View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
S1280........................................by STENNETT, MARLEY, MALEPEAI, WERK, KELLY, LANGHORST, BURKETT - PROPERTY TAX - Amends existing law to provide that the first $100,000 of the market value for assessment purposes of the homestead or 50% of the market value for assessment purposes of the homestead, whichever is the lesser, shall be exempt from property taxation; to define "homestead"; to provide for certain annual adjustments to the maximum amount subject to property tax exemption; to provide for publication and dissemination of adjustments; and to provide that the publication of adjustments shall be exempt from the provisions of the Administrative Procedure Act. 01/19 Senate intro - 1st rdg - to printing 01/20 Rpt prt - to Loc Gov
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE SENATE SENATE BILL NO. 1280 BY STENNETT, MARLEY, MALEPEAI, WERK, KELLY, LANGHORST, BURKETT 1 AN ACT 2 RELATING TO PROPERTY EXEMPT FROM TAXATION; AMENDING SECTION 63-602G, IDAHO 3 CODE, TO PROVIDE THAT THE FIRST ONE HUNDRED THOUSAND DOLLARS OF THE MARKET 4 VALUE FOR ASSESSMENT PURPOSES OF THE HOMESTEAD OR FIFTY PERCENT OF THE 5 MARKET VALUE FOR ASSESSMENT PURPOSES OF THE HOMESTEAD, WHICHEVER IS THE 6 LESSER, SHALL BE EXEMPT FROM PROPERTY TAXATION, TO DEFINE "HOMESTEAD," TO 7 PROVIDE FOR CERTAIN ANNUAL ADJUSTMENTS TO THE MAXIMUM AMOUNT SUBJECT TO 8 PROPERTY TAX EXEMPTION, TO PROVIDE FOR PUBLICATION AND DISSEMINATION OF 9 ADJUSTMENTS, TO PROVIDE THAT THE PUBLICATION OF ADJUSTMENTS SHALL BE 10 EXEMPT FROM THE PROVISIONS OF THE ADMINISTRATIVE PROCEDURE ACT AND TO MAKE 11 TECHNICAL CORRECTIONS; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE 12 APPLICATION. 13 Be It Enacted by the Legislature of the State of Idaho: 14 SECTION 1. That Section 63-602G, Idaho Code, be, and the same is hereby 15 amended to read as follows: 16 63-602G. PROPERTY EXEMPT FROM TAXATION --RESIDENTIAL IMPROVEMENTSHOME- 17 STEAD. (1) During the tax year19832006 and each year thereafter, subject to 18 annual adjustment as provided herein, the firstfiftyone hundred thousand 19 dollars ($5100,000) of the market value for assessment purposes ofresidential20improvementsthe homestead as that term is defined in section 63-701, Idaho 21 Code, or fifty percent (50%) of the market value for assessment purposes of 22residential improvementsthe homestead as that term is defined in section 23 63-701, Idaho Code, whichever is the lesser, shall be exempt from property 24 taxation. Beginning for tax year 2007, the state tax commission shall publish 25 adjustments to the maximum amount subject to property tax exemption to reflect 26 cost-of-living fluctuations. The adjustments shall effect changes in the 27 amount subject to tax exemption by a percentage equal as near as practicable 28 to the annual cost-of-living percentage modification as determined by the sec- 29 retary of health and human services pursuant to 42 U.S.C. section 415(i). The 30 state tax commission shall publish the adjustments required by this subsec- 31 tion each and every year the secretary of health and human services announces 32 said cost-of-living percentage modification. The adjustments shall be pub- 33 lished no later than October 1 of each year and shall be effective for claims 34 filed in and for the following property tax year. The publication of adjust- 35 ments under this subsection shall be exempt from the provisions of chapter 52, 36 title 67, Idaho Code, but shall be provided to each county and to members of 37 the public upon request and without charge. 38 (2) The exemption allowed by this section may be granted only if: 39 (a) Theresidential improvements arehomestead is owner-occupied and used 40 as the primary dwelling place of the owner as of January 1, provided that 41 in the event theresidential improvements arehomestead is owner-occupied 42 after January 1 but before April 15, the owner of the property is entitled 43 to the exemption. Theresidential improvementshomestead may consist of 2 1 part of a multidwelling or multipurpose building and shall include all of 2 such dwelling or building except any portion used exclusively for anything 3 other than the primary dwelling of the owner. The presence of an office in 4 an owner-occupied residential propertyhomestead, which office is used for 5 multiple purposes, including business and personal use, shall not prevent 6 the owner from claiming the exemption provided in this section; and 7 (b) The tax commission