2006 Legislation
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HOUSE BILL NO. 421 – Property tax, homestead exmptn incr

HOUSE BILL NO. 421

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Bill Status



H0421aaS............................................by REVENUE AND TAXATION
PROPERTY TAX - Amends existing law to provide that the first $75,000 of the
market value for assessment purposes of the homestead or 50% of the market
value for assessment purposes of the homestead, whichever is lesser, shall
be exempt from property taxation; to define "homestead"; to provide for
certain annual adjustments to the maximum amount subject to property tax
exemption; to provide for publication and dissemination of adjustments; and
to provide that the publication of adjustments shall be exempt from the
provisions of the administrative procedure act.
                                                                        
01/19    House intro - 1st rdg - to printing
01/20    Rpt prt - to Rev/Tax
02/09    Rpt out - rec d/p - to 2nd rdg
02/10    2nd rdg - to 3rd rdg
02/17    3rd rdg - PASSED - 69-1-0
      AYES -- Anderson, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell,
      Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart(Jacobson), Harwood,
      Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher,
      Martinez, Mathews, McGeachin, McKague, Miller, Mitchell, Moyle,
      Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo,
      Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer, Shepherd(2),
      Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie,
      Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
      NAYS -- Andrus
      Absent and excused -- None
    Floor Sponsor - Lake
    Title apvd - to Senate
02/20    Senate intro - 1st rdg - to Loc Gov
03/08    Rpt out - to 14th Ord
03/17    Rpt out amen - to 1st rdg as amen
03/20    1st rdg - to 2nd rdg as amen
03/21    2nd rdg - to 3rd rdg as amen
03/23    3rd rdg as amen - PASSED - 28-7-0
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett(Clark),
      Coiner, Compton, Corder, Davis, Fulcher, Gannon, Goedde, Hill,
      Jorgenson, Kelly, Keough, Langhorst, Lodge, Malepeai, Marley, McGee,
      McKenzie, Pearce, Richardson, Schroeder, Stennett, Sweet, Werk
      NAYS -- Burtenshaw, Cameron, Darrington, Geddes, Little, Stegner,
      Williams
      Absent and excused -- None
    Floor Sponsors - Langhorst, Corder & Hill
    Title apvd - to House
03/24    House - Held at Desk
03/30    Ret'd to Rev/Tax
04/04    Rpt out
    House concurred in Senate amens - to engros
04/05    Rpt engros - 1st rdg - to 2nd rdg as amen
04/06    2nd rdg - to 3rd rdg as amen
04/11    3rd rdg as amen - PASSED - 60-8-2
      AYES -- Anderson, Barraclough, Bastian, Bayer, Bell, Bilbao, Black,
      Block, Boe, Bolz, Brackett, Bradford, Cannon, Chadderdon, Clark,
      Collins, Deal, Edmunson, Ellsworth, Eskridge, Field(18), Field(23),
      Garrett, Hart, Henbest, Henderson, Kemp, Lake, LeFavour, Martinez,
      Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Wills,
      Mr. Speaker
      NAYS -- Andrus, Barrett, Bedke, Crow, Denney, Harwood, Loertscher,
      Wood
      Absent and excused -- Jaquet, Trail
    Floor Sponsor - Lake
    Title apvd - To enrol - Rpt enrol - Sp/Pres signed
04/12    To Governor
04/12    Governor signed
         Session Law Chapter 429
         Effective: 01/01/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 421
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PROPERTY EXEMPT FROM TAXATION;  AMENDING  SECTION  63-602G,  IDAHO
  3        CODE,  TO PROVIDE THAT THE FIRST SEVENTY-FIVE THOUSAND DOLLARS OF THE MAR-
  4        KET VALUE FOR ASSESSMENT PURPOSES OF THE HOMESTEAD OR FIFTY PERCENT OF THE
  5        MARKET VALUE FOR ASSESSMENT PURPOSES OF THE HOMESTEAD,  WHICHEVER  IS  THE
  6        LESSER,  SHALL  BE  EXEMPT FROM PROPERTY TAXATION, TO DEFINE HOMESTEAD, TO
  7        PROVIDE FOR CERTAIN ANNUAL ADJUSTMENTS TO THE MAXIMUM  AMOUNT  SUBJECT  TO
  8        PROPERTY  TAX  EXEMPTION,  TO PROVIDE FOR PUBLICATION AND DISSEMINATION OF
  9        ADJUSTMENTS AND TO PROVIDE THAT THE PUBLICATION OF  ADJUSTMENTS  SHALL  BE
 10        EXEMPT FROM THE PROVISIONS OF THE ADMINISTRATIVE PROCEDURE ACT AND TO MAKE
 11        TECHNICAL  CORRECTIONS;  DECLARING  AN EMERGENCY AND PROVIDING RETROACTIVE
 12        APPLICATION.
                                                                        
