2001 Legislation
Print Friendly

HOUSE BILL NO. 187 – Tax/personal property/certain exmpt

HOUSE BILL NO. 187

View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History



H0187...............................................by REVENUE AND TAXATION
TAXATION - PERSONAL PROPERTY - Amends and adds to existing law to provide,
during tax year 2001 only, that machinery or equipment used in agriculture
shall be exempt from personal property taxation; to provide procedures for
reimbursement to local governments for certain property exempt from
taxation; to provide for a review of exemptions; and to provide for
remittance of sales tax moneys to reimburse local units of government for
certain tangible personal property exempt from taxation.
                                                                        
02/08    House intro - 1st rdg - to printing
02/09    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 187
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO TAXATION; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY  THE  ADDI-
  3        TION  OF  A  NEW  SECTION 63-602EE, IDAHO CODE, TO PROVIDE THAT DURING TAX
  4        YEAR 2001 ONLY TANGIBLE PERSONAL PROPERTY THAT IS MACHINERY  OR  EQUIPMENT
  5        USED  IN  AGRICULTURE  SHALL  BE EXEMPT FROM TAXATION; AMENDING CHAPTER 7,
  6        TITLE 63, IDAHO CODE, BY THE ADDITION OF NEW SECTIONS 63-712  AND  63-713,
  7        IDAHO  CODE,  TO PROVIDE PROCEDURES FOR REIMBURSEMENT TO LOCAL GOVERNMENTS
  8        FOR CERTAIN PROPERTY EXEMPT FROM TAXATION AND TO PROVIDE FOR A  REVIEW  OF
  9        EXEMPTIONS;  AMENDING  SECTION  63-3638, IDAHO CODE, TO PROVIDE FOR REMIT-
 10        TANCE OF SALES TAX MONEYS TO REIMBURSE LOCAL UNITS OF GOVERNMENT FOR  CER-
 11        TAIN TANGIBLE PERSONAL PROPERTY EXEMPT FROM TAXATION AND TO MAKE TECHNICAL
 12        CORRECTIONS; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
                                                                        
 13    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 14        SECTION  1.  That  Chapter  6,  Title  63, Idaho Code, be, and the same is
 15    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 16    ignated as Section 63-602EE, Idaho Code, and to read as follows:
                                                                        
 17        63-602EE.  PROPERTY  EXEMPT  FROM  TAXATION  --  CERTAIN TANGIBLE PERSONAL
 18    PROPERTY. (1) During tax year 2001 only, the   following  property  is  exempt
 19    from  taxation: tangible personal property that is machinery or equipment used
 20    in agriculture.
 21        (2)  Property described in this section shall continue  to  be  reportable
 22    under section 63-302, Idaho Code, and shall be assessed by the county assessor
 23    and listed on the property tax rolls as if the property were not exempt.
 24        (3)  The legislature declares that this exemption is necessary and just.
                                                                        
 25        SECTION  2.  That  Chapter  7,  Title  63, Idaho Code, be, and the same is
 26    hereby amended by the addition thereto of NEW SECTIONS, to be known and desig-
 27    nated as Sections 63-712 and 63-713,  Idaho Code, and to read as follows:
                                                                        
 28        63-712.  REIMBURSEMENT BY THE STATE TAX COMMISSION. (1) The county  asses-
 29    sor  shall  identify  all property on any tax roll prepared in regard to taxes
 30    for the year  2001  that  qualifies  for  the  exemption  granted  by  section
 31    63-602EE, Idaho Code.
 32        (2)  When  county  commissioners  make  a  tax levy as required in section
 33    63-803(3), Idaho Code, the levy shall be computed as if the property  exempted
 34    by section 63-602EE, Idaho Code, were not exempt.
 35        (3)  The  actual  or  adjusted  market  values used in determining maximum
 36    school maintenance and operation levies pursuant to section  33-802(2),  Idaho
 37    Code,  and  property  tax  replacement  computed pursuant to section 33-1002D,
 38    Idaho Code, shall be computed as if the property  exempted  from  taxation  by
 39    section 63-602EE, Idaho Code, were not exempt.
 40        (4)  When  the  county  tax  collector prepares tax notices required under
 41    section 63-902, Idaho Code, the amount of taxes to be paid shall  be  computed
                                                                        
