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H0569...............................................by REVENUE AND TAXATION PROPERTY TAX - SUBDIVISIONS - Repeals and adds to existing law relating to property taxation to exempt the speculative portion of each vacant subdivision or planned unit development lot from property taxation until improvements are being built on the lot or it is sold or transferred to an unrelated entity; and to provide definitions. 02/07 House intro - 1st rdg - to printing 02/08 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 569 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO PROPERTY TAXATION; REPEALING SECTION 63-602FF, IDAHO CODE, RELAT- 3 ING TO PARTIAL EXEMPTION FOR PARCELS OF LAND IN A RURAL HOME SITE DEVELOP- 4 MENT PLAT; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF A 5 NEW SECTION 63-602JJ, IDAHO CODE, TO EXEMPT THE SPECULATIVE PORTION OF 6 EACH VACANT SUBDIVISION OR PLANNED UNIT DEVELOPMENT LOT FROM PROPERTY TAX- 7 ATION UNTIL IMPROVEMENTS ARE BEING BUILT ON THE LOT OR IT IS SOLD OR 8 TRANSFERRED TO AN UNRELATED ENTITY AND TO PROVIDE DEFINITIONS; DECLARING 9 AN EMERGENCY AND PROVIDING A RETROACTIVE EFFECTIVE DATE. 10 Be It Enacted by the Legislature of the State of Idaho: 11 SECTION 1. That Section 63-602FF, Idaho Code, be, and the same is hereby 12 repealed. 13 SECTION 2. That Chapter 6, Title 63, Idaho Code, be, and the same is 14 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 15 ignated as Section 63-602JJ, Idaho Code, and to read as follows: 16 63-602JJ. ECONOMIC DEVELOPMENT INITIATIVE. (1) The speculative portion of 17 the taxable value of each vacant subdivision or planned unit development lot 18 shall be exempt from property taxation until such time as improvements are 19 being built upon the lot or any interest in the ownership of the lot is sold 20 or transferred to an unrelated entity. 21 (2) For the purposes of this section, the following definitions shall 22 apply: 23 (a) "Improvements" means any development of a lot created by the plat 24 which requires the issuance of a permit by the state of Idaho or the 25 county of jurisdiction, provided such development is to an individual lot 26 rather than to the vacant subdivision or planned unit development lot as a 27 whole. 28 (b) "Plat" means the drawing, map or plan of a subdivision or planned 29 unit development lot or a replatting of such, including certifications, 30 descriptions and approvals. 31 (c) "Speculative portion" means two-thirds (2/3) of the market value of 32 comparable individual subdivision lots for the current assessment year. 33 (d) "Taxable value" means the assessed value of comparable individual 34 lots within a subdivision or planned unit development less the speculative 35 portion, for the current assessment year. 36 (e) "Undeveloped land" means land upon which no site improvements or 37 improvements have been built. 38 (f) "Unrelated entity" means any business entity or trust which is owned 39 fifty percent (50%) or less by the seller or transferor of the property, 40 or any individual who is not a spouse or lineal descendent of the seller 41 or transferor of the property. 2 1 SECTION 3. An emergency existing therefor, which emergency is hereby 2 declared to exist, this act shall be in full force and effect on and after its 3 passage and approval, and retroactively to January 1, 2006.
STATEMENT OF PURPOSE RS 15836C1 This legislation repeals the partial exemption for parcels of land in a rural home site development plat (Idaho code 63-602FF) This legislation also exempts the speculative portion of unsold or unimproved lots. FISCAL IMPACT None. Contact Name: Scott Turlington Phone: 472-1750 STATEMENT OF PURPOSE/FISCAL NOTE H 569