2006 Legislation
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HOUSE BILL NO. 680 – Property tax deferral act

HOUSE BILL NO. 680

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H0680...............................................by REVENUE AND TAXATION
PROPERTY TAX DEFERRAL ACT - Adds to and amends existing law to enact the
"Property Tax Deferral Act"; to provide for definitions; to provide for
application for deferral of property tax; to provide for procedures and
appeals; to provide for a deferral of property taxes and interest and liens
relating to the deferral; to provide for reimbursement by the State Tax
Commission of local taxes deferred; to provide for events terminating the
deferral; to provide for payment of deferred taxes; to provide for recovery
of amounts subject to recovery; to provide a misdemeanor penalty for
knowingly filing a false claim; and to coordinate reimbursement payments
for property tax relief and tax deferrals.
                                                                        
02/13    House intro - 1st rdg - to printing
02/14    Rpt prt - to Rev/Tax
02/15    Rpt out - rec d/p - to 2nd rdg
02/16    2nd rdg - to 3rd rdg
02/17    3rd rdg - PASSED - 67-2-1
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford,
      Cannon, Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson,
      Ellsworth, Field(18), Field(23), Garrett, Hart(Jacobson), Harwood,
      Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher,
      Martinez, Mathews, McGeachin, McKague, Mitchell, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood,
      Mr. Speaker
      NAYS -- Eskridge, Smith(24)
      Absent and excused -- Miller
    Floor Sponsor - Lake
    Title apvd - to Senate
02/20    Senate intro - 1st rdg - to Loc Gov
03/10    Rpt out - to 14th Ord
03/16    Rpt out - w/o amen - to 2nd rdg
03/17    2nd rdg - to 3rd rdg
03/22    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett(Clark),
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
      Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
      Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Stegner
    Title apvd - to House
03/23    To enrol
03/24    Rpt enrol - Sp signed
03/27    Pres signed
03/28    To Governor
03/30    Governor signed
         Session Law Chapter 234
         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. 680
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PROPERTY TAXES;  AMENDING CHAPTER 7, TITLE 63, IDAHO CODE, BY  THE
  3        ADDITION  OF  NEW SECTIONS 63-712, 63-713, 63-714, 63-715, 63-716, 63-717,
  4        63-718, 63-719, 63-720 AND 63-721, IDAHO CODE, TO PROVIDE A  SHORT  TITLE,
  5        TO  PROVIDE  FOR  DEFINITIONS,  TO PROVIDE FOR APPLICATION FOR DEFERRAL OF
  6        PROPERTY TAX, TO PROVIDE FOR PROCEDURES AND  APPEALS,  TO  PROVIDE  FOR  A
  7        DEFERRAL  OF  PROPERTY TAXES AND INTEREST AND LIENS RELATING TO THE DEFER-
  8        RAL, TO PROVIDE FOR REIMBURSEMENT BY THE STATE  TAX  COMMISSION  OF  LOCAL
  9        TAXES DEFERRED AND TO PROVIDE A LIMIT TO THE DEFERRAL AND PAYMENT OF TAXES
 10        NOT  DEFERRED,  TO PROVIDE FOR EVENTS TERMINATING THE DEFERRAL AND TO PRO-
 11        VIDE FOR PAYMENT OF DEFERRED TAXES AND INTEREST AND TO PROVIDE FOR DISTRI-
 12        BUTION AND APPROPRIATION OF PAYMENTS RECEIVED, TO PROVIDE FOR A  TAX  DEED
 13        IN  THE EVENT OF FAILURE TO PAY DEFERRED TAXES, TO PROVIDE FOR RECOVERY OF
 14        AMOUNTS SUBJECT TO RECOVERY AND TO PROVIDE A MISDEMEANOR PENALTY FOR KNOW-
 15        INGLY FILING A FALSE CLAIM;  AMENDING  SECTION  63-3638,  IDAHO  CODE,  TO
 16        REVISE DISTRIBUTION FOR REIMBURSEMENT PAYMENTS FOR PROPERTY TAX RELIEF AND
 17        TAX  DEFERRALS;  DECLARING AN EMERGENCY AND PROVIDING A RETROACTIVE EFFEC-
 18        TIVE DATE.
                                                                        
