 13, in line 45, delete "SECTION
 45    7" and insert: "SECTION 6"; and on page 14, delete lines  34  through  43  and
 46    insert:

 47        "SECTION  7.  That  Section 63-313, Idaho Code, be, and the same is hereby
 48    amended to read as follows:

 49        63-313.  SPECIAL PROVISIONS FOR TRANSIENT PERSONAL PROPERTY. (1) All tran-
 50    sient personal property shall be listed by the owner and shall show the  quan-

                                       4

  1    tity,  name,  model,  serial number, if any, year of manufacture, date of pur-
  2    chase, cost, whether new or used and other identifying information required by
  3    the county assessor. The list of transient personal  property  shall  identify
  4    the  owner of the property and shall be filed with the home county assessor on
  5    or before the first day of November of each year. The owner of transient  per-
  6    sonal  property  may elect to treat as his home county that county in which he
  7    maintains his residence or usual place  of business or in which the  transient
  8    personal  property  is  usually  kept.  The report shall be made on forms pre-
  9    scribed by the state tax commission and shall identify periods of thirty  (30)
 10    days or more during which the personal property is located in a county, speci-
 11    fying  the  location  of the transient personal property for each month of the
 12    current calendar year with a projection of  the  location  for  the  remaining
 13    months of November and December.
 14        (2)  The county assessor of the home county or the receiving county of the
 15    listing  shall file within ten (10) days with the county assessor of all coun-
 16    ties identified on the report a copy of the report. Each county so  identified
 17    shall then place a prorated assessment on such personal property on the subse-
 18    quent  or  missed  property roll only for the length of time that the personal
 19    property was located in their county.
 20        (3)  In the event that any transient personal property has been or will be
 21    taxed for the current year in another state, the property shall be  taxed  for
 22    only that portion of the year that the transient personal property is kept and
 23    does remain in the state of Idaho.
 24        (4)  The  provisions of this section shall not apply to transient personal
 25    property in transit through this state, or to transient personal property sold
 26    by the owner thereof in the home county upon which the taxes for the full year
 27    have been paid or secured, which said transient  personal  property  is  kept,
 28    moved,  transported,  shipped  or hauled into and remaining in another county,
 29    and there kept or remaining either for the purpose of use or sale  within  the
 30    current year.
 31        (5)  For  transient personal property valued at over seventy-five thousand
 32    dollars ($75,000), any exemption in section 63-602KK, Idaho Code, available to
 33    the taxpayer shall be allocated among counties based  on  the  prorated  value
 34    provided in subsection (2) of this section.

 35        SECTION  8.  That  Section  63-802, Idaho Code, be, and the same is hereby
 36    amended to read as follows:

 37        63-802.  LIMITATION ON BUDGET REQUESTS -- LIMITATION  ON  TAX  CHARGES  --
 38    EXCEPTIONS.  (1)  Except as provided in subsection (3) of this section for tax
 39    year 1995, and each year thereafter, no taxing district shall certify a budget
 40    request for an amount of property tax revenues to  finance  an  annual  budget
 41    that exceeds the greater of:
 42        (a)  The  dollar  amount of property taxes certified for its annual budget
 43        for any one (1) of the three (3) tax years preceding the current tax year,
 44        whichever is greater, plus the dollar amount of moneys  received  pursuant
 45        to  section  63-3638(12),  Idaho Code, for the past tax year, which amount
 46        may be increased by a growth factor of not to exceed  three  percent  (3%)
 47        plus  the amount of revenue that would have been generated by applying the
 48        levy of the previous year, not including any levy described in  subsection
 49        (4)  of this section, or any school district levy reduction resulting from
 50        a distribution of state funds pursuant to section 63-3638(10), Idaho Code,
 51        to any increase in market value subject to  taxation  resulting  from  new
 52        construction  or  change  of  land  use classification as evidenced by the
 53        value shown on the new construction  roll  compiled  pursuant  to  section

                                       5

  1        63-301A,  Idaho  Code;  and by the value of annexation during the previous
  2        calendar year, as certified by the state tax commission for market  values
  3        of operating property of public utilities and by the county assessor; or
  4        (b)  The  dollar  amount of property taxes certified for its annual budget
  5        during the last year in which a levy was made; or
  6        (c)  The dollar amount of the actual budget request, if  the  taxing  dis-
  7        trict  is  newly created except as may be provided in subsection (1)(h) of
  8        this section; or
  9        (d)  In the case of school districts, the restriction imposed  in  section
 10        33-802, Idaho Code; or
 11        (e)  In  the  case of a nonschool district for which less than the maximum
 12        allowable increase in the dollar amount of property  taxes  is   certified
 13        for  annual  budget  purposes in any one (1) year, such a district may, in
 14        any following year, recover the foregone increase by certifying, in  addi-
 15        tion  to  any increase otherwise allowed, an amount not to exceed one hun-
 16        dred percent (100%) of the increase originally foregone.  Said  additional
 17        amount  shall be included in future calculations for increases as allowed;
 18        or
 19        (f)  In the case of cities, if the immediately preceding year's levy  sub-
 20        ject  to  the limitation provided by this section, is less than 0.004, the
 21        city may increase its budget by an amount not  to  exceed  the  difference
 22        between  0.004 and actual prior year's levy multiplied by the prior year's
 23        market value for  assessment  purposes.  The  additional  amount  must  be
 24        approved by sixty percent (60%) of the voters voting on the question at an
 25        election  called  for that purpose and held on the date in May or November
 26        provided by law, and may  be included in the annual budget of the city for
 27        purposes of this section; or
 28        (g)  A taxing district may submit to the electors within the district  the
 29        question of whether the budget from property tax revenues may be increased
 30        beyond  the  amount  authorized  in  this section, but not beyond the levy
 31        authorized by statute. The additional amount must be approved by sixty-six
 32        and two-thirds percent (66 2/3%) or more of the voters voting on the ques-
 33        tion at an election called for that purpose and held on the May or  Novem-
 34        ber  dates  provided  by  section  34-106,  Idaho Code. If approved by the
 35        required minimum sixty-six and two-thirds percent (66 2/3%) of the  voters
 36        voting at the election, the new budget amount shall be the base budget for
 37        the purposes of this section; or
 38        (h)  When  a  nonschool  district consolidates with another nonschool dis-
 39        trict or dissolves and a  new  district  performing  similar  governmental
 40        functions  as the dissolved district forms with the same boundaries within
 41        three (3) years, the maximum amount of a budget of the district from prop-
 42        erty tax revenues shall not be greater than the sum of  the  amounts  that
 43        would  have been authorized by this section for the district itself or for
 44        the districts that were consolidated or dissolved and incorporated into  a
 45        new district; or
 46        (i)  In the instance or case of cooperative service agencies, the restric-
 47        tions imposed in sections 33-315 through 33-318, Idaho Code.
 48        (2)  In  the case of fire districts, during the year immediately following
 49    the election of a public utility or public utilities to consent to be provided
 50    fire protection pursuant to section 31-1425, Idaho Code, the maximum amount of
 51    property tax revenues permitted in subsection  (1)  of  this  section  may  be
 52    increased  by  an amount equal to the current year's taxable value of the con-
 53    senting public utility or public utilities multiplied by that portion  of  the
 54    prior year's levy subject to the limitation provided by subsection (1) of this
 55    section.

                                       6

  1        (3)  No  board  of  county  commissioners  shall set a levy, nor shall the
  2    state tax commission approve a levy for annual budget purposes  which  exceeds
  3    the  limitation imposed in subsection (1) of this section, unless authority to
  4    exceed such  limitation  has  been  approved  by  a  majority  of  the  taxing
  5    district's electors voting on the question at an election called for that pur-
  6    pose  and  held pursuant to section 34-106, Idaho Code, provided however, that
  7    such voter approval shall be for a period of not to exceed two (2) years.
  8        (4)  The amount of property tax revenues to finance an annual budget  does
  9    not  include revenues from nonproperty tax sources, and does not include reve-
 10    nue from levies that are voter approved for bonds, override levies or  supple-
 11    mental  levies,  plant  facilities  reserve fund levies, school emergency fund
 12    levies or for levies applicable to newly annexed property or for levies appli-
 13    cable to new construction as evidenced by the value of property subject to the
 14    occupancy tax pursuant to section 63-317, Idaho Code, for  the  preceding  tax
 15    year.

 16        SECTION  9.  SEVERABILITY.  The provisions of this act are hereby declared
 17    to be severable and if any provision of this act or the  application  of  such
 18    provision  to  any  person or circumstance is declared invalid for any reason,
 19    such declaration shall not affect the validity of the  remaining  portions  of
 20    this act.

 21        SECTION 10.  This act shall be in full force and effect on and after Janu-
 22    ary 1, 2009.".

 23                                 CORRECTIONS TO TITLE
 24        On page 1, delete lines 3 through 11, and insert: "CODE, TO REVISE DEFINI-
 25    TIONS; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SEC-
 26    TION  63-602KK,  IDAHO  CODE,  TO PROVIDE A PARTIAL EXEMPTION FROM TAXATION OF
 27    PERSONAL PROPERTY, TO PROVIDE TAXES THAT ARE NOT AFFECTED BY PERSONAL PROPERTY
 28    EXEMPTIONS, TO PROVIDE FOR REIMBURSEMENT  TO  LOCAL  GOVERNMENTS  OF  PERSONAL
 29    PROPERTY  TAX  AND TO PROVIDE PROCEDURES; AMEND-"; delete lines 17 and 18, and
 30    insert: "POSES"; AMENDING SECTION 63-313, IDAHO  CODE,  TO  PROVIDE  THAT  FOR
 31    TRANSIENT  PERSONAL PROPERTY VALUED AT OVER SEVENTY-FIVE THOUSAND DOLLARS, ANY
 32    EXEMPTION TO THE TAXPAYER SHALL BE ALLOCATED AMONG COUNTIES BASED ON THE  PRO-
 33    RATED  VALUE;  AMENDING  SECTION  63-802, IDAHO CODE, TO PROVIDE THE EFFECT OF
 34    CERTAIN SALES TAX DOLLARS ON THE BUDGET BASE; PROVIDING SEVERABILITY; AND PRO-
 35    VIDING AN EFFECTIVE DATE.".

                                       7

                                                     Moved by    Clark

                                                     Seconded by Roberts


                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENT TO H.B. NO. 599



  1                                AMENDMENT TO SECTION 3
  2        On page 5 of the printed bill, delete lines  22  through  24  and  insert:
  3    "mencing  January 1, 2008, personal property, whether or not included in oper-
  4    ating property, which was first acquired by the owner of such  property  after
  5    12:01  a.m., January 1, 2008, from a person or entity other than an affiliated
  6    person or business entity, shall be exempt from property taxation by any  tax-
  7    ing  district."; in line 26, delete "at 12:01 a.m., January 1, 2008,"; in line
  8    28, delete "remaining"; and also in line 28,  following  "value"  insert:  "of
  9    personal property held by the taxpayer on such date"; in line 34, delete "four
 10    percent  (4%)"  and insert: "five percent (5%)"; in line 41, delete "four per-
 11    cent (4%)" and insert: "five percent (5%)"; in line 50, delete  "four  percent
 12    (4%)" and insert: "five percent (5%)".
 13        On page 6, delete lines 1 through 14 and insert:
 14        "(3)  As  used  in  this  section, the term "affiliated person or business
 15    entity" shall mean a person or business entity  that  directly  or  indirectly
 16    owns  or  controls,  is  owned or controlled by, is under ownership or control
 17    with, another person related to such other person by marriage  or  by  consan-
 18    guinity in the first or second degree.".

 19                                AMENDMENT TO THE BILL
 20        On page 13, delete lines 50 through 54 and delete page 14 and insert:

 21        "SECTION  7.  That Section 33-1103, Idaho Code, be, and the same is hereby
 22    amended to read as follows:

 23        33-1103.  DEFINITIONS -- BONDS -- LIMITATION ON AMOUNT -- ELECTIONS TO AU-
 24    THORIZE ISSUANCE. (1) For the purposes of this chapter the  following  defini-
 25    tions  shall  have  the  meanings specified: "Market value for assessment pur-
 26    poses" means the amount of the last preceding equalized assessment of all tax-
 27    able property and all  property  exempt  from  taxation  pursuant  to  section
 28    63-602G, Idaho Code, and property exempted from taxation commencing January 1,
 29    2009, through January 1, 2014, pursuant to section 63-602KK(2)(a), Idaho Code,
 30    within  the school district on the tax rolls completed and available as of the
 31    date of approval by the electorate in the  school  bond  election.  "Aggregate
 32    outstanding indebtedness" means the total sum of unredeemed outstanding bonds,
 33    minus all moneys in the bond interest and redemption fund or funds accumulated
 34    for  the  redemption of such outstanding bonds, and minus the sum of all taxes
 35    levied for the redemption of such bonds, with the exception of that portion of
 36    such tax levies required for the payment of interest  on  bonds,  which  taxes
 37    remain  uncollected.  "Issue," "issued," or "issuance" means a formal delivery
 38    of bonds to any purchaser thereof and payment therefor to the school district.
 39        (2)  The board of trustees of any school  district,  upon  approval  of  a
 40    majority  thereof, may submit to the qualified school district electors of the
 41    district the question as to whether the board  shall  be  empowered  to  issue
 42    negotiable  coupon bonds of the district in an amount and for a period of time

                                       8

  1    to be named in the notice of election.
  2        (3)  An elementary school district which employs not  less  than  six  (6)
  3    teachers,  or a school district operating an elementary school or schools, and
  4    a secondary school or schools, or issuing bonds for the acquisition of a  sec-
  5    ondary school or schools, may issue bonds in an amount not to exceed five per-
  6    cent (5%) of the market value for assessment purposes thereof, less the aggre-
  7    gate  outstanding indebtedness; and no other school district shall issue bonds
  8    in an amount to exceed at any time two percent (2%) of the  market  value  for
  9    assessment  purposes  thereof less the aggregate outstanding indebtedness. The
 10    market value for assessment purposes, the aggregate  outstanding  indebtedness
 11    and  the unexhausted debt-incurring power of the district shall each be deter-
 12    mined as of the date of approval by the electors in the school bond election.
 13        (4)  Notice of the bond election shall be given,  the  election  shall  be
 14    conducted  and  the returns thereof canvassed, and the qualifications of elec-
 15    tors voting or offering to vote shall  be,  as  provided  in  sections  33-401
 16    through 33-406, Idaho Code.
 17        (5)  The  question  shall be approved only if the percentage of votes cast
 18    at such election were cast in favor thereof is that which now, or may  hereaf-
 19    ter  be,  set by the constitution of the state of Idaho. Upon such approval of
 20    the issuance of bonds, the same may be issued at any time after  the  date  of
 21    such election.

