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H0488aaS............................................by REVENUE AND TAXATION
PROPERTY TAX - AGRICULTURAL LAND - Adds to and amends existing law to
provide legislative intent; and to provide a partial property tax exemption
for parcels of land in a rural home site development plat upon certain
conditions occurring.
01/25 House intro - 1st rdg - to printing
01/28 Rpt prt - to Rev/Tax
01/31 Rpt out - rec d/p - to 2nd rdg
02/01 2nd rdg - to 3rd rdg
02/05 3rd rdg - PASSED - 51-13-6
AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Black, Block,
Bradford, Bruneel, Callister, Clark, Collins, Crow, Cuddy, Deal,
Denney, Ellis, Ellsworth, Field(13), Field(20), Gould, Hadley,
Hammond, Higgins, Hornbeck, Kellogg, Kendell, Kunz, Lake, Langford,
Loertscher, Mader, McKague, Mortensen, Moyle, Pearce, Pischner,
Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali, Sellman,
Shepherd, Smith(23), Smylie, Stevenson, Tilman, Wheeler, Mr. Speaker
NAYS -- Bieter, Boe, Bolz, Campbell, Eskridge, Harwood, Henbest,
Martinez, Montgomery, Schaefer, Smith(33), Trail, Young
Absent and excused -- Gagner, Jaquet, Jones, Meyer, Stone, Wood
Floor Sponsor - Raybould
Title apvd - to Senate
02/07 Senate intro - 1st rdg - to Loc Gov
02/21 Rpt out - to 14th Ord
02/26 Rpt out amen - to 1st rdg as amen
02/27 1st rdg - to 2nd rdg as amen
02/28 2nd rdg - to 3rd rdg as amen
03/11 3rd rdg as amen - PASSED - 27-8-0
AYES -- Boatright, Branch(Bartlett), Brandt, Burtenshaw, Cameron,
Darrington, Davis, Deide, Frasure, Geddes, Goedde, Hawkins, Hill,
Ingram, Ipsen, Keough, King-Barrutia, Lodge, Marley, Richardson,
Risch, Sandy, Sims, Sorensen, Stegner, Thorne, Williams
NAYS -- Andreason, Bunderson, Dunklin, Little, Noh, Schroeder,
Stennett, Wheeler
Absent and excused -- None
Floor Sponsor - Frasure
Title apvd - to House
03/12 House concurred in Senate amens - to engros
03/13 Rpt engros - 1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 60-9-1
AYES -- Aikele, Barraclough, Barrett, Bedke, Black, Block, Boe, Bolz,
Bradford, Bruneel, Callister, Campbell, Clark, Collins, Crow, Cuddy,
Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20),
Gagner, Gould, Hadley, Hammond, Harwood, Higgins, Hornbeck, Jones,
Kellogg, Kendell, Kunz, Lake, Loertscher, Mader, McKague, Meyer,
Montgomery, Mortensen, Moyle, Pearce, Pischner, Pomeroy, Raybould,
Ridinger, Roberts, Sali, Schaefer, Sellman, Shepherd, Smith(23),
Smylie, Stone, Tilman, Trail, Wheeler, Wood, Mr. Speaker
NAYS -- Bell, Bieter, Henbest, Jaquet, Langford, Martinez, Robison,
Smith(33), Stevenson
Absent and excused -- Young
Floor Sponsor - Raybould
Title apvd - to enrol
03/14 Rpt enrol - Sp signed - Pres signed
03/14 To Governor
03/27 Governor signed
Session Law Chapter 341
Effective: 01/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 488
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO ASSESSMENT OF REAL AND PERSONAL PROPERTY; STATING LEGISLATIVE
3 INTENT, FINDINGS AND PURPOSE; AMENDING CHAPTER 3, TITLE 63, IDAHO CODE, BY
4 THE ADDITION OF A NEW SECTION 63-318, IDAHO CODE, TO PROVIDE FOR ASSESS-
5 MENT OF RURAL HOME SITE DEVELOPMENTS AS AGRICULTURAL LAND AND TO PROVIDE
6 DEFINITIONS; AMENDING SECTION 63-604, IDAHO CODE, TO PROVIDE AN EXCEPTION
7 TO THE PROHIBITION ON CLASSIFYING OR VALUING LAND AS AGRICULTURAL WHEN IT
8 IS PART OF A RURAL HOME SITE PLATTED SUBDIVISION; DECLARING AN EMERGENCY
9 AND PROVIDING RETROACTIVE APPLICATION.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. LEGISLATIVE INTENT, FINDINGS AND PURPOSE. (1) It is the intent
12 of the Legislature to foster economic development in Idaho's smaller, rural
13 counties. The Legislature finds that economic development and the opportunity
14 for citizen economic opportunity that accompanies economic development is not
15 occurring at a rate desired by residents of many rural, sparsely populated
16 counties. The Legislature further finds that the capital necessary for eco-
17 nomic development of real estate in smaller, rural counties is not available
18 because the higher assessments imposed as a result of filing a development
19 plat eliminate any potential for a return on that investment due to the uncer-
20 tainty of the real estate market and the time required to market such platted
21 developments in most small, rural counties.
