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H0491...............................................by ROBISON AND MARTINEZ
PROPERTY TAX - EXEMPTIONS - Adds to existing law to provide for a tax
exemption of residential property owned by qualified persons aged
sixty-five years or older.
01/28 House intro - 1st rdg - to printing
01/29 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. 491
BY ROBISON AND MARTINEZ
1 AN ACT
2 RELATING TO PROPERTY TAX EXEMPTIONS; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE,
3 BY THE ADDITION OF A NEW SECTION 63-602GG, IDAHO CODE, TO PROVIDE FOR A
4 TAX EXEMPTION FOR PROPERTY OWNED BY QUALIFIED PERSONS AGED SIXTY-FIVE
5 YEARS OR OLDER, TO PROVIDE FOR APPLICATION OF THE EXEMPTION TO RESIDENTIAL
6 IMPROVEMENTS AND THE RESIDENTIAL LOT, TO PROVIDE THAT THE EXEMPTION SHALL
7 CONTINUE FOR SPOUSES UNDER CERTAIN CIRCUMSTANCES, TO PROVIDE CONDITIONS
8 FOR THE EXEMPTION, TO PROVIDE THAT AN OWNER IS REQUIRED TO MAKE APPLICA-
9 TION FOR THE EXEMPTION ONLY ONCE IF CERTAIN CONDITIONS ARE MET, TO PROVIDE
10 THAT THE EXEMPTION SHALL BE TAKEN BEFORE OTHER SPECIFIED REDUCTIONS, TO
11 DECLARE THAT THE EXEMPTION IS NECESSARY AND JUST AND TO PROVIDE THAT THE
12 EXEMPTION SHALL BE AVAILABLE FOR CERTAIN OWNERS WHO ARE ABSENT BY REASON
13 OF ACTIVE MILITARY SERVICE IN A DESIGNATED COMBAT ZONE; AND PROVIDING AN
14 EFFECTIVE DATE.
15 Be It Enacted by the Legislature of the State of Idaho:
16 SECTION 1. That Chapter 6, Title 63, Idaho Code, be, and the same is
17 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
18 ignated as Section 63-602GG, Idaho Code, and to read as follows:
19 63-602GG. PROPERTY EXEMPT FROM TAXATION -- PERSONS OVER AGE SIXTY-FIVE
20 YEARS. (1) During the tax year 2003 and each year thereafter, owners of owner-
21 occupied residences who are over age sixty-five (65) years and who qualify for
22 the exemption provided in section 63-602G, Idaho Code, shall also receive an
23 exemption for any increases in the taxable value of the residential improve-
24 ments and residential lot. The taxable value shall be no greater than the tax-
25 able value of the base year so long as the owner-occupant qualifies for the
26 exemption provided in section 63-602G, Idaho Code. The base year shall be the
27 calendar year prior to the year in which the owner first applies for and
28 receives this exemption.
29 (a) This exemption applies to both residential improvements and the resi-
30 dential lot on which the improvements are located.
31 (b) To qualify to receive this exemption in tax year 2003 or any year
32 thereafter, an owner must have qualified for and received the exemption
33 provided in section 63-602G, Idaho Code, in the previous year.
34 (c) The owner must certify to the county assessor that household income
35 was no more than thirty-five thousand dollars ($35,000) in the previous
36 year to qualify for the exemption in tax year 2003. Income is as defined
37 in section 63-701, Idaho Code. For tax year 2004 and each year thereafter,
38 qualifying income will be adjusted as determined by the state tax commis-
39 sion based on an annual cost of living modification as provided in section
40 63-705, Idaho Code.
41 (d) The owner must be aged sixty-five (65) years or older as of January 1
42 of the year in which the owner applies for and otherwise qualifies for
43 this exemption.
2
1 (e) An owner who applies for and receives tax relief as provided in chap-
2 ter 7, title 63, Idaho Code, may not also qualify for this exemption.
3 (2) If the home is a duplex, triplex or fourplex, the exemption shall
4 apply to that portion of the residential improvements occupied by the owner
5 aged sixty-five (65) years or older and/or his spouse and the respective por-
6 tion of the residential lot.
7 (3) The exemption shall continue for a spouse, regardless of age, if the
8 owner who is aged sixty-five (65) years or older resides in a residential care
9 home or a nursing home.