 22        SECTION  8.  SEVERABILITY.  The provisions of this act are hereby declared
 23    to be severable and if any provision of this act or the  application  of  such
 24    provision  to  any  person or circumstance is declared invalid for any reason,
 25    such declaration shall not affect the validity of the  remaining  portions  of
 26    this act.

 27        SECTION  9.  An  emergency  existing  therefor,  which emergency is hereby
 28    declared to exist, Sections 1, 2, 3 and 8 of this act shall be in  full  force
 29    and  effect on and after passage and approval, and retroactively to January 1,
 30    2008. Sections 4, 5, 6 and 7 of this act shall be in full force and effect  on
 31    and after July 1, 2008.".

 32                                 CORRECTION TO TITLE
 33        On page 1, in line 10, delete "TAXABLE VALUE" and insert: "AFFILIATED PER-
 34    SON  OR  BUSINESS  ENTITY";  and  in  line 15, following "REFERENCES;" insert:
 35    "AMENDING SECTION 33-1103, IDAHO CODE, TO REVISE  THE  DEFINITION  OF  "MARKET
 36    VALUE FOR ASSESSMENT PURPOSES";".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                     HOUSE BILL NO. 599, As Amended, As Amended in the
                              Senate, As Amended in the Senate

                             BY REVENUE AND TAXATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO TAXATION OF PERSONAL  PROPERTY;  AMENDING  SECTION  63-201,  IDAHO
  3        CODE,  TO REVISE DEFINITIONS; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY
  4        THE ADDITION OF A NEW SECTION 63-602KK, IDAHO CODE, TO PROVIDE  A  PARTIAL
  5        EXEMPTION  FROM  TAXATION  OF PERSONAL PROPERTY, TO PROVIDE A TRIGGER WHEN
  6        THE SECTION IS FIRST EFFECTIVE, TO PROVIDE TAXES THAT ARE NOT AFFECTED  BY
  7        PERSONAL  PROPERTY  EXEMPTIONS, TO PROVIDE FOR REIMBURSEMENT TO LOCAL GOV-
  8        ERNMENTS OF PERSONAL PROPERTY TAX AND TO PROVIDE PROCEDURES; AMENDING SEC-
  9        TION 63-3638, IDAHO CODE, TO PROVIDE FOR DISTRIBUTION OF SALES TAX  MONEYS
 10        TO  COUNTIES AND OTHER TAXING DISTRICTS FOR REPLACEMENT OF MONEYS FOR PER-
 11        SONAL PROPERTY TAX REDUCTION; AMENDING SECTIONS 63-510 AND 63-1703,  IDAHO
 12        CODE,  TO PROVIDE CORRECT CODE REFERENCES; AMENDING SECTION 33-1103, IDAHO
 13        CODE, TO REVISE THE DEFINITION OF "MARKET VALUE FOR ASSESSMENT  PURPOSES";
 14        AMENDING  SECTION  63-313,  IDAHO CODE, TO PROVIDE THAT FOR TRANSIENT PER-
 15        SONAL PROPERTY VALUED AT OVER ONE HUNDRED THOUSAND DOLLARS, ANY  EXEMPTION
 16        TO  THE  TAXPAYER  SHALL BE ALLOCATED AMONG COUNTIES BASED ON THE PRORATED
 17        VALUE; AMENDING SECTION 63-802, IDAHO CODE, TO PROVIDE THE EFFECT OF  CER-
 18        TAIN  SALES  TAX  DOLLARS  ON THE BUDGET BASE; PROVIDING SEVERABILITY; AND
 19        PROVIDING AN EFFECTIVE DATE.

 20    Be It Enacted by the Legislature of the State of Idaho:

 21        SECTION 1.  That Section 63-201, Idaho Code, be, and the  same  is  hereby
 22    amended to read as follows:

 23        63-201.  DEFINITIONS. As used for property tax purposes in title 63, chap-
 24    ters  1  through  23, Idaho Code, the terms defined in this section shall have
 25    the following meanings, unless the context clearly indicates another meaning:
 26        (1)  "Appraisal" means an estimate of property value for property tax pur-
 27    poses.
 28        (a)  For the purpose of estimated property value to place the value on any
 29        assessment roll, the value estimation must be made by the  assessor  or  a
 30        certified property tax appraiser.
 31        (b)  For the purpose of estimating property value to present for an appeal
 32        filed  pursuant  to  sections  63-501A, 63-407 and 63-409, Idaho Code, the
 33        value estimation may be made by the assessor,  a  certified  property  tax
 34        appraiser,  a licensed appraiser, or a certified appraiser or any party as
 35        specified by law.
 36        (2)  "Bargeline" means those water  transportation  tugs,  boats,  barges,
 37    lighters  and  other equipment and property used in conjunction with waterways
 38    for bulk transportation of freight or ship assist.
 39        (3)  "Cogenerators" means facilities which produce  electric  energy,  and
 40    steam  or  forms  of  useful energy which are used for industrial, commercial,
 41    heating or cooling purposes.
 42        (4)  "Collection costs" are amounts authorized by law to  be  added  after

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  1    the date of delinquency and collected in the same manner as property tax.
  2        (5)  "Delinquency"  means  any property tax, special assessment, fee, col-
  3    lection cost, or charge collected in the same manner as property tax, that has
  4    not been paid in the manner and within the time limits provided by law.
  5        (6)  "Fixtures" means those articles that, although once movable chattels,
  6    have become accessory to and a part of improvements to real property by having
  7    been physically incorporated therein or annexed or affixed thereto in  such  a
  8    manner  that  removing  them would cause material injury or damage to the real
  9    property, the use or purpose of such articles is integral to the  use  of  the
 10    real property to which it is affixed, and a person would reasonably be consid-
 11    ered  to intend to make the articles permanent additions to the real property.
 12    "Fixtures" includes systems for the heating,  air  conditioning,  ventilation,
 13    sanitation,  lighting  and  plumbing  of  such  building.  "Fixtures" does not
 14    include machinery, equipment or other articles that are affixed to real  prop-
 15    erty to enable the proper utilization of such articles.
 16        (7)  "Floating home" means a floating structure that is designed and built
 17    to  be used, or is modified to be used, as a stationary waterborne residential
 18    dwelling, has no mode of power of its own, is dependent for utilities  upon  a
 19    continuous  utility linkage to a source originating on shore, and has a perma-
 20    nent continuous connection to a sewage system on shore.
 21        (8)  "Improvements" means all buildings, structures, fixtures  and  fences
 22    manufactured homes, as defined in section 39-4105(8), Idaho Code, mobile homes
 23    as  defined  in  section  39-4105(9),  Idaho  Code,  and modular buildings, as
 24    defined in section 39-4301(7), Idaho Code, erected  upon  or  affixed  to  the
 25    land, and fences, water ditches constructed for mining, manufacturing or irri-
 26    gation  purposes,  fixtures,  and floating homes, whether or not such improve-
 27    ments are owned separately from the ownership of the land upon or to which the
 28    same may be  erected,  affixed  or  attached.  The  term  "improvements"  also
 29    includes   all fruit, nut-bearing and ornamental trees or vines not of natural
 30    growth, growing upon the land, except nursery stock.
 31        (79)  "Late charge" means a charge of two percent (2%) of the delinquency.
 32        (810) "Lawful money of the United States" means currency and coin  of  the
 33    United  States at par value and checks and drafts which are payable in dollars
 34    of the United States at par value, payable upon demand or presentment.
 35        (9)  "Manufactured home" means a structure defined as a manufactured  home
 36    in section 39-4105, Idaho Code.
 37        (101) "Market  value" means the amount of United States dollars or equiva-
 38    lent for which, in all probability, a property would exchange hands between  a
 39    willing  seller,  under no compulsion to sell, and an informed, capable buyer,
 40    with a reasonable time allowed to consummate the sale, substantiated by a rea-
 41    sonable down or full cash payment.
 42        (112) "Operating property" means real and personal  property  operated  in
 43    connection  with any public utility, railroad or private railcar fleet, wholly
 44    or partly within this state, and which property is necessary  to  the  mainte-
 45    nance  and operation of the public utility, railroad or private railcar fleet,
 46    and the roads or lines thereof, and includes all rights-of-way accompanied  by
 47    title;  roadbeds;  tracks;  pipelines; bargelines; equipment and docks; termi-
 48    nals; rolling stock; equipment; power stations;  power  sites;  lands;  reser-
 49    voirs,  generating  plants, transmission lines, distribution lines and substa-
 50    tions; and all immovable or movable property operated in connection  with  any
 51    public  utility,  railroad  or  private railcar fleet, wholly or partly within
 52    this state, and necessary to the maintenance and operation  of  such  road  or
 53    line,  or in conducting its business, and shall include all title and interest
 54    in such property, as owner, lessee or otherwise. The term includes  electrical
 55    generation  plants  under construction, whether or not owned by or operated in
 56    connection with any public utility. The term does not include  personal  prop-

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  1    erty  exempt  from taxation pursuant to section 63-602L For the purpose of the
  2    appraisal, assessment and taxation of operating property, pursuant to  chapter
  3    4,  title  63,  Idaho Code, the value of intangible personal property shall be
  4    excluded from the taxable value of operating property in accordance  with  the
  5    provisions of section 63-602L, Idaho Code, and the value of personal property,
  6    other  than  intangible  personal property, shall be excluded from the taxable
  7    value of operating property in  accordance  with  the  provisions  of  section
  8    63-602KK, Idaho Code.
  9        (123) "Party  in  interest"  means  a person who holds a properly recorded
 10    mortgage, deed of trust or security interest.
 11        (134) "Person" means any  entity,  individual,  corporation,  partnership,
 12    firm, association, limited liability company, limited liability partnership or
 13    other such entities as recognized by the state of Idaho.
 14        (145) "Personal  property" includes all goods, chattels, stocks and bonds,
 15    equities in state lands, easements, reservations,  leasehold  real  properties
 16    and  all  other  property  which the law defines, or the courts may interpret,
 17    declare and hold to be personal property under the letter, spirit, intent  and
 18    meaning of the law, for the purposes of property taxation. For the purposes of
 19    payment  and  collection  of  property  taxes pursuant to chapter 9, title 63,
 20    Idaho Code, collection of delinquency pursuant to chapter 10, title 63,  Idaho
 21    Code,  and seizure and sale of personal property for taxes pursuant to chapter
 22    11, title 63, Idaho Code, personal property includes  manufactured  homes  not
 23    declared as real property pursuant to section 63-304, Idaho Code. means every-
 24    thing  that  is  the  subject of ownership and that is not included within the
 25    term "real property."
 26        (156) "Private railcar fleet" means railroad cars or locomotives owned by,
 27    leased to, occupied by or franchised to any person other than a railroad  com-
 28    pany  operating  a  line  of  railroad in Idaho or any company classified as a
 29    railroad by the interstate commerce commission and entitled  to  possess  such
 30    railroad cars and locomotives except those possessed solely for the purpose of
 31    repair,  rehabilitation  or  remanufacturing  of  such locomotives or railroad
 32    cars.
 33        (167) "Public utility" means  electrical  companies,  pipeline  companies,
 34    natural gas distribution companies, or power producers included within federal
 35    law,  bargelines,  and water companies which are under the jurisdiction of the
 36    Idaho public utilities commission. The term also includes  telephone  corpora-
 37    tions,  as that term is defined in section 62-603, Idaho Code, except as here-
 38    inafter provided, whether or not such telephone corporation has been issued  a
 39    certificate of convenience and necessity by the Idaho public utilities commis-
 40    sion.
 41        This  term does not include cogenerators, mobile telephone service or com-
 42    panies, nor does it include pager service or companies, except when such  ser-
 43    vices are an integral part of services provided by a certificated utility com-
 44    pany  nor  does the term "public utility" include companies or persons engaged
 45    in the business of providing solely on a resale basis, any telephone or  tele-
 46    communication  service which is purchased from a telephone corporation or com-
 47    pany.
 48        (178) "Railroad" means every kind of railway, whether its line of rails or
 49    tracks be at, above or below the surface of the earth, and without  regard  to
 50    the kind of power used in moving its rolling stock, and shall be considered to
 51    include  every  kind of street railway, suburban railway or interurban railway
 52    excepting facilities established solely  for  maintenance  and  rebuilding  of
 53    railroad cars or locomotives.
 54        (189) "Real  property"  means  land  and all rights and privileges thereto
 55    belonging or any way appertaining, all quarries and fossils in and  under  the
 56    land,  and  all other property which the law defines, or the courts may inter-

                                       4
  1    pret, declare and hold to be real property under the  letter,  spirit,  intent
  2    and  meaning of the law, improvements and all standing timber thereon, includ-
  3    ing standing timber owned separately from the  ownership  of   the  land  upon
  4    which  the  same  may stand, except as modified in chapter 17, title 63, Idaho
  5    Code, and all buildings, structures and improvements,  or  other  fixtures  of
  6    whatsoever kind on land, including water ditches constructed for mining, manu-
  7    facturing or irrigation purposes, water and gas mains, wagon and turnpike toll
  8    roads,  and  toll bridges, and all rights and privileges thereto belonging, or
  9    any way appertaining, all quarries and fossils in and under the land, and  all
 10    other property which the law defines, or the courts may interpret, declare and
 11    hold  to  be real property under the letter, spirit, intent and meaning of the
 12    law, for the purposes of property taxation. Manufactured homes constitute real
 13    property when located on taxable land, and after  a  statement  of  intent  to
 14    declare  as  real  property has been recorded, provided said statement has not
 15    been revoked. Timber, forest,  forest  land,  and  forest  products  shall  be
 16    defined as provided in chapter 17, title 63, Idaho Code.
 17        (1920) "Record  owner"  means the person or persons in whose name or names
 18    the property stands upon the records of the county  recorder's  office.  Where
 19    the  record owners are husband and wife at the time of notice of pending issue
 20    of tax deed, notice to one (1) shall be deemed and imputed as  notice  to  the
 21    other spouse.
 22        (201) "Special assessment" means a charge imposed upon property for a spe-
 23    cific purpose, collected and enforced in the same manner as property taxes.
 24        (212) "System value" means the market value for assessment purposes of the
 25    operating property when considered as a unit.
 26        (223) "Tax code area" means a geographical area made up of one (1) or more
 27    taxing districts with one (1) total levy within the geographic area, except as
 28    otherwise provided by law.
 29        (234) "Taxing  district"  means  any  entity  or  unit  with the statutory
 30    authority to levy a property tax.
 31        (245) "Taxable value" means market value  for  assessment  purposes,  less
 32    applicable exemptions or other statutory provisions.
 33        (256) "Transient  personal  property"  is  personal property, specifically
 34    such construction, logging or mining machinery and equipment  which  is  kept,
 35    moved,  transported, shipped, hauled into or remaining for periods of not less
 36    than thirty (30) days, in more than one (1) county in  the  state  during  the
 37    same year.
 38        (267) "Warrant  of distraint" means a warrant ordering the seizure of per-
 39    sonal property  to  enforce  payment  of  property  tax,  special  assessment,
 40    expense,  fee,  collection cost or charge collected in the same manner as per-
 41    sonal property tax.

