2002 Legislation
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HOUSE BILL NO. 487 – Property tax, agric land/contiguous

HOUSE BILL NO. 487

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H0487aa.............................................by REVENUE AND TAXATION
PROPERTY TAX - AGRICULTURAL LAND - Amends existing law to provide that land
five acres or less which is being classified as actively devoted to
agriculture for property tax purposes must be contiguous; and to define
"contiguous."
                                                                        
01/25    House intro - 1st rdg - to printing
01/28    Rpt prt - to Rev/Tax
02/26    Rpt out - to Gen Ord
02/28    Rpt out amen - to engros
03/01    Rpt engros - 1st rdg - to 2nd rdg as amen
03/04    2nd rdg - to 3rd rdg as amen
03/05    3rd rdg as amen - PASSED - 67-0-3
      AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Bieter, Black,
      Block, Boe, Bolz, Bradford, Bruneel, Campbell, Clark, Collins, Crow,
      Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13),
      Field(20), Gagner, Gould, Hadley, Hammond, Harwood, Henbest,
      Hornbeck, Jaquet, Jones, Kellogg(Duncan), Kendell, Kunz, Lake,
      Langford, Loertscher, Mader, Martinez, McKague, Meyer, Mortensen,
      Moyle, Pearce, Pischner, Pomeroy, Raybould, Ridinger, Roberts,
      Robison, Sali, Schaefer, Sellman, Shepherd, Smith(33), Smith(23),
      Smylie, Stevenson, Stone, Tilman, Trail, Wheeler, Wood, Young, Mr.
      Speaker
      NAYS -- None
      Absent and excused -- Callister, Higgins, Montgomery
    Floor Sponsor - Stevenson
    Title apvd - to Senate
03/06    Senate intro - 1st rdg - to Loc Gov
03/11    Rpt out - rec d/p - to 2nd rdg
03/12    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 32-0-3
      AYES -- Andreason, Boatright, Branch Brandt, Bunderson, Burtenshaw,
      Cameron, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Goedde,
      Hill, Ingram, Ipsen, Keough, King-Barrutia, Little, Lodge, Marley,
      Richardson, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner,
      Stennett, Thorne, Williams
      NAYS -- None
      Absent and excused -- Hawkins, Noh, Wheeler
    Floor Sponsor - Ipsen
    Title apvd - to House
03/15    To enrol
    Rpt enrol - Sp signed - Pres signed
03/18    To Governor
03/19    Governor signed
         Session Law Chapter 93
         Effective: 01/01/02

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 487
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PROPERTY TAXATION; AMENDING SECTION 63-604, IDAHO CODE, TO PROVIDE
  3        THAT LAND FIVE ACRES OR LESS WHICH IS BEING CLASSIFIED AS ACTIVELY DEVOTED
  4        TO AGRICULTURE MUST BE  CONTIGUOUS  AND  TO  MAKE  TECHNICAL  CORRECTIONS;
  5        AMENDING  SECTION  63-201, IDAHO CODE, TO PROVIDE A DEFINITION OF CONTIGU-
  6        OUS; AMENDING SECTION 63-510, IDAHO CODE, TO PROVIDE A  CORRECT  CITATION;
  7        AMENDING  SECTION  63-1703,  IDAHO  CODE,  TO  PROVIDE A CORRECT CITATION;
  8        DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION 1.  That Section 63-604, Idaho Code, be, and the  same  is  hereby
 11    amended to read as follows:
                                                                        
