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H0249..................................................by REVENUE AND TAXATION
PROPERTY TAX - HOMEOWNER'S EXEMPTION - Amends existing law to provide a
residency requirement to be eligible for the fifty-fifty homeowner's property
tax exemption; and to provide an exception.
02/12 House intro - 1st rdg - to printing
02/13 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 249
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY EXEMPT FROM TAXATION; AMENDING SECTION 63-602G, IDAHO
3 CODE, TO PROVIDE A RESIDENCY REQUIREMENT TO BE ELIGIBLE FOR THE FIFTY-
4 FIFTY HOMEOWNER'S EXEMPTION WITH AN EXCEPTION; AND PROVIDING AN EFFECTIVE
5 DATE.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 63-602G, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 63-602G. PROPERTY EXEMPT FROM TAXATION -- RESIDENTIAL IMPROVEMENTS. (1)
10 During the tax year 1983 and each year thereafter, the first fifty thousand
11 dollars ($50,000) of the market value for assessment purposes of residential
12 improvements, or fifty percent (50%) of the market value for assessment pur-
13 poses of residential improvements, whichever is the lesser, shall be exempt
14 from property taxation.
15 (2) The exemption allowed by this section may be granted only if:
16 (a) The residential improvements are owner-occupied and used as the pri-
17 mary dwelling place of the owner as of January 1, provided that in the
18 event the residential improvements are owner-occupied after January 1 but
19 before April 15, the owner of the property is entitled to the exemption.
20 The residential improvements may consist of part of a multidwelling or
21 multipurpose building and shall include all of such dwelling or building
22 except any portion used exclusively for anything other than the primary
23 dwelling of the owner. The presence of an office in an owner-occupied res-
24 idential property, which office is used for multiple purposes, including
25 business and personal use, shall not prevent the owner from claiming the
26 exemption provided in this section; and
27 (b) The tax commission has certified to the board of county commissioners
28 that all properties in the county which are subject to appraisal by the
29 county assessor have, in fact, been appraised uniformly so as to secure a
30 just valuation for all property within the county; and
31 (c) The owner has certified to the county assessor by April 15 that:
32 (i) He is making application for the exemption allowed by this sec-
33 tion;
34 (ii) That the residential improvements are his primary dwelling
35 place; and
36 (iii) That he has not made application in any other county for the
37 exemption, and has not made application for the exemption on any
38 other residential improvements in the county.
39 (d) For the purpose of this section, the definition of owner shall be the
40 same definition set forth in section 63-701(7), Idaho Code.
41 When an "owner," pursuant to the provisions of section 63-701(7),
42 Idaho Code, is any person who as grantor, or whose spouse as grantor, cre-
43 ated a revocable or irrevocable trust and was named as beneficiary of that
2
1 trust, or who is a partner of a limited partnership, a member of a limited
2 liability company, or shareholder of a corporation, he or she may provide
3 proof of the trust, limited partnership, limited liability company, or
4 corporation with an affidavit stating: (i) the name of the grantor, part-
5 ner, member or shareholder; (ii) a statement that the grantor, or the
6 grantor's spouse, is the beneficiary of the trust, or the person is a
7 partner of the limited partnership, or a member of the limited liability
8 company, or a shareholder of the corporation; (iii) the grantor, the
9 grantor's spouse, partner, member or shareholder is the occupier of the
10 residential property and uses the property as the primary dwelling place
11 of the grantor, the grantor's spouse, partner, member or shareholder as of
12 January 1; and (iv) if applicable, the person holds at least a five per-
13 cent (5%) ownership in the limited partnership, limited liability company
14 or corporation.
15 The affidavit shall include the attaching of the copies of those por-
16 tions of the trust or other document which set forth the grantor, the
17 grantor or the grantor's spouse as beneficiary and the signature page of
18 the trust or other document; those portions of the articles of organiza-
19 tion or operating agreement of the limited liability company indicating
20 the person's membership in the company and the ownership percentage held
21 by such person; those portions of the limited partnership agreement or
22 other records of the limited partnership indicating that the person has
23 been admitted to the partnership and the ownership percentage held by such
24 person; or those portions of the articles of incorporation indicating that
25 the person is a shareholder of the corporation and the ownership percent-
26 age held by such person.
