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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
|||| 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
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