 42        SECTION 2.  That Chapter 6, Title 63, Idaho Code,  be,  and  the  same  is
 43    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 44    ignated as Section 63-602KK, Idaho Code, and to read as follows:

 45        63-602KK.  PROPERTY EXEMPT FROM TAXATION -- CERTAIN PERSONAL PROPERTY. (1)
 46    On and after January 1, 2009, subject to subsection (2) of this section,  each
 47    taxpayer's  personal  property,  located in the county, which is not otherwise
 48    exempt and which is not operating property, shall be exempt to the  extent  of
 49    one  hundred  thousand dollars ($100,000). For the purposes of this section, a
 50    taxpayer includes two (2) or more individuals using the property in  a  common
 51    enterprise  or a related group of two (2) or more organizations when the indi-
 52    viduals or organizations are within a relationship described in section 267 of
 53    the Internal Revenue Code, as defined in section 63-3004, Idaho Code.
 54        (2)  This section shall not take effect on January 1, 2009, if on  Septem-

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  1    ber  1,  2008, the state controller certifies that the receipts to the general
  2    fund for the fiscal year ending June 30, 2008, have not exceeded  receipts  to
  3    the  general  fund from the previous fiscal year by five percent (5%) or more.
  4    This section  shall take effect on the first year  when the  state  controller
  5    certifies  to  the  state tax commission that receipts to the general fund for
  6    the fiscal year just ended have exceeded the receipts  to   the  general  fund
  7    during the previous fiscal year by five percent (5%) or more.
  8        (3)  No  later  than the third Monday of November of each year, the county
  9    clerk of each county shall certify to the state tax commission the  amount  of
 10    exemption  from  property  taxes under subsection (1) of this section, in that
 11    county for that year. The certification shall identify the property  receiving
 12    tax reductions, the value of the property, the property's location, the amount
 13    of  the  tax levy applicable to personal property in the location, and the tax
 14    before and after the exemption allowed in subsection (1) of this section.  The
 15    certification  shall be in the form prescribed by the state tax commission and
 16    shall include such additional information as the  commission  may  require  by
 17    rule  as  needed  to  implement the purpose of this section. The certification
 18    shall be reviewed and if necessary, corrected by the state tax commission.
 19        (4)  (a) Subject to the limitations of this section, the state tax commis-
 20        sion shall reimburse from the amount appropriated  for  personal  property
 21        tax  replacement  in  section 63-3638, Idaho Code, the county treasurer of
 22        each county for the reduction on the certification provided in  subsection
 23        (3)  of this section. The county treasurer shall reimburse from the amount
 24        received to each taxing district within the county an amount in proportion
 25        to the amount of reduction shown on the certification in subsection (3) of
 26        this section as corrected. The amount that would otherwise be attributable
 27        to tax revenues derived from  tax  levies  on  taxable  personal  property
 28        within   an  existing  revenue  allocation  area  as  defined  in  section
 29        50-2903(15), Idaho Code, on or before  January  1,  2009,  shall  be  paid
 30        directly  by  the county treasurer to such public  body or agency entitled
 31        therein in accordance with the formula for such distribution set forth  in
 32        section 50-2908, Idaho Code.
 33        (b)  The  state  tax commission shall pay one-half (1/2) of the reimburse-
 34        ment provided in this section no later than December 20 of each year,  and
 35        the  second  one-half  (1/2) shall be paid by no later than June 20 of the
 36        following year. The money received by the county tax collector  under  the
 37        provisions  of this section may be considered by counties and other taxing
 38        districts and budgeted against at the same time, and in the  same  manner,
 39        and  in  the same year as revenues from taxation. The total amount paid to
 40        the county treasurers shall not exceed the amount certified to  the  state
 41        tax commission under subsection (3) of this section.
 42        (c)  For  purposes  of  the  limitation  provided by section 63-802, Idaho
 43        Code, moneys received from  distributions  pursuant  to  section  63-3638,
 44        Idaho  Code, as property tax replacement for the taxable value of property
 45        exempt from taxation pursuant to this section shall be treated as property
 46        tax revenues.
 47        (5)  Nothing contained in this section shall affect the taxation of forest
 48    lands or forest products pursuant to chapter 17, title 63, Idaho Code, or  the
 49    taxation  of  the net profits of mines pursuant to chapter 28, title 63, Idaho
 50    Code.

 51        SECTION 3.  That Section 63-3638, Idaho Code, be, and the same  is  hereby
 52    amended to read as follows:

 53        63-3638.  SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
 54    ter,  except  as  may  otherwise  be required in sections 63-3203 and 63-3709,

                                       6
  1    Idaho Code, shall be distributed by the tax commission as follows:
  2        (1)  An amount of money shall be distributed to the state  refund  account
  3    sufficient  to  pay  current  refund claims. All refunds authorized under this
  4    chapter by the commission shall be paid through the state refund account,  and
  5    those moneys are continuously appropriated.
  6        (2)  Five  million dollars ($5,000,000) per year is continuously appropri-
  7    ated and shall be distributed to the permanent building fund, provided by sec-
  8    tion 57-1108, Idaho Code.
  9        (3)  Four million eight hundred thousand dollars ($4,800,000) per year is
 10    continuously appropriated and shall be distributed to the water pollution con-
 11    trol account established by section 39-3605, Idaho Code.
 12        (4)  An amount equal to the sum required to be certified by  the  chairman
 13    of  the Idaho housing and finance association to the state tax commission pur-
 14    suant to section 67-6211, Idaho Code, in each year is  continuously  appropri-
 15    ated  and  shall be paid to any capital reserve fund, established by the Idaho
 16    housing and finance association pursuant to section 67-6211, Idaho Code.  Such
 17    amounts,  if any, as may be appropriated hereunder to the capital reserve fund
 18    of the Idaho housing and finance association shall be repaid for  distribution
 19    under  the  provisions  of  this section, subject to the provisions of section
 20    67-6215, Idaho Code, by the Idaho housing and finance association, as soon  as
 21    possible,  from  any  moneys  available  therefor and in excess of the amounts
 22    which the association determines will keep it self-supporting.
 23        (5)  An amount equal to the sum required by  the  provisions  of  sections
 24    63-709  and 63-717, Idaho Code, after allowance for the amount appropriated by
 25    section  63-718(3), Idaho Code, is continuously appropriated and shall be paid
 26    as provided by sections 63-709 and 63-717, Idaho Code.
 27        (6)  An amount required by the provisions of chapter 53, title  33,  Idaho
 28    Code.
 29        (7)  An  amount  required by the provisions of chapter 87, title 67, Idaho
 30    Code.
 31        (8)  One dollar ($1.00) on each application for certificate  of  title  or
 32    initial  application  for  registration  of  a motor vehicle, snowmobile, all-
 33    terrain vehicle or other vehicle processed by the county assessor or the Idaho
 34    transportation department excepting those applications in which any  sales  or
 35    use taxes due have been previously collected by a retailer, shall be a fee for
 36    the services of the assessor of the county or the Idaho transportation depart-
 37    ment in collecting such taxes, and shall be paid into the current expense fund
 38    of  the  county  or state highway account established in section 40-702, Idaho
 39    Code.
 40        (9)  Eleven and five-tenths percent (11.5%) is  continuously  appropriated
 41    and  shall  be  distributed to the revenue sharing account which is created in
 42    the state treasury, and the moneys in the revenue sharing account will be paid
 43    in installments each calendar quarter by the tax commission as follows:
 44        (a)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 45        ious cities as follows:
 46             (i)   Fifty percent (50%) of such amount shall be paid to the various
 47             cities, and each city shall be entitled to an amount in  the  propor-
 48             tion  that the population of that city bears to the population of all
 49             cities within the state; and
 50             (ii)  Fifty percent (50%) of such amount shall be paid to the various
 51             cities, and each city shall be entitled to an amount in  the  propor-
 52             tion  that  the preceding year's market value for assessment purposes
 53             for that city bears to the preceding year's market value for  assess-
 54             ment purposes for all cities within the state.
 55        (b)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 56        ious counties as follows:

                                       7
  1             (i)   One  million three hundred twenty thousand dollars ($1,320,000)
  2             annually shall be distributed one forty-fourth (1/44) to each of  the
  3             various counties; and
  4             (ii)  The  balance  of such amount shall be paid to the various coun-
  5             ties, and each county shall be entitled to an amount in  the  propor-
  6             tion  that  the  population of that county bears to the population of
  7             the state;
  8        (c)  Thirty-five and nine-tenths percent (35.9%) of the  amount  appropri-
  9        ated    in  this  subsection (9) shall be paid to the several counties for
 10        distribution to the cities and counties as follows:
 11             (i)   Each city and county which received a payment under the  provi-
 12             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 13             calendar  year  1999,  shall be entitled to a like amount during suc-
 14             ceeding calendar quarters.
 15             (ii)  If the dollar amount of money available under  this  subsection
 16             (9)(c)  in  any  quarter does not equal the amount paid in the fourth
 17             quarter of calendar year 1999, each city's and county's payment shall
 18             be reduced proportionately.
 19             (iii) If the dollar amount of money available under  this  subsection
 20             (9)(c)  in  any quarter exceeds the amount paid in the fourth quarter
 21             of calendar year 1999, each city and county shall be  entitled  to  a
 22             proportionately increased payment, but such increase shall not exceed
 23             one  hundred  five  percent  (105%)  of the total payment made in the
 24             fourth quarter of calendar year 1999.
 25             (iv)  If the dollar amount of money available under  this  subsection
 26             (9)(c)  in any quarter exceeds one hundred five percent (105%) of the
 27             total payment made in the fourth quarter of calendar year  1999,  any
 28             amount  over  and above such one hundred five percent (105%) shall be
 29             paid fifty percent (50%) to the various cities in the proportion that
 30             the population of the city bears to  the  population  of  all  cities
 31             within  the state, and fifty percent (50%) to the various counties in
 32             the proportion that the population of a county bears to  the  popula-
 33             tion of the state; and
 34        (d)  Seven  and  seven-tenths percent (7.7%) of the amount appropriated in
 35        this subsection (9) shall be paid to the several counties for distribution
 36        to special purpose taxing districts as follows:
 37             (i)   Each such district which received a payment  under  the  provi-
 38             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 39             calendar  year  1999,  shall be entitled to a like amount during suc-
 40             ceeding calendar quarters.
 41             (ii)  If the dollar amount of money available under  this  subsection
 42             (9)(d)  in  any  quarter does not equal the amount paid in the fourth
 43             quarter of calendar year 1999, each special purpose taxing district's
 44             payment shall be reduced proportionately.
 45             (iii) If the dollar amount of money available under  this  subsection
 46             (9)(d)  in any quarter exceeds the amount distributed under paragraph
 47             (i) of this subsection (9)(d), each special purpose  taxing  district
 48             shall  be  entitled  to a share of the excess based on the proportion
 49             each such district's current property tax budget bears to the sum  of
 50             the  current property tax budgets of all such districts in the state.
 51             The state tax commission shall calculate  district  current  property
 52             tax budgets to include any unrecovered foregone amounts as determined
 53             under section 63-802(1)(e), Idaho Code. When a special purpose taxing
 54             district  is situated in more than one (1) county, the tax commission
 55             shall determine the portion attributable to the special purpose  tax-
 56             ing district from each county in which it is situated.

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  1             (iv)  If  special  purpose  taxing  districts  are  consolidated, the
  2             resulting district is entitled to a base amount equal to the  sum  of
  3             the  base amounts which were received in the last calendar quarter by
  4             each district prior to the consolidation.
  5             (v)   If  a  special  purpose  taxing  district   is   dissolved   or
  6             disincorporated, the state tax commission shall continuously distrib-
  7             ute  to the board of county commissioners an amount equal to the last
  8             quarter's distribution prior to dissolution or disincorporation.  The
  9             board of county commissioners shall determine any  redistribution  of
 10             moneys so received.
 11             (vi)  Taxing districts formed after January 1, 2001, are not entitled
 12             to a payment under the provisions of this subsection (9)(d).
 13             (vii) For  purposes of this subsection (9)(d), a special purpose tax-
 14             ing district is any taxing district which is not a city, a county  or
 15             a school district.
 16        (10) Amounts calculated in accordance with section 2, chapter 356, laws of
 17    2001, for annual distribution to counties and other taxing districts beginning
 18    in  October  2001 for replacement of property tax on farm machinery and equip-
 19    ment exempted pursuant to section 63-602EE, Idaho  Code.  For  nonschool  dis-
 20    tricts,  the  state  tax  commission shall distribute one-fourth (1/4) of this
 21    amount certified quarterly to each county. For school districts, the state tax
 22    commission shall distribute one-fourth (1/4) of the amount certified quarterly
 23    to each school district. For nonschool districts,  the  county  auditor  shall
 24    distribute  to  each district within thirty (30) calendar days from receipt of
 25    moneys from the tax commission. Moneys received by each  taxing  district  for
 26    replacement  shall  be utilized in the same manner and in the same proportions
 27    as revenues from property taxation. The moneys remitted to  the  county  trea-
 28    surer  for  replacement  of  property exempt from taxation pursuant to section
 29    63-602EE, Idaho Code, may be considered by the counties and other taxing  dis-
 30    tricts  and budgeted at the same time, in the same manner and in the same year
 31    as revenues from taxation on personal property which these moneys replace.  If
 32    taxing  districts  are  consolidated, the resulting district is entitled to an
 33    amount equal to the sum of the amounts which were received in the last  calen-
 34    dar quarter by each district pursuant to this subsection prior to the consoli-
 35    dation.  If  a  taxing district is dissolved or disincorporated, the state tax
 36    commission shall continuously distribute to the board of county  commissioners
 37    an  amount  equal  to  the last quarter's distribution prior to dissolution or
 38    disincorporation. The board of county commissioners shall determine any redis-
 39    tribution of moneys so received.  If a taxing district annexes territory,  the
 40    distribution  of  moneys  received  pursuant to this subsection shall be unaf-
 41    fected. Taxing districts formed after January 1, 2001, are not entitled  to  a
 42    payment  under  the  provisions  of  this  subsection.  School districts shall
 43    receive an amount determined by multiplying the sum of the  year  2000  school
 44    district  levy  minus .004 times the market value on December 31, 2000, in the
 45    district of the property exempt from taxation pursuant  to  section  63-602EE,
 46    Idaho  Code,  provided that the result of these calculations shall not be less
 47    than zero (0). The result of these school district calculations shall be  fur-
 48    ther increased by six percent (6%). For purposes of the limitation provided by
 49    section  63-802, Idaho Code, moneys received pursuant to this section as prop-
 50    erty tax replacement for property exempt from  taxation  pursuant  to  section
 51    63-602EE, Idaho Code, shall be treated as property tax revenues.
 52        (11) Amounts  necessary  to  pay  refunds as provided in subsection (3) of
 53    section 63-3641, Idaho Code, to a developer of  a  retail  commercial  complex
 54    whose   stores sell tangible personal property or taxable services  subject to
 55    the sales and use tax up to an aggregate total of thirty-five million  dollars
 56    ($35,000,000) per project shall be remitted to the demonstration pilot project

                                       9
  1    fund  created  in  subsection (3) of section 63-3641, Idaho Code, and shall be
  2    specific to and accounted for by each project.
  3        (12) Amounts calculated in  accordance  with  subsection  (4)  of  section
  4    63-602KK,  Idaho  Code,  for  annual distribution to counties and other taxing
  5    districts for replacement of property tax on personal property tax  exemptions
  6    pursuant  to subsection (1) of section 63-602KK, Idaho Code, which amounts are
  7    continuously appropriated unless the legislature enacts a different appropria-
  8    tion for a particular fiscal year.
  9        (13) Any moneys remaining over and  above  those  necessary  to  meet  and
 10    reserve for payments under other subsections of this section shall be distrib-
 11    uted to the general fund.