 13    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 14        SECTION 1.  That Section 63-602G, Idaho Code, be, and the same  is  hereby
 15    amended to read as follows:
                                                                        
 16        63-602G.  PROPERTY  EXEMPT FROM TAXATION -- RESIDENTIAL IMPROVEMENTS HOME-
 17    STEAD. (1) During the tax year 1983 2006 and each year thereafter, subject  to
 18    annual  adjustment  as  provided herein, the first fifty seventy-five thousand
 19    dollars ($750,000) of the market value for assessment purposes of  residential
 20    improvements  the  homestead  as that term is defined in section 63-701, Idaho
 21    Code, or fifty percent (50%) of the market value for  assessment  purposes  of
 22    residential  improvements  the  homestead  as  that term is defined in section
 23    63-701, Idaho Code, whichever is the lesser, shall  be  exempt  from  property
 24    taxation.  Beginning  for  tax  year 2007, the state tax commission shall pub-
 25    lish  adjustments  to  the maximum amount subject to property tax exemption to
 26    reflect cost-of-living fluctuations. The adjustments shall effect  changes  in
 27    the amount subject  to  tax exemption by a percentage equal as near as practi-
 28    cable to the   annual cost-of-living percentage modification as determined  by
 29    the   secretary   of   health and human services pursuant to 42 U.S.C. section
 30    415(i). The state tax commission shall publish  the  adjustments  required  by
 31    this  subsection  each  and every  year the secretary of health and human ser-
 32    vices  announces  said cost-of-living percentage modification. The adjustments
 33    shall be  published  no later than October 1 of each year and shall be  effec-
 34    tive for claims filed in and for the following property tax year. The publica-
 35    tion  of adjustments under this subsection shall be exempt from the provisions
 36    of chapter 52, title 67, Idaho Code, but shall be provided to each county  and
 37    to members of the public upon request and without charge.
 38        (2)  The exemption allowed by this section may be granted only if:
 39        (a)  The residential improvements are homestead is owner-occupied and used
 40        as  the primary dwelling place of the owner as of January 1, provided that
 41        in the event the residential improvements are homestead is  owner-occupied
 42        after January 1 but before April 15, the owner of the property is entitled
 43        to  the  exemption.  The residential improvements homestead may consist of
                                                                        