 19    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 20        SECTION 1.  That Chapter 7, Title 63, Idaho Code,  be,  and  the  same  is
 21    hereby amended by the addition thereto of NEW SECTIONS, to be known and desig-
 22    nated  as  Sections  63-712,  63-713,  63-714, 63-715, 63-716, 63-717, 63-718,
 23    63-719, 63-720 and 63-721, Idaho Code, and to read as follows:
                                                                        
 24        63-712.  SHORT TITLE. The provisions of sections  63-712  through  63-721,
 25    Idaho  Code,  shall  be  known  and may be cited as the "Property Tax Deferral
 26    Act."
                                                                        
 27        63-713.  DEFINITIONS. In addition to the definitions  in  section  63-701,
 28    Idaho  Code,   the  following  definitions  apply  to  sections 63-712 through
 29    63-721, Idaho Code.
 30        (1)  "Qualified claimant" means  an  individual  who  is  a  claimant  who
 31    applies  for and properly receives property tax relief under the provisions of
 32    sections 63-701 through 63-710, Idaho Code.
 33        (2)  "Qualified property" means property for which:
 34        (a)  A qualified claimant is eligible to receive benefits under the provi-
 35        sions of sections 63-701 through 63-710, Idaho  Code,  for  the  year  for
 36        which the qualified claimant applies for a deferral of payment of property
 37        tax; and
 38        (b)  Is  owned only by the qualified claimant and his or her spouse and is
 39        not subject to a trust or life estate or other ownership held by a  person
 40        who is not the qualified claimant or his or her spouse.
                                                                        
 41        63-714.  APPLICATION -- DEFERRAL OF PROPERTY TAX. (1) A qualified claimant
                                                                        
                                           2
                                                                        
  1    may  elect,  upon  the application for property tax relief filed under section
  2    63-703, Idaho Code, to defer payment of any property tax due after application
  3    of all benefits available under section 63-704, Idaho Code. The state tax com-
  4    mission shall prescribe the form and manner by which the election must be made
  5    and may require that the application include information establishing the out-
  6    standing balance of any encumbrances, proof of insurance of an amount adequate
  7    for the amount of deferred tax and interest, and such other information as the
  8    state tax commission reasonably determines to be necessary. The state tax com-
  9    mission may require written or other proof of  the  encumbrances  or  casualty
 10    insurance in such form as the state tax commission may determine.
 11        (2)  No application for deferral of property taxes shall be granted if:
 12        (a)  The  application  fails  to  show  sufficient equity in that property
 13        after consideration of encumbrances that are superior  to  any  liens  for
 14        deferral  to  secure  the payment of all existing deferrals granted in the
 15        property; or
 16        (b)  The application fails to show proof of insurance of  an  amount  ade-
 17        quate for the amount of the deferred tax and interest; or
 18        (c)  The  result would be to defer property taxes which, together with the
 19        amount of property tax and interest previously deferred on the same  prop-
 20        erty, would exceed fifty percent (50%) of the qualified claimant's propor-
 21        tional share of the market value of the qualified property.
                                                                        
 22        63-715.  PROCEDURES -- APPEALS. Elections for deferral of payment of prop-
 23    erty tax shall be subject to the provisions of section 63-706, Idaho Code, and
 24    if  approved  by  the  county  board of equalization, shall be included on the
 25    property tax reduction roll and processed and reviewed as provided in  section
 26    63-707, Idaho Code, for claims for property tax relief.
                                                                        
