Print Friendly HOUSE BILL NO. 514 – Property tax/exmptn/residental lot
HOUSE BILL NO. 514
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H0514...............................................by REVENUE AND TAXATION
PROPERTY TAX - EXEMPTION - Amends existing law to provide that owners of
owner-occupied residential improvements shall be entitled to receive an
additional exemption for a portion of the market value for assessment
purposes of a residential lot.
01/31 House intro - 1st rdg - to printing
02/01 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. 514
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAXATION; AMENDING SECTION 63-602G, IDAHO CODE, TO PRO-
3 VIDE THAT OWNERS OF OWNER-OCCUPIED RESIDENTIAL IMPROVEMENTS SHALL BE ENTI-
4 TLED TO RECEIVE AN ADDITIONAL EXEMPTION FOR A PORTION OF THE MARKET VALUE
5 FOR ASSESSMENT PURPOSES OF A RESIDENTIAL LOT; AND PROVIDING AN EFFECTIVE
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 63-602G, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 63-602G. PROPERTY EXEMPT FROM TAXATION -- RESIDENTIAL IMPROVEMENTS. (1)
11 During the tax year 1983 and each year thereafter, the first fifty thousand
12 dollars ($50,000) of the market value for assessment purposes of residential
13 improvements, or fifty percent (50%) of the market value for assessment pur-
14 poses of residential improvements, whichever is the lesser, shall be exempt
15 from property taxation.
16 (2) The exemption allowed by this section may be granted only if:
17 (a) The residential improvements are owner-occupied and used as the pri-
18 mary dwelling place of the owner as of January 1, provided that in the
19 event the residential improvements are owner-occupied after January 1 but
20 before April 15, the owner of the property is entitled to the exemption.
21 The residential improvements may consist of part of a multidwelling or
22 multipurpose building and shall include all of such dwelling or building
23 except any portion used exclusively for anything other than the primary
24 dwelling of the owner. The presence of an office in an owner-occupied res-
25 idential property, which office is used for multiple purposes, including
26 business and personal use, shall not prevent the owner from claiming the
27 exemption provided in this section; and
28 (b) The tax commission has certified to the board of county commissioners
29 that all properties in the county which are subject to appraisal by the
30 county assessor have, in fact, been appraised uniformly so as to secure a
31 just valuation for all property within the county; and
32 (c) The owner has certified to the county assessor by April 15 that:
33 (i) He is making application for the exemption allowed by this sec-
35 (ii) That the residential improvements are his primary dwelling
36 place; and
37 (iii) That he has not made application in any other county for the
38 exemption, and has not made application for the exemption on any
39 other residential improvements in the county.
40 (d) For the purpose of this section, the definition of owner shall be the
41 same definition set forth in section 63-701(7), Idaho Code.
42 When an "owner," pursuant to the provisions of section 63-701(7),
43 Idaho Code, is any person who as grantor, or whose spouse as grantor, cre-
1 ated a revocable or irrevocable trust and was named as beneficiary of that
2 trust, or who is a partner of a limited partnership, a member of a limited
3 liability company, or shareholder of a corporation, he or she may provide
4 proof of the trust, limited partnership, limited liability company, or
5 corporation with an affidavit stating: (i) the name of the grantor, part-
6 ner, member or shareholder; (ii) a statement that the grantor, or the
7 grantor's spouse, is the beneficiary of the trust, or the person is a
8 partner of the limited partnership, or a member of the limited liability
9 company, or a shareholder of the corporation; (iii) the grantor, the
10 grantor's spouse, partner, member or shareholder is the occupier of the
11 residential property and uses the property as the primary dwelling place
12 of the grantor, the grantor's spouse, partner, member or shareholder as of
13 January 1; and (iv) if applicable, the person holds at least a five per-
14 cent (5%) ownership in the limited partnership, limited liability company
15 or corporation.
16 The affidavit shall include the attaching of the copies of those por-
17 tions of the trust or other document which set forth the grantor, the
18 grantor or the grantor's spouse as beneficiary and the signature page of
19 the trust or other document; those portions of the articles of organiza-
20 tion or operating agreement of the limited liability company indicating
21 the person's membership in the company and the ownership percentage held
22 by such person; those portions of the limited partnership agreement or
23 other records of the limited partnership indicating that the person has
24 been admitted to the partnership and the ownership percentage held by such
25 person; or those portions of the articles of incorporation indicating that
26 the person is a shareholder of the corporation and the ownership percent-
27 age held by such person.