 12        SECTION  4.  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(224), Idaho Code, shall include each incorporated city in  each
 38    county, regardless of whether said city certifies a property tax budget.

 39        SECTION  5.  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
 50    subject  to appraisal, assessment and taxation under the provisions of section
 51    63-1702, Idaho Code. Once a designation is made by the forest landowner,  such
 52    designation must remain in effect until the designation period expires, unless

                                       10
  1    the  forest  lands  are  transferred to another owner using a different taxing
  2    category; in such case, the taxing category of the  transferred  forest  lands
  3    shall be the same as that maintained by the new owner.
  4        A  forest landowner may change the designation of all forest lands in com-
  5    mon ownership at the end of any designation period, subject to  the  recapture
  6    of  any  deferred taxes due as a result of such change. After January 1 and by
  7    December 31 of the tenth year of each designation period the forest  landowner
  8    must  notify  the  county  assessor  of any change in forest land designation.
  9    Failure to notify the county assessor will result in the continuation  of  the
 10    landowner's present designation until the end of the next designation period.
 11        Any  substantial change in the use of forest lands not conforming with the
 12    definition of forest land in section 63-1701, Idaho Code, during such ten (10)
 13    year period under the designations made in subsection  (a)  or  (b)  shall  be
 14    reported  by  the  landowner to the county assessor within thirty (30) days of
 15    the change in use. Upon notification of the change in use, the assessor  shall
 16    appraise, assess and tax those acres as provided by applicable laws and rules.
 17    Failure  to  notify  the  assessor of the change in use when forest lands have
 18    been designated as subject to the provisions of subsection (a)  or  (b)  shall
 19    cause forfeiture of such designation, and cause that property to be appraised,
 20    assessed and taxed as provided in section 63-1702, Idaho Code.
 21        Forest  lands designated for assessment pursuant to the provisions of sec-
 22    tion 63-1706, Idaho Code, shall be subject to the recapture of deferred  taxes
 23    upon  removal  of  such designation, a substantial change in use, or ownership
 24    transfer, except that there shall be no  recapture  initiated  upon  ownership
 25    transfer  of  forest  lands designated as subject to the provisions of section
 26    63-1706, Idaho Code, to a landowner with forest lands  already  designated  as
 27    subject  to the provisions of section 63-1706, Idaho Code, prior to the trans-
 28    fer, or who so designates his lands to be subject to the provisions of section
 29    63-1706, Idaho Code. In the event payment is offered  or  made,  it  shall  be
 30    accepted by the county treasurer and applied in the manner of payment of other
 31    property tax.
 32        The  dollar  amount of deferred taxes subject to recapture shall be deter-
 33    mined by the county assessor by applying current tax levies against  the  cur-
 34    rent  values  that  would  have  been  in  effect if the lands were subject to
 35    appraisal and assessment during the current year under the provisions of  sec-
 36    tion 63-1705, Idaho Code, if there has been a change in ownership or a removal
 37    of  designation, or section 63-1702, Idaho Code, if there has been a change in
 38    use with no change in ownership, which amount shall be multiplied by the  num-
 39    ber of years that the lands have been subject to the designation under section
 40    63-1706,  Idaho Code. The amount of the deferred tax shall accrue through des-
 41    ignation periods, up to a maximum of ten (10) years, and shall  apply  to  the
 42    most  recent  ten (10) years in which the parcel has been designated under the
 43    provisions of section 63-1706, Idaho Code. A credit shall be allowed for taxes
 44    actually paid under the provisions of section  63-1706,  Idaho  Code,  for  an
 45    identical  ten (10) year period, up to the total amount of the deferred taxes.
 46    All deferred amounts shall be a lien against the land.  Deferred  tax  amounts
 47    shall  be  calculated  by the county assessor on forms prescribed by the state
 48    tax commission. Deferred tax amounts shall be supplied by the county  assessor
 49    to  the  county treasurer by May 15 of the year following conveyance or within
 50    thirty (30) days of removal of designation, or of learning of a change in use.
 51    All deferred tax amounts shall be due and payable to the county  treasurer  on
 52    demand  and  shall become delinquent if not paid by the demand due date speci-
 53    fied by the county treasurer on the forms prescribed by the state tax  commis-
 54    sion.  If  the deferred tax is not paid as provided above, the payment becomes
 55    delinquent and subject to late charges, and interest in  the amounts  provided
 56    in  sections  63-201(79) and 63-1001, Idaho Code, and subject to collection in

                                       11
  1    the manner as set forth  in  chapter  10,  title  63,  Idaho  Code.  Estimated
  2    deferred tax amounts may be held by the county treasurer in a tax anticipation
  3    account from the date of conveyance until June 1 of the year following convey-
  4    ance.
  5        The  county  treasurer  shall cause the deferred taxes and any penalty and
  6    interest paid pursuant to the provisions of this section to be apportioned  to
  7    the various taxing authorities within which the property subject to the tax is
  8    located in the same manner as property taxes.
  9        (a)  A  forest  landowner  may  choose  to  have his forest land assessed,
 10    appraised and taxed under the provisions of section 63-1705,  Idaho  Code,  by
 11    filing  such choice with the county assessor on a form prescribed by the state
 12    tax commission. Designation filed pursuant to  section  63-1705,  Idaho  Code,
 13    shall become effective the first day of January following the year of designa-
 14    tion.
 15        (b)  A  forest  landowner  may  choose  to  have his forest land assessed,
 16    appraised and taxed under the provisions of section 63-1706,  Idaho  Code,  by
 17    filing  such choice with the county assessor on a form prescribed by the state
 18    tax commission. Designation filed pursuant to  section  63-1706,  Idaho  Code,
 19    shall become effective the first day of January following the year of designa-
 20    tion.
 21        (c)  All  forest  products  or  timber harvested from investment lands not
 22    designated as subject  to  the  provisions  of  section  63-1702,  63-1705  or
 23    63-1706,  Idaho  Code,  and  delivered  to  a  point of utilization as logs or
 24    semiprocessed forest products (except those forest products harvested for  the
 25    domestic  use  of the landowner under the provisions of section 63-1708, Idaho
 26    Code) shall be subject to the yield tax at the time of  harvest  in  the  same
 27    manner provided for in section 63-1706, Idaho Code.

 28        SECTION  6.  That  Section 33-1103, Idaho Code, be, and the same is hereby
 29    amended to read as follows:

 30        33-1103.  DEFINITIONS -- BONDS -- LIMITATION ON AMOUNT -- ELECTIONS TO AU-
 31    THORIZE ISSUANCE. (1) For the purposes of this chapter the  following  defini-
 32    tions  shall  have  the  meanings specified: "Market value for assessment pur-
 33    poses" means the amount of the last preceding equalized assessment of all tax-
 34    able property and all  property  exempt  from  taxation  pursuant  to  section
 35    63-602G,  Idaho  Code,  and  property exempt from taxation pursuant to section
 36    63-602KK, Idaho Code, within the school district on the  tax  rolls  completed
 37    and  available as of the date of approval by the electorate in the school bond
 38    election. "Aggregate outstanding indebtedness" means the total  sum  of  unre-
 39    deemed outstanding bonds, minus all moneys in the bond interest and redemption
 40    fund  or  funds  accumulated for the redemption of such outstanding bonds, and
 41    minus the sum of all taxes levied for the redemption of such bonds,  with  the
 42    exception  of  that  portion  of  such  tax levies required for the payment of
 43    interest on bonds, which  taxes  remain  uncollected.  "Issue,"  "issued,"  or
 44    "issuance"  means a formal delivery of bonds to any purchaser thereof and pay-
 45    ment therefor to the school district.
 46        (2)  The board of trustees of any school  district,  upon  approval  of  a
 47    majority  thereof, may submit to the qualified school district electors of the
 48    district the question as to whether the board  shall  be  empowered  to  issue
 49    negotiable  coupon bonds of the district in an amount and for a period of time
 50    to be named in the notice of election.
 51        (3)  An elementary school district which employs not  less  than  six  (6)
 52    teachers,  or a school district operating an elementary school or schools, and
 53    a secondary school or schools, or issuing bonds for the acquisition of a  sec-
 54    ondary school or schools, may issue bonds in an amount not to exceed five per-

                                       12
  1    cent (5%) of the market value for assessment purposes thereof, less the aggre-
  2    gate  outstanding indebtedness; and no other school district shall issue bonds
  3    in an amount to exceed at any time two percent (2%) of the  market  value  for
  4    assessment  purposes  thereof less the aggregate outstanding indebtedness. The
  5    market value for assessment purposes, the aggregate  outstanding  indebtedness
  6    and  the unexhausted debt-incurring power of the district shall each be deter-
  7    mined as of the date of approval by the electors in the school bond election.
  8        (4)  Notice of the bond election shall be given,  the  election  shall  be
  9    conducted  and  the returns thereof canvassed, and the qualifications of elec-
 10    tors voting or offering to vote shall  be,  as  provided  in  sections  33-401
 11    through 33-406, Idaho Code.
 12        (5)  The  question  shall be approved only if the percentage of votes cast
 13    at such election were cast in favor thereof is that which now, or may  hereaf-
 14    ter  be,  set by the constitution of the state of Idaho. Upon such approval of
 15    the issuance of bonds, the same may be issued at any time after  the  date  of
 16    such election.

 17        SECTION  7.  That  Section  63-313, Idaho Code, be, and the same is hereby
 18    amended to read as follows:

 19        63-313.  SPECIAL PROVISIONS FOR TRANSIENT PERSONAL PROPERTY. (1) All tran-
 20    sient personal property shall be listed by the owner and shall show the  quan-
 21    tity,  name,  model,  serial number, if any, year of manufacture, date of pur-
 22    chase, cost, whether new or used and other identifying information required by
 23    the county assessor. The list of transient personal  property  shall  identify
 24    the  owner of the property and shall be filed with the home county assessor on
 25    or before the first day of November of each year. The owner of transient  per-
 26    sonal  property  may elect to treat as his home county that county in which he
 27    maintains his residence or usual place  of business or in which the  transient
 28    personal  property  is  usually  kept.  The report shall be made on forms pre-
 29    scribed by the state tax commission and shall identify periods of thirty  (30)
 30    days or more during which the personal property is located in a county, speci-
 31    fying  the  location  of the transient personal property for each month of the
 32    current calendar year with a projection of  the  location  for  the  remaining
 33    months of November and December.
 34        (2)  The county assessor of the home county or the receiving county of the
 35    listing  shall file within ten (10) days with the county assessor of all coun-
 36    ties identified on the report a copy of the report. Each county so  identified
 37    shall then place a prorated assessment on such personal property on the subse-
 38    quent  or  missed  property roll only for the length of time that the personal
 39    property was located in their county.
 40        (3)  In the event that any transient personal property has been or will be
 41    taxed for the current year in another state, the property shall be  taxed  for
 42    only that portion of the year that the transient personal property is kept and
 43    does remain in the state of Idaho.
 44        (4)  The  provisions of this section shall not apply to transient personal
 45    property in transit through this state, or to transient personal property sold
 46    by the owner thereof in the home county upon which the taxes for the full year
 47    have been paid or secured, which said transient  personal  property  is  kept,
 48    moved,  transported,  shipped  or hauled into and remaining in another county,
 49    and there kept or remaining either for the purpose of use or sale  within  the
 50    current year.
 51        (5)  For  transient  personal property valued at over one hundred thousand
 52    dollars ($100,000), any exemption in section 63-602KK, Idaho  Code,  available
 53    to  the taxpayer shall be allocated among counties based on the prorated value
 54    provided in subsection (2) of this section.

