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H0150...............................................by REVENUE AND TAXATION
PROPERTY TAX - RELIEF - Amends existing law to revise definitions; to
revise exceptions to the claimant's personal right to file claims; to
revise procedures for filing claims; to provide reference to persons or
entities acting on a claimant's behalf; to delete reference to household
income; to delete the requirement of the signature by a claimant on each
approved claims form; to provide reference to claimant's spouse; to provide
reference to persons or entities acting on behalf of applicants and other
persons; and to provide for power of attorney.
02/05 House intro - 1st rdg - to printing
02/06 Rpt prt - to Rev/Tax
02/14 Rpt out - rec d/p - to 2nd rdg
02/15 2nd rdg - to 3rd rdg
02/19 3rd rdg - PASSED - 68-0-2
AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
Bradford, Bruneel, Campbell, Chase, Clark, Collins, Crow, Cuddy,
Deal, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet,
Jones, Kellogg, Kendell, Kunz, Lake, Langford, Loertscher, Mader,
Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce,
Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali,
Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stone, Swan,
Tilman, Trail, Wheeler, Wood, Young, Mr. Speaker
NAYS -- None
Absent and excused -- Callister, Denney
Floor Sponsor -- Smith, Kellogg
Title apvd - to Senate
02/20 Senate intro - 1st rdg - to Loc Gov
02/22 Rpt out - rec d/p - to 2nd rdg
02/23 2nd rdg - to 3rd rdg
AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
Burtenshaw, Cameron, Danielson, Darrington, Davis, Deide, Dunklin,
Frasure, Geddes, Goedde, Hawkins, Ingram, Ipsen, Keough,
King-Barrutia, Lee, Lodge, Noh, Richardson, Risch, Sandy, Schroeder,
Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler, Whitworth,
Williams,
NAYS -- None
Absent and excused -- Sims
03/15 To enrol
03/16 Rpt enrol - Sp signed - Pres signed
03/19 To Governor
03/20 Governor signed
Session Law Chapter 69
Effective: 01/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 150
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAX RELIEF; AMENDING SECTION 63-602G, IDAHO CODE, TO
3 REVISE REQUIREMENTS FOR GRANTING OF PROPERTY TAX EXEMPTION, TO PROVIDE
4 REFERENCE TO BENEFICIARIES, PARTNERS, MEMBERS AND SHAREHOLDERS, TO PROVIDE
5 CORRECT TERMINOLOGY, TO PROVIDE CORRECT CODE CITATIONS AND TO MAKE TECHNI-
6 CAL CORRECTIONS; AMENDING SECTION 63-701, IDAHO CODE, TO REVISE DEFINI-
7 TIONS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 63-702, IDAHO
8 CODE, TO REVISE EXCEPTIONS TO THE CLAIMANT'S PERSONAL RIGHT TO FILE
9 CLAIMS; AMENDING SECTION 63-703, IDAHO CODE, TO REVISE PROCEDURES FOR FIL-
10 ING CLAIMS; AMENDING SECTION 63-704, IDAHO CODE, TO MAKE A TECHNICAL COR-
11 RECTION; AMENDING SECTION 63-706, IDAHO CODE, TO PROVIDE REFERENCE TO PER-
12 SONS OR ENTITIES ACTING ON A CLAIMANT'S BEHALF; AMENDING SECTION 63-707,
13 IDAHO CODE, TO DELETE REFERENCE TO HOUSEHOLD INCOME, TO DELETE REQUIREMENT
14 OF SIGNATURE BY A CLAIMANT ON EACH APPROVED CLAIMS FORM, TO PROVIDE REFER-
15 ENCE TO CLAIMANT'S SPOUSE AND TO PROVIDE REFERENCE TO PERSONS OR ENTITIES
16 ACTING ON BEHALF OF CLAIMANTS; AMENDING SECTION 63-711, IDAHO CODE, TO
17 PROVIDE REFERENCE TO PERSONS OR ENTITIES ACTING ON BEHALF OF APPLICANTS
18 AND OTHER PERSONS, TO PROVIDE FOR POWER OF ATTORNEY AND TO MAKE A TECHNI-
19 CAL CORRECTION; AND PROVIDING AN EFFECTIVE DATE.
20 Be It Enacted by the Legislature of the State of Idaho:
21 SECTION 1. That Section 63-602G, Idaho Code, be, and the same is hereby
22 amended to read as follows:
23 63-602G. PROPERTY EXEMPT FROM TAXATION -- RESIDENTIAL IMPROVEMENTS. (1)
24 During the tax year 1983 and each year thereafter, the first fifty thousand
25 dollars ($50,000) of the market value for assessment purposes of residential
26 improvements, or fifty percent (50%) of the market value for assessment pur-
27 poses of residential improvements, whichever is the lesser, shall be exempt
28 from property taxation.
