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H0679...............................................by REVENUE AND TAXATION
RELIGIOUS ORGANIZATIONS - Repeals and adds to existing law to provide an
exemption from property tax for the property of religious corporations or
organizations.
02/23 House intro - 1st rdg - to printing
02/24 Rpt prt - to Rev/Tax
H0679
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 679
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY EXEMPT FROM TAXATION FOR RELIGIOUS CORPORATIONS OR SOCI-
3 ETIES; REPEALING SECTION 63-602B, IDAHO CODE; AMENDING CHAPTER 6, TITLE
4 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 63-602B, IDAHO CODE, TO
5 PROVIDE THAT PROPERTY USED EXCLUSIVELY FOR PUBLIC WORSHIP, PARSONAGE OCCU-
6 PIED AS SUCH, RECREATIONAL ACTIVITIES, EDUCATION PURPOSES OR ANY COMBINA-
7 TION OF THOSE USES SHALL BE EXEMPT FROM TAXATION WHEN THE PROPERTY BELONGS
8 TO A RELIGIOUS CORPORATION OR SOCIETY OF THIS STATE AND IS USED IN CONNEC-
9 TION WITH THE ACTIVITIES OF SUCH CORPORATION OR SOCIETY AND NO PROFIT IS
10 DERIVED FROM THE USE, TO PROVIDE THAT WHEN PROPERTY BELONGING TO A RELI-
11 GIOUS CORPORATION OR SOCIETY CONTAINS A COMBINATION OF BOTH TAX EXEMPT
12 USES AND NONTAX EXEMPT USES TO ALLOW THE NONTAX EXEMPT USES TO BE TAXED
13 WITHOUT THE REST OF THE PROPERTY LOSING ITS TAX EXEMPT STATUS WHEN THE
14 NONTAX EXEMPT PART EXCEEDS THREE PERCENT OF THE ENTIRETY; DECLARING AN
15 EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
16 Be It Enacted by the Legislature of the State of Idaho:
17 SECTION 1. That Section 63-602B, Idaho Code, be, and the same is hereby
18 repealed.
19 SECTION 2. That Chapter 6, Title 63, Idaho Code, be, and the same is
20 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
21 ignated as Section 63-602B, Idaho Code, and to read as follows:
22 63-602B. PROPERTY EXEMPT FROM TAXATION -- RELIGIOUS CORPORATIONS OR SOCI-
23 ETIES. (1) Property used exclusively for the following purposes is exempt from
24 taxation when the property belongs to any religious corporation or society of
25 this state and is used in connection with the activities of such religious
26 corporation or society and no profit is derived from the use:
27 (a) Public worship;
28 (b) A parsonage occupied as such;
29 (c) Recreational hall;
30 (d) Recreational activities;
31 (e) Educational purposes; or
32 (f) Any combination of the above uses.
33 (2) If any building or property belonging to a religious corporation or
34 society is leased or used by such corporation or society for business or com-
35 mercial purposes from which a revenue is derived then the same shall be
36 assessed and taxed as any other property as follows: The assessor shall deter-
37 mine the value of the entire building or property and the value of the part
38 used or leased for business or commercial purposes. If the value of the part
39 used for business or commercial purposes is determined to be three percent
40 (3%) or less than the value of the entirety, the whole of the property shall
41 remain exempt. If the value of the part used for business or commercial pur-
42 poses is determined to be more than three percent (3%) of the value of the
2
1 entirety, the assessor shall assess such proportionate part of such building
2 or property, including the value of the real estate leased or used for such
3 purposes, and shall assess all merchandise kept for sale, and the trade fix-
4 tures used in connection with the sale of such merchandise.
5 SECTION 3. An emergency existing therefor, which emergency is hereby
6 declared to exist, this act shall be in full force and effect on and after its
7 passage and approval, and retroactively to January 1, 2000.
STATEMENT OF PURPOSE
RS09866
This legislation addresses shortcomings in the current religious property tax
exemption statute. This new version of Idaho Code 63-602B allows the tax
exempt property to retain its exempt status in its entirety when the non-tax exempt
use does not exceed three percent (3%) of the whole. Where the non-tax exempt
use exceeds three percent (3%) of the whole property, then the non- tax exempt
use is taxed accordingly, but the remainder of the property, when used in a tax
exempt manner, retains its exempt status. In this regard, property owned by a
religious organization or society will be accorded the same treatment as is granted
to charitable organizations with regard to apportionment of tax exempt and
non-tax exempt uses.
FISCAL IMPACT
This legislation will help religious corporations or societies save property tax by
preventing them from losing their property tax exemptions.
CONTACT: Rep. Mike Moyle
PHONE: 332-1000
STATEMENT OF PURPOSE/ FISCAL IMPACT H 679