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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
|||| 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.
|||| 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
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