29 (2) The exemption allowed by this section may be granted only if:
30 (a) The residential improvements are owner-occupied and used as the pri-
31 mary dwelling place of the owner as of January 1. The residential improve-
32 ments may consist of part of a multidwelling or multipurpose building and
33 shall include all of such dwelling or building except any portion used
34 exclusively for anything other than the primary dwelling of the owner. The
35 presence of an office in an owner-occupied residential property, which
36 office is used for multiple purposes, including business and personal use,
37 shall not prevent the owner from claiming the exemption provided in this
38 section; and
39 (b) The tax commission has certified to the board of county commissioners
40 that all properties in the county which are subject to appraisal by the
41 county assessor have, in fact, been appraised uniformly so as to secure a
42 just valuation for all property within the county; and
43 (c) The owner has certified to the county assessor by April 15 that:
2
1 (i) He is making application for the exemption allowed by this sec-
2 tion;
3 (ii) That the residential improvements are his primary dwelling
4 place; and
5 (iii) That he has not made application in any other county for the
6 exemption, and has not made application for the exemption on any
7 other residential improvements in the county.
8 (d) For the purpose of this section, the definition of owner shall be the
9 same definition set forth in section 63-701(87), Idaho Code.
10 When an "owner," pursuant to the provisions of section 63-701(7),
11 Idaho Code, is any person who as grantor, or whose spouse as grantor, cre-
12 ated a revocable or irrevocable trust and was named himself or herself as
13 beneficiary of that trust, or who is a partner of a limited partnership, a
14 member of a limited liability company, or shareholder of a corporation, he
15 or she may provide proof of the trust, limited partnership, limited lia-
16 bility company, or corporation with an affidavit stating: (i) the name of
17 the grantor, partner, member or shareholder; (ii) a statement that the
18 grantor, or the grantor's spouse, is the beneficiary of the trust, or the
19 person is a partner of the limited partnership, or a member of the limited
20 liability company, or a shareholder of the corporation; and (iii) the
21 grantor, the grantor's spouse, partner, member or shareholder is the
22 owner-occupier of the residential property and uses the property as the
23 primary dwelling place of the owner grantor, the grantor's spouse, part-
24 ner, member or shareholder as of January 1; and (iv) if applicable, the
25 person holds at least a five percent (5%) ownership in the limited part-
26 nership, limited liability company or corporation.
27 The affidavit shall include the attaching of the copies of those por-
28 tions of the trust or other document which set forth the grantor, the
29 grantor or the grantor's spouse as beneficiary and the signature page of
30 the trust or other document; those portions of the articles of organiza-
31 tion or operating agreement of the limited liability company indicating
32 the person's membership in the company and the ownership percentage held
33 by such person; those portions of the limited partnership agreement or
34 other records of the limited partnership indicating that the person has
35 been admitted to the partnership and the ownership percentage held by such
36 person; or those portions of the articles of incorporation indicating that
37 the person is a shareholder of the corporation and the ownership percent-
38 age held by such person.
39 (e) Any owner may request in writing the return of all copies of any doc-
40 uments submitted with the affidavit set forth in paragraph (d) of this
41 subsection that are held by a county assessor, and the copies shall be
42 returned by the county assessor upon submission of the affidavit in proper
43 form.
44 (f) For the purpose of this section, the definition of "primary dwelling
45 place" shall be the same definition set forth in section 63-701(98), Idaho
46 Code.
47 (g) For the purpose of this section, the definition of "occupied" shall
48 be the same definition set forth in section 63-701(76), Idaho Code.
49 (3) An owner need only make application for the exemption described in
50 subsection (1) of this section once, as long as all of the following condi-
51 tions are met:
52 (a) The owner has received the exemption during the previous year as a
53 result of his making a valid application as defined in subsection (2)(c)
54 of this section.
55 (b) The owner or beneficiary, partner, member or shareholder, as appro-
3
1 priate, still occupies the same residential improvements for which he the
2 owner made application.
3 (c) The residential improvements described in subsection (3)(b) of this
4 section are owner-occupied or occupied by a beneficiary, partner, member
5 or shareholder, as appropriate, and used as the primary dwelling place of
6 the owner or beneficiary, partner, member or shareholder, as appropriate,
7 as of January 1.
8 (4) The exemption allowed by this section must be taken before the reduc-
9 tion in taxes provided by sections 63-701 through 63-710, Idaho Code, is
10 applied.
11 (5) The legislature declares that this exemption is necessary and just.
12 (6) Residential improvements having previously qualified for exemption
13 under this section in the preceding year, shall not lose such qualification
14 due to the owner's, beneficiary's, partner's, member's or shareholder's
15 absence in the current year by reason of active military service in a desig-
16 nated combat zone, as defined in section 112 of the iInternal rRevenue cCode.
