View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
H0529..................................by ROBISON, ALEXANDER, BIETER, ET AL PROPERTY TAX - Amends and adds to existing law to provide a reference to owner-occupied primary dwelling place, to provide legislative findings, to provide a property tax exemption of 20% of any increase in assessed value for residential lots of up to one acre in size, to provide that the lots must have residential improvements built on them which are completed and occupied, to provide that the exemption shall be measured from the value assessed in tax year 1998 or the first complete year after 1998 in which the improvements are completed and occupied, to provide limits on the exemption, to provide for occupation as a dwelling place, to provide for certification by the tax commission, to require certain certifications by the owner, to define "owner" and "occupied," to provide that the owner need only apply once for the exemption, to provide for owners on active military service and to provide that the exemption is additional to other exemptions. 01/28 House intro - 1st rdg - to printing 01/29 Rpt prt - to Rev/Tax
H0529|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 529 BY ROBISON, ALEXANDER, BIETER, BOE, CHASE, JUDD AND STOICHEFF 1 AN ACT 2 RELATING TO REAL PROPERTY EXEMPT FROM TAXATION; AMENDING SECTION 63-602G, 3 IDAHO CODE, TO PROVIDE A REFERENCE TO OWNER-OCCUPIED PRIMARY DWELLING 4 PLACE; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW 5 SECTION 63-602GG, IDAHO CODE, TO PROVIDE LEGISLATIVE FINDINGS, TO PROVIDE 6 A PROPERTY TAX EXEMPTION FOR RESIDENTIAL LOTS UP TO ONE ACRE IN SIZE OF 7 TWENTY PERCENT OF ANY INCREASE IN ASSESSED VALUE, TO PROVIDE THAT THE LOTS 8 MUST HAVE RESIDENTIAL IMPROVEMENTS BUILT ON THEM WHICH ARE COMPLETED AND 9 OCCUPIED, TO PROVIDE THAT THE EXEMPTION SHALL BE MEASURED FROM THE VALUE 10 ASSESSED IN TAX YEAR 1998 OR THE FIRST COMPLETE YEAR AFTER 1998 IN WHICH 11 THE IMPROVEMENTS ARE COMPLETED AND OCCUPIED, TO PROVIDE LIMITS ON THE 12 EXEMPTION, TO PROVIDE FOR OCCUPATION AS A DWELLING PLACE, TO PROVIDE FOR 13 CERTIFICATION BY THE TAX COMMISSION, TO REQUIRE CERTAIN CERTIFICATIONS BY 14 THE OWNER, TO DEFINE OWNER, TO DEFINE OCCUPIED, TO PROVIDE THAT THE OWNER 15 NEED ONLY APPLY ONCE FOR THE EXEMPTION, TO PROVIDE FOR OWNERS ON ACTIVE 16 MILITARY SERVICE AND TO PROVIDE THAT THE EXEMPTION IS ADDITIONAL TO OTHER 17 EXEMPTIONS; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION. 18 Be It Enacted by the Legislature of the State of Idaho: 19 SECTION 1. That Section 63-602G, Idaho Code, be, and the same is hereby 20 amended to read as follows: 21 63-602G. PROPERTY EXEMPT FROM TAXATION -- RESIDENTIAL IMPROVEMENTS 22 -- OWNER-OCCUPIED PRIMARY DWELLING PLACE . (1) During the tax year 1983 23 and each year thereafter, the first fifty thousand dollars ($50,000) of the 24 market value for assessment purposes of residential improvements, or fifty 25 percent (50%) of the market value for assessment purposes of residential 26 improvements, whichever is the lesser, shall be exempt from property taxation. 27 (2) The exemption allowed by this section may be granted only if: 28 (a) The residential improvements are owner-occupied and used as the pri- 29 mary dwelling place of the owner as of January 1. The residential improve- 30 ments may consist of part of a multidwelling or multipurpose building and 31 shall include all of such dwelling or building except any portion used 32 exclusively for anything other than the primary dwelling of the owner. The 33 presence of an office in an owner-occupied residential property, which 34 office is used for multiple purposes, including business and personal use, 35 shall not prevent the owner from claiming the exemption provided in this 36 section; and 37 (b) The tax commission has certified to the board of county commissioners 38 that all properties in the county which are subject to appraisal by the 39 county assessor have, in fact, been appraised uniformly so as to secure a 40 just valuation for all property within the county; and 41 (c) The owner has certified to the county assessor by April 15 that: 42 (i) He is making application for the exemption allowed by this sec- 43 tion; 2 1 (ii) That the residential improvements are his primary dwelling 2 place; and 3 (iii) That he has not made application in any other county for the 4 exemption, and has not made application for the exemption on any 5 other residential improvements in the county. 6 (d) For the purpose of this section, the definition of owner shall be the 7 same definition set forth in section 63-701(8), Idaho Code. 8 When an "owner" is any person who as grantor created a revocable 9 trust and named himself or herself as beneficiary of that trust, he or she 10 may provide proof of the revocable trust with an affidavit stating: (i) 11 the name of the grantor; (ii) a statement that the grantor is the benefi- 12 ciary of the trust; (iii) the trust is revocable during the grantor's 13 lifetime; and (iv) the grantor is the owner-occupier of the residential 14 property and uses the property as the primary dwelling place of the owner 15 as of January 1. 