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H0562...............................................by REVENUE AND TAXATION
PROPERTY TAX - Amends existing law relating to property taxation to delete
county responsibility for conducting school district ratio studies and to
clarify determination of the ratio, to provide for publication by the State
Tax Commission of adjustments to income limitations and property reduction
amounts rather than by promulgation of rules, and to provide for
cancellation of property taxes by county commissioners for certain casualty
loss.
01/30 House intro - 1st rdg - to printing
02/02 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 - 64-0-6
AYES -- Alltus, 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, 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, Richman, Ridinger, Robison,
Sali, Schaefer, Stevenson, Stoicheff, Stubbs, Taylor, Tilman,
Tippets, Trail, Watson, Wheeler, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Black(23), Crane, Hadley, Henbest, Stone, Wood
Floor Sponsor - Watson
Title apvd - to Senate
02/23 Senate intro - 1st rdg - to Loc Gov
02/26 Rpt out - rec d/p - to 2nd rdg
02/27 2nd rdg - to 3rd rdg
03/16 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Diede, Dunklin, Frasure, Geddes, Hansen,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett,
Sweeney, Thorne, Twiggs, Wheeler, Whitworth
NAYS -- None
Absent and excused -- None
Floor Sponsor - McLaughlin
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 102
Effective: 07/01/98
H0562|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 562 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO PROPERTY TAXATION; AMENDING SECTION 63-315, IDAHO CODE, TO DELETE 3 COUNTY RESPONSIBILITY FOR CONDUCTING SCHOOL DISTRICT RATIO STUDIES AND TO 4 CLARIFY DETERMINATION OF THE RATIO; AMENDING SECTION 63-705, IDAHO CODE, 5 TO PROVIDE FOR PUBLICATION BY THE STATE TAX COMMISSION OF ADJUSTMENTS TO 6 INCOME LIMITATIONS AND PROPERTY TAX REDUCTION AMOUNTS; AND AMENDING SEC- 7 TION 63-711, IDAHO CODE, TO PROVIDE FOR CANCELLATION OF PROPERTY TAXES FOR 8 CERTAIN CASUALTY LOSS. 9 Be It Enacted by the Legislature of the State of Idaho: 10 SECTION 1. That Section 63-315, Idaho Code, be, and the same is hereby 11 amended to read as follows: 12 63-315. ASSESSMENT RATIOS AND THE DETERMINATION OF ADJUSTED MARKET VALUE 13 FOR ASSESSMENT PURPOSES FOR SCHOOL DISTRICTS. (1) For the purpose of this sec- 14 tion, adjusted market value for assessment purposes shall be the adjusted mar- 15 ket value for assessment purposes of all property assessed for property tax 16 purposes for the year referred to in sections 33-802 and 33-1002, Idaho Code. 17 (2) The state tax commission shall conduct a ratio study to annually 18 ascertain the ratio between the assessed value and the market value for 19 assessment purposes of all property assessed for property tax purposes. Said 20 ratio study shall be conducted in accordance with nationally accepted proce- 21 dures. From the ratio so ascertained the state tax commission shall compute 22 the adjusted market value of all property assessed for property tax purposes. 23 (3)This ratio shall be computed in each county and applied to the24market value for assessment purposes within each school district in each25county.The ratio shall be computed in each school district and applied 26 to the market value for assessment purposes within each school district. 27 (4)The ratio will be determined usingSales used in 28 determining the ratio required by this section shall be arm's 29 length , market value property sales occurringbetween30in the year beginning on October 1and September 3031of the year preceding the year for which the adjusted market value is 32 to be determined. The state tax commission may, at its discretion, modify the 33 sales period when doing so produces provably better representativeness of the 34 actual ratio in anycounty orschool district. The state tax com- 35 mission may also add independently conducted appraisals when the state tax 36 commission believes that this procedure will improve the representativeness 37 and reliability of the ratio. 38 (5) Whenever the state tax commission is unable to determine with reason- 39 able statistical certainty that the assessed value within anycounty or40school district differs from the market value for assessment purposes, 41 the state tax commission may certify the assessed value to be the adjusted 42 market value of anycounty orschool district. 43 (6) The state tax commission shall certify the adjusted market value of 2 1 each school district to the state department of education and each county 2 auditor no later than the first Monday in April each year. The state tax com- 3 mission shall prepare a report indicating procedures used in computing the 4 adjusted market value and showing statistical measures computed in the ratio 5 study. This report shall be submitted to the state department of education at 6 the same time as the certification of adjusted market value. The report of the 7 state tax commission shall also be made available for public inspection in 8 the office of the county auditor. 9 (7) The state tax commission shall promulgate rules to implement the 10 ratio study described in this section. 