17 If an owner fails to timely apply for exemption as required in this section
18 solely by reason of active duty in a designated combat zone, by the owner,
19 beneficiary, partner, member or shareholder, as appropriate, as defined in
20 section 112 of the iInternal rRevenue cCode, and such improvements would have
21 otherwise qualified under this section, then the board of county commissioners
22 of the county in which the residential improvements are located shall refund
23 property taxes, if previously paid, in an amount equal to the exemption which
24 would otherwise have applied.
25 SECTION 2. That Section 63-701, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 63-701. DEFINITIONS. As used in this chapter:
28 (1) "Claimant" means a person who has filed a claim under the provisions
29 of sections 63-701 through 63-710, Idaho Code. Except as provided in section
30 63-702(2), Idaho Code, on January 1 of the year in which the claim was filed a
31 claimant must be an owner of a homestead and be:
32 (a) Not less than sixty-five (65) years old; or
33 (b) A fatherless or motherless child under the age of eighteen (18) years
34 of age who is fatherless or motherless or who has been abandoned by any
35 surviving parent or parents; or
36 (c) A widow or widower; or
37 (d) A disabled person who is recognized as disabled by the social secu-
38 rity administration pursuant to title 42 of the United States Code, or by
39 the railroad retirement board pursuant to title 45 of the United States
40 Code, or by the office of management and budget pursuant to title 5 of the
41 United States Code; or
42 (e) A disabled veteran of any war engaged in by the United States, whose
43 disability is recognized as a service-connected disability of a degree of
44 ten percent (10%) or more, or who has a pension for nonservice-connected
45 disabilities, in accordance with laws and regulations administered by the
46 United States veterans administration; or
47 (f) A person, as specified in 42 USC 1701, who was or is entitled to
48 receive benefits because he is known to have been taken by a hostile force
49 as a prisoner, hostage or otherwise; or
50 (g) Blind.
51 (2) "Homestead" means the dwelling, owner-occupied by the claimant as
52 described in this chapter and used as the primary dwelling place of the claim-
53 ant and may be occupied by any members of the household as their home, and so
4
1 much of the land surrounding it, not exceeding one (1) acre, as is reasonably
2 necessary for the use of the dwelling as a home. It may consist of a part of a
3 multidwelling or multipurpose building and part of the land upon which it is
4 built. Homestead does not include personal property such as furniture, fur-
5 nishings or appliances, but a manufactured home may be a homestead.
6 (3) "Household" means the claimant and any person or persons who live in
7 the same dwelling, and share its furnishings, facilities, accommodations or
8 expenses. The term includes any person owing a duty of support to the appli-
9 cant pursuant to section 32-1002, Idaho Code, unless the person qualifies as a
10 "nonhousehold member" pursuant to subsection (6) of this section the
11 claimant's spouse. The term does not include bona fide lessees, tenants, or
12 roomers and boarders on contract. "Household" includes persons described in
13 subsection (98)(b) of this section.
14 (4) "Household income" means all income received by all persons of a
15 household the claimant and, if applicable, the claimant's spouse, in a calen-
16 dar year. while members of the household.
17 (5) "Income" means the sum of federal adjusted gross income as defined in
18 the iInternal rRevenue cCode, as defined in section 63-3004, Idaho Code, and
19 to the extent not already included in federal adjusted gross income,:
20 (a) Aalimony,;
21 (b) Ssupport money, income from inheritances,;
22 (c) Nnontaxable strike benefits,;
23 (d) Tthe nontaxable amount of any individual retirement account, pension
24 or annuity, (including railroad retirement benefits, all payments received
25 under the federal social security act except the social security death
26 benefit as specified in this subsection, state unemployment insurance
27 laws, and veterans disability pensions and compensation, excluding
28 rollovers as provided in section 402 or 403 of the iInternal rRevenue
29 cCode),;
30 (e) Nnontaxable interest received from the federal government or any of
31 its instrumentalities or a state government or any of its instrumentali-
32 ties,;
33 (f) Wworker's compensation; and
34 (g) Tthe gross amount of loss of earnings insurance.
