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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
|||| 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
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