 27        63-716.  DEFERRAL  --  INTEREST  -- LIEN -- PRIORITY. (1) Upon approval by
 28    both the county board of equalization and the state tax commission, payment of
 29    any amount of property tax due for the year to  which  the  election  relates,
 30    after  application  of the property tax relief available under sections 63-701
 31    through  63-710,  Idaho  Code,  and  subject  to  the  limitation  in  section
 32    63-717(2), Idaho Code, in regard to the  qualified  property  subject  to  the
 33    election,  shall  be  deferred  until the deferral is terminated under section
 34    63-718, Idaho Code.
 35        (2)  During the period of deferral, interest shall accrue  on  the  amount
 36    deferred at the annual rate of six percent (6%) annually.
 37        (3)  The  lien imposed by section 63-206, Idaho Code, shall continue to be
 38    a lien on the property in the amount of deferred taxes and  interest  thereon.
 39    The  state tax commission shall file with the county recorder of the county in
 40    which the property is located a notice of lien for  deferred  property  taxes.
 41    Notwithstanding  the  provisions  of  section 63-206, Idaho Code, the lien for
 42    deferred taxes and interest shall not be a first and  prior  lien,  but  shall
 43    take its priority from the date and time of filing of the notice of lien.
                                                                        
 44        63-717.  REIMBURSEMENT  BY  STATE  TAX  COMMISSION.  (1)  By no later than
 45    December 20 of each year, the state tax commission shall pay to the county tax
 46    collector of each county one-half (1/2) of the amount due each county as reim-
 47    bursement for property taxes deferred as provided in sections  63-712  through
 48    63-721, Idaho Code, as shown on the property tax reduction roll required under
 49    section 63-707, Idaho Code, as modified by actions of the state tax commission
 50    relating  to  claims  approved or disapproved by the state tax commission, and
 51    shall pay the second one-half (1/2) of such amount by not later than  June  20
 52    of  the  following year. The payments may be combined with payments made under
                                                                        
                                           3
                                                                        
  1    section 63-709, Idaho Code.
  2        (2)  The total amount of reimbursement payable to all counties under  this
  3    section shall not exceed five hundred thousand dollars ($500,000) in regard to
  4    property  taxes    for  one (1) calendar year. In the event that the amount of
  5    taxes approved for deferral exceeds five hundred thousand dollars  ($500,000),
  6    the  amount  of  taxes  deferred for each qualifying property shall be reduced
  7    proportionately and the balance of property tax not deferred shall be  entered
  8    on  the  property tax notice required by section 63-902, Idaho Code, and shall
  9    be payable as required by chapter 9, title 63, Idaho Code.
                                                                        
 10        63-718.  EVENTS TERMINATING DEFERRAL -- PAYMENT OF DEFERRED TAX AND INTER-
 11    EST. (1) A deferral of property tax payments shall terminate  on  the  earlier
 12    of:
 13        (a)  Voluntary  payment of the full amount of deferred tax and interest to
 14        the state tax commission;
 15        (b)  The death of the qualified claimant. In the case of more than one (1)
 16        qualified claimant, the death of the last surviving qualified claimant;
 17        (c)  A sale or other transfer of title to the property or any part of  the
 18        property  except  a  transfer of title to a surviving spouse of a deceased
 19        qualified claimant;
 20        (d)  The property no longer qualifies for the exemption provided  in  sec-
 21        tion 63-602G, Idaho Code, for residential improvements;
 22        (e)  A  determination  by  the  state tax commission under section 63-720,
 23        Idaho Code, that the deferral of property  tax  payments  was  erroneously
 24        granted  to a person who is not a qualified claimant or in regard to prop-
 25        erty that is not qualified property.
 26        (2)  When a deferral of property tax is terminated any  unpaid  amount  of
 27    deferred  tax  and interest shall be paid to the state tax commission no later
 28    than one hundred eighty (180) days after the termination.
 29        (3)  Any payments of deferred property tax received by the state tax  com-
 30    mission  under  this  section or under sections 63-719 and 63-720, Idaho Code,
 31    shall be distributed to the property  tax  deferral  recovery  fund  which  is
 32    hereby  created. Amounts in the property tax deferral recovery fund are hereby
 33    continuously appropriated for the purposes of section 63-3638(5), Idaho Code.
                                                                        
