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H0368...............................................by REVENUE AND TAXATION
OCCUPANCY TAX - Amends existing law to clarify that for occupancy tax
purposes the full market value contained in the appraisal before any
exemptions or prorations shall be provided to the owner; and to clarify the
time for an appeal does not commence until the county assessor provides the
owner with the full market value.
03/22 House intro - 1st rdg - to printing
03/23 Rpt prt - to Rev/Tax
03/24 Rpt out - rec d/p - to 2nd rdg
Rls susp - PASSED - 64-1-5
AYES -- Anderson, Andrus, Barraclough, Bastian, Bayer, Bedke, Bell,
Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark,
Collins, Crow, Deal, Denney, Eskridge, Field(18), Field(23), Garrett,
Hart, Harwood, Henbest, Henderson, Jaquet, Jones, Kemp, Lake,
LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller,
Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould,
Ring, Ringo, Roberts, Rydalch, Sali, Sayler, Schaefer, Shepherd(2),
Shepherd(8), Shirley, Smith(30), Smith(24)(Frost), Smylie, Snodgrass,
Stevenson, Trail, Wood, Mr. Speaker
NAYS -- Rusche
Absent and excused -- Barrett, Edmunson(Barker), Ellsworth, Skippen,
Wills
Floor Sponsor - Bastian
Title apvd - to Senate
03/25 Senate intro - 1st rdg - to Loc Gov
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 368
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE OCCUPANCY TAX; AMENDING SECTION 63-317, IDAHO CODE, TO CLARIFY
3 THAT AN APPRAISAL FOR OCCUPANCY TAX PURPOSES SHALL PROVIDE THE OWNER
4 WITH THE FULL MARKET VALUE CONTAINED IN THE APPRAISAL BEFORE ANY EXEMP-
5 TIONS OR PRORATIONS AND TO CLARIFY THAT THE TIME FOR AN APPEAL DOES NOT
6 COMMENCE UNTIL THE COUNTY ASSESSOR PROVIDES THE OWNER WITH THE FULL MARKET
7 VALUE; AND DECLARING AN EMERGENCY.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 63-317, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 63-317. OCCUPANCY TAX -- PROCEDURES. (1) All real property subject to
12 property taxation shall be valued and taxed based upon its status as of Janu-
13 ary 1 of each tax year. Improvements, other than additions to existing
14 improvements, constructed upon real property shall not be subject to property
15 taxation during the year of construction other than that portion actually in
16 place as of January 1 of each calendar year; new manufactured housing shall
17 not be subject to property taxation during the first year of occupancy if
18 occupied after January 1. For the purposes of this section, "new manufactured
19 housing" means manufactured housing, whether real or personal, never previ-
20 ously occupied.
21 (2) There is hereby levied an occupancy tax upon all newly constructed
22 and occupied residential and commercial structures, including new manufactured
23 housing, except additions to existing improvements or manufactured housing,
24 prorated for the portion of the year for which the structure was occupied. The
25 occupancy tax shall be upon those improvements or new manufactured housing for
26 that portion of the calendar year in which first occupancy occurs. For the
27 purposes of this section, the term "occupied" means:
28 (a) Use of the property by any person as a residence including occupancy
29 of improvements or use in storage of vehicles, boats or household goods,
30 provided such use is not solely related to construction or sale of the
31 property; or
32 (b) Use of the property for any business or commercial purpose unrelated
33 to the construction and sale of the property; or
34 (c) Any possessory use of the property for which the owner received any
35 compensation or consideration.
36 (3) The owner of any newly constructed improvement or new manufactured
37 housing, as described in this section, upon which no occupancy tax has been
38 charged shall report to the county assessor that the improvement or new manu-
39 factured housing has been occupied. As soon as practical after receiving such
40 a report, the county assessor shall appraise and determine the market value
41 for assessment purposes.
42 (a) At the time the county assessor determines the market value for
43 assessment purposes of any improvement, he shall allow as an offset
2
1 against the market value of the improvement, the market value of any por-
2 tion of that improvement which was existing on January 1 and placed upon
3 the property roll.
4 (b) Upon completion of the appraisal, the county assessor shall notify
5 the owner of the appraisal, with the full market value contained in the
6 appraisal before any exemptions or prorations, and further shall notify
7 the owner of their right to apply for the exemption provided in sections
8 63-602G and 63-602X, Idaho Code. If the owner applies for and meets the
9 requirements for such exemption within thirty (30) days of the notifica-
10 tion by the county assessor, the exemption shall be extended to the newly
11 constructed and occupied residential structures in compliance with section
12 63-602G, Idaho Code, notwithstanding limitations requiring occupancy as
13 of January 1 of the tax year.
14 (c) In the event that the owner fails to report to the county assessor
15 that the property is ready for occupancy, the assessor shall notify the
16 county board of equalization, who may impose as penalty an additional
17 amount equal to five percent (5%) of the tax for each month following the
18 date of first occupancy during which the report is not made, to a maximum
19 of twenty-five percent (25%) of the tax.
20 (4) Appeals of the market value for assessment purposes shall be resolved
21 in the same manner as all other appeals of valuation by the board of equaliza-
22 tion. The time for an appeal does not commence until the county assessor com-
23 plies with subsection (3)(b) of this section.
24 (5) The occupancy tax calculated upon the values set by the county asses-
25 sor, and any penalty imposed by the board of equalization shall be collected
26 in the same manner as all other property taxes.
27 (6) An occupancy tax lien shall be imposed in the manner provided in sec-
28 tion 63-206, Idaho Code.
29 (7) Occupancy taxes shall be billed, collected and distributed in the
30 same manner as all other property taxes.
31 SECTION 2. An emergency existing therefor, which emergency is hereby
32 declared to exist, this act shall be in full force and effect on and after its
33 passage and approval.
STATEMENT OF PURPOSE
RS 15167
The purpose of this proposed legislation is to change Idaho code
63-317(3)(b) to require the county assessors provide a notice of
full market value, in an appraisal notice, before any exemptions
or prorations are listed. This legislation sets the time for an
appeal to commence with the time of full notice.
FISCAL IMPACT
This legislation does not have a fiscal impact.
Contact
Name: Rep. Stan Bastian
Phone: 334-1241
Shane Kennedy, Pedersen & Company, Patent Attorney - 343-6355
STATEMENT OF PURPOSE/FISCAL NOTE H 368