11 SECTION 2. That Section 63-705, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 63-705.RULES --PUBLICATION OF CHANGES IN 14 INCOME LIMITATIONS AND PROPERTY TAX REDUCTION AMOUNTS. (1) The state tax com- 15 mission shallpromulgate rules adjustingpublish adjust- 16 ments to the income limitations and property tax reduction amounts to 17 reflect cost-of-living fluctuations. Therulesadjustments 18 shall effect change s in each income limitation by a per- 19 centage equal as near as practicable to the annual cost-of-living percentage 20 modification as determined by the secretary of health and human services pur- 21 suant to 42 USC 415(i). The lowest limitation shall allow a maximum reduction 22 ofnine hundred dollars ($900), in the tax year 1996, one thousand dol-23lars ($1,000) in tax year 1997,one thousand one hundred dollars 24 ($1,100) in tax year 1998, and one thousand two hundred dollars ($1,200) in 25 tax year 1999, or actual property taxes, whichever is less. Each income limi- 26 tation and reduction amount shall be prorated based on the basic maximum 27 reduction, in practicable increments so that the highest income limitation 28 will provide for a reduction of one hundred fifty dollars ($150), or actual 29 property taxes, whichever is less. 30 (2) The tax commission shallpromulgate rulespublish 31 the adjustments required by this section each and every year the secre- 32 tary of health and human services announces said cost-of-living modification. 33 Therulesadjustments shall bepromulgated34published no later than October 1 of each such year and 35 shall be effective for claims filed in and for the following property tax 36 year. 37 (3) The publication of adjustments under this section shall be 38 exempt from the provisions of chapter 52, title 67, Idaho Code, but shall be 39 provided to each county and to members of the public upon request and without 40 charge. 41 SECTION 3. That Section 63-711, Idaho Code, be, and the same is hereby 42 amended to read as follows: 43 63-711. CANCELLATION OF TAXES -- HARDSHIP AND CASUALTY LOSSES 44 -- SPECIAL. (1) Property taxes may be cancelled for reason of undue 45 hardship. The commissioners may, at their discretion, grant such cancellation 46 for a specified time period. The commissioners may, at their discretion, 47 cancel taxes on property which has been damaged by an event causing casualty 48 loss to all or a portion of the property when the event occurs after the 49 fourth Monday of June or casualty losses for which the amount of loss cannot 50 be determined until after the fourth Monday of June. 51 (2) Applicants seeking a cancellation pursuant to this section must apply 3 1 to the county commissioners. Each applicant shall give a sworn statement con- 2 taining full and complete information of his financial status to the county 3 commissioners and shall make true answers to all questions put before him 4 touching such person's right to the cancellation. The county commissioners 5 shall decide and determine from each examination and from each written appli- 6 cation for said cancellation whether or not such person is entitled to the 7 cancellation claimed or any part thereof accordingly. In applying for a can- 8 cellation pursuant to this section, an applicant may submit an application at 9 any time and the county commissioners may grant such application, either in 10 whole or in part, at any regular meeting and the burden of proving the right 11 of such cancellation shall rest upon the applicant. 12 (3) The county commissioners may, for good cause shown, allow an agent or 13 some person acting for and on behalf of the applicant to make the application 14 for the cancellation provided in this section for any applicant, or where a 15 person is entitled to cancellation shall be mentally incompetent or physically 16 unable to make such sworn statement, his or her spouse, widow, widower, guard- 17 ian or personal representative, or other person having knowledge of the facts, 18 may make the application for the cancellation. 19 (4) Any time within thirty (30) days after mailing of a decision of the 20 county commissioners, or pronouncement of a decision announced at a meeting, 21 or the failure of the county commissioners to act, an appeal may be taken to 22 the district court for the county in which the property is located. Such 23 appeal may only be filed by the property owner or by any person aggrieved when 24 he deems any such action illegal or prejudicial to the public interest. Noth- 25 ing in this section shall be construed so as to suspend the payment of prop- 26 erty taxes pending said appeal. 27 Notice of such appeal stating the grounds thereafter shall be filed with 28 the county auditor, who shall forthwith transmit a copy of said notice to the 29 county commissioners. 30 (5) The county commissioners shall order all necessary adjustments to be 31 made in the property tax records of the various county officers and taxing 32 districts. 33 (6) The cancellation of property taxes which have become delinquent shall 34 affect only those property taxes granted a cancellation by order of the county 35 commissioners and all interest and late charges on such taxes.
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STATEMENT OF PURPOSE
RS 07389
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This bill amends three sections of Idaho Code relating to
property tax. The changes will:
1. Clarify the ratio study of property values of school
districts used to distribute public school funds. The
amendments provide that the ratio study is conducted by school
district, not by county, and clarify the timing of the study.
2. Permit the State Tax Commission to publish the annual
adjustments to the circuit breaker property tax relief program
without promulgating an administrative rule.
3. Permit boards of county commissioners to cancel property
taxes on property which has been damaged by an event causing
casualty loss to all or a portion of the property when the event
occurs after the fourth Monday of June or casualty losses for
which the amount of loss cannot be determined until after the
fourth Monday of June.
FISCAL NOTE
$300 - reduction in administrative costs.
Contact
Name: Dan John / Ted Spangler
Agency: State Tax Commission
Phone: 334-7530
STATEMENT OF PURPOSE/FISCAL NOTE
H 562