                                           2
                                                                        
  1    by  applying the levy computed under subsection (2) of this section to taxable
  2    property only and shall exclude any property  exempted  by  section  63-602EE,
  3    Idaho Code.
  4        (5)  The county tax collector, at the time the tax notices are prepared as
  5    required  in  subsection  (4) of this section, shall determine an amount to be
  6    reimbursed to the county and each taxing district within  the  county  by  the
  7    state  tax  commission  by  applying the levy computed under subsection (2) of
  8    this section to the value of property  exempted  by  section  63-602EE,  Idaho
  9    Code,  to the extent the levy would apply to such property were it not exempt.
 10    The treasurer shall certify the amounts thus computed to the state tax commis-
 11    sion at the time and in the manner required by rules of the state tax  commis-
 12    sion.
 13        (6)  Amounts  received by the county tax collector under subsection (5) of
 14    this section shall be distributed to the county and other taxing districts  in
 15    the  same  manner  as  provided for property taxes under chapter 12, title 63,
 16    Idaho Code.  Such funds may be considered by the  counties  and  other  taxing
 17    districts and budgeted against at the same time, in the same manner and in the
 18    same  year as revenues from taxation. Such moneys shall be considered property
 19    tax revenues to finance an annual operating budget  for  purposes  of  section
 20    63-802,  Idaho  Code.  Subject  to any adjustments under section 63-713, Idaho
 21    Code, the state tax commission, shall pay such amounts to the  county  in  two
 22    (2) equal payments on or before that twentieth day of December and the twenti-
 23    eth day of June.
 24        (7)  The  state tax commission shall promulgate temporary rules under sec-
 25    tion 67-5226, Idaho Code, that it finds necessary to establish  forms,  proce-
 26    dures,  and  other  standards required to implement the intent of this section
 27    and section 63-713, Idaho Code. Such rules shall establish procedure generally
 28    consistent with this section in regard to the subsequent and  missed  property
 29    rolls.
                                                                        
 30        63-713.  REVIEW OF EXEMPTIONS. (1) The county assessor together with the
 31    county  clerk  shall  prepare a special property tax exemption roll that shall
 32    show in regard to property exempted under section 63-602EE, Idaho Code:
 33        (a)  The name of the taxpayer;
 34        (b)  The description of the property for which  a  reduction  in  property
 35        taxes is claimed;
 36        (c)  The  property's  prior year's market value for assessment purposes or
 37        the assessor's best estimate of current market value for  assessment  pur-
 38        poses;
 39        (d)  The  current  year's levy for the tax code area in which the property
 40        is situated. The special property tax roll shall be certified to the state
 41        tax commission on or before the fourth Monday of October.
 42        (2)  The state tax commission may  audit  any  exemption  granted  by  the
 43    county under section 63-602EE, Idaho Code.  If the state tax commission deter-
 44    mines  that  an exemption is erroneous, the tax commission shall, by the third
 45    Monday of November, disapprove so much of the exemption as necessary in  order
 46    to  conform to statutory standards. The state tax commission shall provide the
 47    county with written notice of the commission's intent to disapprove all  or  a
 48    portion  of  the  claim.  The county shall have seven (7) days to make written
 49    protest to the tax commission of the intended action. The  county  may  submit
 50    additional  information  and  may request an informal hearing with the commis-
 51    sion.  Any such hearing shall be governed by sections 63-3045 through 63-3049,
 52    Idaho Code.  If the county fails to make  written  protest  within  seven  (7)
 53    days,  the  tax  commission shall provide written notice of disapproval to the
 54    county auditor of the county in which the property is located.
                                                                        
                                           3
                                                                        
  1             SECTION 3.  That Section 63-3638, Idaho Code, be,  and  the  same  is
  2    hereby amended to read as follows:
                                                                        
