2000 Legislation
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HOUSE BILL NO. 474 – Property tax, “owner” redefined


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Daily Data Tracking History

H0474...............................................by REVENUE AND TAXATION
PROPERTY TAX - Amends existing law to change the definition of owner in the
circuit breaker property tax relief law so that a residence held in title
by a corporation, limited liability company, irrevocable trust and similar
entities can take advantage of the fifty-fifty homeowner's exemption.
02/01    House intro - 1st rdg - to printing
02/02    Rpt prt - to 2nd rdg
02/03    2nd rdg - to 3rd rdg
02/04    3rd rdg - PASSED - 68-0-2
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
      Bruneel, Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy,
      Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
      Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet,
      Jones, Judd, Kempton, Kendell, Kunz, Lake, Linford, Loertscher,
      Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle,
      Pearce, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
      Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff,
      Stone, Taylor, Trail(Miller), Wheeler, Wood, Zimmermann, Mr Speaker
      NAYS -- None
      Absent and excused -- Kellogg, Tilman
    Floor Sponsor - Lake
    Title apvd - to Senate
02/07    Senate intro - 1st rdg - to Loc Gov
02/15    Rpt out - rec d/p - to 2nd rdg
02/16    2nd rdg - to 3rd rdg
02/24    3rd rdg - PASSED - 29-0-6
      AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron,
      Darrington, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram, Ipsen,
      Keough, King-Barrutia, McLaughlin, Noh, Parry, Riggs, Risch, Sandy,
      Schroeder, Stegner, Stennett, Thorne, Walton, Wheeler, Whitworth,
      Absent and excused--Crow, Danielson, Davis, Lee, Richardson, Sorensen
    Floor Sponsor - Stegner
    Title apvd - to House
02/25    To enrol
02/28    Rpt enrol - Sp signed
02/29    Pres signed
03/01    To Governor
03/03    Governor signed
         Session Law Chapter 20
         Effective: 01/01/00