has certified to the board of county commissioners 8 that all properties in the county which are subject to appraisal by the 9 county assessor have, in fact, been appraised uniformly so as to secure a 10 just valuation for all property within the county; and 11 (c) The owner has certified to the county assessor by April 15 that: 12 (i) He is making application for the exemption allowed by this sec- 13 tion; 14 (ii) That theresidential improvements arehomestead is his primary 15 dwelling place; and 16 (iii) That he has not made application in any other county for the 17 exemption, and has not made application for the exemption on any 18 otherresidential improvementshomestead in the county. 19 (d) For the purpose of this section, the definition of "owner" shall be 20 the same definition set forth in section 63-701(7), Idaho Code. 21 When an "owner," pursuant to the provisions of section 63-701(7), 22 Idaho Code, is any person who is the beneficiary of a revocable or irrevo- 23 cable trust, or who is a partner of a limited partnership, a member of a 24 limited liability company, or shareholder of a corporation, he or she may 25 provide proof of the trust, limited partnership, limited liability com- 26 pany, or corporation in the manner set forth in section 63-703(4), Idaho 27 Code. 28 (e) Any owner may request in writing the return of all copies of any doc- 29 uments submitted with the affidavit set forth in section 63-703(4), Idaho 30 Code, that are held by a county assessor, and the copies shall be returned 31 by the county assessor upon submission of the affidavit in proper form. 32 (f) For the purpose of this section, the definition of "primary dwelling 33 place" shall be the same definition set forth in section 63-701(8), Idaho 34 Code. 35 (g) For the purpose of this section, the definition of "occupied" shall 36 be the same definition set forth in section 63-701(6), Idaho Code. 37 (3) An owner need only make application for the exemption described in 38 subsection (1) of this section once, as long as all of the following condi- 39 tions are met: 40 (a) The owner has received the exemption during the previous year as a 41 result of his making a valid application as defined in subsection (2)(c) 42 of this section. 43 (b) The owner or beneficiary, partner, member or shareholder, as appro- 44 priate, still occupies the sameresidential improvementshomestead for 45 which the owner made application. 46 (c) Theresidential improvementshomestead described in subsection (3)(b) 47 of this sectionareis owner-occupied or occupied by a beneficiary, part- 48 ner, member or shareholder, as appropriate, and used as the primary dwell- 49 ing place of the owner or beneficiary, partner, member or shareholder, as 50 appropriate, as of January 1; provided however, that in the event theres-51idential improvements arehomestead is owner-occupied after January 1, but 52 before April 15, the owner of the property is entitled to the exemption. 53 (4) The exemption allowed by this section must be taken before the reduc- 54 tion in taxes provided by sections 63-701 through 63-710, Idaho Code, is 55 applied. 3 1 (5) Recovery of property tax exemptions allowed by this section but 2 improperly claimed or approved.: 3 (a) Upon discovery of evidence, facts or circumstances indicating any 4 exemption allowed by this section was improperly claimed or approved, the 5 county assessor shall decide whether the exemption claimed should be 6 allowed and if not, notify the taxpayer in writing, assess a recovery of 7 property tax and notify the county treasurer of this assessment. 8 (b) When information indicating that an improper claim for the exemption 9 allowed by this section is discovered by the state tax commission, the 10 state tax commission may disclose this information to the appropriate 11 county assessor, board of county commissioners and county treasurer. 12 Information disclosed to county officials by the state tax commission 13 under this subsection may be used to decide the validity of any entitle- 14 ment to the exemption provided in this section and is not otherwise sub- 15 ject to public disclosure pursuant to chapter 3, title 9, Idaho Code. 16 (c) The assessment and collection of the recovery of property tax must 17 begin within the seven (7) year period beginning the date the assessment 18 notice reflecting the improperly claimed or approved exemption was 19 required to be mailed to the taxpayer. 