                                       13
  1        SECTION 8.  That Section 63-802, Idaho Code, be, and the  same  is  hereby
  2    amended to read as follows:

  3        63-802.  LIMITATION  ON  BUDGET  REQUESTS  -- LIMITATION ON TAX CHARGES --
  4    EXCEPTIONS. (1) Except as provided in subsection (3) of this section  for  tax
  5    year 1995, and each year thereafter, no taxing district shall certify a budget
  6    request  for  an  amount  of property tax revenues to finance an annual budget
  7    that exceeds the greater of:
  8        (a)  The dollar amount of property taxes certified for its  annual  budget
  9        for any one (1) of the three (3) tax years preceding the current tax year,
 10        whichever  is  greater, plus the dollar amount of moneys received pursuant
 11        to section 63-3638(12), Idaho Code, for the past tax  year,  which  amount
 12        may  be  increased  by a growth factor of not to exceed three percent (3%)
 13        plus the amount of revenue that would have been generated by applying  the
 14        levy  of the previous year, not including any levy described in subsection
 15        (4) of this section, or any school district levy reduction resulting  from
 16        a distribution of state funds pursuant to section 63-3638(10), Idaho Code,
 17        to  any  increase  in  market value subject to taxation resulting from new
 18        construction or change of land use  classification  as  evidenced  by  the
 19        value  shown  on  the  new  construction roll compiled pursuant to section
 20        63-301A, Idaho Code; and by the value of annexation  during  the  previous
 21        calendar  year, as certified by the state tax commission for market values
 22        of operating property of public utilities and by the county assessor; or
 23        (b)  The dollar amount of property taxes certified for its  annual  budget
 24        during the last year in which a levy was made; or
 25        (c)  The  dollar  amount  of the actual budget request, if the taxing dis-
 26        trict is newly created except as may be provided in subsection  (1)(h)  of
 27        this section; or
 28        (d)  In  the  case of school districts, the restriction imposed in section
 29        33-802, Idaho Code; or
 30        (e)  In the case of a nonschool district for which less than  the  maximum
 31        allowable  increase  in  the dollar amount of property taxes is  certified
 32        for annual budget purposes in any one (1) year, such a  district  may,  in
 33        any  following year, recover the foregone increase by certifying, in addi-
 34        tion to any increase otherwise allowed, an amount not to exceed  one  hun-
 35        dred  percent  (100%) of the increase originally foregone. Said additional
 36        amount shall be included in future calculations for increases as  allowed;
 37        or
 38        (f)  In  the case of cities, if the immediately preceding year's levy sub-
 39        ject to the limitation provided by this section, is less than  0.004,  the
 40        city  may  increase  its  budget by an amount not to exceed the difference
 41        between 0.004 and actual prior year's levy multiplied by the prior  year's
 42        market  value  for  assessment  purposes.  The  additional  amount must be
 43        approved by sixty percent (60%) of the voters voting on the question at an
 44        election called for that purpose and held on the date in May  or  November
 45        provided by law, and may  be included in the annual budget of the city for
 46        purposes of this section; or
 47        (g)  A  taxing district may submit to the electors within the district the
 48        question of whether the budget from property tax revenues may be increased
 49        beyond the amount authorized in this section,  but  not  beyond  the  levy
 50        authorized by statute. The additional amount must be approved by sixty-six
 51        and two-thirds percent (66 2/3%) or more of the voters voting on the ques-
 52        tion  at an election called for that purpose and held on the May or Novem-
 53        ber dates provided by section 34-106,  Idaho  Code.  If  approved  by  the
 54        required  minimum sixty-six and two-thirds percent (66 2/3%) of the voters
 55        voting at the election, the new budget amount shall be the base budget for

                                       14
  1        the purposes of this section; or
  2        (h)  When a nonschool district consolidates with  another  nonschool  dis-
  3        trict  or  dissolves  and  a  new district performing similar governmental
  4        functions as the dissolved district forms with the same boundaries  within
  5        three (3) years, the maximum amount of a budget of the district from prop-
  6        erty  tax  revenues  shall not be greater than the sum of the amounts that
  7        would have been authorized by this section for the district itself or  for
  8        the  districts that were consolidated or dissolved and incorporated into a
  9        new district; or
 10        (i)  In the instance or case of cooperative service agencies, the restric-
 11        tions imposed in sections 33-315 through 33-318, Idaho Code.
 12        (2)  In the case of fire districts, during the year immediately  following
 13    the election of a public utility or public utilities to consent to be provided
 14    fire protection pursuant to section 31-1425, Idaho Code, the maximum amount of
 15    property  tax  revenues  permitted  in  subsection  (1) of this section may be
 16    increased by an amount equal to the current year's taxable value of  the  con-
 17    senting  public  utility or public utilities multiplied by that portion of the
 18    prior year's levy subject to the limitation provided by subsection (1) of this
 19    section.
 20        (3)  No board of county commissioners shall set  a  levy,  nor  shall  the
 21    state  tax  commission approve a levy for annual budget purposes which exceeds
 22    the limitation imposed in subsection (1) of this section, unless authority  to
 23    exceed  such  limitation  has  been  approved  by  a  majority  of  the taxing
 24    district's electors voting on the question at an election called for that pur-
 25    pose and held pursuant to section 34-106, Idaho Code, provided  however,  that
 26    such voter approval shall be for a period of not to exceed two (2) years.
 27        (4)  The  amount of property tax revenues to finance an annual budget does
 28    not include revenues from nonproperty tax sources, and does not include  reve-
 29    nue  from levies that are voter approved for bonds, override levies or supple-
 30    mental levies, plant facilities reserve fund  levies,  school  emergency  fund
 31    levies or for levies applicable to newly annexed property or for levies appli-
 32    cable to new construction as evidenced by the value of property subject to the
 33    occupancy  tax  pursuant  to section 63-317, Idaho Code, for the preceding tax
 34    year.

 35        SECTION 9.  SEVERABILITY. The provisions of this act are  hereby  declared
 36    to  be  severable  and if any provision of this act or the application of such
 37    provision to any person or circumstance is declared invalid  for  any  reason,
 38    such  declaration  shall  not affect the validity of the remaining portions of
 39    this act.

 40        SECTION 10.  This act shall be in full force and effect on and after Janu-
 41    ary 1, 2009.

                                       15
                              IN THE HOUSE OF REPRESENTATIVES

                               HOUSE BILL NO. 599, As Amended

                             BY REVENUE AND TAXATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO TAXATION OF PERSONAL  PROPERTY;  AMENDING  SECTION  63-201,  IDAHO
  3        CODE,  TO REVISE DEFINITIONS; AMENDING SECTION 63-302, IDAHO CODE, TO PRO-
  4        VIDE THAT A TAXPAYER'S LIST OF TAXABLE PERSONAL PROPERTY MAY BE AMENDED TO
  5        PERMIT CERTAIN PROPERTY TO BE LISTED OR TO BE REMOVED FROM THE LIST AND TO
  6        PROVIDE THAT THE STATEMENT MUST BE FILED ON OR BEFORE THE FOURTH MONDAY IN
  7        APRIL 2008; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF A
  8        NEW SECTION 63-602KK, IDAHO CODE, TO PROVIDE THAT PERSONAL PROPERTY  SHALL
  9        BE  EXEMPT  FROM  TAXATION, TO PROVIDE A SCHEDULE FOR PHASE IN, TO PROVIDE
 10        DUTIES OF THE STATE CONTROLLER, TO DEFINE THE TERM "AFFILIATED  PERSON  OR
 11        BUSINESS ENTITY" AND TO PROVIDE DUTIES OF THE STATE TAX COMMISSION; AMEND-
 12        ING  SECTION 63-3638, IDAHO CODE, TO PROVIDE FOR DISTRIBUTION OF SALES TAX
 13        MONEYS TO COUNTIES AND OTHER TAXING DISTRICTS FOR  REPLACEMENT  OF  MONEYS
 14        FOR PERSONAL PROPERTY TAX REDUCTION; AMENDING SECTIONS 63-510 AND 63-1703,
 15        IDAHO  CODE, TO PROVIDE CORRECT CODE REFERENCES; AMENDING SECTION 33-1103,
 16        IDAHO CODE, TO REVISE THE DEFINITION OF "MARKET VALUE FOR ASSESSMENT  PUR-
 17        POSES"; PROVIDING SEVERABILITY; DECLARING AN EMERGENCY, PROVIDING RETROAC-
 18        TIVE APPLICATION AND PROVIDING EFFECTIVE DATES.

 19    Be It Enacted by the Legislature of the State of Idaho:

 20        SECTION  11.  That  Section 63-201, Idaho Code, be, and the same is hereby
 21    amended to read as follows:

 22        63-201.  DEFINITIONS. As used for property tax purposes in title 63, chap-
 23    ters 1 through 23, Idaho Code, the terms defined in this  section  shall  have
 24    the following meanings, unless the context clearly indicates another meaning:
 25        (1)  "Appraisal" means an estimate of property value for property tax pur-
 26    poses.
 27        (a)  For the purpose of estimated property value to place the value on any
 28        assessment  roll,  the  value estimation must be made by the assessor or a
 29        certified property tax appraiser.
 30        (b)  For the purpose of estimating property value to present for an appeal
 31        filed pursuant to sections 63-501A, 63-407 and  63-409,  Idaho  Code,  the
 32        value  estimation  may  be  made by the assessor, a certified property tax
 33        appraiser, a licensed appraiser, or a certified appraiser or any party  as
 34        specified by law.
 35        (2)  "Bargeline"  means  those  water  transportation tugs, boats, barges,
 36    lighters and other equipment and property used in conjunction  with  waterways
 37    for bulk transportation of freight or ship assist.
 38        (3)  "Cogenerators"  means  facilities  which produce electric energy, and
 39    steam or forms of useful energy which are  used  for  industrial,  commercial,
 40    heating or cooling purposes.
 41        (4)  "Collection  costs"  are  amounts authorized by law to be added after
 42    the date of delinquency and collected in the same manner as property tax.
 43        (5)  "Delinquency" means any property tax, special assessment,  fee,  col-
 44    lection cost, or charge collected in the same manner as property tax, that has
 45    not been paid in the manner and within the time limits provided by law.
 46        (6)  "Fixtures" means those articles that, although once movable chattels,
 47    have become accessory to and a part of improvements to real property by having

                                       16
  1    been  physically  incorporated therein or annexed or affixed thereto in such a
  2    manner that removing them would cause material injury or damage  to  the  real
  3    property,  the  use  or purpose of such articles is integral to the use of the
  4    real property to which it is affixed, and a person would reasonably be consid-
  5    ered to intend to make the articles permanent additions to the real  property.
  6    "Fixtures"  includes  systems  for the heating, air conditioning, ventilation,
  7    sanitation, lighting and  plumbing  of  such  building.  "Fixtures"  does  not
  8    include  machinery, equipment or other articles that are affixed to real prop-
  9    erty to enable the proper utilization of such articles.
 10        (7)  "Floating home" means a floating structure that is designed and built
 11    to be used, or is modified to be used, as a stationary waterborne  residential
 12    dwelling,  has  no mode of power of its own, is dependent for utilities upon a
 13    continuous utility linkage to a source originating on shore, and has a  perma-
 14    nent continuous connection to a sewage system on shore.
 15        (8)  "Improvements"  means  all buildings, structures, fixtures and fences
 16    manufactured homes, as defined in section 39-4105(8), Idaho Code, mobile homes
 17    as defined in section  39-4105(9),  Idaho  Code,  and  modular  buildings,  as
 18    defined  in  section  39-4301(7),  Idaho  Code, erected upon or affixed to the
 19    land, and fences, water ditches constructed for mining, manufacturing or irri-
 20    gation purposes, fixtures, and floating homes, whether or  not  such  improve-
 21    ments are owned separately from the ownership of the land upon or to which the
 22    same  may  be  erected,  affixed  or  attached.  The  term "improvements" also
 23    includes  all fruit, nut-bearing and ornamental trees or vines not of  natural
 24    growth, growing upon the land, except nursery stock.
 25        (79)  "Late charge" means a charge of two percent (2%) of the delinquency.
 26        (810) "Lawful  money  of the United States" means currency and coin of the
 27    United States at par value and checks and drafts which are payable in  dollars
 28    of the United States at par value, payable upon demand or presentment.
 29        (9)  "Manufactured  home" means a structure defined as a manufactured home
 30    in section 39-4105, Idaho Code.
 31        (101) "Market value" means the amount of United States dollars or  equiva-
 32    lent  for which, in all probability, a property would exchange hands between a
 33    willing seller, under no compulsion to sell, and an informed,  capable  buyer,
 34    with a reasonable time allowed to consummate the sale, substantiated by a rea-
 35    sonable down or full cash payment.
 36        (112) "Operating  property"  means  real and personal property operated in
 37    connection with any public utility, railroad or private railcar fleet,  wholly
 38    or  partly  within  this state, and which property is necessary to the mainte-
 39    nance and operation of the public utility, railroad or private railcar  fleet,
 40    and  the roads or lines thereof, and includes all rights-of-way accompanied by
 41    title; roadbeds; tracks; pipelines; bargelines; equipment  and  docks;  termi-
 42    nals;  rolling  stock;  equipment;  power stations; power sites; lands; reser-
 43    voirs, generating plants, transmission lines, distribution lines  and  substa-
 44    tions;  and  all immovable or movable property operated in connection with any
 45    public utility, railroad or private railcar fleet,  wholly  or  partly  within
 46    this  state,  and  necessary  to the maintenance and operation of such road or
 47    line, or in conducting its business, and shall include all title and  interest
 48    in  such property, as owner, lessee or otherwise. The term includes electrical
 49    generation plants under construction, whether or not owned by or  operated  in
 50    connection  with  any public utility. The term does not include personal prop-
 51    erty exempt from taxation pursuant to section 63-602L For the purpose  of  the
 52    appraisal,  assessment and taxation of operating property, pursuant to chapter
 53    4, title 63, Idaho Code, the value of intangible personal  property  shall  be
 54    excluded  from  the taxable value of operating property in accordance with the
 55    provisions of section 63-602L, Idaho Code, and the value of personal property,
 56    other than intangible personal property, shall be excluded  from  the  taxable