 34        63-719.  TAX DEED FOR DEFICIENCY IN REPAYMENT. Any amount of deferred  tax
 35    due  under section 63-718, Idaho Code, which is not paid to the state tax com-
 36    mission on the due date, is a delinquency subject to the provisions of chapter
 37    10, title 63, Idaho Code, except that references to county  and  county  offi-
 38    cials  in  that  chapter shall be taken as references to the state tax commis-
 39    sion.
                                                                        
 40        63-720.  RECOVERY OF ERRONEOUS AND OTHER IMPROPER DEFERRALS. (1) In  addi-
 41    tion to the provisions of section 63-719, Idaho Code, the state tax commission
 42    may  recover  deferrals  of  tax  payments  made under sections 63-712 through
 43    63-721, Idaho Code, from any person who elected  the  deferral  under  section
 44    63-714, Idaho Code, if the commission determines that:
 45        (a)  A deferral was granted to a person who is not a qualified claimant or
 46        in regard to property that is not qualified property, or
 47        (b)  The  owner of the property subject to the deferral possesses insuffi-
 48        cient equity in that property, after consideration  of  encumbrances  that
 49        are  superior  to  any  liens  for  deferral, to secure the payment of all
 50        existing deferrals granted in the property.
 51        (2)  The deficiency determination, collection, and enforcement  procedures
 52    provided  by  the  Idaho  income  tax  act, sections 63-3039, 63-3042, 63-3043
                                                                        
                                           4
                                                                        
  1    through 63-3064, Idaho Code, shall apply and be available  to  the  commission
  2    for  enforcement  and  collection  under sections 63-712 through 63-721, Idaho
  3    Code, and such sections shall, for this purpose, be considered  part  of  sec-
  4    tions  63-712 through 63-721, Idaho Code. Wherever liens or any other proceed-
  5    ings are defined as income tax liens or proceedings, they shall, when  applied
  6    in enforcement or collection under sections 63-712 through 63-721, Idaho Code,
  7    be  described  as  tax deferral liens and proceedings. In connection with such
  8    sections, a deficiency shall consist of any amount subject to  recovery  under
  9    this section together with any interest and penalty due thereon.
                                                                        
 10        63-721.  KNOWINGLY  FILING  A  FALSE CLAIM A MISDEMEANOR. Every person who
 11    applies for deferral of taxes under section 63-714, Idaho Code,  knowing  that
 12    the  person  for  whom  the application is made is not a qualified claimant or
 13    knowing that the property is not qualified property, is  guilty  of  a  misde-
 14    meanor  and on conviction thereof shall be punished as provided for misdemean-
 15    ors in section 18-303, Idaho Code.
                                                                        
