2003 Legislation
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HOUSE BILL NO. 136 – Property tax, rural home site dvlp

HOUSE BILL NO. 136

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Daily Data Tracking History



H0136aaS............................................by REVENUE AND TAXATION
RURAL HOME SITE DEVELOPMENT - Amends existing law to specify conditions for
determining eligibility for the exemption from property taxes for certain
parcels of land in a rural home site development plat; to specify events
which will terminate eligibility; to provide an effective date upon loss of
eligibility for the exemption; to provide for application for the exemption
and an effective date; to provide that the exemption shall not apply to
land which is part of a platted subdivision if there are restrictions on
its use for agricultural purposes; and to define certain terms.
                                                                        
01/30    House intro - 1st rdg - to printing
01/31    Rpt prt - to Rev/Tax
03/06    Rpt out - rec d/p - to 2nd rdg
03/07    2nd rdg - to 3rd rdg
03/11    3rd rdg - PASSED - 67-2-1
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Black,
      Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow,
      Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet,
      Jones, Kellogg, Kulczyk, Lake, Langford, Langhorst(Wallace),
      Martinez, McGeachin, McKague, Meyer, Miller, Mitchell, Moyle,
      Naccarato, Nielsen, Raybould, Ridinger, Ring, Ringo, Roberts,
      Robison, Rydalch, Sali, Sayler, Shepherd, Shirley, Skippen,
      Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills,
      Wood, Mr. Speaker
      NAYS -- Bieter, Tilman
      Absent and excused -- Schaefer
    Floor Sponsor - Raybould
    Title apvd - to Senate
03/12    Senate intro - 1st rdg - to Loc Gov
03/21    Rpt out - to 14th Ord
04/07    Rpt out amen - to 1st rdg as amen
04/08    1st rdg - to 2nd rdg as amen
04/09    To 14th Ord

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 136
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PARTIAL EXEMPTION FOR PARCELS OF LAND IN A RURAL HOME SITE  DEVEL-
  3        OPMENT PLAT; AMENDING SECTION 63-602FF, IDAHO CODE, AS ADDED BY SECTION 2,
  4        CHAPTER 341, LAWS OF 2002, TO SPECIFY CONDITIONS FOR DETERMINING ELIGIBIL-
  5        ITY FOR THE EXEMPTION, TO SPECIFY EVENTS WHICH WILL TERMINATE ELIGIBILITY,
  6        TO  PROVIDE  AN EFFECTIVE DATE UPON LOSS OF ELIGIBILITY FOR THE EXEMPTION,
  7        TO PROVIDE FOR APPLICATION FOR THE EXEMPTION AND  AN  EFFECTIVE  DATE,  TO
  8        PROVIDE  THAT  THE  EXEMPTION  SHALL  NOT APPLY TO LAND WHICH IS PART OF A
  9        PLATTED SUBDIVISION IF THERE ARE RESTRICTIONS ON ITS USE FOR  AGRICULTURAL
 10        PURPOSES  AND  TO  DEFINE  "IMPROVEMENT,"  "OWNER,"  "PARCEL," AND "SALE";
 11        AMENDING SECTION 63-604, IDAHO CODE, TO PROVIDE AN EXCEPTION TO THE PROHI-
 12        BITION ON CLASSIFYING OR VALUING LAND AS AGRICULTURAL WHEN IT IS PART OF A
 13        RURAL HOME SITE PLATTED SUBDIVISION; DECLARING AN EMERGENCY AND  PROVIDING
 14        RETROACTIVE APPLICATION.
                                                                        
 15    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 16        SECTION  1.  That  Section  63-602FF,  Idaho  Code, as added by Section 2,
 17    Chapter 341, Laws of 2002, be, and the same is hereby amended to read as  fol-
 18    lows:
                                                                        
 19        63-602FF.  PARTIAL  EXEMPTION  FOR  PARCELS  OF  LAND IN A RURAL HOME SITE
 20    DEVELOPMENT PLAT. (1) Each parcel of land in a  rural  home  site  development
 21    plat  previously  shall  be  eligible  for  the  exemption pursuant to section
 22    63-602K, Idaho Code, only if:
 23        (a)  At the time the plat was approved and recorded with the  county,  the
 24        land  was  actively devoted to agriculture as defined in subsection (1)(a)
 25        of section 63-604, Idaho Code, except there shall be  no  requirement  for
 26        total area of land actively devoted to agriculture; and
 27        (b)  Such  parcel  of  land  was,  on  or  after January 1, 2002, actively
 28        devoted to agriculture as defined in subsection (1)(a) of section  63-604,
 29        Idaho  Code,  except  there shall be no requirement for total area of land
 30        actively devoted to agriculture.
 31        (2)  Such parcel shall continue to be eligible  for  the  exemption  until
 32    such time as any one (1) of the following events occurs:
 33        (a)  The  parcel  fails to meet the definition of land actively devoted to
 34        agriculture as defined in subsection (1) of this  section,  provided  how-
 35        ever,  that  the  recording of a plat of subdivision shall not, by itself,
 36        cause such failure; or
 37        (b)  The parcel is sold by the owner; or
 38        (c)  The owner leases the parcel for a nonagricultural purpose; or
 39        (d)  Any construction which qualifies as an improvements are being to  the
 40        site  is  built upon the parcel. Once construction of the improvements has
 41        begun, no acreage in the parcel shall be eligible for the exemption pursu-
 42        ant to section 63-602K, Idaho Code, unless the requirements of the  exemp-
 43        tion have been met.; or
                                                                        
