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H0454...............................................by REVENUE AND TAXATION
OCCUPANCY TAX - Amends existing law to include occupancy of improvements or
use in storage of vehicles, boats or household goods, provided such use is
not solely related to construction or sale of the property in the
definition of "occupied" for occupancy tax purposes.
04/28 House intro - 1st rdg - to printing
Rpt prt - to 2nd rdg
Rls susp - PASSED - 69-0-1
AYES -- Andersen(Guyon), Barraclough(Schanz), Barrett, Bauer, Bedke,
Bell, Bieter, 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, Kellogg, Kulczyk, Lake, Langford, Langhorst,
Martinez(Echohawk), McGeachin, McKague, Meyer, Miller, Mitchell,
Moyle, Naccarato(Riggs), Nielsen, Raybould, Ridinger, Ring, Ringo,
Roberts, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd(Buell),
Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson,
Tilman, Trail, Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Jones
Floor Sponsor - Cuddy
Title apvd - to Senate
04/28 Senate intro - 1st rdg
Rls susp - PASSED - 30-0-5
AYES -- Andreason, Bailey, Brandt, Bunderson, Burtenshaw, Calabretta,
Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill
(Hill), Ingram, Kennedy, Little, Lodge, Malepeai, Marley, McKenzie,
McWilliams, Noh, Richardson, Schroeder, Sorensen, Stegner, Stennett,
Werk, Williams
NAYS -- None
Absent and excused -- Burkett, Keough, Noble, Pearce, Sweet
Floor Sponsor - Compton
Title apvd - to House
04/29 To enrol
04/30 Rpt enrol - Sp signed - Pres signed
05/01 To Governor
05/08 Governor signed
Session Law Chapter 364
Effective: 01/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 454
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION; AMENDING SECTION 63-317, IDAHO CODE, TO INCLUDE OCCU-
3 PANCY OF IMPROVEMENTS OR USE IN STORAGE OF VEHICLES, BOATS OR HOUSEHOLD
4 GOODS, PROVIDED SUCH USE IS NOT SOLELY RELATED TO CONSTRUCTION OR SALE OF
5 THE PROPERTY IN THE DEFINITION OF "OCCUPIED" FOR OCCUPANCY TAX PURPOSES;
6 DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 63-317, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 63-317. OCCUPANCY TAX -- PROCEDURES. (1) All real property subject to
11 property taxation shall be valued and taxed based upon its status as of Janu-
12 ary 1 of each tax year. Improvements, other than additions to existing
13 improvements, constructed upon real property shall not be subject to property
14 taxation during the year of construction other than that portion actually in
15 place as of January 1 of each calendar year.
16 (2) There is hereby levied an occupancy tax upon all newly constructed
17 and occupied residential and commercial structures, except additions to exist-
18 ing improvements, prorated for the portion of the year for which the structure
19 was occupied. The occupancy tax shall be upon those improvements for that por-
20 tion of the calendar year in which first occupancy occurs. For the purposes of
21 this section, the term "occupied" means:
22 (a) Use of the property by any person as a residence including occupancy
23 of improvements or use in storage of vehicles, boats or household goods,
24 provided such use is not solely related to construction or sale of the
25 property; or
26 (b) Use of the property for any business or commercial purpose unrelated
27 to the construction and sale of the property; or
28 (c) Any possessory use of the property for which the owner received any
29 compensation or consideration.
30 (3) The owner of any newly constructed improvement, as described in this
31 section, upon which no occupancy tax has been charged shall report to the
32 county assessor that the improvement has been occupied. As soon as practical
33 after receiving such a report, the county assessor shall appraise and deter-
34 mine the market value for assessment purposes.
35 (a) At the time the county assessor determines the market value for
36 assessment purposes of any improvement, he shall allow as an offset
37 against the market value of the improvement, the market value of any por-
38 tion of that improvement which was existing on January 1 and placed upon
39 the property roll.
40 (b) Upon completion of the appraisal, the county assessor shall notify
41 the owner of the appraisal, and further shall notify the owner of their
42 right to apply for the exemption provided in sections 63-602G and 63-602X,
43 Idaho Code. If the owner applies for and meets the requirements for such
2
1 exemption within thirty (30) days of the notification by the county asses-
2 sor, the exemption shall be extended to the newly constructed and occupied
3 residential structures in compliance with section 63-602G, Idaho Code,
4 notwithstanding limitations requiring occupancy as of January 1 of the
5 tax year.
6 (c) In the event that the owner fails to report to the county assessor
7 that the property is ready for occupancy, the assessor shall notify the
8 county board of equalization, who may impose as penalty an additional
9 amount equal to five percent (5%) of the tax for each month following the
10 date of first occupancy during which the report is not made, to a maximum
11 of twenty-five percent (25%) of the tax.
12 (4) Appeals of the market value for assessment purposes shall be resolved
13 in the same manner as all other appeals of valuation by the board of equaliza-
14 tion.
15 (5) The occupancy tax calculated upon the values set by the county asses-
16 sor, and any penalty imposed by the board of equalization shall be collected
17 in the same manner as all other property taxes.
18 (6) An occupancy tax lien shall be imposed in the manner provided in sec-
19 tion 63-206, Idaho Code.
20 (7) Occupancy taxes shall be billed, collected and distributed in the
21 same manner as all other property taxes.
22 SECTION 2. An emergency existing therefor, which emergency is hereby
23 declared to exist, this act shall be in full force and effect on and after its
24 passage and approval, and retroactively to January 1, 2003.
STATEMENT OF PURPOSE
RS 13324
The purpose of this legislation is to further clarify the
definition of occupancy of a house after construction. In some
instances the current definition is causing the assessors some
difficulty.
FISCAL IMPACT
There is no impact to the general fund.
Contact
Name: Representative Chuck Cuddy
Phone: 208-332-1191
Representative Hilde Kellogg
STATEMENT OF PURPOSE/FISCAL NOTE H 454