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 474
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  5        APPLICATION.
  6    Be It Enacted by the Legislature of the State of Idaho:
  7        SECTION  1.  That  Section  63-701, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
  9        63-701.  DEFINITIONS. As used in this chapter:
 10        (1)  "Claimant" means a person who has filed a claim under the  provisions
 11    of  sections  63-701 through 63-710, Idaho Code. Except as provided in section
 12    63-702(2), Idaho Code, on January 1 of the year in which the claim was filed a
 13    claimant must be an owner of a homestead and be:
 14        (a)  Not less than sixty-five (65) years old; or
 15        (b)  A fatherless or motherless child under the age of eighteen (18) years
 16        of age; or
 17        (c)  A widow or widower; or
 18        (d)  A disabled person who is recognized as disabled by the  social  secu-
 19        rity  administration pursuant to title 42 of the United States Code, or by
 20        the railroad retirement board pursuant to title 45 of  the  United  States
 21        Code, or by the office of management and budget pursuant to title 5 of the
 22        United States Code; or
 23        (e)  A  disabled veteran of any war engaged in by the United States, whose
 24        disability is recognized as a service-connected disability of a degree  of
 25        ten  percent  (10%) or more, or who has a pension for nonservice-connected
 26        disabilities, in accordance with laws and regulations administered by  the
 27        United States veterans administration; or
 28        (f)  A  person  as  specified  in  42  USC 1701, who was or is entitled to
 29        receive benefits because he is known to have been taken by a hostile force
 30        as a prisoner, hostage or otherwise; or
 31        (g)  Blind.
 32        (2)  "Homestead" means the dwelling, owner-occupied by  the  claimant  and
 33    used as the primary dwelling place of the claimant and occupied by any members
 34    of  the  household  as their home, and so much of the land surrounding it, not
 35    exceeding one (1) acre, as is reasonably necessary for the use of the dwelling
 36    as a home. It may consist of a part of a multidwelling or multipurpose  build-
 37    ing  and  part  of the land upon which it is built. Homestead does not include
 38    personal property such as furniture, furnishings or appliances, but a manufac-
 39    tured home may be a homestead.
 40        (3)  "Household" means the claimant and any person or persons who live  in
 41    the  same  dwelling, and share its furnishings, facilities,  accommodations or
 42    expenses. The term includes any person owing a duty of support to  the  appli-
 43    cant pursuant to section 32-1002, Idaho Code, unless the person qualifies as a
  1    "nonhousehold  member"  pursuant  to  subsection (6) of this section. The term
  2    does not include bona fide lessees, tenants, or roomers and boarders  on  con-
  3    tract.  "Household"  includes  persons  described in subsection (9)(b) of this
  4    section.
  5        (4)  "Household income" means all income received  by  all  persons  of  a
  6    household in a calendar year while members of the household.
  7        (5)  "Income" means the sum of federal adjusted gross income as defined in
  8    the  internal  revenue code, as defined in section 63-3004, Idaho Code, and to
  9    the extent not already included in federal  adjusted  gross  income,  alimony,
 10    support  money, income from inheritances, nontaxable strike benefits, the non-
 11    taxable amount of any  individual  retirement  account,  pension  or  annuity,
 12    (including  railroad retirement benefits, all payments received under the fed-
 13    eral social security act, state unemployment insurance laws, and veterans dis-
 14    ability pensions and compensation, excluding rollovers as provided in  section
 15    402  or  403  of the internal revenue code), nontaxable interest received from
 16    the federal government or any of its instrumentalities or a  state  government
 17    or any of its instrumentalities, worker's compensation and the gross amount of
 18    loss of earnings insurance. It does not include capital gains, gifts from non-
 19    governmental  sources  or  inheritances. To the extent not reimbursed, cost of
 20    medical care as defined in section 213(d) of the internal revenue code, incur-
 21    red by the household may be deducted from income. "Income"  does  not  include
 22    veterans  disability  pensions  received  by  a person described in subsection
 23    (1)(e) who is a claimant or a claimant's spouse, provided  however,  that  the
 24    disability pension is received pursuant to a service-connected disability of a
 25    degree  of  forty percent (40%) or more. Documentation of medical expenses may
 26    be required by the county assessor, board of equalization and state  tax  com-
 27    mission. "Income" shall be that received in the calendar year immediately pre-
 28    ceding  the  year  in which a claim is filed. Where a claimant does not file a
 29    federal tax return the claimant's federal adjusted gross income, for  purposes
 30    of  this  section,  shall  be  an  income equivalent to federal adjusted gross
 31    income had the claimant filed a federal tax return.
 32        (6)  "Nonhousehold member" means any nonspouse who lives in the claimant's
 33    dwelling for the purpose of providing  protective  oversight,  caregiving,  or
 34    personal  care  services to the claimant, or who is receiving disability bene-
 35    fits pursuant to subsection (1)(d) or (e) of this section, or who is over  age
 36    sixty-five  (65)  and lives in the claimant's dwelling and receives protective
 37    oversight, caregiving or personal care services provided by the claimant.
 38        (7)  "Occupied" means actual use and possession.
 39        (8)  "Owner" means a person holding title in fee simple or holding a  cer-
 40    tificate  of  motor vehicle title (either of which may be subject to mortgage,
 41    deed of trust or other lien) or who has retained or been granted a life estate
 42    or who is a person entitled to file a claim under section 63-702, Idaho  Code.
 43    "Owner"  shall  also  include any person who as grantor created a revocable or
 44    irrevocable trust and named himself as beneficiary of that trust, or who is  a
 45    partner  of  a  limited  partnership, member of a limited liability company or
 46    shareholder of a corporation which holds title in fee simple or holds  a  cer-
 47    tificate of motor vehicle title and or who has retained or been granted a life
 48    estate.  "Owner" shall not include any person that otherwise occupies property
 49    as beneficiary of a trust. "Owner" includes a vendee  in  possession  under  a
 50    land  sale  contract.  Any partial ownership shall be considered ownership for
 51    determining qualification for property tax reduction  benefits,  however,  the
 52    amount  of  property tax reduction under section 63-704, Idaho Code, and rules
 53    promulgated pursuant to section 63-705, Idaho Code, shall be computed  on  the
 54    value  of  the claimant's partial ownership. "Partial ownership," for the pur-
 55    poses of this section, means any one (1) person's ownership when  property  is
  1    owned  by  more than one (1) person. The combined community property interests
  2    of both spouses shall not be considered partial  ownership.  The  proportional
  3    reduction required under this subsection shall not apply to community property
  4    interests.  Where  title  to property is held by a person who has died without
  5    timely filing a claim for property tax reduction,  the  estate  shall  be  the
  6    "owner."
  7        (9)  (a) "Primary  dwelling  place" means the claimant's dwelling place on
  8        January 1 of the year for which the claim is made. The  primary   dwelling
  9        place  is the single place where a claimant has his true, fixed and perma-
 10        nent home and principal establishment, and to which whenever the  individ-
 11        ual is absent he has the intention of returning. A claimant must establish
 12        the  dwelling  to which the claim relates as his primary dwelling place by
 13        clear and convincing evidence or by  establishing  that  the  dwelling  is
 14        where the claimant resided on January 1 and:
 15             (i)   At least six (6) months during the prior year; or
 16             (ii)  The  majority  of  the  time the claimant owned the dwelling if
 17             owned by the claimant less than one (1) year; or
 18             (iii) The majority of the time after the claimant first occupied  the
 19             dwelling if occupied by the claimant less than one (1) year.
 20        (b)  Notwithstanding  the  provisions of paragraph (a) of this subsection,
 21        the property upon which the claimant makes application shall be deemed  to
 22        be  the  claimant's  primary  dwelling  place if the claimant is otherwise
 23        qualified and resides in a care facility and does not allow  the  property
 24        upon  which  the  claimant  has made application to be occupied by persons
 25        paying a consideration to occupy the dwelling.  A  claimant's  spouse  who
 26        resides  in  a  care  facility shall be deemed to reside at the claimant's
 27        primary dwelling place and to be a part of  the  claimant's  household.  A
 28        care  facility  is a hospital, skilled nursing facility, intermediate care
 29        facility or intermediate  care  facility  for  the  mentally  retarded  as
 30        defined  in  section 39-1301, Idaho Code, or a facility as defined in sec-
 31        tion 39-3302(16), Idaho Code, or a dwelling other than the  one  (1)  upon
 32        which  the  applicant  makes application where a claimant who is unable to
 33        reside in the dwelling upon  which  the  application  is  made  lives  and
 34        receives help in daily living, protection and security.
 35        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 36    declared to exist, this act shall be in full force and effect on and after its
 37    passage and approval, and retroactively to January 1, 2000.

Statement of Purpose / Fiscal Impact

                     STATEMENT OF PURPOSE

The purpose of this legislation is to amend 63-701 (8) of the Idaho 
Code, revising the definition of "owner' and correcting a technical 
flaw. Specifically, the word "and", referring to whether a life estate 
was held in the property, should be changed to "or". This bill 
provides retroactive application.

                           FISCAL NOTE

This bill should have no effect on revenues or expenditures. It merely 
carries out the correct intent of the existing law.

CONTACT: Robert L. Aldridge
Phone: (208) 336-9880

STATEMENT OF PURPOSE/ FISCAL IMPACT                             H 474