 16        SECTION 2.  That Section 63-3638, Idaho Code, be, and the same  is  hereby
 17    amended to read as follows:
                                                                        
 18        63-3638.  SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
 19    ter,  except  as  may  otherwise  be required in sections 63-3203 and 63-3709,
 20    Idaho Code, shall be distributed by the tax commission as follows:
 21        (1)  An amount of money shall be distributed to the state  refund  account
 22    sufficient  to  pay  current  refund claims. All refunds authorized under this
 23    chapter by the commission shall be paid through the state refund account,  and
 24    those moneys are continuously appropriated.
 25        (2)  Five  million dollars ($5,000,000) per year is continuously appropri-
 26    ated and shall be distributed to the permanent building fund, provided by sec-
 27    tion 57-1108, Idaho Code.
 28        (3)  Four million eight hundred thousand dollars ($4,800,000) per year  is
 29    continuously appropriated and shall be distributed to the water pollution con-
 30    trol account established by section 39-3605, Idaho Code.
 31        (4)  An  amount  equal to the sum required to be certified by the chairman
 32    of the Idaho housing and finance association to the state tax commission  pur-
 33    suant  to  section 67-6211, Idaho Code, in each year is continuously appropri-
 34    ated and shall be paid to any capital reserve fund, established by  the  Idaho
 35    housing  and finance association pursuant to section 67-6211, Idaho Code. Such
 36    amounts, if any, as may be appropriated hereunder to the capital reserve  fund
 37    of  the Idaho housing and finance association shall be repaid for distribution
 38    under the provisions of this section, subject to  the  provisions  of  section
 39    67-6215,  Idaho Code, by the Idaho housing and finance association, as soon as
 40    possible, from any moneys available therefor and  in  excess  of  the  amounts
 41    which the association determines will keep it self-supporting.
 42        (5)  An  amount  equal  to  the sum required by the provisions of sections
 43    63-709 and 63-717, Idaho Code, after allowance for the amount appropriated  by
 44    section  63-718(3), Idaho Code, is continuously appropriated and shall be paid
 45    as provided by sections 63-709 and 63-717, Idaho Code.
 46        (6)  An amount required by the provisions of chapter 53, title  33,  Idaho
 47    Code.
 48        (7)  An  amount  required by the provisions of chapter 87, title 67, Idaho
 49    Code.
 50        (8)  One dollar ($1.00) on each application for certificate  of  title  or
 51    initial  application  for  registration  of  a motor vehicle, snowmobile, all-
 52    terrain vehicle or other vehicle processed by the county assessor or the Idaho
                                                                        
                                           5
                                                                        
  1    transportation department excepting those applications  in which any sales  or
  2    use taxes due have been previously collected by a retailer, shall be a fee for
  3    the services of the assessor of the county or the Idaho transportation depart-
  4    ment in collecting such taxes, and shall be paid into the current expense fund
  5    of  the  county  or state highway account established in section 40-702, Idaho
  6    Code.
  7        (9)  Thirteen and three-quarters percent (13.75%) is  continuously  appro-
  8    priated  and shall be distributed to the revenue sharing account which is cre-
  9    ated in the state treasury, and the moneys in the revenue sharing account will
 10    be paid in installments each calendar quarter by the tax  commission  as  fol-
 11    lows:
 12        (a)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 13        ious cities as follows:
 14             (i)   Fifty percent (50%) of such amount shall be paid to the various
 15             cities,  and  each city shall be entitled to an amount in the propor-
 16             tion that the population of that city bears to the population of  all
 17             cities within the state; and
 18             (ii)  Fifty percent (50%) of such amount shall be paid to the various
 19             cities,  and  each city shall be entitled to an amount in the propor-
 20             tion that the preceding year's market value for  assessment  purposes
 21             for  that city bears to the preceding year's market value for assess-
 22             ment purposes for all cities within the state.
 23        (b)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 24        ious counties as follows:
 25             (i)   One million three hundred twenty thousand dollars  ($1,320,000)
 26             annually  shall be distributed one forty-fourth (1/44) to each of the
 27             various counties; and
 28             (ii)  The balance of such amount shall be paid to the  various  coun-
 29             ties,  and  each county shall be entitled to an amount in the propor-
 30             tion that the population of that county bears to  the  population  of
 31             the state;
 32        (c)  Thirty-five  and  nine-tenths percent (35.9%) of the amount appropri-
 33        ated in this subsection (9) shall be paid to the several counties for dis-
 34        tribution to the cities and counties as follows:
 35             (i)   Each city and county which received a payment under the  provi-
 36             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 37             calendar  year  1999,  shall be entitled to a like amount during suc-
 38             ceeding calendar quarters.
 39             (ii)  If the dollar amount of money available under  this  subsection
 40             (9)(c)  in  any  quarter does not equal the amount paid in the fourth
 41             quarter of calendar year 1999, each city's and county's payment shall
 42             be reduced proportionately.
 43             (iii) If the dollar amount of money available under  this  subsection
 44             (9)(c)  in  any quarter exceeds the amount paid in the fourth quarter
 45             of calendar year 1999, each city and county shall be  entitled  to  a
 46             proportionately increased payment, but such increase shall not exceed
 47             one  hundred  five  percent  (105%)  of the total payment made in the
 48             fourth quarter of calendar year 1999.
 49             (iv)  If the dollar amount of money available under  this  subsection
 50             (9)(c)  in any quarter exceeds one hundred five percent (105%) of the
 51             total payment made in the fourth quarter of calendar year  1999,  any
 52             amount  over  and above such one hundred five percent (105%) shall be
 53             paid fifty percent (50%) to the various cities in the proportion that
 54             the population of the city bears to  the  population  of  all  cities
 55             within  the state, and fifty percent (50%) to the various counties in
                                                                        