22 (2) The purpose of Section 63-318, Idaho Code, is to create an economic
23 development property tax climate in rural Idaho that will attract investment
24 in real estate and real estate development and the economic opportunities and
25 jobs that accompany that investment.
26 (3) It is the intent of the Legislature to provide for continued assess-
27 ment of agricultural properties as land actively devoted to agriculture in
28 small, rural counties, until that property has been subdivided, developed and
29 transferred to an owner whose intended use of that property is as a residen-
30 tial or recreational home site, and that so doing will ultimately result in an
31 increase in the taxable value of the county and economic prosperity for county
32 residents that would not otherwise have occurred.
33 SECTION 2. That Chapter 3, Title 63, Idaho Code, be, and the same is
34 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
35 ignated as Section 63-318, Idaho Code, and to read as follows:
36 63-318. ASSESSMENT OF RURAL HOME SITE DEVELOPMENTS. (1) Agricultural land
37 included in a rural home site development plat shall continue to be classified
38 and assessed for property tax purposes as agricultural land until such time as
39 each individual parcel created by the rural home site plat is lawfully trans-
40 ferred to an intended owner occupant. Upon transfer of ownership of a rural
41 home site to an intended owner occupant, that parcel shall be classified and
42 assessed for property tax purposes at market value as provided in section
2
1 63-208, Idaho Code.
2 (2) For purposes of this section, the following definitions shall apply:
3 (a) "Intended owner occupant" means a person who, in exchange for consid-
4 eration, has acquired lawful title to a rural home site for private, per-
5 sonal, residential or recreational purposes.
6 (b) "Plat" means the drawing, map or plan of a subdivision or a replat-
7 ting of such, including certifications, descriptions and approvals.
8 (c) "Rural home site" means a parcel of real property contained within a
9 rural home site development plat.
10 (d) "Rural home site development plat" means a subdivision plat for the
11 residential development of property outside the boundaries of an incorpo-
12 rated municipality within a county of less than one hundred thousand
13 (100,000) population, filed or on file with the county clerk or county
14 recorder.
15 SECTION 3. That Section 63-604, Idaho Code, be, and the same is hereby
16 amended to read as follows:
17 63-604. LAND ACTIVELY DEVOTED TO AGRICULTURE DEFINED. (1) For property
18 tax purposes, land which is actively devoted to agriculture as part of an
19 agricultural enterprise shall be eligible for appraisal, assessment and taxa-
20 tion as agricultural property each year it meets one (1) or more of the fol-
21 lowing qualifications:
22 (a) The total area of such land, including the homesite, is more than
23 five (5) contiguous acres, and is actively devoted to agriculture which
24 means:
25 (i) It is used to produce field crops including, but not limited
26 to, grains, feed crops, fruits and vegetables; or
27 (ii) It is used to produce nursery stock as defined in section
28 22-2302(11), Idaho Code; or
29 (iii) It is used by the owner for the grazing of livestock to be sold
30 as part of a net profit-making enterprise, or is leased by the owner
31 to a bona fide lessee for grazing purposes; or
32 (iv) It is in a cropland retirement or rotation program.