  3        63-3638.  SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
  4    ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
  5    be distributed by the tax commission as follows:
  6        (1)  An  amount  of money shall be distributed to the state refund account
  7    sufficient to pay current refund claims. All  refunds  authorized  under  this
  8    chapter  by the commission shall be paid through the state refund account, and
  9    those moneys are continuously appropriated.
 10        (2)  Five million dollars ($5,000,000) per year is continuously  appropri-
 11    ated and shall be distributed to the permanent building fund, provided by sec-
 12    tion 57-1108, Idaho Code.
 13        (3)  Four  million eight hundred thousand dollars ($4,800,000) per year is
 14    continuously appropriated and shall be distributed to the water pollution con-
 15    trol account established by section 39-3605, Idaho Code.
 16        (4)  An amount equal to the sum required to be certified by  the  chairman
 17    of  the Idaho housing and finance association to the state tax commission pur-
 18    suant to section 67-6211, Idaho Code, in each year is  continuously  appropri-
 19    ated  and  shall be paid to any capital reserve fund, established by the Idaho
 20    housing and finance association pursuant to section 67-6211, Idaho Code.  Such
 21    amounts,  if any, as may be appropriated hereunder to the capital reserve fund
 22    of the Idaho housing and finance association shall be repaid for  distribution
 23    under  the  provisions  of  this section, subject to the provisions of section
 24    67-6215, Idaho Code, by the Idaho housing and finance association, as soon  as
 25    possible,  from  any  moneys  available  therefor and in excess of the amounts
 26    which the association determines will keep it self-supporting.
 27        (5)  An amount equal to the sum required  by  the  provisions  of  section
 28    63-709     and  63-712,  Idaho Code, is continuously appropriated and shall be
 29    paid as provided by sections 63-709 and 63-712, Idaho Code.
 30        (6)  An amount required by the provisions of chapter 53, title  33,  Idaho
 31    Code. of this section
 32        (7)  One  dollar  ($1.00)  on each application for certificate of title or
 33    initial application for registration of  a  motor  vehicle,  snowmobile,  all-
 34    terrain vehicle or other vehicle processed by the county assessor or the Idaho
 35    transportation  department  excepting those applications in which any sales or
 36    use taxes due have been previously collected by a retailer, shall be a fee for
 37    the services of the assessor of the county or the Idaho transportation depart-
 38    ment in collecting such taxes, and shall be paid into the current expense fund
 39    of the county or state highway account established in  section  40-702,  Idaho
 40    Code.
 41        (8)  Thirteen  and  three-quarters percent (13.75%) is continuously appro-
 42    priated  and shall be distributed to the revenue sharing account which is cre-
 43    ated in the state treasury, and the moneys in the revenue sharing account will
 44    be paid by the tax commission as follows:
 45        (a)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 46        ious cities as follows:
 47             (i)   Fifty percent (50%) of such amount shall be paid to the various
 48             cities, and each city shall be entitled to an amount in  the  propor-
 49             tion  that the population of that city bears to the population of all
 50             cities within the state; and
 51             (ii)  Fifty percent (50%) of such amount shall be paid to the various
 52             cities, and each city shall be entitled to an amount in  the  propor-
 53             tion  that  the preceding year's market value for assessment purposes
 54             for that city bears to the preceding year's market value for  assess-
                                                                        
