2002 Legislation
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HOUSE BILL NO. 488 – Property tax, rural home site/dvlp

HOUSE BILL NO. 488

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Daily Data Tracking History



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

Bill Text


                                                                        
                                                                        
  ||||              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.

Amendment


                                                                        
                                                                        
  ||||              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.".

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. 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.

Statement of Purpose / Fiscal Impact


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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