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H0302...............................................by REVENUE AND TAXATION
PROPERTY TAX - APPEALS - Amends existing law to provide that in an appeal
taken regarding valuation of property for property tax purposes, the burden
of proof shall fall on the party seeking affirmative relief; to provide
standards; and to provide for procedures.
02/25 House intro - 1st rdg - to printing
02/26 Rpt prt - to Rev/Tax
03/07 Rpt out - rec d/p - to 2nd rdg
03/10 2nd rdg - to 3rd rdg
03/12 3rd rdg - PASSED - 44-21-5
AYES -- Barraclough, Barrett, Bauer, Bell, Block, Bolz, Campbell,
Clark, Collins, Cuddy, Deal, Denney, Douglas, Eberle, Ellsworth,
Eskridge, Field(18), Field(23), Harwood, Jones, Kellogg, Kulczyk,
Lake, McGeachin, McKague, Meyer, Moyle, Raybould, Ring, Ringo,
Roberts, Robison, Sali, Sayler, Schaefer, Shepherd, Shirley,
Smith(30), Smith(24), Smylie, Snodgrass, Tilman, Wills, Mr. Speaker
NAYS -- Andersen, Bieter, Boe, Bradford, Cannon, Edmunson, Garrett,
Henbest, Jaquet, Langford, Langhorst(Wallace), Martinez, Miller,
Mitchell, Naccarato, Nielsen, Ridinger, Rydalch, Skippen, Stevenson,
Trail
Absent and excused -- Bedke, Black, Crow, Gagner, Wood
Floor Sponsor - Raybould
Title apvd - to Senate
03/13 Senate intro - 1st rdg - to Loc Gov
03/20 Rpt out - rec d/p - to 2nd rdg
03/21 2nd rdg - to 3rd rdg
03/28 3rd rdg - PASSED - 28-5-2
AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Cameron,
Compton, Darrington, Davis, Gannon, Goedde, Hill, Ingram, Kennedy,
Keough, Lodge, Malepeai, Marley, McKenzie, McWilliams, Noble, Pearce,
Richardson, Schroeder, Sorensen, Stegner, Stennett, Sweet
NAYS -- Burtenshaw, Geddes, Little, Noh, Werk
Absent and excused -- Calabretta, Williams
Floor Sponsors - Ingram & Sweet
Title apvd - to House
03/31 To enrol
04/01 Rpt enrol - Sp signed
04/02 Pres signed
04/03 To Governor
04/08 Governor signed
Session Law Chapter 266
Effective: 04/08/03 for all appeals filed after
that date and all appeals pending and not yet
decided as of 04/08/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 302
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAX APPEALS; AMENDING SECTION 63-409, IDAHO CODE, TO