16 The affidavit shall include the attaching of the copies of those por- 17 tions of the trust which set forth the grantor, the grantor as benefi- 18 ciary, the revocable character of the trust and the signature page of the 19 trust. 20 (e) Any owner may request in writing the return of all copies of any 21 revocable trust created by the owner that are held by a county assessor, 22 and the copies shall be returned by the county assessor upon submission of 23 the affidavit set forth in paragraph (d) of this subsection in proper 24 form. 25 (f) For the purpose of this section, the definition of "primary dwelling 26 place" shall be the same definition set forth in section 63-701(9), Idaho 27 Code. 28 (g) For the purpose of this section, the definition of "occupied" shall 29 be the same definition set forth in section 63-701(7), Idaho Code. 30 (3) An owner need only make application for the exemption described in 31 subsection (1) of this section once, as long as all of the following condi- 32 tions are met: 33 (a) The owner has received the exemption during the previous year as a 34 result of his making a valid application as defined in subsection (2)(c) 35 of this section. 36 (b) The owner still occupies the same residential improvements for which 37 he made application. 38 (c) The residential improvements described in subsection (3)(b) of this 39 section are owner-occupied and used as the primary dwelling place of the 40 owner as of January 1. 41 (4) The exemption allowed by this section must be taken before the reduc- 42 tion in taxes provided by sections 63-701 through 63-710, Idaho Code, is 43 applied. 44 (5) The legislature declares that this exemption is necessary and just. 45 (6) Residential improvements having previously qualified for exemption 46 under this section in the preceding year, shall not lose such qualification 47 due to the owner's absence in the current year by reason of active military 48 service in a designated combat zone, as defined in section 112 of the internal 49 revenue code. If an owner fails to timely apply for exemption as required in 50 this section solely by reason of active duty in a designated combat zone, as 51 defined in section 112 of the internal revenue code, and such improvements 52 would have otherwise qualified under this section, then the board of county 53 commissioners of the county in which the residential improvements are located 54 shall refund property taxes, if previously paid, in an amount equal to the 55 exemption which would otherwise have applied. 3 1 SECTION 2. That Chapter 6, Title 63, Idaho Code, be, and the same is 2 hereby amended by the addition thereto of a NEW SECTION , to be 3 known and designated as Section 63-602GG, Idaho Code, and to read as follows: 4 63-602GG. PROPERTY EXEMPT FROM TAXATION -- RESIDENTIAL IMPROVEMENTS -- 5 LOTS WITH GENERALLY OCCUPIED DWELLINGS. Because of dramatic increases in the 6 taxable value of residential lots, the legislature finds it necessary and just 7 to exempt a portion of future increases in taxable value. 8 (1) During the tax year 1998 and each year thereafter, twenty percent 9 (20%) of the increase in value of lots up to one (1) acre in size on which 10 residential improvements have been built shall be exempt from taxation. The 11 increased value shall be calculated in comparison to the value in the previous 12 tax year, or the first full year after tax year 1998 in which the improvements 13 are completed and occupied. The exemption is limited to the following maximum 14 amount per owner per year: 15 (a) Ten thousand dollars ($10,000) in tax year 1999; 16 (b) Twenty thousand dollars ($20,000) in tax year 2000; 17 (c) Thirty thousand dollars ($30,000) in tax year 2001; 18 (d) Forty thousand dollars ($40,000) in tax year 2002; 19 (e) Fifty thousand dollars ($50,000) in tax year 2003, and each year 20 thereafter. 21 (2) The exemption allowed by this section may be granted only if: 22 (a) The residential improvements are on a lot no larger than one (1) acre 23 and are completed, occupied by any person, and used as a dwelling place as 24 of January 1. The residential improvements may consist of part of a multi- 25 dwelling or multipurpose building and shall include all of the dwelling or 26 building except any portion used exclusively for anything other than a 27 dwelling. The presence of an office in a residential property, which 28 office is used for multiple purposes, including business and personal use, 29 shall not prevent the owner from claiming the exemption provided in this 30 subsection; and 31 (b) The tax commission has certified to the board of county commissioners 32 that all properties in the county which are subject to appraisal by the 33 county assessor have, in fact, been appraised uniformly so as to secure a 34 just valuation for all property within the county; and 35 (c) The owner has certified to the county assessor by April 15 that: 36 (i) He is applying for the exemption allowed by this section; 37 (ii) That the lot is no larger than one (1) acre and that the resi- 38 dential improvements are completed and occupied; and 39 (iii) That he has not applied in any other county for the exemption, 40 and has not applied for the exemption on any other residential 41 improvements in the county. 