                                       17
  1    value  of  operating  property  in  accordance  with the provisions of section
  2    63-602KK, Idaho Code.
  3        (123) "Party in interest" means a person who  holds  a  properly  recorded
  4    mortgage, deed of trust or security interest.
  5        (134) "Person"  means  any  entity,  individual, corporation, partnership,
  6    firm, association, limited liability company, limited liability partnership or
  7    other such entities as recognized by the state of Idaho.
  8        (145) "Personal property" includes all goods, chattels, stocks and  bonds,
  9    equities  in  state  lands, easements, reservations, leasehold real properties
 10    and all other property which the law defines, or  the  courts  may  interpret,
 11    declare  and hold to be personal property under the letter, spirit, intent and
 12    meaning of the law, for the purposes of property taxation. For the purposes of
 13    payment and collection of property taxes pursuant  to  chapter  9,  title  63,
 14    Idaho  Code, collection of delinquency pursuant to chapter 10, title 63, Idaho
 15    Code, and seizure and sale of personal property for taxes pursuant to  chapter
 16    11,  title  63,  Idaho Code, personal property includes manufactured homes not
 17    declared as real property pursuant to section 63-304, Idaho Code. means every-
 18    thing that is the subject of ownership and that is  not  included  within  the
 19    term "real property."
 20        (156) "Private railcar fleet" means railroad cars or locomotives owned by,
 21    leased  to, occupied by or franchised to any person other than a railroad com-
 22    pany operating a line of railroad in Idaho or  any  company  classified  as  a
 23    railroad  by  the  interstate commerce commission and entitled to possess such
 24    railroad cars and locomotives except those possessed solely for the purpose of
 25    repair, rehabilitation or remanufacturing  of  such  locomotives  or  railroad
 26    cars.
 27        (167) "Public  utility"  means  electrical  companies, pipeline companies,
 28    natural gas distribution companies, or power producers included within federal
 29    law, bargelines, and water companies which are under the jurisdiction  of  the
 30    Idaho  public  utilities commission. The term also includes telephone corpora-
 31    tions, as that term is defined in section 62-603, Idaho Code, except as  here-
 32    inafter  provided, whether or not such telephone corporation has been issued a
 33    certificate of convenience and necessity by the Idaho public utilities commis-
 34    sion.
 35        This term does not include cogenerators, mobile telephone service or  com-
 36    panies,  nor does it include pager service or companies, except when such ser-
 37    vices are an integral part of services provided by a certificated utility com-
 38    pany nor does the term "public utility" include companies or  persons  engaged
 39    in  the business of providing solely on a resale basis, any telephone or tele-
 40    communication service which is purchased from a telephone corporation or  com-
 41    pany.
 42        (178) "Railroad" means every kind of railway, whether its line of rails or
 43    tracks  be  at, above or below the surface of the earth, and without regard to
 44    the kind of power used in moving its rolling stock, and shall be considered to
 45    include every kind of street railway, suburban railway or  interurban  railway
 46    excepting  facilities  established  solely  for  maintenance and rebuilding of
 47    railroad cars or locomotives.
 48        (189) "Real property" means land, improvements  and  all  standing  timber
 49    thereon, including standing timber owned separately from the ownership of  the
 50    land  upon  which  the same may stand, except as modified in chapter 17, title
 51    63, Idaho Code, and all buildings, structures and improvements, or other  fix-
 52    tures of whatsoever kind on land, including water ditches constructed for min-
 53    ing,  manufacturing  or  irrigation  purposes,  water and gas mains, wagon and
 54    turnpike toll roads, and toll bridges, and all rights and  privileges  thereto
 55    belonging,  or any way appertaining, all quarries and fossils in and under the
 56    land, and all other property which the law defines, or the courts  may  inter-

                                       18
  1    pret,  declare  and  hold to be real property under the letter, spirit, intent
  2    and meaning of the law, for the purposes of  property  taxation.  Manufactured
  3    homes  constitute  real  property  when  located  on taxable land, and after a
  4    statement of intent to declare as real property has  been  recorded,  provided
  5    said  statement  has not been revoked. Timber, forest, forest land, and forest
  6    products shall be defined as provided in chapter 17, title 63, Idaho Code.
  7        (1920) "Record owner" means the person or persons in whose name  or  names
  8    the  property  stands  upon the records of the county recorder's office. Where
  9    the record owners are husband and wife at the time of notice of pending  issue
 10    of  tax  deed,  notice to one (1) shall be deemed and imputed as notice to the
 11    other spouse.
 12        (201) "Special assessment" means a charge imposed upon property for a spe-
 13    cific purpose, collected and enforced in the same manner as property taxes.
 14        (212) "System value" means the market value for assessment purposes of the
 15    operating property when considered as a unit.
 16        (223) "Tax code area" means a geographical area made up of one (1) or more
 17    taxing districts with one (1) total levy within the geographic area, except as
 18    otherwise provided by law.
 19        (234) "Taxing district" means  any  entity  or  unit  with  the  statutory
 20    authority to levy a property tax.
 21        (245) "Taxable  value"  means  market  value for assessment purposes, less
 22    applicable exemptions or other statutory provisions.
 23        (256) "Transient personal property"  is  personal  property,  specifically
 24    such  construction,  logging or mining machinery and equipment  which is kept,
 25    moved, transported, shipped, hauled into or remaining for periods of not  less
 26    than  thirty  (30)  days,  in more than one (1) county in the state during the
 27    same year.
 28        (267) "Warrant of distraint" means a warrant ordering the seizure of  per-
 29    sonal  property  to  enforce  payment  of  property  tax,  special assessment,
 30    expense, fee, collection cost or charge collected in the same manner  as  per-
 31    sonal property tax.

 32        SECTION  12.  That  Section 63-302, Idaho Code, be, and the same is hereby
 33    amended to read as follows:

 34        63-302.  LIST OF TAXABLE PERSONAL PROPERTY. (1) The assessor  shall  leave
 35    at the office, place of business or residence of each personal property owner,
 36    or mail to such personal property owner at his last known post office address,
 37    a  form  with  notice requiring such personal property owner to make a correct
 38    list of taxable personal property. Every personal property owner  so  required
 39    shall  enter  a  true  and correct statement of such personal property and the
 40    ownership thereof, which statement shall be signed and verified by the oath of
 41    the personal property owner or his agent listing such personal  property,  and
 42    shall be delivered to the assessor, not later than March 15. Provided however,
 43    the  statement required to be filed not later than March 15, 2008, pursuant to
 44    this section, may be amended to permit property affected  by  the  definitions
 45    set forth in section 63-201, Idaho Code, to be listed or removed from the list
 46    of personal property by the taxpayer. The amended statement shall be delivered
 47    to  the  assessor  on  or before the fourth Monday in April 2008. The assessor
 48    shall thereupon determine the market value for  assessment  purposes  of  such
 49    personal property and enter the same on the property roll. However, if for any
 50    reason  the  assessor  shall fail to contact such personal property owner, the
 51    failure shall not impair or invalidate any assessment, nor will  such  failure
 52    relieve  the  personal  property  owner  or his agent of the responsibility to
 53    obtain such declaration and to comply with the requirements of this title. Any
 54    willful failure to personally contact each personal property owner,  shall  be

                                       19
  1    deemed  malfeasance in office and grounds for the removal of the assessor from
  2    office.
  3        (2)  If such person fails to make and deliver the list  as  required,  the
  4    assessor  may  list  and  assess  such personal property according to his best
  5    judgment and information.
  6        (3)  Whenever a taxpayer's list of  taxable  personal  property  discloses
  7    personal property having a situs for purposes of taxation in another county in
  8    this  state, the assessor must immediately make a copy of that portion of such
  9    list for each county in which such personal property is situated, and transmit
 10    the same by mail to the assessor of the proper county, who must, upon  receipt
 11    of  such  copy,  enter  such personal property upon the property roll therein,
 12    unless such personal property has already been  entered.  The  assessor  shall
 13    strike  from  the original list all personal property so disclosed as having a
 14    situs in another county, and shall assess and enter only the  balance  of  the
 15    personal property in his county.

 16        SECTION  13.  That  Chapter  6,  Title 63, Idaho Code, be, and the same is
 17    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 18    ignated as Section 63-602KK, Idaho Code, and to read as follows:

 19        63-602KK.  PROPERTY  EXEMPT  FROM  TAXATION -- PERSONAL PROPERTY. (1) Com-
 20    mencing January 1, 2008, personal property, whether or not included in operat-
 21    ing property, which was first acquired by the owner  of  such  property  after
 22    12:01  a.m., January 1, 2008, from a person or entity other than an affiliated
 23    person or business entity, shall be exempt from property taxation by any  tax-
 24    ing district.
 25        (2)  (a) On  January  1, 2009, the taxable value of personal property held
 26        by the taxpayer shall be reduced by twenty percent (20%), and on January 1
 27        of each taxable year thereafter the taxable  value  of  personal  property
 28        held by the taxpayer on such date shall be reduced by an additional twenty
 29        percent  (20%),  unless reduction in taxable value is withheld as provided
 30        in paragraph (c) of this subsection.
 31        (b)  The state controller shall, on or before September 1  of  each  year,
 32        certify  to  the state tax commission whether receipts to the general fund
 33        for the fiscal year just ended have or have not exceeded the  receipts  of
 34        the previous year by more than five percent (5%). The state tax commission
 35        shall  notify county auditors of the certification by the state controller
 36        and the effect thereof.
 37        (c)  If the state controller certifies that the receipts  to  the  general
 38        fund  for the fiscal year ending June 30, 2008, or for fiscal years ending
 39        June 30 of any year thereafter through June 30, 2012,  have  not  exceeded
 40        the  receipts  to the general fund during the previous fiscal year by more
 41        than five percent (5%), the reduction in taxable value of  personal  prop-
 42        erty  set  forth in paragraph (a) of this subsection scheduled to occur on
 43        January 1 of the year following such certification shall be withheld. Not-
 44        withstanding the provisions of this paragraph, the taxable value  of  per-
 45        sonal  property  shall  be  reduced to zero (0) for tax year 2014, and for
 46        each tax year thereafter.
 47        (d)  In the event that the state controller certifies that the receipts to
 48        the general fund for the fiscal year  ending  immediately  preceding  such
 49        certification  have  exceeded  the receipts of the previous fiscal year by
 50        more than five percent (5%), the then taxable value of personal  property,
 51        if  any, shall be reduced by twenty percent (20%) on the following January
 52        1, and such scheduled reductions in taxable value shall  occur  in  subse-
 53        quent  tax  years,  as scheduled, unless withheld as provided in paragraph
 54        (c) of this subsection.

                                       20
  1        (3)  As used in this section, the  term  "affiliated  person  or  business
  2    entity"  shall  mean  a  person or business entity that directly or indirectly
  3    owns or controls, is owned or controlled by, is  under  ownership  or  control
  4    with,  another  person  related to such other person by marriage or by consan-
  5    guinity in the first or second degree.
  6        (4)  The state tax commission shall promulgate rules which  shall  provide
  7    for  the  exclusion of the taxable value of personal property from the taxable
  8    value of operating property. Such rules shall allow each taxpayer the right to
  9    elect one (1) of the following three (3) methods  for  exclusion  of  personal
 10    property from its taxable value:
 11        (a)  Separate  exclusion  of the taxable value of personal property at the
 12        system level value;
 13        (b)  Separate exclusion of the taxable value of personal property  at  the
 14        state allocated level value; or
 15        (c)  Exclusion  of  the taxable value of personal property by valuation of
 16        only nonexempt property using valuation models which  do  not  impound  or
 17        include values of the personal property.
 18        (5)  (a) The  county  commissioners  in  each  county shall certify to the
 19        state tax commission on or before the fourth Monday in November 2008,  the
 20        year  2008  total  tax  charge applicable to the taxable value of personal
 21        property for the portion of each taxing district or unit within the county
 22        which has been entered onto the property roll for tax  year  2008  by  the
 23        county  assessor. The state tax commission shall calculate the amount that
 24        each county assessed in taxes in tax year 2008 on  the  taxable  value  of
 25        personal  property  held  by  the taxpayer at 12:01 a.m., January 1, 2008,
 26        with reference to which personal property taxes are levied  for  tax  year
 27        2008  pursuant  to section 63-205, Idaho Code. Further, the state tax com-
 28        mission shall calculate the amount that each county levied in taxes in tax
 29        year 2008 on the taxable value of that portion of operating property  con-
 30        stituting  personal property and held by the taxpayer at 12:01 a.m., Janu-
 31        ary 1, 2008, and certified by the commission to the county auditors of the
 32        several counties pursuant to section 63-410,  Idaho  Code,  for  tax  year
 33        2008.
 34        (b)  The  state  tax commission shall compute the percentage the amount of
 35        taxes levied on personal property for each county for tax year 2008  bears
 36        to  the  total amount of taxes levied on personal property by all counties
 37        in the state for the year 2008. The  percentage  so  determined  for  each
 38        county shall be applied to the amount distributed by the commission pursu-
 39        ant to section 63-3638, Idaho Code, and the resulting sum shall be paid to
 40        the  county  treasurer of each county for distribution to each taxing dis-
 41        trict in the county as follows:
 42             (i)   The board of county commissioners in each county shall  compute
 43             the  percentage  the  amount  of taxes levied on the taxable value of
 44             personal property for the year 2008 for each taxing district  in  the
 45             county bears to the total amount of taxes levied on the taxable value
 46             of  personal  property for all taxing districts in the county for the
 47             year 2008. The percentage so determined for each taxing  district  in
 48             the  county  shall be applied to the sum paid to the county treasurer
 49             by the state tax commission pursuant to this section and the  result-
 50             ing amount shall be distributed to each taxing district in the county
 51             by  the  county auditor within thirty (30) calendar days from receipt
 52             of moneys from the state  tax  commission.  The  amount  which  would
 53             otherwise  be attributable to tax revenues derived from tax levies on
 54             taxable personal property within an existing revenue allocation area,
 55             as defined in section 50-2903(15), Idaho Code, and for which  revenue
 56             allocation  area  a  legal description of the boundaries of such area

                                       21
  1             was filed in accordance with the provisions of section 50-2907, Idaho
  2             Code, on or before January 1, 2008, shall be  paid  directly  by  the
  3             county  treasurer  to  such public body or agency entitled thereto in
  4             accordance with the formula for such distribution set forth  in  sec-
  5             tion 50-2908, Idaho Code.
  6             (ii)  The  moneys remitted to the county treasurer for replacement of
  7             taxes on property exempt from taxation pursuant to this  section  may
  8             be considered by the counties and other taxing districts and budgeted
  9             at the same time, in the same manner and in the same year as revenues
 10             from taxation on personal property that these moneys replace.
 11             (iii) If taxing districts are consolidated, the resulting district is
 12             entitled  to  an  amount  equal  to the sum of the amounts which were
 13             received in the last calendar quarter by each  district  pursuant  to
 14             this  section  prior  to  consolidation. If a taxing district is dis-
 15             solved or disincorporated, the state tax  commission  shall  continu-
 16             ously distribute to the board of county commissioners an amount equal
 17             to   the   last   quarter's  distribution  prior  to  dissolution  or
 18             disincorporation. The board of county commissioners  shall  determine
 19             any  redistribution  of  moneys  so  received.  If  a taxing district
 20             annexes territory, the distribution of moneys  received  pursuant  to
 21             this section shall be unaffected. Taxing districts formed after Janu-
 22             ary  1,  2008,  are  not entitled to payments under the provisions of
 23             this section.
 24             (iv)  For purposes of the  limitation  provided  by  section  63-802,
 25             Idaho  Code,  moneys  received from distributions pursuant to section
 26             63-3638, Idaho Code, as property  tax  replacement  for  the  taxable
 27             value of property exempt from taxation pursuant to this section shall
 28             be treated as property tax revenues.
 29        (6)  Nothing contained in this section shall affect the taxation of forest
 30    lands  or forest products pursuant to chapter 17, title 63, Idaho Code, or the
 31    taxation of the net profits of mines pursuant to chapter 28, title  63,  Idaho
 32    Code.

