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H0658...................................................by LOCAL GOVERNMENT PROPERTY TAX - RURAL HOMESITE DEVELOPMENT PLAT - Repeals and adds to existing law to provide a partial exemption from property taxation for the speculative portion of the value of each parcel of land in a rural homesite development plat until such time as improvements are being built upon the parcel, or any interest in the ownership of the parcel is sold or transferred to an unrelated entity; and to define terms. 02/13 House intro - 1st rdg - to printing 02/14 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. 658 BY LOCAL GOVERNMENT COMMITTEE 1 AN ACT 2 RELATING TO PARTIAL EXEMPTION FOR PARCELS OF LAND IN A RURAL HOMESITE DEVELOP- 3 MENT PLAT; REPEALING SECTION 63-602FF, IDAHO CODE, RELATING TO PARTIAL 4 EXEMPTION FROM TAXATION FOR PARCELS OF LAND IN A RURAL HOMESITE DEVELOP- 5 MENT PLAT; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF A 6 NEW SECTION 63-602FF, IDAHO CODE, TO PROVIDE EXEMPTION FROM TAXATION FOR 7 THE SPECULATIVE PORTION OF THE VALUE OF EACH PARCEL OF LAND IN A RURAL 8 HOMESITE DEVELOPMENT PLAT UNTIL SUCH TIME AS IMPROVEMENTS ARE BEING BUILT 9 UPON THE PARCEL, OR ANY INTEREST IN THE OWNERSHIP OF THE PARCEL IS SOLD OR 10 TRANSFERRED TO AN UNRELATED ENTITY AND TO PROVIDE DEFINITIONS; DECLARING 11 AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION. 12 Be It Enacted by the Legislature of the State of Idaho: 13 SECTION 1. That Section 63-602FF, Idaho Code, be, and the same is hereby 14 repealed. 15 SECTION 2. That Chapter 6, Title 63, Idaho Code, be, and the same is 16 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 17 ignated as Section 63-602FF, Idaho Code, and to read as follows: 18 63-602FF. PARTIAL EXEMPTION FOR PARCELS OF LAND IN A RURAL HOMESITE 19 DEVELOPMENT PLAT. (1) The speculative portion of the value of each parcel of 20 land in a rural homesite development plat shall be exempt from taxation until 21 such time as improvements are being built upon the parcel, or any interest in 22 the ownership of the parcel is sold or transferred to an unrelated entity. 23 (2) For purposes of this section, the following definitions shall apply: 24 (a) "Plat" means the drawing, map or plan of a subdivision or a replat- 25 ting of such, including certifications, descriptions and approvals. 26 (b) "Rural homesite development plat" means a subdivision plat for the 27 development of property outside the boundaries of an incorporated munici- 28 pality within a county of less than one hundred thousand (100,000) popula- 29 tion, recorded with the county recorder. 30 (c) "Speculative portion" means that portion of the value of each parcel 31 created by a rural homesite development plat in excess of one hundred 32 fifty percent (150%) of the pro rata value of the parcel as declared by 33 the county assessor in 2005, or thereafter the year immediately preceding 34 the year the plat was recorded. Speculative portion shall not include the 35 value of infrastructure improvements constructed on the platted property. 36 (d) "Unrelated entity" means any business entity or trust that is owned 37 fifty percent (50%) or less by the seller/transferor of the property, or 38 an individual not related to the seller/transferor as a spouse or lineal 39 descendant. 40 SECTION 3. An emergency existing therefor, which emergency is hereby 41 declared to exist, this act shall be in full force and effect on and after its 2 1 passage and approval, and retroactively to January 1, 2006.
STATEMENT OF PURPOSE RS 16015 The purpose of this legislation is to provide exemption from taxation for the speculative portion of the value of each parcel of land in a rural homesite development plat until such time as improvements are being built upon the parcel, or any interest in the ownership of the parcel is sold or transferred to an unrelated entity and to provide definitions. FISCAL NOTE There is no fiscal impact to the general fund. Enactment of this statute would preserve the growth in taxable value in rural counties. Contact Name: Russell Westerberg Phone: 336-0305 Rep Lenore Hardy Barrett 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 658