42 (d) For the purpose of this section, the definition of owner shall be the 43 same definition set forth in section 63-701(8), Idaho Code. 44 When an "owner" is any person who as grantor created a revocable 45 trust and named himself or herself as beneficiary of that trust, he or she 46 may provide proof of the revocable trust with an affidavit stating: (i) 47 the name of the grantor; (ii) a statement that the grantor is the benefi- 48 ciary of the trust; (iii) the trust is revocable during the grantor's 49 lifetime; and (iv) the grantor is the owner-occupier of the residential 50 property and uses the property as the primary dwelling place of the owner 51 as of January 1. 52 The affidavit shall include the attaching of the copies of those por- 53 tions of the trust which set forth the grantor, the grantor as benefi- 54 ciary, the revocable character of the trust and the signature page of the 4 1 trust. 2 (e) Any owner may request in writing the return of all copies of any 3 revocable trust created by the owner that are held by a county assessor, 4 and the copies shall be returned by the county assessor upon submission 5 of the affidavit set forth in paragraph (d) of this subsection in proper 6 form. 7 (f) For the purpose of this section, the definition of "occupied" shall 8 be the same definition set forth in section 63-701(7), Idaho Code. 9 (3) An owner need only make application for the exemption described in 10 subsection (1) of this section once, as long as all of the following condi- 11 tions are met: 12 (a) The owner has received the exemption during the previous year as a 13 result of his making a valid application as defined in subsection (2)(c) 14 of this section. 15 (b) The residential improvements for which he made application are still 16 occupied as of January 1. 17 (4) The exemption allowed by this section must be taken before the reduc- 18 tion in taxes provided by sections 63-701 through 63-710, Idaho Code, is 19 applied. 20 (5) Residential improvements having previously qualified for exemption 21 under this section in the preceding year, shall not lose the qualification due 22 to the owner's absence in the current year by reason of active military ser- 23 vice in a designated combat zone, as defined in section 112 of the internal 24 revenue code. If an owner fails to timely apply for exemption as required in 25 this section solely by reason of active duty in a designated combat zone, as 26 defined in section 112 of the internal revenue code, and such improvements 27 would have otherwise qualified under this section, then the board of county 28 commissioners of the county in which the residential improvements are located 29 shall refund property taxes, if previously paid, in an amount equal to the 30 exemption which would otherwise have applied. 31 (6) The exemption provided in this section shall be additional to other 32 exemptions provided by law. 33 SECTION 3. An emergency existing therefor, which emergency is hereby 34 declared to exist, this act shall be in full force and effect on and after its 35 passage and approval, and retroactively to January 1, 1998.
STATEMENT of PURPOSE
RS 07642
Rapid increases in the value of residential lots have resulted in large increases in taxes on homes,
particularly in areas with high land values. This bill would offset part of the potential future tax increases
by exempting part of the value of residential lots. The exemption would apply only to increases in taxable
values after the 1998 tax year, not to present values. Lots with newly constructed residences would
come on the tax rolls at current value, and then receive a partial exemption for increases above that
value.
The exemption would be 2() per cent of increases in assessed value of residential lots up to a maximum
of:
10,000 in 1999
20,000 in 2000
30,000 in 2001
40,000 in 2002
50,000 in 2003 and thereafter.
For example, if the assessed value of the lot rose $10,000 in 1999, $2,000 of that increase would be
exempt and $8,OOO would be taxable. If it rose $20,000, $4,000 would be exempt and $16,000 would be
taxable.
FISCAL IMPACT
This bill would not reduce property tax collected by local government. It would reduce the amount of
future increases in tax collections resulting from increases in the value of residential lots. If lot values
rose an average of 5 per cent in a county, for example, and levies remained the same, tax collections on
increased lot value would go up 4 per cent rather than 5 per cent.
Contact: Rep. Ken Robison
Phone (208) 332-1000
Statement of purpose/fiscal impact
H 529