2002 Legislation
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HOUSE BILL NO. 438 – Property tax/imprvmnt/exmptn/chnge

HOUSE BILL NO. 438

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H0438...............................................by REVENUE AND TAXATION
REAL PROPERTY - TAXATION - Amends existing law relating to property taxes
to provide that the new construction roll shall include a description of
real property improvement that has changed from exempt in the preceding
year to taxable in the current year, except for property exempt under the
fifty-fifty homeowner's exemption; and to provide that real property that
changed from exempt in the preceding year to taxable in the current year,
except for property exempt under the fifty-fifty homeowner's exemption,
shall be exempt from the calculation computing the three percent cap for
the dollar amount of property taxes certified for a taxing district's
annual budget.
                                                                        
01/16    House intro - 1st rdg - to printing
01/17    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 438
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PROPERTY TAXES; AMENDING SECTION 63-301A, IDAHO CODE,  TO  PROVIDE
  3        THAT  THE  NEW CONSTRUCTION ROLL SHALL INCLUDE A DESCRIPTION OF REAL PROP-
  4        ERTY IMPROVEMENT THAT HAS CHANGED FROM EXEMPT IN  THE  PRECEDING  YEAR  TO
  5        TAXABLE  IN  THE  CURRENT YEAR EXCEPT FOR PROPERTY EXEMPT UNDER THE FIFTY-
  6        FIFTY HOMEOWNER'S EXEMPTION; AND AMENDING SECTION 63-802, IDAHO  CODE,  TO
  7        PROVIDE  THAT REAL PROPERTY THAT CHANGED FROM EXEMPT IN THE PRECEDING YEAR
  8        TO TAXABLE IN THE CURRENT YEAR, EXCEPT FOR PROPERTY EXEMPT UNDER THE  FIF-
  9        TY-FIFTY  HOMEOWNER'S EXEMPTION, SHALL BE EXEMPT FROM THE CALCULATION COM-
 10        PUTING THE THREE PERCENT CAP FOR THE  DOLLAR AMOUNT OF PROPERTY TAXES CER-
 11        TIFIED FOR A TAXING DISTRICT'S ANNUAL BUDGET.
                                                                        
 12    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 13        SECTION 1.  That Section 63-301A, Idaho Code, be, and the same  is  hereby
 14    amended to read as follows:
                                                                        
 15        63-301A.  NEW  CONSTRUCTION  ROLL. (1) The county assessor shall prepare a
 16    new construction roll, which shall be in addition to the property roll,  which
 17    new construction roll shall show:
 18        (a)  The name of the taxpayer;
 19        (b)  The  description  of  the new construction, suitably detailed to meet
 20        the requirements of the individual county;
 21        (c)  A description of the land and its change in use and of real  property
 22        improvement  that has changed from exempt in the preceding year to taxable
 23        in the current year, except property exempt under section  63-602G,  Idaho
 24        Code, suitably detailed to meet the needs of the individual county;
 25        (d)  The  amount of taxable market value added to the property on the cur-
 26        rent year's property roll that is directly the result of new  construction
 27        or a change in use of the land described in subsection (1)(c) of this sec-
 28        tion, or both.
 29        (2)  As soon as possible, but in any event by no later than the first Mon-
 30    day  in June, the new construction roll shall be certified to the county audi-
 31    tor and a listing showing the amount of value on the new construction roll  in
 32    each taxing district or unit be forwarded to the state tax commission.
 33        (3)  The  value  shown  on the new construction roll may include the value
 34    increase from:
 35        (a)  Construction of any new structure that previously did not exist; or
 36        (b)  Additions or alterations to existing nonresidential structures; or
 37        (c)  Installation of new or used manufactured housing that did not  previ-
 38        ously exist within the county; or
 39        (d)  Change  of  land use classification described in subsection (1)(c) of
 40        this section; or
 41        (e)  Property newly taxable as a result of loss of the exemption  provided
 42        by section 63-602W, Idaho Code.
 43        (4)  The  amount  of taxable market value of new construction shall be the
                                                                        
                                           2
                                                                        
  1    change in net taxable market value that is attributable directly to  new  con-
  2    struction  or  a  change  in use of the land described in subsection (1)(c) of
  3    this section, or loss of the exemption provided by section  63-602W(3),  Idaho
  4    Code.  It  shall  not include any change in value of existing property that is
  5    due to external market forces such as general or localized inflation.
                                                                        