                                           6
                                                                        
  1             the proportion that the population of a county bears to  the  popula-
  2             tion of the state; and
  3        (d)  Seven  and  seven-tenths percent (7.7%) of the amount appropriated in
  4        this subsection (9) shall be paid to the several counties for distribution
  5        to special purpose taxing districts as follows:
  6             (i)   Each such district which received a payment  under  the  provi-
  7             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
  8             calendar  year  1999,  shall be entitled to a like amount during suc-
  9             ceeding calendar quarters.
 10             (ii)  If the dollar amount of money available under  this  subsection
 11             (9)(d)  in  any  quarter does not equal the amount paid in the fourth
 12             quarter of calendar year 1999, each special purpose taxing district's
 13             payment shall be reduced proportionately.
 14             (iii) If the dollar amount of money available under  this  subsection
 15             (9)(d)  in any quarter exceeds the amount distributed under paragraph
 16             (i) of this subsection (9)(d), each special purpose  taxing  district
 17             shall  be  entitled  to a share of the excess based on the proportion
 18             each such district's current property tax budget bears to the sum  of
 19             the  current property tax budgets of all such districts in the state.
 20             The state tax commission shall calculate  district  current  property
 21             tax budgets to include any unrecovered foregone amounts as determined
 22             under section 63-802(1)(e), Idaho Code. When a special purpose taxing
 23             district  is situated in more than one (1) county, the tax commission
 24             shall determine the portion attributable to the special purpose  tax-
 25             ing district from each county in which it is situated.
 26             (iv)  If  special  purpose  taxing  districts  are  consolidated, the
 27             resulting district is entitled to a base amount equal to the  sum  of
 28             the  base amounts which were received in the last calendar quarter by
 29             each district prior to the consolidation.
 30             (v)   If  a  special  purpose  taxing  district   is   dissolved   or
 31             disincorporated, the state tax commission shall continuously distrib-
 32             ute  to the board of county commissioners an amount equal to the last
 33             quarter's distribution prior to dissolution or disincorporation.  The
 34             board  of  county commissioners shall determine any redistribution of
 35             moneys so received.
 36             (vi)  Taxing districts formed after January 1, 2001, are not entitled
 37             to a payment under the provisions of this subsection (9)(d).
 38             (vii) For purposes of this subsection (9)(d), a special purpose  tax-
 39             ing  district is any taxing district which is not a city, a county or
 40             a school district.
 41        (10) Amounts calculated in accordance with section 2, chapter 356, Laws of
 42    2001, for annual distribution to counties and other taxing districts beginning
 43    in October 2001 for replacement of property tax on farm machinery  and  equip-
 44    ment  exempted  pursuant  to  section 63-602EE, Idaho Code. For nonschool dis-
 45    tricts, the state tax commission shall distribute  one-fourth  (1/4)  of  this
 46    amount certified quarterly to each county. For school districts, the state tax
 47    commission shall distribute one-fourth (1/4) of the amount certified quarterly
 48    to  each  school  district.  For nonschool districts, the county auditor shall
 49    distribute to each district within thirty (30) calendar days from  receipt  of
 50    moneys  from  the  tax commission. Moneys received by each taxing district for
 51    replacement shall be utilized in the same manner and in the  same  proportions
 52    as  revenues  from  property taxation. The moneys remitted to the county trea-
 53    surer for replacement of property exempt from  taxation  pursuant  to  section
 54    63-602EE,  Idaho Code, may be considered by the counties and other taxing dis-
 55    tricts and budgeted at the same time, in the same manner and in the same  year
                                                                        