10 (4) The exemption allowed by this section may be granted only if:
11 (a) The residential improvements are owner-occupied and used as the pri-
12 mary dwelling place of the owner and/or his spouse. The residential
13 improvements may consist of part of a multidwelling or multipurpose build-
14 ing and shall include all of such dwelling or building except any portion
15 used exclusively for anything other than the primary dwelling of the
16 owner. The presence of an office in an owner-occupied residential prop-
17 erty, which office is used for multiple purposes, including business and
18 personal use, shall not prevent the owner from claiming the exemption pro-
19 vided in this section; and
20 (b) The tax commission has certified to the board of county commissioners
21 that all properties in the county which are subject to appraisal by the
22 county assessor have, in fact, been appraised uniformly so as to secure a
23 just valuation for all property within the county; and
24 (c) The owner has certified to the county assessor that:
25 (i) He is making application for the exemption allowed by this sec-
26 tion;
27 (ii) That the residential improvements are his or his spouse's pri-
28 mary dwelling place; and
29 (iii) That he has not made application in any other county for the
30 exemption, and has not made application for the exemption on any
31 other residential improvements or residential lots in the county.
32 (d) For the purpose of this section, the definition of "owner" shall be
33 the same definition set forth in section 63-701(7), Idaho Code.
34 (e) For the purpose of this section, the definition of "primary dwelling
35 place" shall be the same definition set forth in section 63-701(8), Idaho
36 Code.
37 (f) For the purpose of this section, the definition of "occupied" shall
38 be the same definition set forth in section 63-701(6), Idaho Code.
39 (5) An owner need only make application for the exemption described in
40 subsection (1) of this section once, as long as all of the following condi-
41 tions are met:
42 (a) The owner has received the exemption during the previous year as a
43 result of his making a valid application as defined in subsection (4)(c)
44 of this section.
45 (b) The owner and/or his spouse still occupies the same residential
46 improvements for which the owner made application.
47 (c) The residential improvements described in subsection (4)(a) of this
48 section are owner-occupied or occupied by the spouse of the owner, and
49 used as the primary dwelling place of the owner or spouse, as appropriate.
50 (6) The exemption allowed by this section must be taken before the reduc-
51 tion in taxes provided by sections 63-701 through 63-710, Idaho Code, is
52 applied.
53 (7) The legislature declares that this exemption is necessary and just.
54 (8) Residential improvements having previously qualified for exemption
55 under this section in the preceding year shall not lose such qualification due
3
1 to the owner's or the spouse of the owner's absence in the current year by
2 reason of active military service in a designated combat zone, as defined in
3 section 112 of the Internal Revenue Code. If an owner fails to timely apply
4 for exemption as required in this section solely by reason of active duty in a
5 designated combat zone by the owner or his spouse, as appropriate, as defined
6 in section 112 of the Internal Revenue Code, and such improvements would have
7 otherwise qualified under this section, then the board of county commissioners
8 of the county in which the residential improvements are located shall refund
9 property taxes, if previously paid, in an amount equal to the exemption which
10 would otherwise have applied.
11 SECTION 2. This act shall be in full force and effect on and after Janu-
12 ary 1, 2003.
STATEMENT OF PURPOSE
RS 11786
This legislation would allow homeowners over age 65, who qualified
for the homeowner exemption in the previous year and whose income
is under $35,000, to apply for and receive an exemption that freezes
the taxable value of their home and residential lot, so long as they
continue to own and live in the home. People who also qualify for
the circuit breaker could choose the circuit breaker or this
exemption.
FISCAL NOTE
This exemption would not reduce the amount of property taxes
collected but would result in a slower rate of increase in
residential taxes resulting from inflation in taxable value. As
many as 20,000 households might qualify for this exemption.
If inflation in residential values is six per cent in 2003, total
residential taxable value would increase by $2,156,000,000 rather
than $2,228,000,000. Schools would collect an average $18 less
from qualifying homes as a result of inflation, a difference of
about $360,000. Cities, counties and other taxing districts
could collect the same amount under the three per cent budget cap.
Contact:
Rep. Ken Robison, Rep. Elmer Martinez
Phone:
332—1000
STATEMENT OF PURPOSE/FISCAL NOTE H 491