View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN 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 of16percentage reduction from the state tax commission, the county auditor shall17immediately notify the county commissioners, and the commissioners may take18this reduction into consideration in making its property tax levies, and the19county commissioners are authorized, but not required, to increase any levy to20the 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. 45Property upon which tax is rebated by this section, which is included on the46new construction roll provided in section 63-301A, Idaho Code, shall be sepa-47rately 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.
REPRINT REPRINT REPRINT REPRINT REPRINT 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