 12        63-604.  LAND  ACTIVELY  DEVOTED  TO AGRICULTURE DEFINED. (1) For property
 13    tax purposes, land which is actively devoted to  agriculture  as  part  of  an
 14    agricultural  enterprise shall be eligible for appraisal, assessment and taxa-
 15    tion as agricultural property each year it meets one (1) or more of  the  fol-
 16    lowing qualifications:
 17        (a)  The  total  area  of  such land, including the homesite, is more than
 18        five (5) contiguous acres, and is actively devoted  to  agriculture  which
 19        means:
 20             (i)   It  is  used  to produce field crops including, but not limited
 21             to, grains, feed crops, fruits and vegetables; or
 22             (ii)  It is used to produce  nursery  stock  as  defined  in  section
 23             22-2302(11), Idaho Code; or
 24             (iii) It is used by the owner for the grazing of livestock to be sold
 25             as  part of a net profit-making enterprise, or is leased by the owner
 26             to a bona fide lessee for grazing purposes; or
 27             (iv)  It is in a cropland retirement or rotation program.
 28        (b)  The area of such land is five (5) contiguous acres or less  and  such
 29        land  has  been actively devoted to agriculture within the meaning of sub-
 30        section (1)(a) of this section during the last three (3) growing  seasons;
 31        and
 32             (i)  It  agriculturally  produces  for  sale  or home consumption the
 33             equivalent of fifteen percent  (15%)  or  more  of  the  owner's'  or
 34             lessee's' annual gross income; or
 35             (ii) It  agriculturally  produced  gross  revenues in the immediately
 36             preceding year of one thousand dollars ($1,000)  or  more.  When  the
 37             area of land is five (5) contiguous acres or less, such land shall be
 38             presumed  to be nonagricultural land until it is established that the
 39             requirements of this subsection have been met.
 40        (2)  Land shall not be classified or valued as agricultural land which  is
 41    part of a platted subdivision with stated restrictions prohibiting its use for
 42    agricultural purposes, whether within or without a city.
 43        (3)  Land  utilized  for the grazing of a horse or other animals kept pri-
                                                                        
                                           2
                                                                        
  1    marily for personal use or pleasure rather than as part of a bona fide profit-
  2    making agricultural enterprise shall not be considered to  be  land  which  is
  3    actively devoted to agriculture.
  4        (4)  Land actively devoted to agriculture, having previously qualified for
  5    exemption under this section in the preceding year, or which would have quali-
  6    fied  under this section during the current year, shall not lose such qualifi-
  7    cation due to the owner's or lessee's  absence in the current year  by  reason
  8    of  active military service in a designated combat zone, as defined in section
  9    112 of the Internal Revenue Code. If an owner fails to timely apply for exemp-
 10    tion as required in this section solely by reason of active duty in  a  desig-
 11    nated combat zone, as defined in section 112 of the Internal Revenue Code, and
 12    the  land  would  otherwise qualify for exemption under this section, then the
 13    board of county commissioners of the county in which the land actively devoted
 14    to agriculture is located shall refund property taxes, if previously paid,  in
 15    an amount equal to the exemption which would otherwise have applied.
                                                                        
 16        SECTION  2.  That  Section  63-201, Idaho Code, be, and the same is hereby
 17    amended to read as follows:
                                                                        
 18        63-201.  DEFINITIONS. As used for property tax purposes in title 63, chap-
 19    ters 1 through 23, Idaho Code, the terms defined in this  section  shall  have
 20    the following meanings, unless the context clearly indicates another meaning:
 21        (1)  "Appraisal" means an estimate of property value for property tax pur-
 22    poses.
 23        (a)  For the purpose of estimated property value to place the value on any
 24        assessment  roll,  the  value estimation must be made by the assessor or a
 25        certified property tax appraiser.
 26        (b)  For the purpose of estimating property value to present for an appeal
 27        filed pursuant to sections 63-501A, 63-407 and  63-409,  Idaho  Code,  the
 28        value  estimation  may  be  made by the assessor, a certified property tax
 29        appraiser, a licensed appraiser, or a certified appraiser or any party  as
 30        specified by law.
 31        (2)  "Bargeline"  means  those  water  transportation tugs, boats, barges,
 32    lighters and other equipment and property used in conjunction  with  waterways
 33    for bulk transportation of freight or ship assist.
 34        (3)  "Cogenerators"  means  facilities  which produce electric energy, and
 35    steam or forms of useful energy which are  used  for  industrial,  commercial,
 36    heating or cooling purposes.
 37        (4)  "Collection  costs"  are  amounts authorized by law to be added after
 38    the date of delinquency and collected in the same manner as property tax.
 39        (5)  "Contiguous" means being in actual contact or touching along a bound-
 40    ary or at a point.
 41        (6)  "Delinquency" means any property tax, special assessment,  fee,  col-
 42    lection cost, or charge collected in the same manner as property tax, that has
 43    not been paid in the manner and within the time limits provided by law.
 44        (67)  "Improvements"  means all buildings, structures, fixtures and fences
 45    erected upon or affixed to the land, and all fruit, nut-bearing and ornamental
 46    trees or vines not of natural growth, growing upon the  land,  except  nursery
 47    stock.
 48        (78)  "Late charge" means a charge of two percent (2%) of the delinquency.
 49        (89)  "Lawful  money  of the United States" means currency and coin of the
 50    United States at par value and checks and drafts which are payable in  dollars
 51    of the United States at par value, payable upon demand or presentment.
 52        (910) "Manufactured home" means a structure defined as a manufactured home
 53    in section 39-4105, Idaho Code.
                                                                        