                                           2
                                                                        
  1        part of a multidwelling or multipurpose building and shall include all  of
  2        such dwelling or building except any portion used exclusively for anything
  3        other than the primary dwelling of the owner. The presence of an office in
  4        an owner-occupied residential property homestead, which office is used for
  5        multiple  purposes, including business and personal use, shall not prevent
  6        the owner  from claiming the exemption provided in this section; and
  7        (b)  The tax commission has certified to the board of county commissioners
  8        that all properties in the county which are subject to  appraisal  by  the
  9        county  assessor have, in fact, been appraised uniformly so as to secure a
 10        just valuation for all property within the county; and
 11        (c)  The owner has certified to the county assessor by April 15 that:
 12             (i)   He is making application for the exemption allowed by this sec-
 13             tion;
 14             (ii)  That the residential improvements are homestead is his  primary
 15             dwelling place; and
 16             (iii) That  he  has  not made application in any other county for the
 17             exemption, and has not made application  for  the  exemption  on  any
 18             other residential improvements homestead in the county.
 19        (d)  For  the  purpose of this section, the definition of "owner" shall be
 20        the same definition set forth in section 63-701(7), Idaho Code.
 21             When an "owner," pursuant to the  provisions  of  section  63-701(7),
 22        Idaho Code, is any person who is the beneficiary of a revocable or irrevo-
 23        cable  trust,  or who is a partner of a limited partnership, a member of a
 24        limited liability company, or shareholder of a corporation, he or she  may
 25        provide  proof  of  the trust, limited partnership, limited liability com-
 26        pany, or corporation in the manner set forth in section  63-703(4),  Idaho
 27        Code.
 28        (e)  Any owner may request in writing the return of all copies of any doc-
 29        uments  submitted with the affidavit set forth in section 63-703(4), Idaho
 30        Code, that are held by a county assessor, and the copies shall be returned
 31        by the county assessor upon submission of the affidavit in proper form.
 32        (f)  For the purpose of this section, the definition of "primary  dwelling
 33        place"  shall be the same definition set forth in section 63-701(8), Idaho
 34        Code.
 35        (g)  For the purpose of this section, the definition of  "occupied"  shall
 36        be the same definition set forth in section 63-701(6), Idaho Code.
 37        (3)  An  owner  need  only make application for the exemption described in
 38    subsection (1) of this section once, as long as all of  the  following  condi-
 39    tions are met:
 40        (a)  The  owner  has  received the exemption during the previous year as a
 41        result of his making a valid application as defined in  subsection  (2)(c)
 42        of this section.
 43        (b)  The  owner  or beneficiary, partner, member or shareholder, as appro-
 44        priate, still occupies the same  residential  improvements  homestead  for
 45        which the owner made application.
 46        (c)  The residential improvements homestead described in subsection (3)(b)
 47        of  this section are is owner-occupied or occupied by a beneficiary, part-
 48        ner, member or shareholder, as appropriate, and used as the primary dwell-
 49        ing place of the owner or beneficiary, partner, member or shareholder,  as
 50        appropriate, as of January 1; provided however, that in the event the res-
 51        idential improvements are homestead is owner-occupied after January 1, but
 52        before April 15, the owner of the property is entitled to the exemption.
 53        (4)  The exemption allowed by this section must be taken before the reduc-
 54    tion  in  taxes  provided  by  sections  63-701 through 63-710, Idaho Code, is
 55    applied.
                                                                        
