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H0428...............................................by REVENUE AND TAXATION
PROPERTY TAX - CIRCUIT BREAKER - Amends existing law to redefine "owner"
for circuit breaker property tax relief purposes.
01/25 House intro - 1st rdg - to printing
01/26 Rpt prt - to Rev/Tax
02/08 Rpt out - rec d/p - to 2nd rdg
02/09 2nd rdg - to 3rd rdg
02/11 3rd rdg - PASSED - 63-0-7
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Bruneel, Callister, Chase, Cheirrett, Clark, Cuddy, Deal, Denney,
Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley,
Hansen(23), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton,
Kendell, Kunz, Lake, Loertscher, Mader, Marley, McKague, Meyer,
Montgomery, Mortensen, Moyle, Pearce, Pischner, Reynolds, Ridinger,
Ringo, Robison, Sali, Schaefer, Sellman, Shepherd, Smith, Smylie,
Stevenson, Stoicheff, Stone, Taylor, Tilman, Trail(Miller), Wheeler,
Wood, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Campbell, Crow, Hammond, Hansen(29), Linford,
Moss Pomeroy
Floor Sponsor - Gagner
Title apvd - to Senate
02/14 Senate intro - 1st rdg - to Loc Gov
02/24 Rpt out - rec d/p - to 2nd rdg
02/25 2nd rdg - to 3rd rdg
03/24 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh,
Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
Stennett, Thorne, Wheeler, Whitworth, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Hawkins
Title apvd - to House
03/27 To enrol
03/28 Rpt enrol - Sp signed
03/29 Pres signed
03/30 To Governor
Governor signed
Session Law Chapter 109
Effective: 01/01/00
H0428
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 428
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE CIRCUIT BREAKER PROPERTY TAX RELIEF; AMENDING SECTION 63-701,
3 IDAHO CODE, TO FURTHER DEFINE THE TERM "OWNER"; DECLARING AN EMERGENCY AND
4 PROVIDING RETROACTIVE APPLICATION.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 63-701, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 63-701. DEFINITIONS. As used in this chapter:
9 (1) "Claimant" means a person who has filed a claim under the provisions
10 of sections 63-701 through 63-710, Idaho Code. Except as provided in section
11 63-702(2), Idaho Code, on January 1 of the year in which the claim was filed a
12 claimant must be an owner of a homestead and be:
13 (a) Not less than sixty-five (65) years old; or
14 (b) A fatherless or motherless child under the age of eighteen (18) years
15 of age; or
16 (c) A widow or widower; or
17 (d) A disabled person who is recognized as disabled by the social secu-
18 rity administration pursuant to title 42 of the United States Code, or by
19 the railroad retirement board pursuant to title 45 of the United States
20 Code, or by the office of management and budget pursuant to title 5 of the
21 United States Code; or
22 (e) A disabled veteran of any war engaged in by the United States, whose
23 disability is recognized as a service-connected disability of a degree of
24 ten percent (10%) or more, or who has a pension for nonservice-connected
25 disabilities, in accordance with laws and regulations administered by the
26 United States veterans administration; or
27 (f) A person as specified in 42 USC 1701, who was or is entitled to
28 receive benefits because he is known to have been taken by a hostile force
29 as a prisoner, hostage or otherwise; or
30 (g) Blind.
31 (2) "Homestead" means the dwelling, owner-occupied by the claimant and
32 used as the primary dwelling place of the claimant and occupied by any members
33 of the household as their home, and so much of the land surrounding it, not
34 exceeding one (1) acre, as is reasonably necessary for the use of the dwelling
35 as a home. It may consist of a part of a multidwelling or multipurpose build-
36 ing and part of the land upon which it is built. Homestead does not include
37 personal property such as furniture, furnishings or appliances, but a manufac-
38 tured home may be a homestead.
39 (3) "Household" means the claimant and any person or persons who live in
40 the same dwelling, and share its furnishings, facilities, accommodations or
41 expenses. The term includes any person owing a duty of support to the appli-
42 cant pursuant to section 32-1002, Idaho Code, unless the person qualifies as a
43 "nonhousehold member" pursuant to subsection (6) of this section. The term
2
1 does not include bona fide lessees, tenants, or roomers and boarders on con-
2 tract. "Household" includes persons described in subsection (9)(b) of this
3 section.
4 (4) "Household income" means all income received by all persons of a
5 household in a calendar year while members of the household.
6 (5) "Income" means the sum of federal adjusted gross income as defined in
7 the internal revenue code, as defined in section 63-3004, Idaho Code, and to
8 the extent not already included in federal adjusted gross income, alimony,
9 support money, income from inheritances, nontaxable strike benefits, the non-
10 taxable amount of any individual retirement account, pension or annuity,
11 (including railroad retirement benefits, all payments received under the fed-
12 eral social security act, state unemployment insurance laws, and veterans dis-
13 ability pensions and compensation, excluding rollovers as provided in section
14 402 or 403 of the internal revenue code), nontaxable interest received from
15 the federal government or any of its instrumentalities or a state government
16 or any of its instrumentalities, worker's compensation and the gross amount of
17 loss of earnings insurance. It does not include capital gains, gifts from non-
18 governmental sources or inheritances. To the extent not reimbursed, cost of
19 medical care as defined in section 213(d) of the internal revenue code, incur-
20 red by the household may be deducted from income. "Income" does not include
21 veterans disability pensions received by a person described in subsection
22 (1)(e) who is a claimant or a claimant's spouse, provided however, that the
23 disability pension is received pursuant to a service-connected disability of a
24 degree of forty percent (40%) or more. Documentation of medical expenses may
25 be required by the county assessor, board of equalization and state tax com-
26 mission. "Income" shall be that received in the calendar year immediately pre-
27 ceding the year in which a claim is filed. Where a claimant does not file a
28 federal tax return the claimant's federal adjusted gross income, for purposes
29 of this section, shall be an income equivalent to federal adjusted gross
30 income had the claimant filed a federal tax return.