20 (d) The taxpayer may appeal to the board of county commissioners the 21 decision by the county assessor to assess the recovery of property tax 22 within thirty (30) days of the date the county assessor sent the notice to 23 the taxpayer pursuant to this section. 24 (e) A recovery of property tax shall be for each year the exemption 25 allowed by this section was improperly claimed or approved up to the 26 lesser of a maximum of seven (7) years or until the property was trans- 27 ferred to a bona fide purchaser for value. The amount of the recovery of 28 property tax shall be calculated using the product of the amount of 29 exempted value for each year multiplied by the levy for that year plus 30 costs, late charges and interest for each year at the rates equal to those 31 provided for delinquent property taxes during that year. 32 (f) Any recovery of property tax shall be due and payable no later than 33 the date provided for property taxes in section 63-903, Idaho Code, and if 34 not timely paid, late charges and interest, beginning the first day of 35 January in the year following the year the county assessor sent the notice 36 to the taxpayer pursuant to this section, shall be calculated at the cur- 37 rent rate provided for property taxes. 38 (g) Recovered property taxes shall be billed, collected and distributed 39 in the same manner as property taxes, except each taxing district or unit 40 shall be notified of the amount of any recovered property taxes included 41 in any distribution. 42 (h) Any unpaid recovered property taxes shall become a lien upon the real 43 property in the same manner as provided for property taxes in section 44 63-206, Idaho Code, except such lien shall attach as of the first day of 45 January in the year following the year the county assessor sent the notice 46 to the taxpayer pursuant to this section. 47 (i) For purposes of the limitation provided by section 63-802, Idaho 48 Code, moneys received pursuant to this subsection as recovery of property 49 tax shall be treated as property tax revenue. 50 (6) The legislature declares that this exemption is necessary and just. 51 (7)Residential improvementsA homestead having previously qualified for 52 exemption under this section in the preceding year, shall not lose such quali- 53 fication due to: the owner's, beneficiary's, partner's, member's or 54 shareholder's absence in the current year by reason of active military service 55 in a designated combat zone, as defined in section 112 of the Internal Revenue 4 1 Code, or because theresidential improvements havehomestead has been leased 2 because the owner, beneficiary, partner, member or shareholder is absent in 3 the current year by reason of active military service in a designated combat 4 zone, as defined in section 112 of the Internal Revenue Code. If an owner 5 fails to timely apply for exemption as required in this section solely by rea- 6 son of active duty in a designated combat zone by the owner, beneficiary, 7 partner, member or shareholder, as appropriate, as defined in section 112 of 8 the Internal Revenue Code, and suchimprovementshomestead would have other- 9 wise qualified under this section, then the board of county commissioners of 10 the county in which theresidential improvements arehomestead is located 11 shall refund property taxes, if previously paid, in an amount equal to the 12 exemption which would otherwise have applied. 13 SECTION 2. An emergency existing therefor, which emergency is hereby 14 declared to exist, this act shall be in full force and effect on and after its 15 passage and approval, and retroactively to January 1, 2006.
STATEMENT OF PURPOSE RS 15691 This legislation will update the homeowner property tax exemption by increasing the limit of the exemption to $100,000 (from the current limit of $50,000), include the value of land in the calculation of property value, and index the exemption for inflation so that the value of the exemption does not fall behind inflation. FISCAL NOTE This legislation will result in a small positive impact on state revenues by decreasing payments for the Circuit Breaker program. Local funding for K-l2 public education will decrease by approximately $27 million in the second year following enactment of this statute although increases in overall property valuation will likely minimize or eliminate this effect. Contact Name: Senator David Langhorst Senator Elliot Werk Senator Clint Stennett Senator Bert Marley Senator Mike Burkett Senator Edgar Malepeai Senator Kate Kelly Phone: 332-1130 STATEMENT OF PURPOSE/FISCAL NOTE S 1280