Print Friendly SENATE BILL NO. 1453 – Mineral rghts/personl prop tax/when
SENATE BILL NO. 1453
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S1453......................................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 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.
02/17 Senate intro - 1st rdg - to printing
02/18 Rpt prt - to Loc Gov
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE SENATE
SENATE BILL NO. 1453
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 promulgating
25 rules to determine market value, the commission shall have a rule(s) which
26 provides for the valuation of real property where the mineral rights under the
27 property have been separated from the property and are owned by another owner.
28 Such rules shall provide that the mineral rights shall be taxed as personal
29 property and the owner of the mineral rights shall receive a property tax
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.
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, 2000.
STATEMENT OF PURPOSE
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 owner, the owner of the mineral rights shall
receive a property tax bill.
There is no fiscal impact.
CONTACT: Senator Clint Stennett
STATEMENT OF PURPOSE/ FISCAL NOTE S 1453