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H0075..................................................by REVENUE AND TAXATION PROPERTY TAX - Amends existing law relating to property tax to provide that county auditors must certify the new construction roll by the fourth Monday of July; to change the reference from the Farmers Home Administration to the Consolidated Farm Service Agency; to delete obsolete language relating to taxation of certain merchandise; and to permit additional time for school districts to certify a budget for a school emergency fund levy. 01/15 House intro - 1st rdg - to printing 01/16 Rpt prt - to Rev/Tax 01/20 Rpt out - rec d/p - to 2nd rdg 01/21 2nd rdg - to 3rd rdg 01/22 3rd rdg - PASSED - 67-0-3 AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Bieter, Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow, Cuddy, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin, McKague, Miller, Mitchell, Moyle, Nacarrato, Nielsen, Raybould, Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali, Sayler, Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Tilman, Trail, Wills, Wood, Mr. Speaker NAYS -- None Absent and excused -- Deal, Meyer, Schaefer Floor Sponsor - Moyle Title apvd - to Senate 01/23 Senate intro - 1st rdg - to Loc Gov 01/28 Rpt out - rec d/p - to 2nd rdg 01/29 2nd rdg - to 3rd rdg 01/31 3rd rdg - PASSED - 34-0-1 AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw, Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams, Noble, Noh, Pearce, Richardson, Schroeder, Sorensen, Stegner, Stennett, Sweet, Werk, Williams NAYS -- None Absent and excused -- Calabretta Floor Sponsor - Compton Title apvd - to House 02/03 To enrol 02/04 Rpt enrol - Sp signed 02/05 Pres signed 02/06 To Governor 02/10 Governor signed Session Law Chapter 8 Effective: 07/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-seventh Legislature First Regular Session - 2003IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 75 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO PROPERTY TAXES; AMENDING SECTION 63-301A, IDAHO CODE, TO PROVIDE 3 THAT ON OR BEFORE THE FOURTH MONDAY IN JULY, COUNTY AUDITORS MUST CERTIFY 4 THE NEW CONSTRUCTION ROLL TO THE STATE TAX COMMISSION AND TO MAKE TECHNI- 5 CAL CORRECTIONS; AMENDING SECTION 63-602A, IDAHO CODE, TO CHANGE THE REF- 6 ERENCE FROM THE FARMERS HOME ADMINISTRATION TO THE CONSOLIDATED FARM SER- 7 VICE AGENCY; AMENDING SECTION 63-602C, IDAHO CODE, TO DELETE OBSOLETE LAN- 8 GUAGE RELATING TO TAXATION OF MERCHANDISE HELD FOR SALE; AND AMENDING SEC- 9 TION 63-803, IDAHO CODE, TO PERMIT ADDITIONAL TIME FOR SCHOOL DISTRICTS TO 10 CERTIFY A BUDGET FOR A SCHOOL EMERGENCY FUND LEVY. 11 Be It Enacted by the Legislature of the State of Idaho: 12 SECTION 1. That Section 63-301A, Idaho Code, be, and the same is hereby 13 amended to read as follows: 14 63-301A. NEW CONSTRUCTION ROLL. (1) The county assessor shall prepare a 15 new construction roll, which shall be in addition to the property roll, which 16 new construction roll shall show: 17 (a) The name of the taxpayer; 18 (b) The description of the new construction, suitably detailed to meet 19 the requirements of the individual county; 20 (c) A description of the land and its change in use, suitably detailed to 21 meet the needs of the individual county; 22 (d) The amount of taxable market value added to the property on the cur- 23 rent year's property roll that is directly the result of new construction 24 or a change in use of the land or both. 25 (2) As soon as possible, but in any event by no later than the first Mon- 26 day in June, the new construction roll shall be certified to the county audi- 27 tor and a listing showing the amount of value on the new construction roll in 28 each taxing district or unit be forwarded to the state tax commission on or 29 before the fourth Monday in July. Provided however, the value shown in subsec- 30 tion (3)(f) of this section shall be reported to the appropriate county audi- 31 tor by the state tax commission by the third Monday in July and the value sent 32 by the county auditor to each taxing district. The value established pursuant 33 to subsection (3)(f) of this section is subject to correction by the state tax 34 commission until the first Monday in September and any such corrections shall 35 be sent to the appropriate county auditor, who shall notify any affected tax- 36 ing districts. 37 (3) The value shown on the new construction roll may include the value 38 increase from: 39 (a) Construction of any new structure that previously did not exist; or 40 (b) Additions or alterations to existing nonresidential structures; or 41 (c) Installation of new or used manufactured housing that did not previ- 42 ously exist within the county; or 43 (d) Change of land use classification; or 2 1 (e) Property newly taxable as a result of loss of the exemption provided 2 by section 63-602W, Idaho Code; or 3 (f) The construction of any improvement or installation of any equipment 4 used for or in conjunction with the generation of electricity and the 5 addition of any improvement or equipment intended to be so used, except 6 property that has a value allocated or apportioned pursuant to section 7 63-405, Idaho Code, or that is owned by a cooperative or municipality, as 8 those terms are defined in section 61-332A, Idaho Code, or that is owned 9 by a public utility, as that term is defined in section 61-332A, Idaho 10 Code, owning any other property that is allocated or apportioned. No 11 replacement equipment or improvements may be included.; or 12 (fg) Increases in value over the base value of property on the base 13 assessment roll within an urban renewal revenue allocation area that has 14 been terminated pursuant to section 50-2909(4), Idaho Code, to the extent 15 that this increment has not been previously included on any new construc- 16 tion rolls, provided however, the increased value during the existence of 17 the revenue allocation area is due to changes identified in subsections 18 (a) through (e) of this subsection. 