Print Friendly

SENATE BILL NO. 1217

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

---

S1217......................................by LOCAL GOVERNMENT AND TAXATION
MINERAL RIGHTS - Amends existing law to provide that in promulgating rules
to determine market value, the State Tax Commission shall have a rule which
provides for the valuation of real property where the mineral rights have
been separated from the property and are owned by another owner; to provide
that the rules shall provide that the mineral rights shall be taxed as
personal property; and to provide that the owner of the mineral rights
shall receive a property tax bill.

02/15    Senate intro - 1st rdg - to printing
02/16    Rpt prt - to Loc Gov

Bill Text

S1217


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1217

                        BY LOCAL GOVERNMENT AND TAXATION COMMITTEE

 1                                        AN ACT
 2    RELATING TO RULES OF THE STATE TAX COMMISSION CONCERNING THE MARKET  VALUE  OF
 3        PROPERTY;  AMENDING SECTION 63-208, IDAHO CODE, TO PROVIDE THAT IN PROMUL-
 4        GATING RULES TO DETERMINE MARKET VALUE, THE COMMISSION SHALL HAVE  A  RULE
 5        WHICH PROVIDES FOR THE VALUATION OF REAL PROPERTY WHERE THE MINERAL RIGHTS
 6        HAVE  BEEN SEPARATED FROM THE PROPERTY AND ARE OWNED BY ANOTHER OWNER, AND
 7        TO PROVIDE THAT SUCH RULES SHALL PROVIDE THAT THE MINERAL RIGHTS SHALL  BE
 8        TAXED  AS  PERSONAL  PROPERTY  AND  THE  OWNER OF THE MINERAL RIGHTS SHALL
 9        RECEIVE A PROPERTY TAX BILL; DECLARING AN EMERGENCY AND PROVIDING RETROAC-
10        TIVE APPLICATION.

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

12        SECTION 1.  That Section 63-208, Idaho Code, be, and the  same  is  hereby
13    amended to read as follows:

14        63-208.  RULES  PERTAINING  TO  MARKET  VALUE -- DUTY OF ASSESSORS. (1) It
15    shall be the duty of the state tax commission to  prepare  and  distribute  to
16    each  county  assessor and the county commissioners within the state of Idaho,
17    rules prescribing and directing the manner in which market value  for  assess-
18    ment  purposes is to be determined for the purpose of taxation. The rules pro-
19    mulgated by the state tax commission shall require each assessor to find  mar-
20    ket  value  for  assessment  purposes  of  all property, except that expressly
21    exempt under chapter 6, title 63, Idaho Code, within his county  according  to
22    recognized appraisal methods and techniques as set forth by the state tax com-
23    mission; provided, that the actual and functional use shall be a major consid-
24    eration  when  determining market value for assessment purposes.  In pro-
25    mulgating rules to determine market value, the commission shall have a rule(s)
26    which provides for the valuation of real property  where  the  mineral  rights
27    under  the  property  have  been  separated from the property and are owned by
28    another owner. Such rules shall provide that the mineral rights shall be taxed
29    as personal property and the owner of the mineral rights shall receive a prop-
30    erty tax bill. 
31        (2)  To maximize uniformity and equity in assessment of different  catego-
32    ries  of  property, such rules shall, to the extent practical, require the use
33    of reproduction or replacement cost less depreciation as opposed  to  historic
34    cost  less  depreciation whenever cost is considered as a single or one (1) of
35    several factors in establishing the market value of depreciable property.  The
36    state  tax commission shall also prepare and distribute amendments and changes
37    to the rules as shall be necessary in order to carry out the intent  and  pur-
38    poses  of  this  title. The rules shall be in the form as the commission shall
39    direct, and shall be made available upon request to other public officers  and
40    the  general  public  in reasonable quantities without charge. In ascertaining
41    the market value for assessment purposes of any item of property, the assessor
42    of each county shall, and is required to, abide by, adhere to and conform with
43    rules promulgated by the state tax commission.


                                          2

 1        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
 2    declared to exist, this act shall be in full force and effect on and after its
 3    passage and approval, and retroactively to January 1, 1999.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                              RS08985

This measure directs the Tax Commission to develop rules that
provide for the valuation of real property where the mineral rights
under the surface have been separated from the real property by
deed. If the mineral rights are owned by someone other than the
surface rights, the owner of the mineral rights shall receive a
property tax bill.





                            FISCAL NOTE

None.















CONTACT:  Senator Clint Stennett
         332-1351
         

STATEMENT OF PURPOSE/ FISCAL NOTE      S1217