31 (6) "Nonhousehold member" means any nonspouse who lives in the claimant's
32 dwelling for the purpose of providing protective oversight, caregiving, or
33 personal care services to the claimant, or who is receiving disability bene-
34 fits pursuant to subsection (1)(d) or (e) of this section, or who is over age
35 sixty-five (65) and lives in the claimant's dwelling and receives protective
36 oversight, caregiving or personal care services provided by the claimant.
37 (7) "Occupied" means actual use and possession.
38 (8) "Owner" means a person holding title in fee simple or holding a cer-
39 tificate of motor vehicle title (either of which may be subject to mortgage,
40 deed of trust or other lien) or who has retained or been granted a life estate
41 or who is a person entitled to file a claim under section 63-702, Idaho Code.
42 "Owner" shall also include any person who as grantor created a revocable or
43 irrevocable trust and named himself as beneficiary of that trust, or who is a
44 partner of a limited partnership, member of a limited liability company or
45 shareholder of a corporation which holds title in fee simple or holds a cer-
46 tificate of motor vehicle title and who has retained or been granted a life
47 estate. "Owner" shall not include any person that otherwise occupies property
48 as beneficiary of a trust. "Owner" includes a vendee in possession under a
49 land sale contract. Any partial ownership shall be considered ownership for
50 determining qualification for property tax reduction benefits, however, the
51 amount of property tax reduction under section 63-704, Idaho Code, and rules
52 promulgated pursuant to section 63-705, Idaho Code, shall be computed on the
53 value of the claimant's partial ownership. "Partial ownership," for the pur-
54 poses of this section, means any one (1) person's ownership when property is
55 owned by more than one (1) person. A person holding either partial title in
3
1 fee simple or holding a certificate of motor vehicle title together with
2 another person but who does not occupy the dwelling as his primary dwelling
3 place, shall not be considered an owner for purposes of this section, if such
4 person is a cosignatory of a note secured by the dwelling in question and at
5 least one (1) of the other cosignatories of the note occupies the dwelling as
6 his primary dwelling place. The combined community property interests of both
7 spouses shall not be considered partial ownership. The proportional reduction
8 required under this subsection shall not apply to community property inter-
9 ests. Where title to property is held by a person who has died without timely
10 filing a claim for property tax reduction, the estate shall be the "owner."
11 (9) (a) "Primary dwelling place" means the claimant's dwelling place on
12 January 1 of the year for which the claim is made. The primary dwelling
13 place is the single place where a claimant has his true, fixed and perma-
14 nent home and principal establishment, and to which whenever the individ-
15 ual is absent he has the intention of returning. A claimant must establish
16 the dwelling to which the claim relates as his primary dwelling place by
17 clear and convincing evidence or by establishing that the dwelling is
18 where the claimant resided on January 1 and:
19 (i) At least six (6) months during the prior year; or
20 (ii) The majority of the time the claimant owned the dwelling if
21 owned by the claimant less than one (1) year; or
22 (iii) The majority of the time after the claimant first occupied the
23 dwelling if occupied by the claimant less than one (1) year.
24 (b) Notwithstanding the provisions of paragraph (a) of this subsection,
25 the property upon which the claimant makes application shall be deemed to
26 be the claimant's primary dwelling place if the claimant is otherwise
27 qualified and resides in a care facility and does not allow the property
28 upon which the claimant has made application to be occupied by persons
29 paying a consideration to occupy the dwelling. A claimant's spouse who
30 resides in a care facility shall be deemed to reside at the claimant's
31 primary dwelling place and to be a part of the claimant's household. A
32 care facility is a hospital, skilled nursing facility, intermediate care
33 facility or intermediate care facility for the mentally retarded as
34 defined in section 39-1301, Idaho Code, or a facility as defined in sec-
35 tion 39-3302(16), Idaho Code, or a dwelling other than the one (1) upon
36 which the applicant makes application where a claimant who is unable to
37 reside in the dwelling upon which the application is made lives and
38 receives help in daily living, protection and security.
39 SECTION 2. An emergency existing therefor, which emergency is hereby
40 declared to exist, this act shall be in full force and effect on and after its
41 passage and approval, and retroactively to January 1, 2000.
STATEMENT OF PURPOSE
R309439
This purpose of this legislation is to clarify the definition of
ownership for the purpose of applying for an exemption. This
legislation amends the definition of "owner" to state that a person
holding partial title to a property, but whom does not occupy the
property is not classified as an owner of the property for the
purposes of applying for an exemption. For example, a parent may
co-sign on a home for their child in order for the child to qualify
for the loan on the property. Under current law, the child would
only qualify for half of the full 50/50 Homeowner's Exemption,
creating a tremendous inequity in the application of the 50/50
Homeowner's Exemption. The amendments as presented in this
legislation would remedy that technical problem.
FISCAL NOTE
The fiscal impact to local School Districts would be a loss of
$125,000. There would be $100,000 from the General Fund to reimburse
"Circuit Breaker" expenditures.
Contact: Alex LaBeau,
Idaho Association of Realtors
Phone: 342-3585
STATEMENT OF PURPOSE/ FISCAL IMPACT Bill No. H 428