35 It does not include capital gains, gifts from nongovernmental sources or
36 inheritances. To the extent not reimbursed, the cost of medical care as
37 defined in section 213(d) of the iInternal rRevenue cCode, incurred or paid by
38 the household claimant and/or, if applicable, the claimant's spouse, may be
39 deducted from income. "Income" does not include veterans disability pensions
40 received by a person described in subsection (1)(e) who is a claimant or a
41 claimant's spouse, provided however, that if the disability pension is
42 received pursuant to a service-connected disability of a degree of forty per-
43 cent (40%) or more. "Income" does not include lump sum death benefits made by
44 the social security administration pursuant to 42 U.S.C. section 402(i). Docu-
45 mentation of medical expenses may be required by the county assessor, board of
46 equalization and state tax commission in such form as the county assessor,
47 board of equalization or state tax commission shall determine. "Income" shall
48 be that received in the calendar year immediately preceding the year in which
49 a claim is filed. Where a claimant and/or the claimant's spouse does not file
50 a federal tax return, the claimant's and/or the claimant's spouse's federal
51 adjusted gross income, for purposes of this section, shall be an income equiv-
52 alent to federal adjusted gross income had the claimant and/or the claimant's
53 spouse filed a federal tax return, as determined by the county assessor. The
54 county assessor, board of equalization or state tax commission may require
55 documentation of income in such form as each shall determine, including, but
5
1 not limited to: copies of federal or state tax returns and any attachments
2 thereto; and income reporting forms such as the W-2 and 1099.
3 (6) "Nonhousehold member" means any nonspouse who lives in the claimant's
4 dwelling for the purpose of providing protective oversight, caregiving, or
5 personal assistance services to the claimant, or who is receiving disability
6 benefits pursuant to subsection (1)(d) or (e) of this section, or who is over
7 age sixty-five (65) and lives in the claimant's dwelling and receives protec-
8 tive oversight, caregiving or personal assistance services provided by the
9 claimant.
10 (7) "Occupied" means actual use and possession.
11 (87) "Owner" means a person holding title in fee simple or holding a cer-
12 tificate of motor vehicle title (either of which may be subject to mortgage,
13 deed of trust or other lien) or who has retained or been granted a life estate
14 or who is a person entitled to file a claim under section 63-702, Idaho Code.
15 "Owner" shall also include any person who:
16 (a) Aas grantor, or whose spouse as grantor, created a revocable or
17 irrevocable trust and was named himself as a beneficiary of that trust,;
18 or who
19 (b) Is the beneficiary of a revocable or irrevocable trust which is the
20 owner of such homestead and under which the claimant or the claimant's
21 spouse has the primary right of occupancy of the homestead; or
22 (c) Iis a partner of a limited partnership, member of a limited liability
23 company or shareholder of a corporation which if such entity holds title
24 in fee simple or holds a certificate of motor vehicle title and if the
25 person holds at least a five percent (5%) ownership in such entity, as
26 determined by the county assessor; or who
27 (d) Hhas retained or been granted a life estate.
28 "Owner" shall not include any person that otherwise occupies property as bene-
29 ficiary of a trust. "Owner" includes a vendee in possession under a land sale
30 contract. Any partial ownership shall be considered as ownership for determin-
31 ing initial qualification for property tax reduction benefits,; however, the
32 amount of property tax reduction under section 63-704, Idaho Code, and rules
33 promulgated pursuant to section 63-705, Idaho Code, shall be computed on the
34 value of the claimant's partial ownership. "Partial ownership," for the pur-
35 poses of this section, means any one (1) person's ownership when property is
36 owned by more than one (1) person or where the homestead is held by an entity,
37 as set forth in this subsection, but more than one (1) person has the right of
38 occupancy of such homestead. A person holding either partial title in fee sim-
39 ple or holding a certificate of motor vehicle title together with another per-
40 son but who does not occupy the dwelling as his primary dwelling place, shall
41 not be considered an owner for purposes of this section, if such person is a
42 cosignatory of a note secured by the dwelling in question and at least one (1)
43 of the other cosignatories of the note occupies the dwelling as his primary
44 dwelling place. The combined community property interests of both spouses
45 shall not be considered partial ownership so long as the combined community
46 property interests constitute the entire ownership of the homestead, including
47 where the spouses are occupying a homestead owned by an entity, as set forth
48 in this subsection, and the spouses have the primary right of occupancy of the
49 homestead. The proportional reduction required under this subsection shall not
50 apply to community property interests. Where title to property is held by a
51 person who has died without timely filing a claim for property tax reduction,
52 the estate of the deceased person shall be the "owner.," provided that the
53 time periods during which the deceased person held such title shall be attrib-
54 uted to the estate for the computation of any time periods under subsection
55 (8)(a) or (8)(b) of this section.
6
1 (98) (a) "Primary dwelling place" means the claimant's dwelling place on
2 January 1 of the year for which the claim is made. The primary dwelling
3 place is the single place where a claimant has his true, fixed and perma-
4 nent home and principal establishment, and to which whenever the individ-
5 ual is absent he has the intention of returning. A claimant must establish
6 the dwelling to which the claim relates as to be his primary dwelling
7 place by clear and convincing evidence or by establishing that the dwell-
8 ing is where the claimant resided on January 1 and:
9 (i) At least six (6) months during the prior year; or
10 (ii) The majority of the time the claimant owned the dwelling if
11 owned by the claimant less than one (1) year; or
12 (iii) The majority of the time after the claimant first occupied the
13 dwelling if occupied by the claimant for less than one (1) year. The
14 county assessor may require written or other proof of the foregoing
15 in such form as the county assessor may determine.