                                           3
                                                                        
  1        (101) "Market  value" means the amount of United States dollars or equiva-
  2    lent for which, in all probability, a property would exchange hands between  a
  3    willing  seller,  under no compulsion to sell, and an informed, capable buyer,
  4    with a reasonable time allowed to consummate the sale, substantiated by a rea-
  5    sonable down or full cash payment.
  6        (112) "Operating property" means all rights-of-way accompanied  by  title;
  7    roadbeds;  tracks;  pipelines;  bargelines;  equipment  and  docks; terminals;
  8    rolling stock; equipment; power stations; power sites; lands; reservoirs, gen-
  9    erating plants, transmission lines, distribution lines  and  substations;  and
 10    all immovable or movable property operated in connection with any public util-
 11    ity,  railroad  or  private railcar fleet, wholly or partly within this state,
 12    and necessary to the maintenance and operation of such road  or  line,  or  in
 13    conducting  its  business,  and  shall  include all title and interest in such
 14    property, as owner, lessee or otherwise. The term does  not  include  personal
 15    property exempt from taxation pursuant to section 63-602L, Idaho Code.
 16        (123) "Party  in  interest"  means  a person who holds a properly recorded
 17    mortgage, deed of trust or security interest.
 18        (134) "Person" means any  entity,  individual,  corporation,  partnership,
 19    firm, association, limited liability company, limited liability partnership or
 20    other such entities as recognized by the state of Idaho.
 21        (145) "Personal  property" includes all goods, chattels, stocks and bonds,
 22    equities in state lands, easements, reservations,  leasehold  real  properties
 23    and  all  other  property  which the law defines, or the courts may interpret,
 24    declare and hold to be personal property under the letter, spirit, intent  and
 25    meaning of the law, for the purposes of property taxation. For the purposes of
 26    payment  and  collection  of  property  taxes pursuant to chapter 9, title 63,
 27    Idaho Code, collection of delinquency pursuant to chapter 10, title 63,  Idaho
 28    Code,  and seizure and sale of personal property for taxes pursuant to chapter
 29    11, title 63, Idaho Code, personal property includes  manufactured  homes  not
 30    declared as real property pursuant to section 63-304, Idaho Code.
 31        (156) "Private railcar fleet" means railroad cars or locomotives owned by,
 32    leased  to, occupied by or franchised to any person other than a railroad com-
 33    pany operating a line of railroad in Idaho or  any  company  classified  as  a
 34    railroad  by  the  interstate commerce commission and entitled to possess such
 35    railroad cars and locomotives except those possessed solely for the purpose of
 36    repair, rehabilitation or remanufacturing  of  such  locomotives  or  railroad
 37    cars.
 38        (167) "Public  utility"  means  electrical  companies, pipeline companies,
 39    natural gas distribution companies, or power producers included within federal
 40    law, bargelines, and water companies which are under the jurisdiction  of  the
 41    Idaho  public  utilities commission. The term also includes telephone corpora-
 42    tions, as that term is defined in section 62-603, Idaho Code, except as  here-
 43    inafter  provided, whether or not such telephone corporation has been issued a
 44    certificate of convenience and necessity by the Idaho public utilities commis-
 45    sion.
 46        This term does not include cogenerators, mobile telephone service or  com-
 47    panies,  nor does it include pager service or companies, except when such ser-
 48    vices are an integral part of services provided by a certificated utility com-
 49    pany nor does the term "public utility" include companies or  persons  engaged
 50    in  the business of providing solely on a resale basis, any telephone or tele-
 51    communication service which is purchased from a telephone corporation or  com-
 52    pany.
 53        (178) "Railroad" means every kind of railway, whether its line of rails or
 54    tracks  be  at, above or below the surface of the earth, and without regard to
 55    the kind of power used in moving its rolling stock, and shall be considered to
                                                                        
