2003 Legislation
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HOUSE BILL NO. 249 – Proprty tax/homeownr exmptn/residnt


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Daily Data Tracking History

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

Bill Text

  ||||              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
  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:
 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
  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,
  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 / Fiscal Impact

                      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.

            Name:     Senator Shawn Keough
                  Phone:    332 1000