                                           7
                                                                        
  1    as  revenues from taxation on personal property which these moneys replace. If
  2    taxing districts are consolidated, the resulting district is  entitled  to  an
  3    amount  equal to the sum of the amounts which were received in the last calen-
  4    dar quarter by each district  pursuant to this subsection prior to the consol-
  5    idation. If a taxing district is dissolved or disincorporated, the  state  tax
  6    commission  shall continuously distribute to the board of county commissioners
  7    an amount equal to the last quarter's distribution  prior  to  dissolution  or
  8    disincorporation. The board of county commissioners shall determine any redis-
  9    tribution  of moneys so received.  If a taxing district annexes territory, the
 10    distribution of moneys received pursuant to this  subsection  shall  be  unaf-
 11    fected.  Taxing  districts formed after January 1, 2001, are not entitled to a
 12    payment under the  provisions  of  this  subsection.  School  districts  shall
 13    receive  an  amount  determined by multiplying the sum of the year 2000 school
 14    district levy plus .001 times the market value on December 31,  2000,  in  the
 15    district  of  the  property exempt from taxation pursuant to section 63-602EE,
 16    Idaho Code. For school districts, beginning January 1, 2002, only the  portion
 17    of  property tax replacement received to replace property exempt from taxation
 18    pursuant to section 63-602EE, Idaho Code, based  on  the  tax  year  2000  tax
 19    charges  for  maintenance  and  operation as limited by sections 33-802 2. and
 20    33-1002D, Idaho Code, shall not be subtracted from the maximum school district
 21    maintenance and operation property taxes permitted in accordance with  section
 22    33-802  2.,  Idaho  Code.  For  purposes of the limitation provided by section
 23    63-802, Idaho Code, moneys received pursuant to this section as  property  tax
 24    replacement  for  property  exempt from taxation pursuant to section 63-602EE,
 25    Idaho Code, shall be treated as property tax revenues.
 26        (11) Any moneys remaining over and  above  those  necessary  to  meet  and
 27    reserve for payments under other subsections of this section shall be distrib-
 28    uted to the general fund.
                                                                        
 29        SECTION  3.  An  emergency  existing  therefor,  which emergency is hereby
 30    declared to exist, this act shall be in full force and effect on and after its
 31    passage and approval, and retroactively to January 1, 2006.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 16047

This bill would allow individual homeowners with low incomes who
are elderly, disabled or widowed and who qualify for 
circuit breaker" property tax relief to postpone payment of
property taxes on their homes.  To qualify, the homeowner must
have sufficient equity in that property, after consideration of
encumbrances that are superior to any liens for deferral, to
secure the payment of all existing deferrals granted in the
property, and the home must not be co-owned by other persons
(other than a spouse) or be held in trust or subject to a life
estate.  The taxes and interest (at six percent {6%}) would
become payable when both the homeowner and the spouse have died,
or the property is sold, or it no longer qualified for the
homeowner's exemption.  The State will reimburse counties and
local governments for the tax that is not collected in the
current year, up to an annual maximum of $500,000.  Repayment,
when due, is to the State.  The payments are deposited in a
dedicated fund to be used for financing future property tax
deferrals.  Until the tax is paid, the State is protected by
recording the tax lien on the property which takes its priority
as to other encumbrances based on the date of recording.



                           FISCAL NOTE

The maximum annual cost to the general fund is $500,000.




Contact
Name: Brian Whitlock, Governor's Office 
Phone: (208) 334-2100


STATEMENT OF PURPOSE/FISCAL NOTE                         H 680