                                           4
                                                                        
  1    include every kind of street railway, suburban railway or  interurban  railway
  2    excepting  facilities  established  solely  for  maintenance and rebuilding of
  3    railroad cars or locomotives.
  4        (189) "Real property" means land, and all standing timber thereon, includ-
  5    ing standing timber owned separately from the  ownership  of   the  land  upon
  6    which  the  same  may stand, except as modified in chapter 17, title 63, Idaho
  7    Code, and all buildings, structures and improvements,  or  other  fixtures  of
  8    whatsoever kind on land, including water ditches constructed for mining, manu-
  9    facturing or irrigation purposes, water and gas mains, wagon and turnpike toll
 10    roads,  and  toll bridges, and all rights and privileges thereto belonging, or
 11    any way appertaining, all quarries and fossils in and under the land, and  all
 12    other property which the law defines, or the courts may interpret, declare and
 13    hold  to  be real property under the letter, spirit, intent and meaning of the
 14    law, for the purposes of property taxation. Manufactured homes constitute real
 15    property when located on taxable land, and after  a  statement  of  intent  to
 16    declare  as  real  property has been recorded, provided said statement has not
 17    been revoked. Timber, forest,  forest  land,  and  forest  products  shall  be
 18    defined as provided in chapter 17, title 63, Idaho Code.
 19        (1920) "Record  owner"  means the person or persons in whose name or names
 20    the property stands upon the records of the county  recorder's  office.  Where
 21    the  record owners are husband and wife at the time of notice of pending issue
 22    of tax deed, notice to one (1) shall be deemed and imputed as  notice  to  the
 23    other spouse.
 24        (201) "Special assessment" means a charge imposed upon property for a spe-
 25    cific purpose, collected and enforced in the same manner as property taxes.
 26        (212) "System value" means the market value for assessment purposes of the
 27    operating property when considered as a unit.
 28        (223) "Tax code area" means a geographical area made up of one (1) or more
 29    taxing districts with one (1) total levy within the geographic area, except as
 30    otherwise provided by law.
 31        (234) "Taxing  district"  means  any  entity  or  unit  with the statutory
 32    authority to levy a property tax.
 33        (245) "Taxable value" means market value  for  assessment  purposes,  less
 34    applicable exemptions or other statutory provisions.
 35        (256) "Transient  personal  property"  is  personal property, specifically
 36    such construction, logging or mining machinery and equipment  which  is  kept,
 37    moved,  transported, shipped, hauled into or remaining for periods of not less
 38    than thirty (30) days, in more than one (1) county in  the  state  during  the
 39    same year.
 40        (267) "Warrant  of distraint" means a warrant ordering the seizure of per-
 41    sonal property  to  enforce  payment  of  property  tax,  special  assessment,
 42    expense,  fee,  collection cost or charge collected in the same manner as per-
 43    sonal property tax.
                                                                        
 44        SECTION 3.  That Section 63-510, Idaho Code, be, and the  same  is  hereby
 45    amended to read as follows:
                                                                        
 46        63-510.  NOTIFICATION  OF VALUATION DUE TO STATE TAX COMMISSION. (1) Prior
 47    to the first Monday of August the auditor of each county in  the  state  shall
 48    notify the state tax commission of the net taxable value of all property situ-
 49    ated  within each taxing unit or district in the county from the property roll
 50    for the current year and shall provide an estimate of the  net  taxable  value
 51    for  each taxing unit or district from the current year's estimated subsequent
 52    and missed property rolls. Such notification shall also include an estimate of
 53    the net taxable value within any area annexed during the immediate prior  year
                                                                        
                                           5
                                                                        
  1    to any taxing unit or district.
  2        (2)  Prior  to the first Monday of March the auditor of each county in the
  3    state shall notify the state tax commission of the net taxable  value  of  all
  4    property  situated  within each taxing unit or district in the county from the
  5    subsequent and missed property rolls. Such notification shall also include  an
  6    estimate of the net taxable value within any area annexed during the immediate
  7    prior  year, and listed on the subsequent or missed property roll, to any tax-
  8    ing unit or district.
  9        (3)  The notification required in subsections (1) and (2) of this  section
 10    shall  be  on  forms  prescribed  and provided by the state tax commission and
 11    shall list separately the value exempt from property  taxation  in  accordance
 12    with  section  63-602G,  Idaho  Code, and the value in excess of the equalized
 13    assessment valuation as shown on the base assessment roll in any revenue allo-
 14    cation area, pursuant to chapters 20 and 29, title 50, Idaho Code.
 15        (4)  For the purposes of this section, "taxing district,"  as  defined  in
 16    section  63-201(224), Idaho Code, shall include each incorporated city in each
 17    county, regardless of whether said city certifies a property tax budget.
                                                                        