                                           3
                                                                        
  1        (5)  Recovery of property tax  exemptions  allowed  by  this  section  but
  2    improperly claimed or approved.:
  3        (a)  Upon  discovery  of  evidence,  facts or circumstances indicating any
  4        exemption  allowed by this section was improperly claimed or approved, the
  5        county assessor shall decide  whether  the  exemption  claimed  should  be
  6        allowed  and  if not, notify the taxpayer in writing, assess a recovery of
  7        property tax and notify the county treasurer of this assessment.
  8        (b)  When information indicating that an improper claim for the  exemption
  9        allowed  by  this  section  is discovered by the state tax commission, the
 10        state tax commission may disclose  this  information  to  the  appropriate
 11        county  assessor,  board  of  county  commissioners  and county treasurer.
 12        Information disclosed to county officials  by  the  state  tax  commission
 13        under  this  subsection may be used to decide the validity of any entitle-
 14        ment to the exemption provided in this section and is not  otherwise  sub-
 15        ject to public disclosure pursuant to chapter 3, title 9, Idaho Code.
 16        (c)  The  assessment  and  collection of the recovery of property tax must
 17        begin within the seven (7) year period beginning the date  the  assessment
 18        notice  reflecting  the  improperly  claimed  or  approved  exemption  was
 19        required to be mailed to the taxpayer.
 20        (d)  The  taxpayer  may  appeal  to  the board of county commissioners the
 21        decision by the county assessor to assess the  recovery  of  property  tax
 22        within thirty (30) days of the date the county assessor sent the notice to
 23        the taxpayer pursuant to this section.
 24        (e)  A  recovery  of  property  tax  shall  be for each year the exemption
 25        allowed by this section was improperly  claimed  or  approved  up  to  the
 26        lesser  of  a  maximum of seven (7) years or until the property was trans-
 27        ferred to a bona fide purchaser for value. The amount of the  recovery  of
 28        property  tax  shall  be  calculated  using  the  product of the amount of
 29        exempted value for each year multiplied by the levy  for  that  year  plus
 30        costs, late charges and interest for each year at the rates equal to those
 31        provided for delinquent property taxes during that year.
 32        (f)  Any  recovery  of property tax shall be due and payable no later than
 33        the date provided for property taxes in section 63-903, Idaho Code, and if
 34        not timely paid, late charges and interest, beginning  the  first  day  of
 35        January in the year following the year the county assessor sent the notice
 36        to  the taxpayer pursuant to this section, shall be calculated at the cur-
 37        rent rate provided for property taxes.
 38        (g)  Recovered property taxes shall be billed, collected  and  distributed
 39        in  the same manner as property taxes, except each taxing district or unit
 40        shall be notified of the amount of any recovered property  taxes  included
 41        in any distribution.
 42        (h)  Any unpaid recovered property taxes shall become a lien upon the real
 43        property  in  the  same  manner  as provided for property taxes in section
 44        63-206, Idaho Code, except such lien shall attach as of the first  day  of
 45        January in the year following the year the county assessor sent the notice
 46        to the taxpayer pursuant to this section.
 47        (i)  For  purposes  of  the  limitation  provided by section 63-802, Idaho
 48        Code, moneys received pursuant to this subsection as recovery of  property
 49        tax shall be treated as property tax revenue.
 50        (6)  The legislature declares that this exemption is necessary and just.
 51        (7)  Residential  improvements A homestead having previously qualified for
 52    exemption under this section in the preceding year, shall not lose such quali-
 53    fication  due  to:  the  owner's,  beneficiary's,   partner's,   member's   or
 54    shareholder's absence in the current year by reason of active military service
 55    in a designated combat zone, as defined in section 112 of the Internal Revenue
                                                                        
                                           4
                                                                        
  1    Code,  or  because the residential improvements have homestead has been leased
  2    because the owner, beneficiary, partner, member or shareholder  is  absent  in
  3    the  current  year by reason of active military service in a designated combat
  4    zone, as defined in section 112 of the Internal  Revenue  Code.  If  an  owner
  5    fails to timely apply for exemption as required in this section solely by rea-
  6    son  of  active  duty  in  a designated combat zone by the owner, beneficiary,
  7    partner, member or shareholder, as appropriate, as defined in section  112  of
  8    the  Internal  Revenue Code, and such improvements homestead would have other-
  9    wise qualified under this section, then the board of county  commissioners  of
 10    the  county  in  which  the  residential improvements are homestead is located
 11    shall refund property taxes, if previously paid, in an  amount  equal  to  the
 12    exemption which would otherwise have applied.
                                                                        
 13        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 14    declared to exist, this act shall be in full force and effect on and after its
 15    passage and approval, and retroactively to January 1, 2006.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                                     Moved by    Langhorst           
                                                                        
                                                     Seconded by Werk                
                                                                        
                                                                        
                                       IN THE SENATE
                              SENATE AMENDMENT TO H.B. NO. 421
                                                                        
  1                                AMENDMENT TO SECTION 1
  2        On page 1 of the printed bill, delete lines  28  through  32  and  insert:
  3    "cable  to  the annual increase in the Idaho housing price index as determined
  4    by the United States office of federal housing enterprise oversight. The state
  5    tax commission shall publish the adjustments required by this subsection  each
  6    and  every year the office of federal housing enterprise oversight announces a
  7    change in the Idaho housing price index. The adjustments".

