View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
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
H0475|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN 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 a27period not to exceed one (1) year from the date of completion, provided that28it is identified by filing a declaration of completion with the county asses-29sor within forty-five (45) days of completion or prior to January 1 of the30following year, whichever comes first. The date for completion shall be evi-31denced by a valid final electrical or plumbing inspection certificate, certif-32icate or other documentation authorized by the county assessor signifying the33home is complete or until the home becomes occupied. Once property is occupied34as defined in section 63-317, Idaho Code, it shall be subject to the tax pro-35vided by section 63-317, Idaho Code. The state tax commission shall promulgate36rules to standardize the application form and definition for the exemption37provided 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.
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