 18        SECTION 4.  That Section 63-1703, Idaho Code, be, and the same  is  hereby
 19    amended to read as follows:
                                                                        
 20        63-1703.  CERTAIN  FOREST  LANDS TO BE DESIGNATED FOR TAXATION BY OWNER --
 21    LIMITATIONS. For the purposes of appraisal, assessment and taxation under  the
 22    provisions  of  this  chapter, all forest lands in parcels of five (5) or more
 23    acres but less than five thousand (5,000), whether contiguous or not, as  long
 24    as such parcels are held in common ownership, must be designated by the forest
 25    landowner  to  be subject to the provisions of either subsection (a) or (b) of
 26    this section. A forest landowner cannot have parcels designated under the pro-
 27    visions of both subsections (a) and (b) of this section at one  (1)  time.  If
 28    the  forest  landowner  fails to make a designation, his forest lands shall be
 29    subject to appraisal, assessment and taxation under the provisions of  section
 30    63-1702,  Idaho Code. Once a designation is made by the forest landowner, such
 31    designation must remain in effect until the designation period expires, unless
 32    the forest lands are transferred to another owner  using  a  different  taxing
 33    category;  in  such  case, the taxing category of the transferred forest lands
 34    shall be the same as that maintained by the new owner.
 35        A forest landowner may change the designation of all forest lands in  com-
 36    mon  ownership  at the end of any designation period, subject to the recapture
 37    of any deferred taxes due as a result of such change. After January 1  and  by
 38    December  31 of the tenth year of each designation period the forest landowner
 39    must notify the county assessor of any  change  in  forest  land  designation.
 40    Failure  to  notify the county assessor will result in the continuation of the
 41    landowner's present designation until the end of the next designation period.
 42        Any substantial change in the use of forest lands not conforming with  the
 43    definition of forest land in section 63-1701, Idaho Code, during such ten (10)
 44    year  period  under  the  designations  made in subsection (a) or (b) shall be
 45    reported by the landowner to the county assessor within thirty  (30)  days  of
 46    the  change in use. Upon notification of the change in use, the assessor shall
 47    appraise, assess and tax those acres as provided by applicable laws and rules.
 48    Failure to notify the assessor of the change in use  when  forest  lands  have
 49    been  designated  as  subject to the provisions of subsection (a) or (b) shall
 50    cause forfeiture of such designation, and cause that property to be appraised,
 51    assessed and taxed as provided in section 63-1702, Idaho Code.
 52        Forest lands designated for assessment pursuant to the provisions of  sec-
 53    tion  63-1706, Idaho Code, shall be subject to the recapture of deferred taxes
                                                                        