 33        SECTION  14.  That Section 63-3638, Idaho Code, be, and the same is hereby
 34    amended to read as follows:

 35        63-3638.  SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
 36    ter, except as may otherwise be required  in  sections  63-3203  and  63-3709,
 37    Idaho Code, shall be distributed by the tax commission as follows:
 38        (1)  An  amount  of money shall be distributed to the state refund account
 39    sufficient to pay current refund claims. All  refunds  authorized  under  this
 40    chapter  by the commission shall be paid through the state refund account, and
 41    those moneys are continuously appropriated.
 42        (2)  Five million dollars ($5,000,000) per year is continuously  appropri-
 43    ated and shall be distributed to the permanent building fund, provided by sec-
 44    tion 57-1108, Idaho Code.
 45        (3)  Four million eight hundred thousand dollars ($4,800,000) per year is
 46    continuously appropriated and shall be distributed to the water pollution con-
 47    trol account established by section 39-3605, Idaho Code.
 48        (4)  An  amount  equal to the sum required to be certified by the chairman
 49    of the Idaho housing and finance association to the state tax commission  pur-
 50    suant  to  section 67-6211, Idaho Code, in each year is continuously appropri-
 51    ated and shall be paid to any capital reserve fund, established by  the  Idaho
 52    housing  and finance association pursuant to section 67-6211, Idaho Code. Such
 53    amounts, if any, as may be appropriated hereunder to the capital reserve  fund
 54    of  the Idaho housing and finance association shall be repaid for distribution

                                       22
  1    under the provisions of this section, subject to  the  provisions  of  section
  2    67-6215,  Idaho Code, by the Idaho housing and finance association, as soon as
  3    possible, from any moneys available therefor and  in  excess  of  the  amounts
  4    which the association determines will keep it self-supporting.
  5        (5)  An  amount  equal  to  the sum required by the provisions of sections
  6    63-709 and 63-717, Idaho Code, after allowance for the amount appropriated  by
  7    section  63-718(3), Idaho Code, is continuously appropriated and shall be paid
  8    as provided by sections 63-709 and 63-717, Idaho Code.
  9        (6)  An  amount  required by the provisions of chapter 53, title 33, Idaho
 10    Code.
 11        (7)  An amount required by the provisions of chapter 87, title  67,  Idaho
 12    Code.
 13        (8)  One  dollar  ($1.00)  on each application for certificate of title or
 14    initial application for registration of  a  motor  vehicle,  snowmobile,  all-
 15    terrain vehicle or other vehicle processed by the county assessor or the Idaho
 16    transportation  department  excepting those applications in which any sales or
 17    use taxes due have been previously collected by a retailer, shall be a fee for
 18    the services of the assessor of the county or the Idaho transportation depart-
 19    ment in collecting such taxes, and shall be paid into the current expense fund
 20    of the county or state highway account established in  section  40-702,  Idaho
 21    Code.
 22        (9)  Eleven  and  five-tenths percent (11.5%) is continuously appropriated
 23    and shall be distributed to the revenue sharing account which  is  created  in
 24    the state treasury, and the moneys in the revenue sharing account will be paid
 25    in installments each calendar quarter by the tax commission as follows:
 26        (a)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 27        ious cities as follows:
 28             (i)   Fifty percent (50%) of such amount shall be paid to the various
 29             cities,  and  each city shall be entitled to an amount in the propor-
 30             tion that the population of that city bears to the population of  all
 31             cities within the state; and
 32             (ii)  Fifty percent (50%) of such amount shall be paid to the various
 33             cities,  and  each city shall be entitled to an amount in the propor-
 34             tion that the preceding year's market value for  assessment  purposes
 35             for  that city bears to the preceding year's market value for assess-
 36             ment purposes for all cities within the state.
 37        (b)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 38        ious counties as follows:
 39             (i)   One million three hundred twenty thousand dollars  ($1,320,000)
 40             annually  shall be distributed one forty-fourth (1/44) to each of the
 41             various counties; and
 42             (ii)  The balance of such amount shall be paid to the  various  coun-
 43             ties,  and  each county shall be entitled to an amount in the propor-
 44             tion that the population of that county bears to  the  population  of
 45             the state;
 46        (c)  Thirty-five  and  nine-tenths percent (35.9%) of the amount appropri-
 47        ated  in this subsection (9) shall be paid to  the  several  counties  for
 48        distribution to the cities and counties as follows:
 49             (i)   Each  city and county which received a payment under the provi-
 50             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 51             calendar year 1999, shall be entitled to a like  amount  during  suc-
 52             ceeding calendar quarters.
 53             (ii)  If  the  dollar amount of money available under this subsection
 54             (9)(c) in any quarter does not equal the amount paid  in  the  fourth
 55             quarter of calendar year 1999, each city's and county's payment shall
 56             be reduced proportionately.

                                       23
  1             (iii) If  the  dollar amount of money available under this subsection
  2             (9)(c) in any quarter exceeds the amount paid in the  fourth  quarter
  3             of  calendar  year  1999, each city and county shall be entitled to a
  4             proportionately increased payment, but such increase shall not exceed
  5             one hundred five percent (105%) of the  total  payment  made  in  the
  6             fourth quarter of calendar year 1999.
  7             (iv)  If  the  dollar amount of money available under this subsection
  8             (9)(c) in any quarter exceeds one hundred five percent (105%) of  the
  9             total  payment  made in the fourth quarter of calendar year 1999, any
 10             amount over and above such one hundred five percent (105%)  shall  be
 11             paid fifty percent (50%) to the various cities in the proportion that
 12             the  population  of  the  city  bears to the population of all cities
 13             within the state, and fifty percent (50%) to the various counties  in
 14             the  proportion  that the population of a county bears to the popula-
 15             tion of the state; and
 16        (d)  Seven and seven-tenths percent (7.7%) of the amount  appropriated  in
 17        this subsection (9) shall be paid to the several counties for distribution
 18        to special purpose taxing districts as follows:
 19             (i)   Each  such  district  which received a payment under the provi-
 20             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 21             calendar year 1999, shall be entitled to a like  amount  during  suc-
 22             ceeding calendar quarters.
 23             (ii)  If  the  dollar amount of money available under this subsection
 24             (9)(d) in any quarter does not equal the amount paid  in  the  fourth
 25             quarter of calendar year 1999, each special purpose taxing district's
 26             payment shall be reduced proportionately.
 27             (iii) If  the  dollar amount of money available under this subsection
 28             (9)(d) in any quarter exceeds the amount distributed under  paragraph
 29             (i)  of  this subsection (9)(d), each special purpose taxing district
 30             shall be entitled to a share of the excess based  on  the  proportion
 31             each  such district's current property tax budget bears to the sum of
 32             the current property tax budgets of all such districts in the  state.
 33             The  state  tax  commission shall calculate district current property
 34             tax budgets to include any unrecovered foregone amounts as determined
 35             under section 63-802(1)(e), Idaho Code. When a special purpose taxing
 36             district is situated in more than one (1) county, the tax  commission
 37             shall  determine the portion attributable to the special purpose tax-
 38             ing district from each county in which it is situated.
 39             (iv)  If special  purpose  taxing  districts  are  consolidated,  the
 40             resulting  district  is entitled to a base amount equal to the sum of
 41             the base amounts which were received in the last calendar quarter  by
 42             each district prior to the consolidation.
 43             (v)   If   a   special   purpose  taxing  district  is  dissolved  or
 44             disincorporated, the state tax commission shall continuously distrib-
 45             ute to the board of county commissioners an amount equal to the  last
 46             quarter's distribution prior to dissolution or disincorporation.  The
 47             board  of  county commissioners shall determine any redistribution of
 48             moneys so received.
 49             (vi)  Taxing districts formed after January 1, 2001, are not entitled
 50             to a payment under the provisions of this subsection (9)(d).
 51             (vii) For purposes of this subsection (9)(d), a special purpose  tax-
 52             ing  district is any taxing district which is not a city, a county or
 53             a school district.
 54        (10) Amounts calculated in accordance with section 2, chapter 356, laws of
 55    2001, for annual distribution to counties and other taxing districts beginning
 56    in October 2001 for replacement of property tax on farm machinery  and  equip-

                                       24
  1    ment  exempted  pursuant  to  section 63-602EE, Idaho Code. For nonschool dis-
  2    tricts, the state tax commission shall distribute  one-fourth  (1/4)  of  this
  3    amount certified quarterly to each county. For school districts, the state tax
  4    commission shall distribute one-fourth (1/4) of the amount certified quarterly
  5    to  each  school  district.  For nonschool districts, the county auditor shall
  6    distribute to each district within thirty (30) calendar days from  receipt  of
  7    moneys  from  the  tax commission. Moneys received by each taxing district for
  8    replacement shall be utilized in the same manner and in the  same  proportions
  9    as  revenues  from  property taxation. The moneys remitted to the county trea-
 10    surer for replacement of property exempt from  taxation  pursuant  to  section
 11    63-602EE,  Idaho Code, may be considered by the counties and other taxing dis-
 12    tricts and budgeted at the same time, in the same manner and in the same  year
 13    as  revenues from taxation on personal property which these moneys replace. If
 14    taxing districts are consolidated, the resulting district is  entitled  to  an
 15    amount  equal to the sum of the amounts which were received in the last calen-
 16    dar quarter by each district pursuant to this subsection prior to the consoli-
 17    dation. If a taxing district is dissolved or disincorporated,  the  state  tax
 18    commission  shall continuously distribute to the board of county commissioners
 19    an amount equal to the last quarter's distribution  prior  to  dissolution  or
 20    disincorporation. The board of county commissioners shall determine any redis-
 21    tribution  of moneys so received.  If a taxing district annexes territory, the
 22    distribution of moneys received pursuant to this  subsection  shall  be  unaf-
 23    fected.  Taxing  districts formed after January 1, 2001, are not entitled to a
 24    payment under the  provisions  of  this  subsection.  School  districts  shall
 25    receive  an  amount  determined by multiplying the sum of the year 2000 school
 26    district levy minus .004 times the market value on December 31, 2000,  in  the
 27    district  of  the  property exempt from taxation pursuant to section 63-602EE,
 28    Idaho Code, provided that the result of these calculations shall not  be  less
 29    than  zero (0). The result of these school district calculations shall be fur-
 30    ther increased by six percent (6%). For purposes of the limitation provided by
 31    section 63-802, Idaho Code, moneys received pursuant to this section as  prop-
 32    erty  tax  replacement  for  property exempt from taxation pursuant to section
 33    63-602EE, Idaho Code, shall be treated as property tax revenues.
 34        (11) Amounts necessary to pay refunds as provided  in  subsection  (3)  of
 35    section  63-3641,  Idaho  Code,  to a developer of a retail commercial complex
 36    whose  stores sell tangible personal property or taxable services  subject  to
 37    the  sales and use tax up to an aggregate total of thirty-five million dollars
 38    ($35,000,000) per project shall be remitted to the demonstration pilot project
 39    fund created in subsection (3) of section 63-3641, Idaho Code,  and  shall  be
 40    specific to and accounted for by each project.
 41        (12) (a) Amounts  calculated  in  accordance  with section 63-602KK(5)(a),
 42        Idaho Code, for distribution to counties and other  taxing  districts  for
 43        replacement  of property tax revenues from personal property exempted from
 44        taxation pursuant to section 63-602KK, Idaho Code. For state  fiscal  year
 45        2010  through fiscal year 2014, and each fiscal year thereafter, distribu-
 46        tions shall be subject to the provisions of paragraph (b) of this  subsec-
 47        tion but shall not exceed the following amounts:
 48             Fiscal  year  2010--twenty  percent (20%) of the amount calculated in
 49             accordance with section 63-602KK(5)(a), Idaho Code;
 50             Fiscal year 2011--forty percent (40%) of  the  amount  calculated  in
 51             accordance with section 63-602KK(5)(a), Idaho Code;
 52             Fiscal  year  2012--sixty  percent  (60%) of the amount calculated in
 53             accordance with section 63-602KK(5)(a), Idaho Code;
 54             Fiscal year 2013--eighty percent (80%) of the  amount  calculated  in
 55             accordance with section 63-602KK(5)(a), Idaho Code;
 56             Fiscal  year  2014  and  for each fiscal year thereafter, one hundred

                                       25
  1             percent (100%) of the amount calculated in  accordance  with  section
  2             63-602KK(5)(a), Idaho Code.
  3        The state tax commission shall distribute one-fourth (1/4) of the distrib-
  4        utable amounts quarterly to each county.
  5        (b)  In  any  taxable year in which the reduction in taxable value of per-
  6        sonal property is withheld pursuant to section  63-602KK(2),  Idaho  Code,
  7        distributions  in excess of distributions previously authorized to be made
  8        during the last fiscal year in which distributions occurred, shall not  be
  9        made during the immediately succeeding state fiscal year. At the beginning
 10        of  each state fiscal year following an allowed reduction in taxable value
 11        of personal property as of the first day of  January  preceding  the  com-
 12        mencement  of  the  state's succeeding fiscal year, distributions shall be
 13        equal to the amount distributed in previous years, together with an  addi-
 14        tional  amount  equal  to twenty percent (20%) of the amount calculated in
 15        accordance with section 63-602KK(5)(a), Idaho Code. Notwithstanding  with-
 16        held distributions in prior fiscal years, commencing not later than fiscal
 17        year 2015, and for each fiscal year thereafter, one hundred percent (100%)
 18        of  the amount calculated in accordance with section 63-602KK(5)(a), Idaho
 19        Code, shall be made to counties and other taxing districts for replacement
 20        of property tax revenues from personal property exempted pursuant to  sec-
 21        tion 63-602KK, Idaho Code.
 22        (13) Any  moneys  remaining  over  and  above  those necessary to meet and
 23    reserve for payments under other subsections of this section shall be distrib-
 24    uted to the general fund.