16 (b) Notwithstanding the provisions of paragraph (a) of this subsection,
17 the property upon which the claimant makes application shall be deemed to
18 be the claimant's primary dwelling place if the claimant is otherwise
19 qualified and resides in a care facility and does not allow the property
20 upon which the claimant has made application to be occupied by persons
21 paying a consideration to occupy the dwelling. Payment of utilities shall
22 not be payment of a consideration to occupy the dwelling. A claimant's
23 spouse who resides in a care facility shall be deemed to reside at the
24 claimant's primary dwelling place and to be a part of the claimant's
25 household. A care facility is a hospital, nursing facility or intermediate
26 care facility for the mentally retarded as defined in section 39-1301,
27 Idaho Code, or a facility as defined in section 39-3302(16), Idaho Code,
28 or a dwelling other than the one upon which the applicant makes applica-
29 tion where a claimant who is unable to reside in the dwelling upon which
30 the application is made lives and receives help in daily living, protec-
31 tion and security.
32 SECTION 3. That Section 63-702, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 63-702. CLAIM IS PERSONAL -- EXCEPTIONS. (1) The right to file a claim
35 under the provisions of sections 63-701 through 63-710, Idaho Code, shall be
36 personal to the claimant and shall not survive his death except as otherwise
37 provided in this section. Such right may be exercised on behalf of a living
38 claimant by an agent authorized in writing to so act, or by a guardian or
39 other representative acting pursuant to judicial authority or by any person or
40 entity described in section 63-711(3), Idaho Code. If a claimant dies after
41 having filed a timely claim, the amount thereof shall be allowed to his per-
42 sonal representative, if one is appointed, or to surviving heirs or to the
43 trust or other entity owning the property, as appropriate.
44 (2) In the case of property owned by an estate, revocable trust, irrevo-
45 cable trust, limited partnership, limited liability company or corporation,
46 where the deceased person's widow or widower succeeds to the interest of the
47 deceased person in that entity and occupies the dwelling as required in this
48 chapter, the deceased owner's widow or widower, or any person or entity
49 described in section 63-711(3), Idaho Code, on behalf of that widow or
50 widower:
51 (a) May file a claim on behalf of his or her the deceased spouse if the
52 deceased spouse qualified or would have qualified as a claimant on January
53 1 of the year in which the claim is filed; or
7
1 (b) The widow or widower sShall be deemed the owner of the property in
2 any year after the year of the death of the spouse.
3 SECTION 4. That Section 63-703, Idaho Code, be, and the same is hereby
4 amended to read as follows:
5 63-703. PROCEDURE FOR FILING CLAIMS. (1) Any claim filed shall be signed
6 by the claimant or by any person or entity described in section 63-711(3),
7 Idaho Code. By signing such claim, the claimant or other person or entity
8 signing such claim shall attest to the truth of such claim, and shall be sub-
9 ject to the penalties provided by section 18-5401, Idaho Code, for stating as
10 true any material fact known to be false. All claims shall be made on forms
11 prescribed by the state tax commission and shall be in triplicate. One (1)
12 copy of the form shall be provided to the claimant or the person or entity
13 acting on behalf of the claimant, one (1) copy shall be kept for all county
14 purposes, and one (1) copy shall be forwarded to the state tax commission with
15 the property tax reduction roll. Except as provided in section 63-707, Idaho
16 Code, the claim and its documentation shall not be deemed to be public records
17 and may not be used for any commercial purpose; provided however, the state
18 tax commission and the county assessor may use the contents of such claims and
19 documentation for general statistical analysis and may publish such analysis,
20 or any part of such analysis, as appropriate.
21 (2) By filing a claim, a claimant does not relinquish any right he or any
22 member of his household may have to apply for a cancellation of property taxes
23 pursuant to section 63-711, Idaho Code. The county commissioners may grant any
24 such claimant, or any member of his household, a cancellation of property
25 taxes, late charges and interest under such section, if a claim has been filed
26 under the provisions of sections 63-701 through 63-710, Idaho Code.
27 (3) If two (2) or more individuals of a household are able to meet the
28 qualifications of a claimant, they may decide between themselves who may
29 obtain a reduction in property taxes under the provisions of sections 63-701
30 through 63-710, Idaho Code, and shall certify such division in writing to the
31 county assessor in such form as the county assessor shall require, but if they
32 do not decide between themselves, then the reduction shall be divided equally
33 among or between the claimants in the household or shall be divided as deter-
34 mined under section 63-701(7), Idaho Code, whichever is appropriate.
