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H0320...............................................by REVENUE AND TAXATION
LOW-INCOME HOUSING - PROPERTY TAX - Adds to existing law to provide that
the speculative value of low-income housing projects, for assessment
purposes, shall be exempt from property taxation; and to provide for
application for the exemption.
02/23 House intro - 1st rdg - to printing
02/26 Rpt prt - to Rev/Tax
03/09 Rpt out - rec d/p - to 2nd rdg
03/12 2nd rdg - to 3rd rdg
03/13 3rd rdg - PASSED - 43-26-1
AYES -- Barraclough, Bedke, Black, Bolz, Callister, Campbell, Chase,
Clark, Collins, Crow, Cuddy, Deal, Denney, Ellis, Ellsworth,
Eskridge, Field(13), Field(20), Gould, Hammond, Harwood, Henbest,
Hornbeck, Jaquet, Jones, Kellogg, Loertscher, Mader, Marley, McKague,
Meyer, Montgomery, Pischner, Pomeroy, Raybould, Ridinger, Sellman,
Smith, Smylie, Stone, Tilman, Trail, Mr. Speaker
NAYS -- Barrett, Bell, Bieter, Boe, Bradford, Bruneel, Gagner,
Hadley, Kendell, Kunz, Lake, Langford, Mortensen, Moss, Moyle,
Pearce, Roberts, Robison, Sali, Schaefer, Shepherd, Stevenson,
Swan(Block), Wheeler, Wood, Young
Absent and excused -- Higgins
Floor Sponsor -- Raybould
Title apvd - to Senate
03/14 Senate intro - 1st rdg - to Loc Gov
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 320
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAXES; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE
3 ADDITION OF A NEW SECTION 63-602EE, IDAHO CODE, TO PROVIDE THAT THE SPECU-
4 LATIVE VALUE OF LOW-INCOME HOUSING PROJECTS FOR ASSESSMENT PURPOSES SHALL
5 BE EXEMPT FROM TAXATION, TO DEFINE TERMS, TO PROVIDE FOR APPLICATION FOR
6 EXEMPTION, TO REQUIRE THE COUNTY AUDITOR TO INCLUDE THE VALUE OF EXEMP-
7 TIONS ON THE ABSTRACT OF PROPERTY ENTERED ON THE PROPERTY ROLLS; TO PRO-
8 VIDE THAT THE LEGISLATURE DECLARES THAT THIS EXEMPTION IS NECESSARY AND
9 JUST; DECLARING AN EMERGENCY AND PROVIDING A RETROACTIVE EFFECTIVE DATE.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Chapter 6, Title 63, Idaho Code, be amended by the addi-
12 tion thereto of a NEW SECTION, to be known as Section 63-602EE, Idaho Code,
13 and to read as follows:
14 63-602EE. PROPERTY EXEMPT FROM TAXATION -- SPECULATIVE VALUE OF LOW-IN-
15 COME RENT RESTRICTED HOUSING PROJECTS. (1) The speculative value of low-income
16 rent restricted housing projects is exempt from taxation.
17 (2) "Low-income rent restricted housing project" shall mean that portion
18 of real property which is devoted to multifamily housing and that, at the time
19 an exemption is claimed pursuant to this section, is subject to a recorded
20 land use regulatory agreement for a qualified low-income housing project which
21 has been allocated low-income housing tax credits pursuant to section 42 of
22 the Internal Revenue Code and that meets all the criteria of section 42 of the
23 Internal Revenue Code.
24 (3) "Speculative value" shall mean:
25 (a) That portion of the value that has been derived from the owner's uti-
26 lization or sale of low-income housing tax credits that have been allo-
27 cated to the project pursuant to section 42 of the Internal Revenue Code;
28 and
29 (b) The excess value, if any, attributable to income that could be gener-
30 ated, by the low-income rent restricted housing project if rents were not
31 so restricted, over the income derived from actual rents received by the
32 owner of the property in compliance with the recorded land-use regulatory
33 agreement.
34 (4) An application for exemption of speculative value, as used in this
35 section, shall be on forms prescribed by the state tax commission. Such
36 application must be filed with the county assessor on or before March 15, in
37 each year for which the exemption is claimed. An application for exemption
38 for the year 2001 shall be filed with the county assessor on or before May 1,
39 2001. The county assessor may request such additional information from the
40 owner as may be necessary to determine the validity and amount of the exemp-
41 tion claimed pursuant to this section.
42 (5) The county auditor shall include the value of exemptions granted pur-
43 suant to this section on the abstract prepared pursuant to section 63-509,
2
1 Idaho Code.
2 (6) The legislature declares that this exemption is necessary and just.
3 SECTION 2. An emergency existing therefore, which emergency is hereby
4 declared to exist, this act shall be in full force and effect on and after its
5 passage and approval, and retroactively to January 1, 2001.
STATEMENT OF PURPOSE
RS 11168
The proposal provides an exemption from property tax
for that portion of the value considered to be the
speculative value of low-income housing projects.
“Speculative value” is defined as that portion of the
value, if any, that has been derived from the owner’s
utilization or sale of low-income housing tax credits and
the excess value, if any, attributable to income that could
be generated if rents were not restricted by a regulatory
land use agreement over the income derived from actual
rents received in compliance with such agreements.
The federal Low Income Housing Tax Credit program
provides incentives to developers to provide safe,
affordable housing to low-income families. The program
provides for credits against federal income taxes, in
return for which, the project owner agrees that, for
periods of not less than 15 years, the housing units will
be rented to low—income residents at restricted rental
rates based on certain income levels of the tenants.
The legislation provides a process for the project
owner to apply for an exemption, on an annual basis, to the
extent the assessed value includes speculative value as
defined in the bill. The claim for exemption is subject to
the approval of the County Boards of Equalization annually.
To the extent that exemptions are granted, the amount of
the exemption is required to be reported in the property
tax abstracts prepared by the County Auditor.
FISCAL NOTE
There is no revenue impact to the state general account. In
meetings with the State Tax Commission and County Assessors
representatives, no fiscal impact on local revenues could
be identified, for the reason that assessment practices in
this regard vary. In many counties it appears that
speculative value is not included in the assessed valUe,
and therefore no exemption would be available.
CONTACT PERSON:
Bill Roden
Realvest Corporation
Telephone: 336-7930
STATEMENT OF PURPOSE/FISCAL NOTE H 320