2006 Legislation
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HOUSE BILL NO. 461 – Property tax, new construction roll

HOUSE BILL NO. 461

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Bill Status



H0461...............................................by REVENUE AND TAXATION
PROPERTY TAX - Amends existing law to provide that property in a single
county which is valued in excess of $800,000,000 and not taxed due to the
exemption for significant capital improvements shall not be included on any
new construction roll; and to delete obsolete language requiring a
percentage reduction of state money under the circuit breaker property tax
relief program.
                                                                        
01/24    House intro - 1st rdg - to printing
01/25    Rpt prt - to Rev/Tax
02/17    Rpt out - rec d/p - to 2nd rdg
02/20    2nd rdg - to 3rd rdg
02/23    3rd rdg - PASSED - 64-0-6
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Block, Boe, Bolz, Bradford, Cannon, Chadderdon,
      Clark, Collins, Crow, Denney, Edmunson, Ellsworth, Eskridge,
      Field(18), Garrett, Hart, 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, Sayler, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24),
      Smylie(Luker), Snodgrass, Stevenson, Trail, Wills, Mr. Speaker
      NAYS -- None
      Absent and excused -- Black, Brackett, Deal, Field(23), Sali, Wood
    Floor Sponsor - Moyle
    Title apvd - to Senate
02/24    Senate intro - 1st rdg - to Loc Gov
03/02    Rpt out - rec d/p - to 2nd rdg
03/03    2nd rdg - to 3rd rdg
03/07    3rd rdg - PASSED - 33-0-2
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Cameron,
      Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
      Malepeai, Marley, McGee, McKenzie, Richardson, Schroeder, Stegner,
      Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Burtenshaw, Pearce
    Floor Sponsor - Langhorst
    Title apvd - to House
03/08    To enrol
03/09    Rpt enrol - Sp signed
03/10    Pres signed
03/13    To Governor
03/14    Governor signed
         Session Law Chapter 59
         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. 461
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO TECHNICAL CORRECTIONS TO THE PROPERTY TAX LAWS;  AMENDING  SECTION
  3        63-602HH,  IDAHO  CODE,  TO  PROVIDE  THAT  EXEMPTED  SIGNIFICANT  CAPITAL
  4        IMPROVEMENTS SHALL NOT BE INCLUDED ON  A NEW CONSTRUCTION ROLL AND TO MAKE
  5        A  TECHNICAL  CORRECTION;  AMENDING  SECTION 63-710, IDAHO CODE, TO DELETE
  6        LANGUAGE REQUIRING A PERCENTAGE REDUCTION OF STATE MONEY UNDER THE CIRCUIT
  7        BREAKER PROPERTY TAX RELIEF PROGRAM; AMENDING SECTION 63-2909, IDAHO CODE,
  8        TO DELETE THE REQUIREMENT THAT EXEMPTED PROPERTY BE INCLUDED  ON  ANY  NEW
  9        CONSTRUCTION ROLL; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLI-
 10        CATION.
                                                                        
 11    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 12        SECTION  1.  That Section 63-602HH, Idaho Code, be, and the same is hereby
 13    amended to read as follows:
                                                                        
 14        63-602HH.  PROPERTY EXEMPT FROM TAXATION --  SIGNIFICANT  CAPITAL  INVEST-
 15    MENTS.  (1)  The  net taxable value of all property of a taxpayer in excess of
 16    eight hundred million dollars ($800,000,000) located within a single county in
 17    Idaho shall be exempt from property taxation and any special assessment.
 18        (2)  The property included in the calculation of the exemption  set  forth
 19    in  this section shall include all real property owned, and all personal prop-
 20    erty owned, leased, or rented that would otherwise be subject to property tax;
 21    provided however, with respect to leased or  rented  personal  property,  only
 22    that portion of the property which a taxpayer is contractually liable for pay-
 23    ment  of  property  taxes  thereon shall be included in the calculation of the
 24    exemption.
 25        (3)  Leased or rented personal property, included in  the  calculation  of
 26    the  exemption  provided  by  this section shall not be assessable against the
 27    owner of such property.
 28        (4)  The exemption set forth in this section shall apply  first  to  owned
 29    real  and  personal  property and, if exhausted, shall then apply to leased or
 30    rented personal property.
 31        (5)  The taxpayer owning, leasing, or renting the property included in the
 32    calculation of the exemption shall designate the property to which the  exemp-
 33    tion applies.
 34        (6)  The exemption set forth in this section shall not be available to any
 35    taxpayer with respect to a given year who, in the immediately preceding calen-
 36    dar  year,  failed to make significant capital investments of at least twenty-
 37    five million dollars ($25,000,000), by the acquisition or improvement of  real
 38    or  personal  property located within the county referred to in subsection (1)
 39    of this section.
 40        (7)  The exemption set forth in this section shall not be available to any
 41    taxpayer with respect to a given year who, as of the first day of  such  year,
 42    did  not  employ  or  engage  on  a regular full-time basis, or the equivalent
 43    thereof, at least one thousand five hundred (1,500) workers within the  county
                                                                        
                                           2
                                                                        
  1    referred to in subsection (1) of this section.
  2        (8)  Except  for  the  exemption provided for in subsection (4) of section
  3    63-3029B, Idaho Code, no other exemption from  property  tax  or  any  special
  4    assessment  provided  by the statutes of this state shall be applicable to any
  5    property described in subsection (2) of this section with respect to a year in
  6    which the exemption set forth in subsection (1) of this section applies to any
  7    of the same property.
  8        (9)  Property exempted under this section shall not be included on any new
  9    construction roll prepared by the county assessor in accordance  with  section
 10    63-301A, Idaho Code.
 11        (10) The  state tax commission shall adopt all rules that may be necessary
 12    to implement this section.
                                                                        
