1998 Legislation
Print Friendly

HOUSE BILL NO. 475 – Property, occupancy tax, when

HOUSE BILL NO. 475

View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History



H0475.............................................................by GAGNER
PROPERTY - OCCUPANCY TAX - Amends existing law to provide when residential
improvements shall be subject to the occupancy tax and to provide that the
statute relating to change of status shall not apply, to define a term, to
provide application to the nonresidential portion of an improvement to real
property and to provide application to multiple residential units.

01/14    House intro - 1st rdg - to printing
01/15    Rpt prt - to Rev/Tax
02/13    Rpt out - rec d/p - to 2nd rdg
02/16    2nd rdg - to 3rd rdg
02/20    3rd rdg - PASSED - 59-2-9
      AYES -- Barraclough, Barrett, Bell, Bieter, Bivens, Black(15), Boe,
      Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal,
      Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
      Hadley, Hansen, Hornbeck, Jaquet, Jones(9), Jones(22), Jones(20),
      Judd, Kellogg, Kempton, Kendell, Kjellander, Kunz, Lake, Linford,
      Loertscher, Mader, Marley, McKague, Meyer, Miller, Mortensen,
      Newcomb, Pischner, Pomeroy, Reynolds, Ridinger, Robison, Sali,
      Schaefer, Stubbs, Taylor, Tilman, Trail, Wheeler, Zimmermann,
      Mr Speaker
      NAYS -- Stevenson, Stoicheff
      Absent and excused -- Alltus, Black(23), Crane, Henbest, Richman,
      Stone, Tippets, Watson, Wood
    Floor Sponsor - Gagner
    Title apvd - to Senate
02/23    Senate intro - 1st rdg - to Loc Gov
03/03    Rpt out - rec d/p - to 2nd rdg
03/04    2nd rdg - to 3rd rdg
03/16    3rd rdg - PASSED - 32-0-3
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
      Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
      Richardson, Risch, Sandy, Schroeder, Sorensen, Sweeney, Thorne,
      Wheeler, Whitworth
      NAYS--None
      Absent and excused--Riggs, Stennett, Twiggs
    Floor Sponsor - Frasure
    Title apvd - to House
03/17    To enrol
03/17    Rpt enrol - Sp signed
03/18    Pres signed - to Governor
03/19    Governor signed
         Session Law Chapter 95
         Effective: 01/01/98

Bill Text


H0475


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 475

                                        BY GAGNER

 1                                        AN ACT
 2    RELATING TO TAXATION OF REAL PROPERTY; AMENDING SECTION 63-602W,  IDAHO  CODE,
 3        TO  PROVIDE  WHEN  RESIDENTIAL IMPROVEMENTS SHALL BE SUBJECT TO THE  OCCU-
 4        PANCY TAX AND TO PROVIDE THAT THE STATUTE RELATING  TO  CHANGE  OF  STATUS
 5        SHALL  NOT  APPLY,  TO  PROVIDE  APPLICATION, TO DEFINE A TERM, TO PROVIDE
 6        APPLICATION TO THE  NONRESIDENTIAL PORTION OF AN IMPROVEMENT TO REAL PROP-
 7        ERTY AND TO PROVIDE APPLICATION TO MULTIPLE  RESIDENTIAL  UNITS;  AMENDING
 8        SECTION  63-301A,  IDAHO  CODE, TO PROVIDE FOR AN ADDITION TO THE NEW CON-
 9        STRUCTION ROLL; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE  APPLICA-
10        TION.