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


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                        HOUSE BILL NO. 421, As Amended in the Senate
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PROPERTY EXEMPT FROM TAXATION;  AMENDING  SECTION  63-602G,  IDAHO
  3        CODE,  TO PROVIDE THAT THE FIRST SEVENTY-FIVE THOUSAND DOLLARS OF THE MAR-
  4        KET VALUE FOR ASSESSMENT PURPOSES OF THE HOMESTEAD OR FIFTY PERCENT OF THE
  5        MARKET VALUE FOR ASSESSMENT PURPOSES OF THE HOMESTEAD,  WHICHEVER  IS  THE
  6        LESSER,  SHALL  BE  EXEMPT FROM PROPERTY TAXATION, TO DEFINE HOMESTEAD, TO
  7        PROVIDE FOR CERTAIN ANNUAL ADJUSTMENTS TO THE MAXIMUM  AMOUNT  SUBJECT  TO
  8        PROPERTY  TAX  EXEMPTION,  TO PROVIDE FOR PUBLICATION AND DISSEMINATION OF
  9        ADJUSTMENTS AND TO PROVIDE THAT THE PUBLICATION OF  ADJUSTMENTS  SHALL  BE
 10        EXEMPT FROM THE PROVISIONS OF THE ADMINISTRATIVE PROCEDURE ACT AND TO MAKE
 11        TECHNICAL  CORRECTIONS;  DECLARING  AN EMERGENCY AND PROVIDING RETROACTIVE
 12        APPLICATION.
                                                                        
 13    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 14        SECTION 1.  That Section 63-602G, Idaho Code, be, and the same  is  hereby
 15    amended to read as follows:
                                                                        
 16        63-602G.  PROPERTY  EXEMPT FROM TAXATION -- RESIDENTIAL IMPROVEMENTS HOME-
 17    STEAD. (1) During the tax year 1983 2006 and each year thereafter, subject  to
 18    annual  adjustment  as  provided herein, the first fifty seventy-five thousand
 19    dollars ($750,000) of the market value for assessment purposes of  residential
 20    improvements  the  homestead  as that term is defined in section 63-701, Idaho
 21    Code, or fifty percent (50%) of the market value for  assessment  purposes  of
 22    residential  improvements  the  homestead  as  that term is defined in section
 23    63-701, Idaho Code, whichever is the lesser, shall  be  exempt  from  property
 24    taxation.  Beginning for tax year 2007, the state tax commission shall publish
 25    adjustments to the maximum amount subject to property tax exemption to reflect
 26    cost-of-living fluctuations. The  adjustments  shall  effect  changes  in  the
 27    amount  subject  to tax exemption by a percentage equal as near as practicable
 28    to the annual increase in the Idaho housing price index as determined  by  the
 29    United  States  office  of federal housing enterprise oversight. The state tax
 30    commission shall publish the adjustments required by this subsection each  and
 31    every  year  the  office  of  federal housing enterprise oversight announces a
 32    change in the Idaho housing price index. The adjustments shall be published no
 33    later than October 1 of each year and shall be effective for claims  filed  in
 34    and  for the following property tax year. The publication of adjustments under
 35    this subsection shall be exempt from the provisions of chapter 52,  title  67,
 36    Idaho  Code, but shall be provided to each county and to members of the public
 37    upon request and without charge.
 38        (2)  The exemption allowed by this section may be granted only if:
 39        (a)  The residential improvements are homestead is owner-occupied and used
 40        as the primary dwelling place of the owner as of January 1, provided  that
 41        in  the event the residential improvements are homestead is owner-occupied
 42        after January 1 but before April 15, the owner of the property is entitled
 43        to the exemption. The residential improvements homestead  may  consist  of
                                                                        