35 (4) A claimant who requests nonhousehold member status for any nonspouse
36 residing in the dwelling must provide a statement from the attending physi-
37 cian, verifying that the claimant would not be able to maintain residency in
38 the dwelling in the absence of the nonhousehold member. To establish
39 nonhousehold member status for any disabled nonspouse for whom the claimant
40 provides care, the claimant must provide proof of disability from the recog-
41 nizing agency.
42 (5) When an "owner" is any person who as grantor, or whose spouse as
43 grantor, created a revocable or irrevocable trust and was named himself or
44 herself as beneficiary of that trust, he or she, or any person or entity
45 described in section 63-711(3), Idaho Code, may provide proof of the revocable
46 or irrevocable trust with an affidavit stating: (i) the name of the grantor,
47 (ii) a statement that the grantor, or the grantor's spouse, is the beneficiary
48 of the trust, and (iii) the trust is revocable during the grantor's lifetime,
49 and (iv) the grantor, or the grantor's spouse, is the owner-occupier of the
50 residential property and uses the property as the primary dwelling place of
51 the owner occupier as of January 1.
52 The affidavit shall include the attaching of the copies of those portions
53 of the trust which sets forth the name of the grantor, the status of the
8
1 grantor or the grantor's spouse as beneficiary, the revocable character of the
2 trust and which contain the signature page or pages of the trust. The county
3 assessor may require such additional documentation as is necessary to carry
4 out the provisions of this chapter including, but not limited to:
5 (a) Proof of the current status of the entity owning the property,
6 including statements from the secretary of state as to such status if
7 appropriate;
8 (b) Copies of any documents, or portions thereof, relating to the entity;
9 (c) Copies of any contracts or other agreements between the entity and
10 the claimant or the claimant's spouse; and
11 (d) Any other documentation which the county assessor determines would
12 aid the county assessor in carrying out the provisions of this chapter.
13 SECTION 5. That Section 63-704, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 63-704. AMOUNT OF PROPERTY TAX REDUCTION. (1) Each claimant qualifying
16 for and applying for a reduction in property taxes under the provisions of
17 sections 63-701 through 63-710, Idaho Code, shall be allowed a reduction in
18 property taxes on his homestead for the current year only, in the amounts pro-
19 vided by subsection (4) of this section.
20 (2) All property taxes continue to be the responsibility of the individ-
21 ual taxpayer, and all property taxes continue to be perpetual liens against
22 the property against which assessed, and all property taxes may be collected
23 and enforced in the usual manner, if the taxpayer does not receive any prop-
24 erty tax reduction as provided under sections 63-701 through 63-710, Idaho
25 Code, or if the taxpayer receives less property tax reduction than the whole
26 amount of property taxes he is charged with.
27 (3) The claimant property owner's property tax reduction shall be based
28 upon the current year's assessed value and the current year's levy.
29 (4) Property tax reductions qualified under sections 63-701 through
30 63-710, Idaho Code, shall be allowed as set out in section 2, chapter 59, laws
31 of 1992, and adjusted for cost-of-living fluctuations as provided in section
32 63-705, Idaho Code.
33 SECTION 6. That Section 63-706, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 63-706. TIME REQUIREMENTS FOR FILING CLAIM. (1) Any claim for property
36 tax reduction to be granted under the provisions of sections 63-701 through
37 63-710, Idaho Code, shall be filed in the office of the county assessor
38 between January 1 and April 15 of each year. The county assessor shall examine
39 each claim and determine whether it is in conformity with section 63-701,
40 Idaho Code, and shall accordingly approve, modify or disapprove the claim in
41 total at the time the application is received. Additionally, the county asses-
42 sor shall notify the claimant, or the person or entity acting on behalf of the
43 claimant, in writing by May 1 if his claim has been modified or has been dis-
44 approved. The notice of modification or disapproval shall declare that the
45 claimant, or the person or entity acting on behalf of the claimant, may
46 appeal the assessor's decision to the county board of equalization, and shall
47 state the time and place that the county board of equalization shall meet for
48 such purposes.
49 (2) All claims filed with the county assessor shall be completed by him
50 and forwarded to the county commissioners, which shall convene as a board of
51 equalization, any other provision of law notwithstanding, on or before May 15,
9
1 and shall approve all claims approved by the county assessor, and shall
2 approve the action of the county assessor in modifying or disapproving all
3 other claims unless an appeal has been filed with the board of equalization
4 prior to May 15. In considering any appeal of the assessor's decision in modi-
5 fying or disapproving a claim, the board of equalization may affirm the
6 assessor's decision, may modify the assessor's decision, or may reject the
7 assessor's decision and proceed to approve all or any part of the claim as
8 submitted to the assessor originally.
