2003 Legislation
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HOUSE BILL NO. 75 – Property tax, new construction roll

HOUSE BILL NO. 75

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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

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN 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  the farmers home administration consolidated 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 assess all merchandise kept for sale, and the trade fixtures
 45    used in connection with the sale of such all  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 / Fiscal Impact


               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