3 PROVIDE THAT IN AN APPEAL TAKEN REGARDING VALUATIONS OF OPERATING PROPERTY
4 THE BURDEN OF PROOF SHALL FALL ON THE PARTY SEEKING AFFIRMATIVE RELIEF, TO
5 PROVIDE STANDARDS AND TO PROVIDE FOR PROCEDURES; AMENDING SECTION 63-502,
6 IDAHO CODE, TO PROVIDE THAT IN AN APPEAL TO THE BOARD OF EQUALIZATION THE
7 TAXPAYER SHALL HAVE THE BURDEN OF PROOF IN SEEKING AFFIRMATIVE RELIEF AND
8 TO PROVIDE A STANDARD OF EVIDENCE; AMENDING SECTION 63-511, IDAHO CODE, TO
9 PROVIDE THAT IN APPEALS TAKEN TO THE BOARD OF TAX APPEALS OR DISTRICT
10 COURT, THE BURDEN OF PROOF SHALL FALL UPON THE PARTY SEEKING AFFIRMATIVE
11 RELIEF, TO PROVIDE STANDARDS AND TO PROVIDE PROCEDURES; AMENDING SECTION
12 63-3812, IDAHO CODE, TO PROVIDE THAT THE BURDEN OF PROOF SHALL FALL UPON
13 THE PARTY SEEKING AFFIRMATIVE RELIEF, TO PROVIDE STANDARDS AND TO PROVIDE
14 FOR PROCEDURES; DECLARING AN EMERGENCY AND PROVIDING APPLICATION.
15 Be It Enacted by the Legislature of the State of Idaho:
16 SECTION 1. That Section 63-409, Idaho Code, be, and the same is hereby
17 amended to read as follows:
18 63-409. APPEALS FROM STATE TAX COMMISSION VALUATIONS OF OPERATING PROP-
19 ERTY. (1) Any taxpayer or county assessor who is aggrieved by a state tax com-
20 mission decision assessing a taxpayer's operating property may file an appeal
21 to the district court of Ada county or, if such operating property is located
22 in only one (1) county, to the district court in and for the county in which
23 such operating property is located. The appeal shall be filed within thirty
24 (30) days after service upon the taxpayer of the decision. The appeal may be
25 based upon any issue presented by the taxpayer to the state tax commission and
26 shall be heard by the district court in a trial de novo without a jury in the
27 same manner as though it were an original proceeding in that court. Nothing in
28 this section shall be construed to suspend the payment of taxes pending
29 appeal. Payment of taxes while an appeal hereunder is pending shall not oper-
30 ate to waive the right to an appeal. Any final order of the district court
31 under this section shall be subject to appeal to the Idaho supreme court in
32 the manner provided by the Idaho appellate rules.
33 (2) In any appeal taken pursuant to this section, the burden of proof
34 shall fall upon the party seeking affirmative relief to establish that the
35 valuation from which the appeal is taken is erroneous, or that the state tax
36 commission erred in its decision regarding a claim that certain property is
37 exempt from taxation, the value thereof, or any other relief sought before the
38 state tax commission. A preponderance of the evidence shall suffice to sustain
39 the burden of proof. The burden of proof shall fall upon the party seeking
40 affirmative relief and the burden of going forward with the evidence shall
41 shift as in other civil litigation. The district court shall render its deci-
42 sion in writing, including therein a concise statement of the facts found by
43 the court and the conclusions of law reached by the court. The court may
2
1 affirm, reverse, modify, or remand any order of the state tax commission, and
2 shall grant other relief, invoke such other remedies and issue such orders, in
3 accordance with its decision, as appropriate.
4 SECTION 2. That Section 63-502, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 63-502. FUNCTION OF BOARD OF EQUALIZATION ON ASSESSMENTS. The function of
7 the board of equalization shall be confined strictly to assuring that the mar-
8 ket value for assessment purposes of property has been found by the assessor,
9 and to the functions provided for in chapter 6, title 63, Idaho Code, relating
10 to exemptions from taxation. It is hereby made the duty of the board of equal-
11 ization to enforce and compel a proper classification and assessment of all
12 property required under the provisions of this title to be entered on the
13 property rolls, and in so doing, the board of equalization shall examine the
14 rolls and shall raise or cause to be raised, or lower or cause to be lowered,
15 the assessment of any property which in the judgment of the board has not been
16 properly assessed. The board of equalization must examine and act upon all
17 complaints filed with the board in regard to the assessed value of any prop-
18 erty entered on the property rolls and must correct any assessment improperly
19 made. The taxpayer shall have the burden of proof in seeking affirmative
20 relief to establish that the determination of the assessor is erroneous,
21 including any determination of assessed value. A preponderance of the evidence
22 shall suffice to sustain the burden of proof.
23 SECTION 3. That Section 63-511, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 63-511. APPEALS FROM COUNTY BOARD OF EQUALIZATION. (1) Any time within
26 thirty (30) days after mailing of notice of a decision of the board of equal-
27 ization, or pronouncement of a decision announced at a hearing, an appeal of
28 any act, order or proceeding of the board of equalization, or the failure of
29 the board of equalization to act may be taken to the board of tax appeals.
30 Such appeal may only be filed by the property owner, the assessor, the state
31 tax commission or by a person aggrieved when he deems such action illegal or
32 prejudicial to the public interest. Nothing in this section shall be construed
33 so as to suspend the payment of property taxes pending said appeal.
34 (2) Notice of such appeal stating the grounds therefor shall be filed
35 with the county auditor, who shall forthwith transmit to the board of tax
36 appeals a copy of said notice, together with a certified copy of the minutes
37 of the proceedings of the board of equalization resulting in such act, order
38 or proceeding, or a certificate to be furnished by the clerk of the board that
39 said board of equalization has failed to act in the time required by law on
40 any complaint, protest, objection, application or petition in regard to
41 assessment of the complainant's property, or a petition of the state tax com-
42 mission. The county auditor shall also forthwith transmit all evidence taken
43 in connection with the matter appealed. The county auditor shall submit all
44 such appeals to the board of tax appeals within thirty (30) days of being
45 notified of the appeal or by no later than October 1, whichever is later. The
46 board of tax appeals may receive further evidence and will hear the appeal as
47 provided in chapter 38, title 63, Idaho Code.
48 (3) Any appeal that may be taken to the board of tax appeals may, during
49 the same time period, be taken to the district court for the county in which
50 the property is located.