  6        SECTION 2.  That Section 63-802, Idaho Code, be, and the  same  is  hereby
  7    amended to read as follows:
                                                                        
  8        63-802.  LIMITATION  ON  BUDGET  REQUESTS  -- LIMITATION ON TAX CHARGES --
  9    EXCEPTIONS. (1) Except as provided in subsection (3) of this section  for  tax
 10    year 1995, and each year thereafter, no taxing district shall certify a budget
 11    request  for  an  amount  of property tax revenues to finance an annual budget
 12    that exceeds the greater of:
 13        (a)  The dollar amount of property taxes certified for its  annual  budget
 14        for any one (1) of the three (3) tax years preceding the current tax year,
 15        whichever  is greater, which amount may be increased by a growth factor of
 16        not to exceed three percent (3%) plus the amount  of  revenue  that  would
 17        have been generated by applying the levy of the previous year, not includ-
 18        ing  any levy described in subsection (4) of this section, to any increase
 19        in market value subject to taxation resulting  from  new  construction  or
 20        change  of  land use classification or real property that has changed from
 21        exempt in the preceding year to taxable in the current year, except  prop-
 22        erty  exempt  under section 63-602G, Idaho Code, as evidenced by the value
 23        shown on the new construction roll compiled pursuant to  section  63-301A,
 24        Idaho  Code;  and  by the value of annexation during the previous calendar
 25        year, as certified by the state tax commission for market values of  oper-
 26        ating property of public utilities and by the county assessor; or
 27        (b)  The  dollar  amount of property taxes certified for its annual budget
 28        during the last year in which a levy was made; or
 29        (c)  The dollar amount of the actual budget request, if  the  taxing  dis-
 30        trict is newly created; or
 31        (d)  In  the  case of school districts, the restriction imposed in section
 32        33-802, Idaho Code; or
 33        (e)  In the case of a nonschool district for which less than  the  maximum
 34        allowable  increase  in  the dollar amount of property taxes is  certified
 35        for annual budget purposes in any one (1) year, such a  district  may,  in
 36        any  following year, recover the foregone increase by certifying, in addi-
 37        tion to any increase otherwise allowed, an amount not to exceed  one  hun-
 38        dred  percent  (100%) of the increase originally foregone. Said additional
 39        amount shall be included in future calculations for increases as  allowed;
 40        or
 41        (f)  In  the case of cities, if the immediately preceding year's levy sub-
 42        ject to the limitation provided by this section, is less than  0.004,  the
 43        city  may  increase  its  budget by an amount not to exceed the difference
 44        between 0.004 and actual prior year's levy multiplied by the prior  year's
 45        market  value  for  assessment  purposes.  The  additional  amount must be
 46        approved by sixty percent (60%) of the voters voting on the question at an
 47        election called for that purpose and held on the date in May  or  November
 48        provided by law, and may  be included in the annual budget of the city for
 49        purposes of this section; or
 50        (g)  A library district may submit to the electors within the district the
 51        question of whether the budget from property tax revenues may be increased
 52        beyond  the  amount  authorized  in  this section, but not beyond the levy
 53        authorized in section 33-2724, Idaho Code. The additional amount  must  be
                                                                        
                                           3
                                                                        
  1        approved  by  sixty-six  and  two-thirds  percent (66 2/3%) or more of the
  2        voters voting on the question at an election called for that  purpose  and
  3        held  on the May or November dates provided by section 34-106, Idaho Code.
  4        If approved by the  required  minimum  sixty-six  and  two-thirds  percent
  5        (66 2/3%)    of  the  voters voting at the election, the new budget amount
  6        shall be the base budget for the purposes of this section; or
  7        (h)  In the instance or case of cooperative service agencies, the restric-
  8        tions imposed in sections 33-315 through 33-318, Idaho Code.
  9        (2)  In the case of fire districts, during the year immediately  following
 10    the election of a public utility or public utilities to consent to be provided
 11    fire protection pursuant to section 31-1422, Idaho Code, the maximum amount of
 12    property  tax  revenues  permitted  in  subsection  (1) of this section may be
 13    increased by an amount equal to the current year's taxable value of  the  con-
 14    senting  public  utility or public utilities multiplied by that portion of the
 15    prior year's levy subject to the limitation provided by subsection (1) of this
 16    section.
 17        (3)  No board of county commissioners shall set  a  levy,  nor  shall  the
 18    state  tax  commission approve a levy for annual budget purposes which exceeds
 19    the limitation imposed in subsection (1) of this section, unless authority  to
 20    exceed  such  limitation  has  been  approved  by  a  majority  of  the taxing
 21    district's electors voting on the question at an election called for that pur-
 22    pose and held pursuant to section 34-106, Idaho Code, provided  however,  that
 23    such voter approval shall be for a period of not to exceed two (2) years.
 24        (4)  The  amount of property tax revenues to finance an annual budget does
 25    not include revenues from nonproperty tax sources, and does not include  reve-
 26    nue  from levies that are voter approved for bonds, override levies or supple-
 27    mental levies, plant facilities reserve fund  levies,  school  emergency  fund
 28    levies or for levies applicable to newly annexed property or for levies appli-
 29    cable to new construction as evidenced by the value of property subject to the
 30    occupancy  tax  pursuant  to section 63-317, Idaho Code, for the preceding tax
 31    year.

Statement of Purpose / Fiscal Impact


                     STATEMENT OF PURPOSE

                             RS 11477

This bill relates to property taxes and the new construction roll.  
Property is added to the new construction roll when there is a 
"change of status" such as when previously exempt property becomes 
taxable.  Currently, only the value of the land is added to the new 
construction roll.  This bill provides that the value to be added 
will be the value of the "real property."  This will cause both the 
value of the land and any buildings or other structures on the land 
to be included.  
                         
                          FISCAL IMPACT

A few taxing districts will receive a small increase in budget 
authority when previously exempt property becomes taxable.  

CONTACT
Name:  Dan John / Ted Spangler
Agency:     Idaho State Tax Commission
Phone: 334-7530


Statement of Purpose/Fiscal Impact        H 438