33 (b) The area of such land is five (5) acres or less and such land has
34 been actively devoted to agriculture within the meaning of subsection
35 (1)(a) of this section during the last three (3) growing seasons; and
36 (i) It agriculturally produces for sale or home consumption the
37 equivalent of fifteen percent (15%) or more of the owners' or les-
38 sees' annual gross income; or
39 (ii) It agriculturally produced gross revenues in the immediately
40 preceding year of one thousand dollars ($1,000) or more. When the
41 area of land is five (5) acres or less, such land shall be presumed
42 to be nonagricultural land until it is established that the require-
43 ments of this subsection have been met.
44 (2) Except as provided in section 63-318, Idaho Code, lLand shall not be
45 classified or valued as agricultural land which is part of a platted subdivi-
46 sion with stated restrictions prohibiting its use for agricultural purposes,
47 whether within or without a city.
48 (3) Land utilized for the grazing of a horse or other animals kept pri-
49 marily for personal use or pleasure rather than as part of a bona fide profit-
50 making agricultural enterprise shall not be considered to be land which is
51 actively devoted to agriculture.
52 (4) Land actively devoted to agriculture, having previously qualified for
53 exemption under this section in the preceding year, or which would have quali-
3
1 fied under this section during the current year, shall not lose such qualifi-
2 cation due to the owner's or lessee's absence in the current year by reason of
3 active military service in a designated combat zone, as defined in section 112
4 of the Internal Revenue Code. If an owner fails to timely apply for exemption
5 as required in this section solely by reason of active duty in a designated
6 combat zone, as defined in section 112 of the Internal Revenue Code, and the
7 land would otherwise qualify for exemption under this section, then the board
8 of county commissioners of the county in which the land actively devoted to
9 agriculture is located shall refund property taxes, if previously paid, in an
10 amount equal to the exemption which would otherwise have applied.
11 SECTION 4. An emergency existing therefor, which emergency is hereby
12 declared to exist, this act shall be in full force and effect on and after its
13 passage and approval, and retroactively to January 1, 2002.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
Moved by Frasure
Seconded by Hawkins
IN THE SENATE
SENATE AMENDMENTS TO H.B. NO. 488
1 AMENDMENT TO SECTION 1
2 On page 1 of the printed bill, in line 22, delete "63-318" and insert:
3 "63-602FF".
4 AMENDMENT TO SECTION 2
5 On page 1, in line 33, delete "Chapter 3" and insert: "Chapter 6"; in line
6 35, delete "63-318" and insert: "63-602FF"; delete lines 36 through 42, and on
7 page 2, delete lines 1 through 14, and insert:
8 "63-602FF. PARTIAL EXEMPTION FOR PARCELS OF LAND IN A RURAL HOME SITE
9 DEVELOPMENT PLAT. (1) Each parcel of land in a rural home site development
10 plat previously eligible for the exemption pursuant to section 63-602K, Idaho
11 Code, shall continue to be eligible for the exemption until such time as
12 improvements are being built upon the parcel. Once construction of the
13 improvements has begun, no acreage in the parcel shall be eligible for the
14 exemption pursuant to section 63-602K, Idaho Code, unless the requirements of
15 the exemption have been met.
16 (2) For purposes of this section, the following definitions shall apply:
17 (a) "Plat" means the drawing, map or plan of a subdivision or a replat-
18 ting of such, including certifications, descriptions and approvals.
19 (b) "Rural home site development plat" means a subdivision plat for the
20 development of property outside the boundaries of an incorporated munici-
21 pality within a county of less than one hundred thousand (100,000) popula-
22 tion, recorded with the county recorder.".
23 AMENDMENT TO THE BILL
24 On page 2, delete lines 15 through 53, and on page 3, delete lines 1
25 through 10; and in line 11, delete "4" and insert: "3".