                                           6
                                                                        
  1    upon removal of such designation, a substantial change in  use,  or  ownership
  2    transfer,  except  that  there shall  be no recapture initiated upon ownership
  3    transfer of forest lands designated as subject to the  provisions  of  section
  4    63-1706,  Idaho  Code,  to a landowner with forest lands already designated as
  5    subject to the provisions of section 63-1706, Idaho Code, prior to the  trans-
  6    fer, or who so designates his lands to be subject to the provisions of section
  7    63-1706, Idaho Code.
  8        The  dollar  amount of deferred taxes subject to recapture shall be deter-
  9    mined by the county assessor by applying current tax levies against  the  cur-
 10    rent  values  that  would  have  been  in  effect if the lands were subject to
 11    appraisal and assessment during the current year under the provisions of  sec-
 12    tion 63-1705, Idaho Code, if there has been a change in ownership or a removal
 13    of  designation, or section 63-1702, Idaho Code, if there has been a change in
 14    use with no change in ownership, which amount shall be multiplied by the  num-
 15    ber of years that the lands have been subject to the designation under section
 16    63-1706,  Idaho Code. The amount of the deferred tax shall accrue through des-
 17    ignation periods, up to a maximum of ten (10) years, and shall  apply  to  the
 18    most  recent  ten (10) years in which the parcel has been designated under the
 19    provisions of section 63-1706, Idaho Code. A credit shall be allowed for taxes
 20    actually paid under the provisions of section  63-1706,  Idaho  Code,  for  an
 21    identical  ten (10) year period, up to the total amount of the deferred taxes.
 22    All deferred amounts shall be a lien against the land.  Deferred  tax  amounts
 23    shall  be  calculated  by the county assessor on forms prescribed by the state
 24    tax commission. Deferred tax amounts shall be supplied by the county  assessor
 25    to  the  county treasurer by May 15 of the year following conveyance or within
 26    thirty (30) days of removal of designation, or of learning of a change in use.
 27    All deferred tax amounts shall be due and payable to the county  treasurer  on
 28    demand  and  shall become delinquent if not paid by the demand due date speci-
 29    fied by the county treasurer on the forms prescribed by the state tax  commis-
 30    sion.  If  the deferred tax is not paid as provided above, the payment becomes
 31    delinquent and subject to late charges, and interest in  the amounts  provided
 32    in  sections  63-201(68) and 63-1001, Idaho Code, and subject to collection in
 33    the manner as set forth  in  chapter  10,  title  63,  Idaho  Code.  Estimated
 34    deferred tax amounts may be held by the county treasurer in a tax anticipation
 35    account from the date of conveyance until June 1 of the year following convey-
 36    ance.
 37        The  county  treasurer  shall cause the deferred taxes and any penalty and
 38    interest paid pursuant to the provisions of this section to be apportioned  to
 39    the various taxing authorities within which the property subject to the tax is
 40    located in the same manner as property taxes.
 41        (a)  A  forest  landowner  may  choose  to  have his forest land assessed,
 42    appraised and taxed under the provisions of section 63-1705,  Idaho  Code,  by
 43    filing  such choice with the county assessor on a form prescribed by the state
 44    tax commission. Designation filed pursuant to  section  63-1705,  Idaho  Code,
 45    shall become effective the first day of January following the year of designa-
 46    tion.
 47        (b)  A  forest  landowner  may  choose  to  have his forest land assessed,
 48    appraised and taxed under the provisions of section 63-1706,  Idaho  Code,  by
 49    filing  such choice with the county assessor on a form prescribed by the state
 50    tax commission. Designation filed pursuant to  section  63-1706,  Idaho  Code,
 51    shall become effective the first day of January following the year of designa-
 52    tion.
 53        (c)  All  forest  products  or  timber harvested from investment lands not
 54    designated as subject  to  the  provisions  of  section  63-1702,  63-1705  or
 55    63-1706,  Idaho  Code,  and  delivered  to  a  point of utilization as logs or
                                                                        
                                           7
                                                                        
  1    semiprocessed forest products (except those forest products harvested for  the
  2    domestic  use  of the landowner under the provisions of section 63-1708, Idaho
  3    Code) shall be subject to the yield tax at the time of  harvest  in  the  same
  4    manner provided for in section 63-1706, Idaho Code.
                                                                        
  5        SECTION  5.  An  emergency  existing  therefor,  which emergency is hereby
  6    declared to exist, this act shall be in full force and effect on and after its
  7    passage and approval, and retroactively to January 1, 2002.

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                                     Moved by    Mader               
                                                                        
                                                     Seconded by Gould               
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENTS TO H.B. NO. 487
                                                                        
  1                                AMENDMENT TO SECTION 1
  2        On page 2 of the printed bill, following line 15, insert:
  3        "(5)  As used in this section "contiguous" shall mean being in actual con-
  4    tact or touching along a boundary or at a point, except no area of land  shall
  5    be  considered not contiguous solely by reason of a roadway or other right-of-
  6    way.".
                                                                        
  7                                AMENDMENTS TO THE BILL
  8        On page 2, delete lines 16 through 53; delete all of pages 3, 4, 5 and  6;
  9    on  page  7,  delete lines 1 through 4; and in line 5, delete "SECTION 5." and
 10    insert: "SECTION 2.".
                                                                        
 11                                 CORRECTIONS TO TITLE
 12        On page 1, in line 4, following "CONTIGUOUS" insert: ", TO PROVIDE A DEFI-
 13    NITION OF "CONTIGUOUS""; and delete lines 5 through 7.