27 (e) The owner has been a resident of this state for the two (2) years
28 preceding application or by other compelling evidence acceptable to the
29 county assessor. The provisions of this paragraph shall not apply to per-
30 sons who do not meet the residency requirement provided in this paragraph
31 but who have previously been granted the exemption in this state pursuant
32 to this section.
33 (f) Any owner may request in writing the return of all copies of any doc-
34 uments submitted with the affidavit set forth in paragraph (d) of this
35 subsection that are held by a county assessor, and the copies shall be
36 returned by the county assessor upon submission of the affidavit in proper
37 form.
38 (fg) For the purpose of this section, the definition of "primary dwelling
39 place" shall be the same definition set forth in section 63-701(8), Idaho
40 Code.
41 (gh) For the purpose of this section, the definition of "occupied" shall
42 be the same definition set forth in section 63-701(6), Idaho Code.
43 (3) An owner need only make application for the exemption described in
44 subsection (1) of this section once, as long as all of the following condi-
45 tions are met:
46 (a) The owner has received the exemption during the previous year as a
47 result of his making a valid application as defined in subsection (2)(c)
48 of this section.
49 (b) The owner or beneficiary, partner, member or shareholder, as appro-
50 priate, still occupies the same residential improvements for which the
51 owner made application.
52 (c) The residential improvements described in subsection (3)(b) of this
53 section are owner-occupied or occupied by a beneficiary, partner, member
54 or shareholder, as appropriate, and used as the primary dwelling place of
55 the owner or beneficiary, partner, member or shareholder, as appropriate,
3
1 as of January 1; provided however, that in the event the residential
2 improvements are owner-occupied after January 1, but before April 15, the
3 owner of the property is entitled to the exemption.
4 (d) The owner continues to reside in this state.
5 (4) The exemption allowed by this section must be taken before the reduc-
6 tion in taxes provided by sections 63-701 through 63-710, Idaho Code, is
7 applied.
8 (5) The legislature declares that this exemption is necessary and just.
9 (6) Residential improvements having previously qualified for exemption
10 under this section in the preceding year, shall not lose such qualification
11 due to the owner's, beneficiary's, partner's, member's or shareholder's
12 absence in the current year by reason of active military service in a desig-
13 nated combat zone, as defined in section 112 of the Internal Revenue Code. If
14 an owner fails to timely apply for exemption as required in this section
15 solely by reason of active duty in a designated combat zone by the owner, ben-
16 eficiary, partner, member or shareholder, as appropriate, as defined in sec-
17 tion 112 of the Internal Revenue Code, and such improvements would have other-
18 wise qualified under this section, then the board of county commissioners of
19 the county in which the residential improvements are located shall refund
20 property taxes, if previously paid, in an amount equal to the exemption which
21 would otherwise have applied.
22 SECTION 2. This act shall be in full force and effect on and after Janu-
23 ary 1, 2004.
STATEMENT OF PURPOSE
RS 12645
The purpose of this legislation is to ensure that the homeowner's
exemption is being taken by those who actually live in the home.
There is anecdotal evidence that suggests that the homeowner's
exemption is being taken inappropriately by people that actually live
and work in another state and have second homes in Idaho.
FISCAL IMPACT
It is projected that income from property taxes would increase as
people who are inappropriately claiming the homeowner's exemption
would pay their full share of those taxes. This, in theory, would
require less taxes from other property tax payers to pay the bills of
our schools and counties as well as lessen the draw on the state's
general funds for public education dollars.
Contact
Name: Senator Shawn Keough
Phone: 332 1000
STATEMENT OF PURPOSE/FISCAL NOTE H 249