9 (3) No informality on the part of the board of equalization shall invali-
10 date any action of the board. The decision of the board of equalization shall
11 be final, except that within thirty (30) days the claimant, or any person or
12 entity acting on behalf of the claimant, may appeal to the district court on
13 matters of law, and may appeal the decision of the board of equalization when
14 the board has acted arbitrarily. The claimant, or the person or entity acting
15 on behalf of the claimant, shall be notified immediately, in writing, of the
16 board of equalization's action on his appeal to it.
17 SECTION 7. That Section 63-707, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 63-707. PROCEDURE AFTER CLAIM APPROVAL. (1) Immediately after claims have
20 been approved by the board of equalization, the county assessor shall prepare
21 a property tax reduction roll, which shall be in addition to the property
22 roll, the subsequent property roll and missed property rolls which property
23 tax reduction roll shall show:
24 (a) The name of the taxpayer;
25 (b) The description of the property for which a reduction in property
26 taxes is claimed, suitably detailed to meet the requirements of the indi-
27 vidual county;
28 (c) The property's prior year's market value for assessment purposes or
29 the assessor's best estimate of current market value for assessment pur-
30 poses; and
31 (d) The amount of tax reduction for which the applicant is eligible as
32 determined by the applicant's household income of the claimant and, if
33 applicable, the claimant's spouse, pursuant to sections 63-704 and 63-705,
34 Idaho Code.
35 (2) As soon as possible, but in any event by no later than the fourth
36 Monday of June, the property tax reduction roll shall be certified to the
37 county auditor and to the state tax commission in the manner prescribed by
38 rules promulgated by the state tax commission. The property tax reduction roll
39 shall be accompanied by a copy of the claim forms for disapproved claims, when
40 requested by the state tax commission and a copy of the approved claims form.
41 signed by each claimant.
42 (3) (a) As soon as possible, but in any event by no later than the fourth
43 Monday of October, the county auditor shall complete the property tax
44 reduction roll by adding the following information:
45 (i) The current year's levy for the code area in which the property
46 is situated;
47 (ii) The amount of property tax reduction claimed based on the cur-
48 rent year's market value for assessment purposes and the current
49 year's levy; and
50 (iii) The current year's market value for assessment purposes.
51 (b) As soon as possible, but in any event no later than the fourth Monday
52 of October, the county auditor shall certify the completed property tax
53 reduction roll to the state tax commission in the manner prescribed by
10
1 rules promulgated by the state tax commission.
2 (4) The state tax commission shall calculate the total of all claims for
3 reduction in property taxes from current year's property taxes, evidenced by
4 the abstracts and claims forms from all the counties. Each county auditor
5 shall be notified by the third Monday in November of the amount of property
6 tax reduction to be granted.
7 (5) The state tax commission may audit each and every claim submitted to
8 it, and, any other provision of law notwithstanding, may utilize income tax
9 returns filed by the claimant or by any member of his household the claimant's
10 spouse to determine household the income of the claimant or the claimant's
11 spouse.
12 (6) If it is determined by the state tax commission that a claim is erro-
13 neous, the tax commission shall disapprove so much of the claim as necessary
14 in order to conform with statutory standards. The tax commission shall provide
15 the claimant, or the person or entity acting on behalf of the claimant, writ-
16 ten notice of the tax commission's intent to disapprove all or a portion of
17 the claim. The claimant, or the person or entity acting on behalf of the
18 claimant, shall have fourteen (14) days to make written protest to the tax
19 commission of the intended action. The claimant, or the person or entity act-
20 ing on behalf of the claimant, may submit additional information and may
21 request an informal hearing with the commission. If the claimant, or the per-
22 son or entity acting on behalf of the claimant, fails to make written protest
23 within fourteen (14) days, the tax commission shall provide written notice of
24 disapproval to the claimant, or the person or entity acting on behalf of the
25 claimant, by the fourth Monday of October and to the county auditor of the
26 county from which the claim was received. Any claimant, or person or entity
27 acting on behalf of the claimant, whose claim is disapproved in whole or in
28 part by the state tax commission may:
29 (a) File a claim with the county commissioners for a special cancella-
30 tion pursuant to section 63-711, Idaho Code;
31 (b) Appeal such disapproval by the state tax commission to the board of
32 tax appeals or to the district court of the county of residence of the
33 taxpayer within thirty (30) days.
34 SECTION 8. That Section 63-711, Idaho Code, be, and the same is hereby
35 amended to read as follows:
36 63-711. CANCELLATION OF TAXES -- HARDSHIP AND CASUALTY LOSSES -- SPECIAL.
37 (1) Property taxes may be cancelled canceled for reason of undue hardship. The
38 commissioners may, at their discretion, grant such cancellation for a speci-
39 fied time period. The commissioners may, at their discretion, cancel taxes on
40 property which has been damaged by an event causing casualty loss to all or a
41 portion of the property when the event occurs after the fourth Monday of June
42 or casualty losses for which the amount of loss cannot be determined until
43 after the fourth Monday of June.