28 (e) Any owner may request in writing the return of all copies of any doc-
29 uments submitted with the affidavit set forth in paragraph (d) of this
30 subsection that are held by a county assessor, and the copies shall be
31 returned by the county assessor upon submission of the affidavit in proper
33 (f) For the purpose of this section, the definition of "primary dwelling
34 place" shall be the same definition set forth in section 63-701(8), Idaho
36 (g) For the purpose of this section, the definition of "occupied" shall
37 be the same definition set forth in section 63-701(6), Idaho Code.
38 (3) An owner need only make application for the exemption described in
39 subsection (1) of this section once, as long as all of the following condi-
40 tions are met:
41 (a) The owner has received the exemption during the previous year as a
42 result of his making a valid application as defined in subsection (2)(c)
43 of this section.
44 (b) The owner or beneficiary, partner, member or shareholder, as appro-
45 priate, still occupies the same residential improvements for which the
46 owner made application.
47 (c) The residential improvements described in subsection (3)(b) of this
48 section are owner-occupied or occupied by a beneficiary, partner, member
49 or shareholder, as appropriate, and used as the primary dwelling place of
50 the owner or beneficiary, partner, member or shareholder, as appropriate,
51 as of January 1; provided however, that in the event the residential
52 improvements are owner-occupied after January 1, but before April 15, the
53 owner of the property is entitled to the exemption.
54 (4) The exemption allowed by this section must be taken before the reduc-
55 tion in taxes provided by sections 63-701 through 63-710, Idaho Code, is
2 (5) The legislature declares that this exemption is necessary and just.
3 (6) Residential improvements having previously qualified for exemption
4 under this section in the preceding year, shall not lose such qualification
5 due to the owner's, beneficiary's, partner's, member's or shareholder's
6 absence in the current year by reason of active military service in a desig-
7 nated combat zone, as defined in section 112 of the Internal Revenue Code. If
8 an owner fails to timely apply for exemption as required in this section
9 solely by reason of active duty in a designated combat zone by the owner, ben-
10 eficiary, partner, member or shareholder, as appropriate, as defined in sec-
11 tion 112 of the Internal Revenue Code, and such improvements would have other-
12 wise qualified under this section, then the board of county commissioners of
13 the county in which the residential improvements are located shall refund
14 property taxes, if previously paid, in an amount equal to the exemption which
15 would otherwise have applied.
16 (7) Upon application to the county assessor, the owner of owner-occupied
17 residential improvements shall be entitled to receive an additional exemption
18 for a portion of the market value for assessment purposes of the residential
19 lot. For tax year 2003, the exemption shall be one-half (1/2) of the market
20 value of the residential lot, up to a maximum of five hundred dollars ($500);
21 for each tax year thereafter, the exemption shall be one-half (1/2) of the
22 market value of the residential lot, up to a maximum of five hundred dollars
23 ($500) more than the previous tax year's maximum possible exemption and not
24 exceeding ten thousand dollars ($10,000).
25 SECTION 2. This act shall be in full force and effect on and after Janu-
26 ary 1, 2003.
STATEMENT OF PURPOSE
This legislation would slow the rate of inflation in the assessed
value of residential lots. It would phase-in, in annual
increments of $500, an exemption on the value of the residential
lot for owner-occupied homes beginning in 2003. In ten years the
upper limit on this exemption would be $5,000 and in twenty it
would be $10,000. The existing homeowner exemption exempts part
of the value of residential improvements but provides no
mitigation for inflation in the value of residential lots.
This measure would have no impact on the general fund in fiscal
2003. Beginning with fiscal 2004 it would reduce annual
increases in the amount of state sales tax money that goes to
school levy replacement by about $140,000 a year. Total Idaho
residential taxable value grows at about $1.5 billion if
inflation is four percent and $2,475,000,000 if inflation is 6.5
percent. With this exemption, growth in total residential
taxable value, would be $140 million less. Schools would collect
$520,800 less in increased taxes with residential inflation than
without this exemption.
Name: Representative Robison
STATEMENT OF PURPOSE/FISCAL NOTE H 514