 25        SECTION 15.  That Section 63-510, Idaho Code, be, and the same  is  hereby
 26    amended to read as follows:

 27        63-510.  NOTIFICATION  OF VALUATION DUE TO STATE TAX COMMISSION. (1) Prior
 28    to the first Monday of August the auditor of each county in  the  state  shall
 29    notify the state tax commission of the net taxable value of all property situ-
 30    ated  within each taxing unit or district in the county from the property roll
 31    for the current year and shall provide an estimate of the  net  taxable  value
 32    for  each taxing unit or district from the current year's estimated subsequent
 33    and missed property rolls. Such notification shall also include an estimate of
 34    the net taxable value within any area annexed during the immediate prior  year
 35    to any taxing unit or district.
 36        (2)  Prior  to the first Monday of March the auditor of each county in the
 37    state shall notify the state tax commission of the net taxable  value  of  all
 38    property  situated  within each taxing unit or district in the county from the
 39    subsequent and missed property rolls. Such notification shall also include  an
 40    estimate of the net taxable value within any area annexed during the immediate
 41    prior  year, and listed on the subsequent or missed property roll, to any tax-
 42    ing unit or district.
 43        (3)  The notification required in subsections (1) and (2) of this  section
 44    shall  be  on  forms  prescribed  and provided by the state tax commission and
 45    shall list separately the value exempt from property  taxation  in  accordance
 46    with  section  63-602G,  Idaho  Code, and the value in excess of the equalized
 47    assessment valuation as shown on the base assessment roll in any revenue allo-
 48    cation area, pursuant to chapters 20 and 29, title 50, Idaho Code.
 49        (4)  For the purposes of this section, "taxing district,"  as  defined  in
 50    section  63-201(224), Idaho Code, shall include each incorporated city in each
 51    county, regardless of whether said city certifies a property tax budget.

 52        SECTION 16.  That Section 63-1703, Idaho Code, be, and the same is  hereby
 53    amended to read as follows:

                                       26
  1        63-1703.  CERTAIN  FOREST  LANDS TO BE DESIGNATED FOR TAXATION BY OWNER --
  2    LIMITATIONS. For the purposes of appraisal, assessment and taxation under  the
  3    provisions  of  this  chapter, all forest lands in parcels of five (5) or more
  4    acres but less than five thousand (5,000), whether contiguous or not, as  long
  5    as such parcels are held in common ownership, must be designated by the forest
  6    landowner  to  be subject to the provisions of either subsection (a) or (b) of
  7    this section. A forest landowner cannot have parcels designated under the pro-
  8    visions of both subsections (a) and (b) of this section at one  (1)  time.  If
  9    the  forest  landowner  fails to make a designation, his forest lands shall be
 10    subject to appraisal, assessment and taxation under the provisions of  section
 11    63-1702,  Idaho Code. Once a designation is made by the forest landowner, such
 12    designation must remain in effect until the designation period expires, unless
 13    the forest lands are transferred to another owner  using  a  different  taxing
 14    category;  in  such  case, the taxing category of the transferred forest lands
 15    shall be the same as that maintained by the new owner.
 16        A forest landowner may change the designation of all forest lands in  com-
 17    mon  ownership  at the end of any designation period, subject to the recapture
 18    of any deferred taxes due as a result of such change. After January 1  and  by
 19    December  31 of the tenth year of each designation period the forest landowner
 20    must notify the county assessor of any  change  in  forest  land  designation.
 21    Failure  to  notify the county assessor will result in the continuation of the
 22    landowner's present designation until the end of the next designation period.
 23        Any substantial change in the use of forest lands not conforming with  the
 24    definition of forest land in section 63-1701, Idaho Code, during such ten (10)
 25    year  period  under  the  designations  made in subsection (a) or (b) shall be
 26    reported by the landowner to the county assessor within thirty  (30)  days  of
 27    the  change in use. Upon notification of the change in use, the assessor shall
 28    appraise, assess and tax those acres as provided by applicable laws and rules.
 29    Failure to notify the assessor of the change in use  when  forest  lands  have
 30    been  designated  as  subject to the provisions of subsection (a) or (b) shall
 31    cause forfeiture of such designation, and cause that property to be appraised,
 32    assessed and taxed as provided in section 63-1702, Idaho Code.
 33        Forest lands designated for assessment pursuant to the provisions of  sec-
 34    tion  63-1706, Idaho Code, shall be subject to the recapture of deferred taxes
 35    upon removal of such designation, a substantial change in  use,  or  ownership
 36    transfer,  except  that  there  shall be no recapture initiated upon ownership
 37    transfer of forest lands designated as subject to the  provisions  of  section
 38    63-1706,  Idaho  Code,  to a landowner with forest lands already designated as
 39    subject to the provisions of section 63-1706, Idaho Code, prior to the  trans-
 40    fer, or who so designates his lands to be subject to the provisions of section
 41    63-1706,  Idaho  Code.  In  the  event payment is offered or made, it shall be
 42    accepted by the county treasurer and applied in the manner of payment of other
 43    property tax.
 44        The dollar amount of deferred taxes subject to recapture shall  be  deter-
 45    mined  by  the county assessor by applying current tax levies against the cur-
 46    rent values that would have been in  effect  if  the  lands  were  subject  to
 47    appraisal  and assessment during the current year under the provisions of sec-
 48    tion 63-1705, Idaho Code, if there has been a change in ownership or a removal
 49    of designation, or section 63-1702, Idaho Code, if there has been a change  in
 50    use  with no change in ownership, which amount shall be multiplied by the num-
 51    ber of years that the lands have been subject to the designation under section
 52    63-1706, Idaho Code. The amount of the deferred tax shall accrue through  des-
 53    ignation  periods,  up  to a maximum of ten (10) years, and shall apply to the
 54    most recent ten (10) years in which the parcel has been designated  under  the
 55    provisions of section 63-1706, Idaho Code. A credit shall be allowed for taxes
 56    actually  paid  under  the  provisions  of section 63-1706, Idaho Code, for an

                                       27
  1    identical ten (10) year period, up to the total amount of the deferred  taxes.
  2    All  deferred  amounts  shall be a lien against the land. Deferred tax amounts
  3    shall be calculated by the county assessor on forms prescribed  by  the  state
  4    tax  commission. Deferred tax amounts shall be supplied by the county assessor
  5    to the county treasurer by May 15 of the year following conveyance  or  within
  6    thirty (30) days of removal of designation, or of learning of a change in use.
  7    All  deferred  tax amounts shall be due and payable to the county treasurer on
  8    demand and shall become delinquent if not paid by the demand due  date  speci-
  9    fied  by the county treasurer on the forms prescribed by the state tax commis-
 10    sion. If the deferred tax is not paid as provided above, the  payment  becomes
 11    delinquent  and subject to late charges, and interest in  the amounts provided
 12    in sections 63-201(79) and 63-1001, Idaho Code, and subject to  collection  in
 13    the  manner  as  set  forth  in  chapter  10,  title 63, Idaho Code. Estimated
 14    deferred tax amounts may be held by the county treasurer in a tax anticipation
 15    account from the date of conveyance until June 1 of the year following convey-
 16    ance.
 17        The county treasurer shall cause the deferred taxes and  any  penalty  and
 18    interest  paid pursuant to the provisions of this section to be apportioned to
 19    the various taxing authorities within which the property subject to the tax is
 20    located in the same manner as property taxes.
 21        (a)  A forest landowner may choose  to  have  his  forest  land  assessed,
 22    appraised  and  taxed  under the provisions of section 63-1705, Idaho Code, by
 23    filing such choice with the county assessor on a form prescribed by the  state
 24    tax  commission.  Designation  filed  pursuant to section 63-1705, Idaho Code,
 25    shall become effective the first day of January following the year of designa-
 26    tion.
 27        (b)  A forest landowner may choose  to  have  his  forest  land  assessed,
 28    appraised  and  taxed  under the provisions of section 63-1706, Idaho Code, by
 29    filing such choice with the county assessor on a form prescribed by the  state
 30    tax  commission.  Designation  filed  pursuant to section 63-1706, Idaho Code,
 31    shall become effective the first day of January following the year of designa-
 32    tion.
 33        (c)  All forest products or timber harvested  from  investment  lands  not
 34    designated  as  subject  to  the  provisions  of  section  63-1702, 63-1705 or
 35    63-1706, Idaho Code, and delivered to  a  point  of  utilization  as  logs  or
 36    semiprocessed  forest products (except those forest products harvested for the
 37    domestic use of the landowner under the provisions of section  63-1708,  Idaho
 38    Code)  shall  be  subject  to the yield tax at the time of harvest in the same
 39    manner provided for in section 63-1706, Idaho Code.

 40        SECTION 17.  That Section 33-1103, Idaho Code, be, and the same is  hereby
 41    amended to read as follows:

 42        33-1103.  DEFINITIONS -- BONDS -- LIMITATION ON AMOUNT -- ELECTIONS TO AU-
 43    THORIZE  ISSUANCE.  (1) For the purposes of this chapter the following defini-
 44    tions shall have the meanings specified: "Market  value  for  assessment  pur-
 45    poses" means the amount of the last preceding equalized assessment of all tax-
 46    able  property  and  all  property  exempt  from  taxation pursuant to section
 47    63-602G, Idaho Code, and property exempted from taxation commencing January 1,
 48    2009, through January 1, 2014, pursuant to section 63-602KK(2)(a), Idaho Code,
 49    within the school district on the tax rolls completed and available as of  the
 50    date  of  approval  by  the electorate in the school bond election. "Aggregate
 51    outstanding indebtedness" means the total sum of unredeemed outstanding bonds,
 52    minus all moneys in the bond interest and redemption fund or funds accumulated
 53    for the redemption of such outstanding bonds, and minus the sum of  all  taxes
 54    levied for the redemption of such bonds, with the exception of that portion of

                                       28
  1    such  tax  levies  required  for the payment of interest on bonds, which taxes
  2    remain uncollected. "Issue," "issued," or "issuance" means a  formal  delivery
  3    of bonds to any purchaser thereof and payment therefor to the school district.
  4        (2)  The  board  of  trustees  of  any school district, upon approval of a
  5    majority thereof, may submit to the qualified school district electors of  the
  6    district  the  question  as  to  whether the board shall be empowered to issue
  7    negotiable coupon bonds of the district in an amount and for a period of  time
  8    to be named in the notice of election.
  9        (3)  An  elementary  school  district  which employs not less than six (6)
 10    teachers, or a school district operating an elementary school or schools,  and
 11    a  secondary school or schools, or issuing bonds for the acquisition of a sec-
 12    ondary school or schools, may issue bonds in an amount not to exceed five per-
 13    cent (5%) of the market value for assessment purposes thereof, less the aggre-
 14    gate outstanding indebtedness; and no other school district shall issue  bonds
 15    in  an  amount  to exceed at any time two percent (2%) of the market value for
 16    assessment purposes  thereof less the aggregate outstanding indebtedness.  The
 17    market  value  for assessment purposes, the aggregate outstanding indebtedness
 18    and the unexhausted debt-incurring power of the district shall each be  deter-
 19    mined as of the date of approval by the electors in the school bond election.
 20        (4)  Notice  of  the  bond  election shall be given, the election shall be
 21    conducted and the returns thereof canvassed, and the qualifications  of  elec-
 22    tors  voting  or  offering  to  vote  shall be, as provided in sections 33-401
 23    through 33-406, Idaho Code.
 24        (5)  The question shall be approved only if the percentage of  votes  cast
 25    at  such election were cast in favor thereof is that which now, or may hereaf-
 26    ter be, set by the constitution of the state of Idaho. Upon such  approval  of
 27    the  issuance  of  bonds, the same may be issued at any time after the date of
 28    such election.

 29        SECTION 18.  SEVERABILITY. The provisions of this act are hereby  declared
 30    to  be  severable  and if any provision of this act or the application of such
 31    provision to any person or circumstance is declared invalid  for  any  reason,
 32    such  declaration  shall  not affect the validity of the remaining portions of
 33    this act.

 34        SECTION 19.  An emergency existing therefor,  which  emergency  is  hereby
 35    declared  to  exist, Sections 1, 2, 3 and 8 of this act shall be in full force
 36    and effect on and after passage and approval, and retroactively to January  1,
 37    2008.  Sections 4, 5, 6 and 7 of this act shall be in full force and effect on
 38    and after July 1, 2008.

Statement of Purpose / Fiscal Impact


     
                         STATEMENT OF PURPOSE

                              RS 17950C2

     The personal property tax applies to business machinery, tools,
furnishings, equipment and some fixtures.  It is one of the most
difficult to administer and comply with for government and business
alike.  It is a barrier to economic development and studies indicate
that the elimination of the tax results in significant economic
stimulus for both business and the personal income of Idaho citizens.
     The purpose of this legislation is to phase out the tax over
five years.  Elements of the legislation include an immediate and
retroactive to January 1, 2008, exemption of all new personal
property purchased since that date.
     The remaining personal property on the books prior to that date
will be assessed for 2008.  This process will establish the actual
gross dollar amount that will be repaid by the state to local
government throughout the phase out and into perpetuity.
     The five-year phase out starting in 2009 or FY-2010 will be in
twenty percent (20%) increments until all of the personal property
tax paid by business is eliminated and the state is fully reimbursing
local governments.  Each year the state revenue will need to exceed
four percent (4%) for each increment to be phased in.
     The legislation eliminates a current ongoing shift of tax
liability from personal property to real property and gives
assurances to state budget writers using the trigger mechanism that
is the same as the one used for the budget stabilization account.

 
                            FISCAL NOTE

     There should be an immediate savings to counties that will no
longer have to track and assess many of these depreciating assets of
the businesses in the state starting in 2009.
     The remaining amount of personal property tax to be reimbursed
to local government will be phased in.  The fiscal notes are a "worst
case scenario."  Studies indicate that the state will see as much as
half of the fiscal notes indicated returning to the state coffers in
the form of economic expansion of both business and personal income
as a result of the change in Idaho policy to eliminate the tax.
     The eventual total gross cost is estimated to be between $110
and $120 million that will be phased out over the five-year period
starting FY-2010 provided the revenues meet the requirements outlined
in the legislation.  The net long-term cost is estimated to be
between $68 and $62 million based on dynamic forecasting models. 




Co-Sponsors:
Representatives: Jim Clark, Mike Moyle, Dennis Lake, Gary Collins,
Ken Roberts, Dell Raybould, Lenore Barrett, Eric Anderson, Carlos
Bilbao, James Ruchti, Bert Brackett, Brent Crane, Marv Hagedorn,
Steve Kren, Mark Snodgrass, John Vander Woude, Max Black, Robert
Schaefer, Curtis Bowers 
Senators: Mel Richardson, John McGee, Dean Cameron, Steven Bair, Curt
McKenzie, Leland Heinrich, Shirley McKague, Jeff Siddoway,
John Andreason, Patti Anne Lodge, Mike Jorgenson, Stan Bastian
Phone: 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                            H 599   

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