                                           2
                                                                        
  1        (e)  The rural home site development is annexed into a city.
  2        (3)  When  any  one  (1) of the events specified in subsection (2) of this
  3    section occurs, loss of the exemption shall become effective in the  tax  year
  4    immediately following the event which resulted in loss of the exemption.
  5        (4)  Upon annual application as provided by law, the exemption provided in
  6    this  section  shall  become  effective the first day of January following the
  7    year in which an application for the exemption is filed by the owner with  the
  8    county board of equalization in the county in which the rural home site devel-
  9    opment  is located. The application shall be filed on a form prescribed by the
 10    state tax commission. The county board of equalization may require the  person
 11    filing for the exemption to certify that such person is the owner of the prop-
 12    erty,  and  provide evidence that at the time of platting, the property quali-
 13    fied for the exemption pursuant to section 63-602K, Idaho Code.
 14        (5)  The exemption provided in this section shall not apply to land  which
 15    is  part of a platted subdivision with stated restrictions prohibiting its use
 16    for agricultural purposes.
 17        (26)  For purposes of this section, the following definitions shall apply:
 18        (a)  "Improvement" means any development of a parcel which renders it res-
 19        idential or recreational in character or use, including developing access;
 20        grading; installation of sanitary facilities, water systems or  utilities;
 21        or  landscaping,  provided  such  development  is  to an individual parcel
 22        rather than to the subdivision as a whole.
 23        (b)  "Owner" means the entity holding title to the property  at  the  time
 24        the plat was approved and recorded.
 25        (c)  "Parcel" means a lot in a rural home site development plat.
 26        (d)  "Plat"  means  the drawing, map or plan of a subdivision or a replat-
 27        ting of such, including certifications, descriptions and approvals.
 28        (be)  "Rural home site development plat" means a subdivision plat for  the
 29        development  of property outside the boundaries of an incorporated munici-
 30        pality within a county of less than one hundred thousand (100,000) popula-
 31        tion, recorded with the county recorder.
 32        (f)  "Sale" means a transfer of title from the owner as seller to  another
 33        entity, except the initial transfer to a surviving spouse or child follow-
 34        ing the death of an owner shall not be considered a sale.
                                                                        
 35        SECTION  2.  That  Section  63-604, Idaho Code, be, and the same is hereby
 36    amended to read as follows:
                                                                        
 37        63-604.  LAND ACTIVELY DEVOTED TO AGRICULTURE DEFINED.  (1)  For  property
 38    tax  purposes,  land  which  is  actively devoted to agriculture as part of an
 39    agricultural enterprise shall be eligible for appraisal, assessment and  taxa-
 40    tion  as  agricultural property each year it meets one (1) or more of the fol-
 41    lowing qualifications:
 42        (a)  The total area of such land, including the  homesite,  is  more  than
 43        five  (5)  contiguous  acres, and is actively devoted to agriculture which
 44        means:
 45             (i)   It is used to produce field crops including,  but  not  limited
 46             to, grains, feed crops, fruits and vegetables; or
 47             (ii)  It  is  used  to  produce  nursery  stock as defined in section
 48             22-2302(11), Idaho Code; or
 49             (iii) It is used by the owner for the grazing of livestock to be sold
 50             as part of a net profit-making enterprise, or is leased by the  owner
 51             to a bona fide lessee for grazing purposes; or
 52             (iv)  It is in a cropland retirement or rotation program.
 53        (b)  The  area  of such land is five (5) contiguous acres or less and such
                                                                        