                                           2
                                                                        
  1        part  of a multidwelling or multipurpose building and shall include all of
  2        such dwelling or building except any portion used exclusively for anything
  3        other than the primary dwelling of the owner. The presence of an office in
  4        an owner-occupied residential property homestead, which office is used for
  5        multiple purposes, including business and personal use, shall not  prevent
  6        the owner  from claiming the exemption provided in this section; and
  7        (b)  The tax commission has certified to the board of county commissioners
  8        that  all  properties  in the county which are subject to appraisal by the
  9        county assessor have, in fact, been appraised uniformly so as to secure  a
 10        just valuation for all property within the county; and
 11        (c)  The owner has certified to the county assessor by April 15 that:
 12             (i)   He is making application for the exemption allowed by this sec-
 13             tion;
 14             (ii)  That  the residential improvements are homestead is his primary
 15             dwelling place; and
 16             (iii) That he has not made application in any other  county  for  the
 17             exemption,  and  has  not  made  application for the exemption on any
 18             other residential improvements homestead in the county.
 19        (d)  For the purpose of this section, the definition of "owner"  shall  be
 20        the same definition set forth in section 63-701(7), Idaho Code.
 21             When  an  "owner,"  pursuant  to the provisions of section 63-701(7),
 22        Idaho Code, is any person who is the beneficiary of a revocable or irrevo-
 23        cable trust, or who is a partner of a limited partnership, a member  of  a
 24        limited  liability company, or shareholder of a corporation, he or she may
 25        provide proof of the trust, limited partnership,  limited  liability  com-
 26        pany,  or  corporation in the manner set forth in section 63-703(4), Idaho
 27        Code.
 28        (e)  Any owner may request in writing the return of all copies of any doc-
 29        uments submitted with the affidavit set forth in section 63-703(4),  Idaho
 30        Code, that are held by a county assessor, and the copies shall be returned
 31        by the county assessor upon submission of the affidavit in proper form.
 32        (f)  For  the purpose of this section, the definition of "primary dwelling
 33        place" shall be the same definition set forth in section 63-701(8),  Idaho
 34        Code.
 35        (g)  For  the  purpose of this section, the definition of "occupied" shall
 36        be the same definition set forth in section 63-701(6), Idaho Code.
 37        (3)  An owner need only make application for the  exemption  described  in
 38    subsection  (1)  of  this section once, as long as all of the following condi-
 39    tions are met:
 40        (a)  The owner has received the exemption during the previous  year  as  a
 41        result  of  his making a valid application as defined in subsection (2)(c)
 42        of this section.
 43        (b)  The owner or beneficiary, partner, member or shareholder,  as  appro-
 44        priate,  still  occupies  the  same residential improvements homestead for
 45        which the owner made application.
 46        (c)  The residential improvements homestead described in subsection (3)(b)
 47        of this section are is owner-occupied or occupied by a beneficiary,  part-
 48        ner, member or shareholder, as appropriate, and used as the primary dwell-
 49        ing  place of the owner or beneficiary, partner, member or shareholder, as
 50        appropriate, as of January 1; provided however, that in the event the res-
 51        idential improvements are homestead is owner-occupied after January 1, but
 52        before April 15, the owner of the property is entitled to the exemption.
 53        (4)  The exemption allowed by this section must be taken before the reduc-
 54    tion in taxes provided by sections  63-701  through  63-710,  Idaho  Code,  is
 55    applied.
                                                                        
