2000 Legislation
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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

Bill Text


 S1453
                                                                        
                                                                        
  ||||              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
 30    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, 2000.

Statement of Purpose / Fiscal Impact


     
     
                 STATEMENT OF PURPOSE
                       RS09966 
                           
     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. 
     
     
     
     
     
                     FISCAL NOTE
     
     There is no fiscal impact. 
     
     
     
     
     
     
     
     
               CONTACT:   Senator Clint Stennett
                332-1351 
     
     
                                                            STATEMENT OF PURPOSE/ FISCAL NOTE                       S 1453