2006 Legislation
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HOUSE BILL NO. 569 – Property tax, subdivisn lot, vacant

HOUSE BILL NO. 569

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN 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 / Fiscal Impact



                       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