44 (2) Applicants seeking a cancellation pursuant to this section must apply
45 to the county commissioners. Each applicant shall give a sworn statement con-
46 taining full and complete information of his financial status to the county
47 commissioners and shall make true answers to all questions put before him
48 touching such person's right to the cancellation. The county commissioners
49 shall decide and determine from each examination and from each written appli-
50 cation for said cancellation whether or not such person is entitled to the
51 cancellation claimed or any part thereof accordingly. In applying for a can-
52 cellation pursuant to this section, an applicant may submit an application at
53 any time and the county commissioners may grant such application, either in
11
1 whole or in part, at any regular meeting and the burden of proving the right
2 of such cancellation shall rest upon the applicant.
3 (3) The county commissioners may, for good cause shown, allow an agent or
4 some person or entity acting for and on behalf of the applicant to make the
5 application for the cancellation provided in this section for any applicant,
6 or where a person is entitled to cancellation shall be mentally incompetent or
7 physically unable to make such sworn statement, his or her spouse, widow, wid-
8 ower, guardian, power of attorney, or personal representative, or other person
9 having knowledge of the facts, may make the application for the cancellation.
10 (4) Any time within thirty (30) days after mailing of a decision of the
11 county commissioners, or pronouncement of a decision announced at a meeting,
12 or the failure of the county commissioners to act, an appeal may be taken to
13 the district court for the county in which the property is located. Such
14 appeal may only be filed by the property owner or by any person aggrieved, or
15 by a person or entity acting on behalf of such person, when he deems any such
16 action illegal or prejudicial to the public interest. Nothing in this section
17 shall be construed so as to suspend the payment of property taxes pending said
18 appeal.
19 Notice of such appeal stating the grounds thereafter shall be filed with
20 the county auditor, who shall forthwith transmit a copy of said notice to the
21 county commissioners.
22 (5) The county commissioners shall order all necessary adjustments to be
23 made in the property tax records of the various county officers and taxing
24 districts.
25 (6) The cancellation of property taxes which have become delinquent shall
26 affect only those property taxes granted a cancellation by order of the county
27 commissioners and all interest and late charges on such taxes.
28 SECTION 9. This act shall be in full force and effect on and after Janu-
29 ary 1, 2002.
STATEMENT OF PURPOSE
RS 10707
The Property Tax Reduction Benefit provisions in Section 63-701 et
seq., commonly referred to as the "Circuit Breaker", have been
patched and amended over the years without consistency.
Additionally, a number of problems have arisen in the practical
application of the provisions. This Bill amends the Circuit
Breaker benefit provisions to provide:
1. Consistency in the terms used throughout these code sections.
2. Clarify the definitions of Owner in a number of situations such
as ownership by a trust or an entity (corporation, partnership,
LLC, etc.), ownership by multiple persons, ownership by husband and
wife as community property, and so forth. If the Owner is a trust,
the Claimant must be entitled to residence in the Homestead as a
beneficiary of the trust. IF the Owner is an entity, the Claimant
must have a significant ownership in the entity. Also, clarifies
procedures when an Owner dies, including when there is a surviving
spouse, and how time periods are calculated in that situation.
3. Clarify the definitions of income. The major change is that
only the income of the Claimant, and the spouse (if any) of the
Claimant who resides in the Homestead, will be counted in
determining whether relief should be granted. Having the income
of other persons residing, often temporarily, in the Homestead lead
to huge problems in determination of income and did not fulfil the
fundamental purpose of the Circuit Break benefit provisions.
Rental provisions are clarified to make sure that any rent received
by the Claimant is counted.
4. Allow the Assessor, and the State Tax Commission when
appropriate, to require reasonable documentation of any required
element of relief, including income, ownership, terms and
conditions of trusts and entities, and so forth. Also, clarifies
when the claim and its documentation is a public record and how the
statistics generated thereby can be used and published.
5. Clarify the determination of "primary dwelling place". This
had become needlessly complex.
6. Allow the claim to be filed on behalf of the Claimant by
another person or entity, paralleling 63-711(3), hardship waivers,
and amending 711(3) to add "power of attorney" to that list. Also,
clarifies that an appeal can be made by that same list of persons
or entities.
7. Does a lot of housekeeping amendments such as capitalization,
punctuation, and making all terms and titles parallel.
FISCAL NOTE
The fiscal impact of the Bill is estimated by the State Tax
Commission to be a loss to the general fund of One Hundred Fifty
Thousand Dollars and No Cents ($150,000) per year.
CONTACT: Robert L. Aldridge
Telephone: (208) 336-9880
e-mail: roberta@micron.net
Patty Bauscher
Idaho Association of County Assessors
Telephone: (208) 934-5666
pbauscher@co.gooding.id.us
STATEMENT OF PURPOSE/FISCAL NOTE H 150