11    Be It Enacted by the Legislature of the State of Idaho:

12        SECTION  1.  That  Section 63-602W, Idaho Code, be, and the same is hereby
13    amended to read as follows:

14        63-602W.  BUSINESS INVENTORY EXEMPT FROM TAXATION  --  BUSINESS  INVENTORY
15    THAT  IS  A  COMPONENT  OF REAL PROPERTY THAT IS A SINGLE FAMILY DWELLING. The
16    following property is exempt from property taxation: business  inventory.  For
17    the  purpose of this section, "business inventory" means all items of tangible
18    personal property or other property described as:
19        (1)  All livestock, fur-bearing animals, fish, fowl and bees.
20        (2)  All nursery stock, stock-in-trade, merchandise, products, finished or
21    partly finished goods, raw materials, and all forest products subject  to  the
22    provisions of chapter 17, title 63, Idaho Code, supplies, containers and other
23    personal property which is held for sale or consumption in the ordinary course
24    of  the taxpayer's manufacturing, farming, wholesale jobbing, or merchandising
25    business.
26        (3)   All partial and newly constructed single  family  homes  for  a
27    period  not  to exceed one (1) year from the date of completion, provided that
28    it is identified by filing a declaration of completion with the county  asses-
29    sor  within  forty-five  (45)  days of completion or prior to January 1 of the
30    following year, whichever comes first. The date for completion shall  be  evi-
31    denced by a valid final electrical or plumbing inspection certificate, certif-
32    icate  or other documentation authorized by the county assessor signifying the
33    home is complete or until the home becomes occupied. Once property is occupied
34    as defined in section 63-317, Idaho Code, it shall be subject to the tax  pro-
35    vided by section 63-317, Idaho Code. The state tax commission shall promulgate
36    rules  to  standardize  the  application form and definition for the exemption
37    provided by this subsection.       Residential  improvements  never
38    occupied.  Once  residential  improvements  are occupied as defined in section
39    63-317, Idaho Code, they shall be subject  to  the  tax  provided  by  section
40    63-317,  Idaho  Code. The provisions of section 63-602Y, Idaho Code, shall not
41    apply to the exemption provided by this subsection. The exemption provided  by
42    this subsection  applies only to improvements to real property, and only until
43    first  occupied.  For purposes of this section, the term "residential improve-


                                          2

 1    ments" means only:
 2        (a)  Single family residences; or
 3        (b)  Residential townhouses; or
 4        (c)  Residential condominium units.
 5    The nonresidential portion of an improvement to real property that is used  or
 6    is to be used for residential and nonresidential purposes does not qualify for
 7    the  exemption  provided by this section.  If an improvement contains multiple
 8    residential units, each such unit shall lose the exemption  provided  in  this
 9    section when it becomes occupied. 

10        SECTION  2.  That  Section 63-301A, Idaho Code, be, and the same is hereby
11    amended to read as follows:

12        63-301A.  NEW CONSTRUCTION ROLL. (1) The county assessor shall  prepare  a
13    new  construction roll, which shall be in addition to the property roll, which
14    new construction roll shall show:
15        (a)  The name of the taxpayer;
16        (b)  The description of the new construction, suitably  detailed  to  meet
17        the requirements of the individual county;
18        (c)  A description of the land and its change in use, suitably detailed to
19        meet the needs of the individual county;
20        (d)  The  amount of taxable market value added to the property on the cur-
21        rent year's property roll that is directly the result of new  construction
22        or a change in use of the land or both.
23        (2)  As soon as possible, but in any event by no later than the first Mon-
24    day  in June, the new construction roll shall be certified to the county audi-
25    tor and a listing showing the amount of value on the new construction roll  in
26    each taxing district or unit be forwarded to the state tax commission.
27        (3)  The  value  shown  on the new construction roll may include the value
28    increase from:
29        (a)  Construction of any new structure that previously did not exist; or
30        (b)  Additions or alterations to existing nonresidential structures; or
31        (c)  Installation of new or used manufactured housing that did not  previ-
32        ously exist within the county; or
33        (d)  Change of land use classification ; or
34        (e)  Property  newly taxable as a result of loss of the exemption provided
35        by section 63-602W, Idaho Code .
36        (4)  The amount of taxable market value of new construction shall  be  the
37    change  in  net taxable market value that is attributable directly to new con-
38    struction or a change in use of the land  or loss of the  exemption  pro-
39    vided  by  section  63-602W(3),  Idaho  Code  . It shall not include any
40    change in value of existing property that is due  to  external  market  forces
41    such as general or localized inflation.

42        SECTION  3.  An  emergency  existing  therefor,  which emergency is hereby
43    declared to exist, this act shall be in full force and effect on and after its
44    passage and approval, and retroactively to January 1, 1998.

Statement of Purpose / Fiscal Impact


    





               REPRINT     REPRINTREPRINT REPRINT
    
                          STATEMENT OF PURPOSE
                                RS 07516
                                    
    
               REPRINTREPRINT
    
    This bill will simplify the procedure by which 
    assessors and the State Tax Commission will be able to 
    implement the exemption of the business inventory of 
    non-occupied residential improvements. The bill expands upon 
    the definition of the term "residential improvements." It 
    further clarifies that the bill applies only to improvements 
    to real property, and only until first occupied. This bill 
    clarifies last year's legislation which enabled new 
    homeowners to receive the benefit of an exemption for newly 
    constructed residences.
    
    FISCAL NOTE
    
    The fiscal impact on taxing districts is 
    difficult or impossible to determine.
    
    CONTACT: Representative Lee 
    Gagner PHONE: 33-2-1248
    
    STATEMENT OF PURPOSE/ FISCAL NOTE
    
                              Bill No. 475