                                           4
                                                                        
  1             ment purposes for all cities within the state.
  2        (b)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
  3        ious counties as follows:
  4             (i)   One  million three hundred twenty thousand dollars ($1,320,000)
  5             shall be distributed one forty-fourth (1/44) to each of  the  various
  6             counties; and
  7             (ii)  The  balance  of such amount shall be paid to the various coun-
  8             ties, and each county shall be entitled to an amount in  the  propor-
  9             tion  that  the  population of that county bears to the population of
 10             the state;
 11        (c)  Thirty-five and nine-tenths percent (35.9%) of the  amount  appropri-
 12        ated in this subsection (8) shall be paid to the several counties for dis-
 13        tribution to the cities and counties as follows:
 14             (i)   Each  city and county which received a payment under the provi-
 15             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 16             calendar year 1999, shall be entitled to a like  amount  during  suc-
 17             ceeding calendar quarters.
 18             (ii)  If  the  dollar amount of money available under this subsection
 19             (8)(c) in any quarter does not equal the amount paid  in  the  fourth
 20             quarter of calendar year 1999, each city's and county's payment shall
 21             be reduced proportionately.
 22             (iii) If  the  dollar amount of money available under this subsection
 23             (8)(c) in any quarter exceeds the amount paid in the  fourth  quarter
 24             of  calendar  year  1999, each city and county shall be entitled to a
 25             proportionately increased payment, but such increase shall not exceed
 26             one hundred five percent (105%) of the  total  payment  made  in  the
 27             fourth quarter of calendar year 1999.
 28             (iv)  If  the  dollar amount of money available under this subsection
 29             (8)(c) in any quarter exceeds one hundred five percent (105%) of  the
 30             total  payment  made in the fourth quarter of calendar year 1999, any
 31             amount over and above such one hundred five percent (105%)  shall  be
 32             paid fifty percent (50%) to the various cities in the proportion that
 33             the  population  of  the  city  bears to the population of all cities
 34             within the state, and fifty percent (50%) to the various counties  in
 35             the  proportion  that the population of a county bears to the popula-
 36             tion of the state; and
 37        (d)  Seven and seven-tenths percent (7.7%) of the amount  appropriated  in
 38        this subsection (8) shall be paid to the several counties for distribution
 39        to special purpose taxing districts as follows:
 40             (i)   Each  such  district  which received a payment under the provi-
 41             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 42             calendar year 1999, shall be entitled to a like  amount  during  suc-
 43             ceeding calendar quarters.
 44             (ii)  If  the  dollar amount of money available under this subsection
 45             (8)(d) in any quarter exceeds the amount distributed under  paragraph
 46             (i)  of  this subsection (8)(d), each special purpose taxing district
 47             shall be entitled to a share of the excess based  on  the  proportion
 48             each  such district's current property tax budget bears to the sum of
 49             the current property tax budgets of all such districts in the  state.
 50             The  state  tax  commission shall calculate district current property
 51             tax budgets to include any unrecovered foregone amounts as determined
 52             under section 63-802(1)(e), Idaho Code. When a special purpose taxing
 53             district is situated in more than one (1) county, the tax  commission
 54             shall  determine the portion attributable to the special purpose tax-
 55             ing district from each county in which it is situated.
                                                                        
                                           5
                                                                        
  1             (iii) If special  purpose  taxing  districts  are  consolidated,  the
  2             resulting  district  is entitled to a base amount equal to the sum of
  3             the base amounts which were received in the last calendar quarter  by
  4             each district prior to the consolidation.
  5             (iv)  If   a   special   purpose  taxing  district  is  dissolved  or
  6             disincorporated, the state tax commission shall continuously distrib-
  7             ute to the board of county commissioners an amount equal to the  last
  8             quarter's  distribution prior to dissolution or disincorporation. The
  9             board of county commissioners shall determine any  redistribution  of
 10             moneys so received.
 11             (v)   Taxing districts formed after January 1, 2001, are not entitled
 12             to a payment under the provisions of this subsection (8)(d).
 13             (vi)  For  purposes of this subsection (8)(d), a special purpose tax-
 14             ing district is any taxing district which is not a city, a county  or
 15             a school district.
 16        (9)  Any  moneys  remaining  over  and  above  those necessary to meet and
 17    reserve for payments under other subsections of this section shall be distrib-
 18    uted to the general account fund.
                                                                        
 19        SECTION 4.  An emergency existing  therefor,  which  emergency  is  hereby
 20    declared to exist, this act shall be in full force and effect on and after its
 21    passage and approval, and retroactively to January 1, 2001.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                            RS 10948
 This legislation will remove certain tangible personal property
tax from agricultural machinery and equipment.  The term of this
bill is for one year - fiscal year 2002.

The legislature declares this exemption is necessary and just.  It
also supports the Governor's recommendation for agricultural tax
relief.
     FISCAL IMPACT
                                

$11.7 million dollars for fiscal year 2002.

Contact
Name: Rep. Lake 
Phone: 332-1000
 Rep. Moyle
 Rep. Roberts


STATEMENT OF PURPOSE/FISCAL NOTE             Bill No. 18