19 (4) The amount of taxable market value of new construction shall be the 20 change in net taxable market value that is attributable directly to new con- 21 struction or a change in use of the land or loss of the exemption provided by 22 section 63-602W(3), Idaho Code. It shall not include any change in value of 23 existing property that is due to external market forces such as general or 24 localized inflation. 25 SECTION 2. That Section 63-602A, Idaho Code, be, and the same is hereby 26 amended to read as follows: 27 63-602A. PROPERTY EXEMPT FROM TAXATION -- GOVERNMENT PROPERTY. (1) The 28 following property is exempt from taxation: property belonging to the United 29 States, except when taxation thereof is authorized by the congress of the 30 United States, this state, or to any county or municipal corporation or school 31 district within this state. 32 (2) However, inventory property acquired under agricultural credit pro- 33 grams of thefarmers home administrationconsolidated farm service agency of 34 the United States department of agriculture shall be subject to taxation as 35 other property in the county. 36 (3) However, unimproved real property of more than ten (10) contiguous 37 acres owned in fee simple by the department of fish and game shall be subject 38 to a fee in lieu of property taxes contingent upon the following conditions 39 and requirements: 40 (a) The fee in lieu of property taxes shall not exceed the property tax 41 for the property at the time of acquisition by the department of fish and 42 game, unless the property tax rate for the property shall have been 43 increased. 44 (b) The department shall determine and identify the parcels of property 45 and their current use as qualified under the provisions of this act. The 46 department shall consult with the appropriate county treasurer and deter- 47 mine the fee to be paid on the property and credited continuously to the 48 county current expense fund. The fee shall be an amount equal to the prop- 49 erty tax the property would generate if assessed as agricultural property. 50 (c) Any future increase in the fee paid in lieu of property taxes shall 51 be determined by the amount of property taxes the property would generate 52 if assessed as agricultural property. The increase may be determined by 53 the department working cooperatively with the appropriate county assessor. 3 1 The method used for determining the fee that would be due on department 2 property is to be used only under this subsection and has no other appli- 3 cation in any other section of the Idaho Code. 4 (d) The department shall then provide to the assessor of the county where 5 the parcels are located on or before the second Monday of March each year, 6 a listing identifying each parcel of unimproved property by legal descrip- 7 tion, size and amount of the fee for the preceding calendar year. The 8 treasurer shall prepare and submit a billing for payment based on this 9 information to the department. Once the fee has been determined, payment 10 shall be made by June 20 of that year from moneys appropriated for that 11 purpose. However, if the fees exceed the moneys appropriated for that pur- 12 pose, the director of the department of fish and game shall calculate the 13 percent reduction that must be made and certify the proportionate reduc- 14 tion to each county treasurer. 15 (e) For the purpose of this section only, unimproved real property shall 16 mean property on which no homesite or improved site is located, and 17 homesite or improved site shall mean any buildings, structures, or fix- 18 tures which have been erected or affixed to the land and the necessary 19 acreage required to utilize the homesite or improved site as determined by 20 the county assessor shall be exempt. For purposes of this subsection only, 21 roads or fences shall not be considered as improvements. 22 SECTION 3. That Section 63-602C, Idaho Code, be, and the same is hereby 23 amended to read as follows: 24 63-602C. PROPERTY EXEMPT FROM TAXATION -- FRATERNAL, BENEVOLENT, OR CHAR- 25 ITABLE CORPORATIONS OR SOCIETIES. The following property is exempt from taxa- 26 tion: property belonging to any fraternal, benevolent, or charitable corpora- 27 tion or society, the World War veteran organization buildings and memorials of 28 this state, used exclusively for the purposes for which such corporation or 29 society is organized; provided, that if any building or property belonging to 30 any such corporation or society is leased by such owner or if such corporation 31 or society uses such property for business purposes from which a revenue is 32 derived which, in the case of a charitable organization, is not directly 33 related to the charitable purposes for which such charitable organization 34 exists, then the same shall be assessed and taxed as any other property, and 35 if any such property is leased in part or used in part by such corporation or 36 society for such purposes the assessor shall determine the value of the entire 37 building and the value of the part used or leased for commercial purposes. If 38 the value of the part used for commercial purposes is determined to be three 39 percent (3%) or less than the value of the entirety, the