                                           3
                                                                        
  1        (5)  Recovery  of  property  tax  exemptions  allowed  by this section but
  2    improperly claimed or approved.:
  3        (a)  Upon discovery of evidence, facts  or  circumstances  indicating  any
  4        exemption  allowed by this section was improperly claimed or approved, the
  5        county  assessor  shall  decide  whether  the  exemption claimed should be
  6        allowed and if not, notify the taxpayer in writing, assess a  recovery  of
  7        property tax and notify the county treasurer of this assessment.
  8        (b)  When  information indicating that an improper claim for the exemption
  9        allowed by this section is discovered by the  state  tax  commission,  the
 10        state  tax  commission  may  disclose  this information to the appropriate
 11        county assessor, board  of  county  commissioners  and  county  treasurer.
 12        Information  disclosed  to  county  officials  by the state tax commission
 13        under this subsection may be used to decide the validity of  any  entitle-
 14        ment  to  the exemption provided in this section and is not otherwise sub-
 15        ject to public disclosure pursuant to chapter 3, title 9, Idaho Code.
 16        (c)  The assessment and collection of the recovery of  property  tax  must
 17        begin  within  the seven (7) year period beginning the date the assessment
 18        notice  reflecting  the  improperly  claimed  or  approved  exemption  was
 19        required to be mailed to the taxpayer.
 20        (d)  The taxpayer may appeal to the  board  of  county  commissioners  the
 21        decision  by  the  county  assessor to assess the recovery of property tax
 22        within thirty (30) days of the date the county assessor sent the notice to
 23        the taxpayer pursuant to this section.
 24        (e)  A recovery of property tax shall  be  for  each  year  the  exemption
 25        allowed  by  this  section  was  improperly  claimed or approved up to the
 26        lesser of a maximum of seven (7) years or until the  property  was  trans-
 27        ferred  to  a bona fide purchaser for value. The amount of the recovery of
 28        property tax shall be calculated  using  the  product  of  the  amount  of
 29        exempted  value  for  each  year multiplied by the levy for that year plus
 30        costs, late charges and interest for each year at the rates equal to those
 31        provided for delinquent property taxes during that year.
 32        (f)  Any recovery of property tax shall be due and payable no  later  than
 33        the date provided for property taxes in section 63-903, Idaho Code, and if
 34        not  timely  paid,  late  charges and interest, beginning the first day of
 35        January in the year following the year the county assessor sent the notice
 36        to the taxpayer pursuant to this section, shall be calculated at the  cur-
 37        rent rate provided for property taxes.
 38        (g)  Recovered  property  taxes shall be billed, collected and distributed
 39        in the same manner as property taxes, except each taxing district or  unit
 40        shall  be  notified of the amount of any recovered property taxes included
 41        in any distribution.
 42        (h)  Any unpaid recovered property taxes shall become a lien upon the real
 43        property in the same manner as provided  for  property  taxes  in  section
 44        63-206,  Idaho  Code, except such lien shall attach as of the first day of
 45        January in the year following the year the county assessor sent the notice
 46        to the taxpayer pursuant to this section.
 47        (i)  For purposes of the limitation  provided  by  section  63-802,  Idaho
 48        Code,  moneys received pursuant to this subsection as recovery of property
 49        tax shall be treated as property tax revenue.
 50        (6)  The legislature declares that this exemption is necessary and just.
 51        (7)  Residential improvements A homestead having previously qualified  for
 52    exemption under this section in the preceding year, shall not lose such quali-
 53    fication   due   to:   the  owner's,  beneficiary's,  partner's,  member's  or
 54    shareholder's absence in the current year by reason of active military service
 55    in a designated combat zone, as defined in section 112 of the Internal Revenue
                                                                        
                                           4
                                                                        
  1    Code, or because the residential improvements have homestead has  been  leased
  2    because  the  owner,  beneficiary, partner, member or shareholder is absent in
  3    the current year by reason of active military service in a  designated  combat
  4    zone,  as  defined  in  section  112 of the Internal Revenue Code. If an owner
  5    fails to timely apply for exemption as required in this section solely by rea-
  6    son of active duty in a designated combat  zone  by  the  owner,  beneficiary,
  7    partner,  member  or shareholder, as appropriate, as defined in section 112 of
  8    the Internal Revenue Code, and such improvements homestead would  have  other-
  9    wise  qualified  under this section, then the board of county commissioners of
 10    the county in which the residential  improvements  are  homestead  is  located
 11    shall  refund  property  taxes,  if previously paid, in an amount equal to the
 12    exemption which would otherwise have applied.
                                                                        
 13        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
 14    declared to exist, this act shall be in full force and effect on and after its
 15    passage and approval, and retroactively to January 1, 2006.

Statement of Purpose / Fiscal Impact


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                       STATEMENT OF PURPOSE

                            RS 15506

This legislation expands the home owners exemption from the lower
of 50% of assessed valuation or $50,000 to the lower of 50% of
assessed valuation or $75,000.
It also indexes the maximum allowable deduction for succeeding
years to cost of living adjustments as determined by the federal
government.
It further allows for the inclusion of the value of the
residential home site when computing property valuations for the
homeowner's exemption.


                          FISCAL IMPACT

None to the general fund. There will be a decrease in the
property tax otherwise available to public schools of about
$4,000,000. This legislation will cause a property tax shift from
owner occupied homes to other classes of property of about
$47,000,000.




Contact
Name: Rep. Lake 
Phone: 332-1000
Sen. Keough


STATEMENT OF PURPOSE/FISCAL NOTE                         H 421