                                           3
                                                                        
  1        land has been actively devoted to agriculture within the meaning  of  sub-
  2        section  (1)(a) of this section during the last three (3) growing seasons;
  3        and
  4             (i)  It agriculturally produces for  sale  or  home  consumption  the
  5             equivalent    of  fifteen  percent  (15%)  or  more of the owner's or
  6             lessee's annual gross income; or
  7             (ii) It agriculturally produced gross  revenues  in  the  immediately
  8             preceding  year  of  one  thousand dollars ($1,000) or more. When the
  9             area of land is five (5) contiguous acres or less, such land shall be
 10             presumed to be nonagricultural land until it is established that  the
 11             requirements of this subsection have been met.
 12        (2)  Except  as  provided in section 63-602FF, Idaho Code, lLand shall not
 13    be classified or valued as agricultural land which is part of a platted subdi-
 14    vision with stated restrictions prohibiting its use for agricultural purposes,
 15    whether within or without a city.
 16        (3)  Land utilized for the grazing of a horse or other animals  kept  pri-
 17    marily for personal use or pleasure rather than as part of a bona fide profit-
 18    making  agricultural  enterprise  shall  not be considered to be land which is
 19    actively devoted to agriculture.
 20        (4)  Land actively devoted to agriculture, having previously qualified for
 21    exemption under this section in the preceding year, or which would have quali-
 22    fied under this section during the current year, shall not lose such  qualifi-
 23    cation due to the owner's or lessee's absence in the current year by reason of
 24    active military service in a designated combat zone, as defined in section 112
 25    of  the Internal Revenue Code. If an owner fails to timely apply for exemption
 26    as required in this section solely by reason of active duty  in  a  designated
 27    combat  zone,  as defined in section 112 of the Internal Revenue Code, and the
 28    land would otherwise qualify for exemption under this section, then the  board
 29    of  county  commissioners  of the county in which the land actively devoted to
 30    agriculture is located shall refund property taxes, if previously paid, in  an
 31    amount equal to the exemption which would otherwise have applied.
 32        (5)  As  used in this section "contiguous" shall mean being in actual con-
 33    tact or touching along a boundary or at a point, except no area of land  shall
 34    be  considered not contiguous solely by reason of a roadway or other right-of-
 35    way.
                                                                        
 36        SECTION 3.  An emergency existing  therefor,  which  emergency  is  hereby
 37    declared to exist, this act shall be in full force and effect on and after its
 38    passage and approval, and retroactively to January 1, 2003.

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                                                     Moved by    Compton             
                                                                        
                                                     Seconded by Gannon              
                                                                        
                                                                        
                                       IN THE SENATE
                              SENATE AMENDMENT TO H.B. NO. 136
                                                                        
                                                                        
  1                               AMENDMENTS TO SECTION 1
  2        On page 1 of the printed  bill,  in  line  27,  following  "land"  insert:
  3    "within  a  rural  homesite  development plat"; delete lines 33 through 36; in
  4    line 37, delete "(b)" and insert: "(a)"; in line 38, delete "(c)" and  insert:
  5    "(b)"; and in line 39, delete "(d)" and insert: "(c)".
  6        On  page 2, in line 1, delete "(e)" and insert: "(d)"; in line 16, follow-
  7    ing "purposes." insert: "The recording of a plat of subdivision shall  not  by
  8    itself  prohibit  the  exemption.";  in  line 18, following "which" delete the
  9    remainder of the line; delete lines 19 and 20; and  in  line  21,  delete  "or
 10    landscaping"  and  insert:  "requires the issuance of a permit by the state of
 11    Idaho or the county of jurisdiction".
                                                                        
 12                                 CORRECTION TO TITLE
 13        On page 1, in line 10, following "PURPOSES" insert: ", TO PROVIDE THAT THE
 14    RECORDING OF A PLAT OF SUBDIVISION SHALL NOT BY  ITSELF  PROHIBIT  THE  EXEMP-
 15    TION".

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE
                            RS 12736
                                
The purpose of this bill is to make amendments to Section 63-
602FF and restore elements of HB488 that were inadvertently
deleted from the original house bill by HB488a as passed in the
2nd regular session of the 56th legislature. This bill specifies
the eligibility for the exemption, the requirement for an
application for exemption to be filed, the effective date of the
exemption, the events that will terminate eligibility, the
exemption from the requirement for total land area defined in
Section 63-604 (a),and the amendment to 63-604 providing
exceptions for the implementation of this act. Also defining
terms used in the act, and declaring an emergency with
retroactive application.

                          FISCAL IMPACT
There is no fiscal impact to the state general fund. Local taxing
districts will not be prevented from certifying advalorem budgets
allowed by law. However, depending on the number of eligible
subdivisions in those jurisdictions, some taxing districts may
experience a reduction in taxable value. In some instances, an
upward adjustment in the tax rate may be necessary in order for
that taxing district to generate it's certified tax charge under
law. This amendment may reduce any fiscal impact to school
districts imposed by Section 63-602FF.  




Contact
     Name: Rep. Dell Raybould 
     Phone: 332-1000







STATEMENT OF PURPOSE/FISCAL NOTE                     H 136