whole of said prop- 40 erty shall remain exempt. If the value of the part used for commercial pur- 41 poses is determined to be more than three percent (3%) of the value of the 42 entirety, the assessor shall assess such proportionate part of such building 43 including the value of the real estate as is so leased or used for such pur- 44 poses, and shall assessall merchandise kept for sale, andthe trade fixtures 45 used in connection with the sale ofsuchall merchandise; provided however, 46 that the lease or use of any property by any such corporation or society for 47 athletic or recreational facilities, residence halls or dormitories, meeting 48 rooms or halls, auditoriums or club rooms within the purposes for which such 49 corporation or society is organized, shall not be deemed a business or commer- 50 cial purpose, even though fees or charges be imposed and revenue derived 51 therefrom. 52 SECTION 4. That Section 63-803, Idaho Code, be, and the same is hereby 4 1 amended to read as follows: 2 63-803. CERTIFICATION OF BUDGETS IN DOLLARS. (1) Whenever any taxing dis- 3 trict is required by law to certify to any county treasurer, county auditor, 4 county assessor, county commissioners or to any other county officer, any 5 property tax levy, upon property located within said district, such certifica- 6 tion shall, notwithstanding any other provision of the law applicable to any 7 such district, be made at the time and in the manner hereinafter provided. 8 (2) The county auditor shall inform each of the taxing districts within 9 his county of the taxable value of that district as soon as such value is 10 known to the auditor, whether the value comes from the appraisal and assess- 11 ment of real and personal property, or from allocation of the taxable value of 12 operating property, or from other sources. 13 (3) Using the taxable value of the district, the council, trustees, board 14 or other governing body of any taxing district shall certify the total amount 15 required from a property tax upon property within the district to raise the 16 amount of money fixed by their budget as previously prepared or approved. The 17 amount of money so determined shall be certified in dollars to the appropriate 18 county commissioners. Any taxing unit, except regional airport authorities, 19 located in more than one (1) county shall divide its dollar budget for certi- 20 fication to the separate counties by multiplying the amount of such budget by 21 a fraction, the numerator of which shall be the total taxable value of all 22 property in such taxing unit within the county to which such certification is 23 to be made, and the denominator of which shall be the total taxable value of 24 property in such taxing unit in all such counties. Budget certification to the 25 participating counties of regional airport authorities shall be made in the 26 manner prescribed in section 21-807(10), Idaho Code. Taxable value shall be 27 certified by the county auditor of each affected county to such taxing unit 28 and such certification shall be used in this formula. Except as provided in 29 section 33-805, Idaho Code, relating to school emergency fund levies, tThe 30 certification to the county commissioners required in this section shall be 31 made not later than the Thursday prior to the second Monday in September, 32 unless, upon application therefor, the county commissioners grant an extension 33 of not more than seven (7) working days. After receipt of this certification, 34 the county commissioners shall make a tax levy as a percent of taxable value 35 of all property in the taxing district, which when applied to the tax rolls, 36 will meet the budget requirements certified by such taxing districts. 37 (4) For the purpose of this section, "taxable value" shall mean the por- 38 tion of the equalized assessed value, less any exemptions and the value that 39 exceeds the value of the base assessment roll for the portion of any taxing 40 district within a revenue allocation area of an urban renewal district, 41 located within each taxing district which certifies a budget to be raised from 42 a property tax levy. When the county auditor is notified of revenues suffi- 43 cient to cover expenses as provided in section 50-2903(5), Idaho Code, taxable 44 value shall also include the value that exceeds the value of the base assess- 45 ment roll for the portion of any taxing district within a revenue allocation 46 area. For each taxing district, taxable value shall include the value from the 47 property and operating property rolls for the current year and subsequent and 48 missed property rolls for the prior year or the best estimate of the subse- 49 quent and missed property rolls for the current year.
STATEMENT OF PURPOSE RS 12390 This bill makes a number of minor updates and corrections to Idaho's property tax statutes. The date by which county auditors must certify the new construction roll to the state tax commission is changed from the first Monday of June to the fourth Monday of July. A reference to the Farmers Home Administration is changed to the Consolidated Farm Service Agency to reflect a change in federal law. Obsolete language relating to taxation of merchandise held for sale is deleted from the code section relating to the property tax exemption for property of fraternal, benevolent, or charitable corporations or societies. Permits additional time for school districts to certify a budget for a school emergency fund levy. FISCAL IMPACT No fiscal effect. CONTACT Name: Dan John / Ted Spangler Agency: State Tax Commission Phone: 334-7530 Statement of Purpose/Fiscal Impact H75