51 (4) In any appeal taken to the board of tax appeals or the district court
3
1 pursuant to this section, the burden of proof shall fall upon the party seek-
2 ing affirmative relief to establish that the valuation from which the appeal
3 is taken is erroneous, or that the board of equalization erred in its decision
4 regarding a claim that certain property is exempt from taxation, the value
5 thereof, or any other relief sought before the board of equalization. A pre-
6 ponderance of the evidence shall suffice to sustain the burden of proof. The
7 burden of proof shall fall upon the party seeking affirmative relief and the
8 burden of going forward with the evidence shall shift as in other civil liti-
9 gation. The board of tax appeals or the district court shall render its deci-
10 sion in writing, including therein a concise statement of the facts found by
11 the court and the conclusions of law reached by the court. The board of tax
12 appeals or the court may affirm, reverse, modify or remand any order of the
13 board of equalization, and shall grant other relief, invoke such other reme-
14 dies, and issue such orders in accordance with its decision, as appropriate.
15 SECTION 4. That Section 63-3812, Idaho Code, be, and the same is hereby
16 amended to read as follows:
17 63-3812. APPEAL FROM BOARD -- PAYMENT OF TAXES WHILE ON APPEAL. Whenever
18 any taxpayer, assessor, the state tax commission or any other party appearing
19 before the board of tax appeals is aggrieved by a decision of the board of tax
20 appeals or a decision on a motion for rehearing, an appeal may be taken to the
21 district court located in the county of residence of the affected taxpayer, or
22 to the district court in and for the county in which property affected by an
23 assessment is located. The appeal shall be taken and perfected in the follow-
24 ing manner:
25 (a) The appellant shall cause notice specifying the grounds of appeal to
26 be filed with the appropriate district court and shall forthwith serve copies
27 of the notice with the clerk of the board of tax appeals and with all other
28 party to the proceeding before the board within twenty-eight (28) days after
29 copy of the final decision of the board shall have been deposited in the mail.
30 The petition for judicial review shall conform with the requirements of the
31 Idaho rules of civil procedure, including rule 84(e). The grounds of appeal
32 specified in such notice shall frame the issues for such appeal.
33 (b) Any record made in such matter together with the record of all pro-
34 ceedings shall be filed by the clerk with the district court of the proper
35 county.
36 (c) Appeals may be based upon any issue presented by the appellant to the
37 board of tax appeals and shall be heard and determined by the court without a
38 jury in a trial de novo on the issues in the same manner as though it were an
39 original proceeding in that court. The burden of proof shall fall upon the
40 party seeking affirmative relief to establish that the decision made by the
41 board of tax appeals is erroneous. A preponderance of the evidence shall suf-
42 fice to sustain the burden of proof. The burden of proof shall fall upon the
43 party seeking affirmative relief and the party going forward with the evidence
44 shall shift as in other civil litigation. The court shall render its decision
45 in writing, including therein a concise statement of the facts found by the
46 court and conclusions of law reached by the court. The court may affirm,
47 reverse or modify the order, direct the tax collector of the county or the
48 state tax commission to refund any taxes found in such appeal to be errone-
49 ously or illegally assessed or collected or may direct the collection of addi-
50 tional taxes in proper cases.
51 (d) Nothing in this section shall be construed to suspend the payment of
52 taxes pending any appeal, except that any privileges as to bonds or other
53 rights extended by the provisions of chapters 30 and 36, title 63, Idaho Code,
4
1 shall not be affected. Payment of taxes while an appeal hereunder is pending
2 shall not operate to waive the right to an appeal.
3 (e) Any final order of the district court under this section shall be
4 subject to appeal to the supreme court in the manner provided by law.
5 SECTION 5. An emergency existing therefor, which emergency is hereby
6 declared to exist, this act shall be in full force and effect on and after its
7 passage and approval and shall apply to all appeals filed after such date and
8 to all appeals pending but not yet decided as of such date.
STATEMENT OF PURPOSE
RS 12964
Identifies the standard to be applied and the burden of proof in
appeals of property tax assessments to the County Board of
Equalization, the Board of Tax Appeals or the district court.
This legislation changes the legal standard from one that
requires proof that an assessment is manifestly excessive,
arbitrary and capricious, or fraudulent and oppressive, to one
that requires simply that the assessment is erroneous. It
changes the burden of proof to satisfy that standard from a
"clear and convincing" burden to the normal "preponderance of the
evidence" standard applicable to most civil cases.
FISCAL IMPACT
There is no fiscal impact.
Contact
Name: Rep. Dell Raybould
Rep. Mike Moyle
Rep. Bill Deal
Rep. George Eskridge
Rep. Debbie Field
Rep. Dolores Crow
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 302