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                               HOUSE BILL NO. 487, As Amended
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PROPERTY TAXATION; AMENDING SECTION 63-604, IDAHO CODE, TO PROVIDE
  3        THAT LAND FIVE ACRES OR LESS WHICH IS BEING CLASSIFIED AS ACTIVELY DEVOTED
  4        TO AGRICULTURE MUST BE CONTIGUOUS, TO PROVIDE A DEFINITION OF "CONTIGUOUS"
  5        AND TO MAKE TECHNICAL CORRECTIONS; DECLARING AN  EMERGENCY  AND  PROVIDING
  6        RETROACTIVE APPLICATION.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION  1.  That  Section  63-604, Idaho Code, be, and the same is hereby
  9    amended to read as follows:
                                                                        
 10        63-604.  LAND ACTIVELY DEVOTED TO AGRICULTURE DEFINED.  (1)  For  property
 11    tax  purposes,  land  which  is  actively devoted to agriculture as part of an
 12    agricultural enterprise shall be eligible for appraisal, assessment and  taxa-
 13    tion  as  agricultural property each year it meets one (1) or more of the fol-
 14    lowing qualifications:
 15        (a)  The total area of such land, including the  homesite,  is  more  than
 16        five  (5)  contiguous  acres, and is actively devoted to agriculture which
 17        means:
 18             (i)   It is used to produce field crops including,  but  not  limited
 19             to, grains, feed crops, fruits and vegetables; or
 20             (ii)  It  is  used  to  produce  nursery  stock as defined in section
 21             22-2302(11), Idaho Code; or
 22             (iii) It is used by the owner for the grazing of livestock to be sold
 23             as part of a net profit-making enterprise, or is leased by the  owner
 24             to a bona fide lessee for grazing purposes; or
 25             (iv)  It is in a cropland retirement or rotation program.
 26        (b)  The  area  of such land is five (5) contiguous acres or less and such
 27        land has been actively devoted to agriculture within the meaning  of  sub-
 28        section  (1)(a) of this section during the last three (3) growing seasons;
 29        and
 30             (i)  It agriculturally produces for  sale  or  home  consumption  the
 31             equivalent  of  fifteen  percent  (15%)  or  more  of the owner's' or
 32             lessee's' annual gross income; or
 33             (ii) It agriculturally produced gross  revenues  in  the  immediately
 34             preceding  year  of  one  thousand dollars ($1,000) or more. When the
 35             area of land is five (5) contiguous acres or less, such land shall be
 36             presumed to be nonagricultural land until it is established that  the
 37             requirements of this subsection have been met.
 38        (2)  Land  shall not be classified or valued as agricultural land which is
 39    part of a platted subdivision with stated restrictions prohibiting its use for
 40    agricultural purposes, whether within or without a city.
 41        (3)  Land utilized for the grazing of a horse or other animals  kept  pri-
 42    marily for personal use or pleasure rather than as part of a bona fide profit-
 43    making  agricultural  enterprise  shall  not be considered to be land which is
                                                                        
                                           2
                                                                        
  1    actively devoted to agriculture.
  2        (4)  Land actively devoted to agriculture, having previously qualified for
  3    exemption under this section in the preceding year, or which would have quali-
  4    fied under this section during the current year, shall not lose such  qualifi-
  5    cation  due  to the owner's or lessee's  absence in the current year by reason
  6    of active military service in a designated combat zone, as defined in  section
  7    112 of the Internal Revenue Code. If an owner fails to timely apply for exemp-
  8    tion  as  required in this section solely by reason of active duty in a desig-
  9    nated combat zone, as defined in section 112 of the Internal Revenue Code, and
 10    the land would otherwise qualify for exemption under this  section,  then  the
 11    board of county commissioners of the county in which the land actively devoted
 12    to  agriculture is located shall refund property taxes, if previously paid, in
 13    an amount equal to the exemption which would otherwise have applied.
 14        (5)  As used in this section "contiguous" shall mean being in actual  con-
 15    tact  or touching along a boundary or at a point, except no area of land shall
 16    be considered not contiguous solely by reason of a roadway or other  right-of-
 17    way.
                                                                        
 18        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 19    declared to exist, this act shall be in full force and effect on and after its
 20    passage and approval, and retroactively to January 1, 2002.

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE
                            RS 11693

Amends section 63-604 to clarify the contiguity requirement for
land of more than five acres as a qualifying factor for land
actively devoted to agriculture. Amends Section 63-201 to provide
a definition of contiguous.

                          FISCAL IMPACT
Fiscal impact minimal to counties.


Contact
Name: Representative Stevenson 
Phone: 332-1000




STATEMENT OF PURPOSE/FISCAL NOTE               H 488