26 CORRECTIONS TO TITLE
27 On page 1, delete lines 3 through 9, and insert: "INTENT, FINDINGS AND
28 PURPOSE; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW
29 SECTION 63-602FF, IDAHO CODE, TO PROVIDE FOR A PARTIAL PROPERTY TAX EXEMPTION
30 FOR PARCELS OF LAND IN A RURAL HOME SITE DEVELOPMENT PLAT UPON CERTAIN CONDI-
31 TIONS OCCURRING AND TO DEFINE TERMS; DECLARING AN EMERGENCY AND PROVIDING RET-
32 ROACTIVE APPLICATION.".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 488, As Amended in the Senate
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO ASSESSMENT OF REAL AND PERSONAL PROPERTY; STATING LEGISLATIVE
3 INTENT, FINDINGS AND PURPOSE; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY
4 THE ADDITION OF A NEW SECTION 63-602FF, IDAHO CODE, TO PROVIDE FOR A PAR-
5 TIAL PROPERTY TAX EXEMPTION FOR PARCELS OF LAND IN A RURAL HOME SITE
6 DEVELOPMENT PLAT UPON CERTAIN CONDITIONS OCCURRING AND TO DEFINE TERMS;
7 DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. LEGISLATIVE INTENT, FINDINGS AND PURPOSE. (1) It is the intent
10 of the Legislature to foster economic development in Idaho's smaller, rural
11 counties. The Legislature finds that economic development and the opportunity
12 for citizen economic opportunity that accompanies economic development is not
13 occurring at a rate desired by residents of many rural, sparsely populated
14 counties. The Legislature further finds that the capital necessary for eco-
15 nomic development of real estate in smaller, rural counties is not available
16 because the higher assessments imposed as a result of filing a development
17 plat eliminate any potential for a return on that investment due to the uncer-
18 tainty of the real estate market and the time required to market such platted
19 developments in most small, rural counties.
20 (2) The purpose of Section 63-602FF, Idaho Code, is to create an economic
21 development property tax climate in rural Idaho that will attract investment
22 in real estate and real estate development and the economic opportunities and
23 jobs that accompany that investment.
24 (3) It is the intent of the Legislature to provide for continued assess-
25 ment of agricultural properties as land actively devoted to agriculture in
26 small, rural counties, until that property has been subdivided, developed and
27 transferred to an owner whose intended use of that property is as a residen-
28 tial or recreational home site, and that so doing will ultimately result in an
29 increase in the taxable value of the county and economic prosperity for county
30 residents that would not otherwise have occurred.
31 SECTION 2. That Chapter 6, Title 63, Idaho Code, be, and the same is
32 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
33 ignated as Section 63-602FF, Idaho Code, and to read as follows:
34 63-602FF. PARTIAL EXEMPTION FOR PARCELS OF LAND IN A RURAL HOME SITE
35 DEVELOPMENT PLAT. (1) Each parcel of land in a rural home site development
36 plat previously eligible for the exemption pursuant to section 63-602K, Idaho
37 Code, shall continue to be eligible for the exemption until such time as
38 improvements are being built upon the parcel. Once construction of the
39 improvements has begun, no acreage in the parcel shall be eligible for the
40 exemption pursuant to section 63-602K, Idaho Code, unless the requirements of
41 the exemption have been met.
42 (2) For purposes of this section, the following definitions shall apply:
2
1 (a) "Plat" means the drawing, map or plan of a subdivision or a replat-
2 ting of such, including certifications, descriptions and approvals.
3 (b) "Rural home site development plat" means a subdivision plat for the
4 development of property outside the boundaries of an incorporated munici-
5 pality within a county of less than one hundred thousand (100,000) popula-
6 tion, recorded with the county recorder.
7 SECTION 3. An emergency existing therefor, which emergency is hereby
8 declared to exist, this act shall be in full force and effect on and after its
9 passage and approval, and retroactively to January 1, 2002.
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STATEMENT OF PURPOSE
RS 11741
The purpose of this bill is to outline the method of assessing
small rural housing developments, in counties below 100,000
population, for taxing purposes. The present system allows the
county assessor to assess platted parcels as residential property
before such property is actually sold for building purposes. In
many cases this limits the development process to large developers
with finances adequate to fund the higher property taxes during the
development and sales period. In many instances this precludes the
original owner of agricultural land, with limited resources, from
participating in the development process. If this legislation is
approved, assessment of platted lots in a rural subdivision will
be classed as agricultural until each lot is sold to the first
purchaser.
FISCAL IMPACT
There is no fiscal impact to the State General Fund. Counties will
be impacted to the extent that the increase of the assessed value
of an unsold lot in the subdivision, above the value of agricultural
land, will be deferred until the lot is marketed to the first
purchaser. However, in no event, will the adopted budget of any local
taxing district be negatively affected.
Contact
Name: Rep. Dell Raybould
Phone: 332-1000
Russell Westerberg
Phone: 336-0305
STATEMENT OF PURPOSE/FISCAL NOTE Bill No 488