 13        SECTION 2.  That Section 63-710, Idaho Code, be, and the  same  is  hereby
 14    amended to read as follows:
                                                                        
 15        63-710.  PROCEDURE  AFTER REIMBURSEMENT. (1) Upon receipt of the notice of
 16    percentage reduction from the state tax commission, the county  auditor  shall
 17    immediately  notify  the  county commissioners, and the commissioners may take
 18    this reduction into consideration in making its property tax levies,  and  the
 19    county commissioners are authorized, but not required, to increase any levy to
 20    the extent necessary to compensate for the percentage reduction.
 21        (2)  The  money  received by the county tax collector under the provisions
 22    of section 63-709, Idaho Code, may be considered by  the  counties  and  other
 23    taxing districts and budgeted against at the same time, in the same manner and
 24    in the same year as revenues from taxation.
                                                                        
 25        SECTION  3.  That  Section 63-2909, Idaho Code, be, and the same is hereby
 26    amended to read as follows:
                                                                        
 27        63-2909.  PROPERTY TAX INCENTIVES. (1) Subject to the limitations of  this
 28    chapter,  both  improvements  to real property and personal property which are
 29    newly constructed, including construction in  progress  during  the  year,  or
 30    acquired  during a project period and located in the project site and owned by
 31    a taxpayer who has certified that the tax incentive criteria will  be  met  in
 32    regard to that site, shall be entitled to receive a rebate of the lesser of:
 33        (a)  All  property  taxes  the taxpayer actually paid for any of the years
 34        2005 through 2012 that are properly levied upon any  property  constructed
 35        or  installed  within  the project site during the project period for that
 36        site; or
 37        (b)  All property tax the taxpayer actually paid for any of the years 2005
 38        through 2012 that are properly levied upon  any  property  constructed  or
 39        installed  within  the  area described in subsection (2)(g)(ii) of section
 40        63-2902, Idaho Code, within which eighty percent  (80%)  or  more  of  the
 41        investment  required  in  subsection  (2)(j)(i)  of section 63-2902, Idaho
 42        Code, is made during the project period for that site; or
 43        (c)  Two million dollars ($2,000,000) of property tax paid in any one  (1)
 44        calendar year.
 45    Property  upon  which tax is rebated by this section, which is included on the
 46    new construction roll provided in section 63-301A, Idaho Code, shall be  sepa-
 47    rately identified on that roll.
 48        (2)  Upon  filing  of  a  written  claim  by  the taxpayer entitled to the
 49    rebate, which shall include a description of the property upon which  the  tax
 50    sought  to  be  rebated was levied, the property's assessed value for property
 51    tax purposes, and its location and subject to  such  reasonable  documentation
                                                                        
                                           3
                                                                        
  1    and  verification  as  the commission may require, the rebate shall be paid by
  2    the commission as provided in section 63-3067, Idaho Code. A claim for  rebate
  3    under this section must be filed on or before the last day of the third calen-
  4    dar  year following the year of the property taxes sought to be rebated or the
  5    right to the rebate is lost.
  6        (3)  The taxpayer shall be subject to recapture of any rebate  paid  under
  7    this section:
  8        (a)  At  one  hundred  percent  (100%) in the event that the tax incentive
  9        criteria are not met at the project site during the project period, or
 10        (b)  In the event that the property is disposed of, or otherwise ceases to
 11        qualify with respect to the taxpayer before five (5) full years  from  the
 12        date the project period ends, or
 13        (c)  In  the  event that the employment required in section 63-2902(2)(j),
 14        Idaho Code, is not maintained for sixty (60) consecutive full months  from
 15        the date the project period ends.
 16        (d)  Any recapture required by subsection (3)(b) or (3)(c) of this section
 17        shall  be  in  the same proportion of the credit required to be recaptured
 18        under section 63-3029B, Idaho Code.
 19        (e)  Any amount subject to recapture is a deficiency in tax for the amount
 20        of the rebate in the taxable year  in  which  the  disqualification  first
 21        occurs  and  may  be  enforced and collected in the manner provided by the
 22        Idaho income tax act, provided however, that in lieu of the provisions  of
 23        section  63-3068(a),  Idaho Code, the period of time within which the com-
 24        mission may issue a notice under section 63-3045, Idaho Code, in regard to
 25        an amount subject to recapture shall be five (5) years after  the  end  of
 26        the taxable year in which the project period ends.
 27        (4)  The rebate allowed by this section is limited to improvements to real
 28    property  and  personal  property  which are newly constructed, including con-
 29    struction in progress during the year, or acquired related to headquarters  or
 30    administrative facilities.
                                                                        
 31        SECTION  4.  An  emergency  existing  therefor,  which emergency is hereby
 32    declared to exist, this act shall be in full force and effect on and after its
 33    passage and approval, and retroactively to January 1, 2006.

Statement of Purpose / Fiscal Impact


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                      STATEMENT OF PURPOSE
                                
                            RS 15424

     This bill makes the following technical corrections to the
property tax laws: 

     Section 1 provides that property not taxed due to the
exemption for "significant capital improvements" (property in a
single county in excess of $800,000,000) shall not be included on
any new construction roll. 
     
     Section 2 strikes any requirement that exempted property be
included on any new construction roll.
     
     Section 3 deletes obsolete language requiring percentage
reduction of state money under the circuit breaker property tax
relief program.

     
                          FISCAL NOTE
     None


     
CONTACT
Name:     Dan John
Agency:   State Tax Commission
Phone:    334-7530


STATEMENT OF PURPOSE/FISCAL NOTE                              H 461