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H0594...........................................................by LANGFORD
AGRICULTURAL LAND PRESERVATION TAX - Adds to and amends existing law to
allow county commissioners of certain counties to subject certain formerly
agricultural lands to an agricultural land preservation tax.
01/30 House intro - 1st rdg - to printing
02/02 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 594
BY LANGFORD
1 AN ACT
2 RELATING TO THE VALUATION OF LAND ACTIVELY DEVOTED TO AGRICULTURE; AMENDING
3 TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 43, TITLE 63, IDAHO
4 CODE, TO DEFINE THE AGRICULTURAL LAND PRESERVATION TAX, TO AUTHORIZE THE
5 BOARD OF COUNTY COMMISSIONERS OF CERTAIN COUNTIES TO SUBJECT CERTAIN FOR-
6 MERLY AGRICULTURAL LANDS TO THE TAX AND TO PROVIDE THAT THE TAX IS A PROP-
7 ERTY TAX UNDER SECTION 63-206, IDAHO CODE, TO PROVIDE THE METHOD OF COMPU-
8 TATION OF THE TAX, TO PROVIDE FOR THE REMITTANCE OF THE REVENUE COLLECTED
9 FROM THE TAX, TO PROVIDE THE RIGHT TO REVIEW THE JUDGMENT PROCEDURE IN THE
10 DETERMINATION OF THE TAX, TO PROVIDE FOR THE CONTINUATION OF VALUATION AS
11 LAND ACTIVELY DEVOTED TO AGRICULTURE AFTER THE SALE OF THE LAND WHEN THE
12 AGRICULTURAL USE IS MAINTAINED AND TO PROVIDE FOR APPLICATION OF THE TAX
13 TO THE PORTION OF THE LAND WITHDRAWN FROM USE FOR AGRICULTURAL PURPOSES;
14 AMENDING SECTION 63-802, IDAHO CODE, TO PROVIDE AN EXCEPTION TO THE THREE
15 PERCENT CAP FOR CERTAIN COUNTIES THAT COLLECT THE AGRICULTURAL LAND PRES-
16 ERVATION TAX; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICA-
17 TION.
18 Be It Enacted by the Legislature of the State of Idaho:
19 SECTION 1. That Title 63, Idaho Code, be, and the same is hereby amended
20 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
21 ter 43, Title 63, Idaho Code, and to read as follows:
22 CHAPTER 43
23 AGRICULTURAL LAND PRESERVATION TAX
24 63-4301. AGRICULTURAL LAND PRESERVATION TAX DEFINED. The board of county
25 commissioners of any county with a population of less than twenty thousand
26 (20,000) according to the 2000 census figures and a total taxable value in the
27 current tax year of less than two billion five hundred million dollars
28 ($2,500,000,000) and a growth in taxable value of at least fifteen percent
29 (15%) in either the current tax year or the previous tax year which taxable
30 value shall include the value of property exempt pursuant to section 63-602EE,
31 Idaho Code, as established in tax year 2001, may, by adoption of an ordinance,
32 subject land which is or has been valued as land actively devoted to agricul-
33 ture and which is subsequently applied to a use other than agricultural use,
34 if such land does not otherwise qualify for an exemption pursuant to chapter
35 6, title 63, Idaho Code, other than the exemption provided by section 63-602G,
36 Idaho Code, to an additional tax to be referred to as the "agricultural land
37 preservation tax," which tax shall be treated as a property tax under section
38 63-206, Idaho Code, and become due and payable at the time of the change in
39 use. A county shall adopt an ordinance annually if it wishes to impose the
40 agricultural land preservation tax.
41 63-4302. COMPUTATION OF AGRICULTURAL LAND PRESERVATION TAX. (1) The
2
1 county assessor shall supply to the county auditor the valuation that would
2 have been assessed on the land for the immediately preceding tax year had the
3 land not been valued as land actively devoted to agriculture for the year pre-
4 ceding the change in use of the land.
5 (2) The county auditor shall ascertain the amount of the agricultural
6 land preservation tax chargeable on the land for which the land use has
7 changed by computing the difference between the tax paid while the land was
8 valued as actively devoted to agriculture and that which would have been paid
9 during the immediately preceding five (5) tax years had the land not been so
10 valued.
11 (3) The county treasurer shall collect the agricultural land preserva-
12 tion tax. After collecting the tax, the county treasurer shall certify to the
13 county recorder that the agricultural land preservation tax lien on the prop-
14 erty has been satisfied.
15 63-4303. REMITTANCE OF AGRICULTURAL LAND PRESERVATION TAX. The agricul-
16 tural land preservation tax collected pursuant to this chapter shall be depos-
17 ited in the county current expense fund.
18 63-4304. RIGHT TO REVIEW. The assessment of the agricultural land preser-
19 vation tax, the attachment of the lien for such tax, and the right of the
20 owner or other interested party to review decisions of the county assessor and
21 the county board of equalization affecting the agricultural land preservation
22 tax shall be governed by the same procedure provided for the assessment and
23 taxation of real property not valued and taxed under the provisions of this
24 chapter.
25 63-4305. EFFECT OF SALE ON LAND. (1) Continuance of valuation and taxa-
26 tion of land as land actively devoted to agriculture shall depend upon the
27 continuance of compliance with the requirements of section 63-604, Idaho Code,
28 and not upon continuance in the same ownership of the land.
29 (2) Liability to the agricultural land preservation tax shall attach when
30 a change in use of the land occurs but not when property is sold, provided the
31 land continues to qualify as land actively devoted to agriculture.
32 63-4306. SEPARATION OF LAND -- USE OF A PART FOR OTHER THAN AGRICULTURAL
33 PURPOSES. Separation or division of a part of the land, which is valued as
34 land actively devoted to agriculture, either by conveyance or for any other
35 reason, for use other than agricultural, shall subject the land so separated
36 to the agricultural land preservation tax applicable thereto but shall not
37 impair the right of the remaining land to continuing valuation as land activ-
38 ely devoted to agriculture provided it meets the requirements of section
39 63-604, Idaho Code.
40 SECTION 2. That Section 63-802, Idaho Code, be, and the same is hereby
41 amended to read as follows:
42 63-802. LIMITATION ON BUDGET REQUESTS -- LIMITATION ON TAX CHARGES --
43 EXCEPTIONS. (1) Except as provided in subsection (3) of this section for tax
44 year 1995, and each year thereafter, no taxing district shall certify a budget
45 request for an amount of property tax revenues to finance an annual budget
46 that exceeds the greater of:
47 (a) The dollar amount of property taxes certified for its annual budget
48 for any one (1) of the three (3) tax years preceding the current tax
49 year, whichever is greater, which amount may be increased by a growth fac-
3
1 tor of not to exceed three percent (3%) plus the amount of revenue that
2 would have been generated by applying the levy of the previous year, not
3 including any levy described in subsection (4) of this section, to any
4 increase in market value subject to taxation resulting from new construc-
5 tion or change of land use classification as evidenced by the value shown
6 on the new construction roll compiled pursuant to section 63-301A, Idaho
7 Code; and by the value of annexation during the previous calendar year,
8 as certified by the state tax commission for market values of operating
9 property of public utilities and by the county assessor; or
10 (b) The dollar amount of property taxes certified for its annual budget
11 during the last year in which a levy was made; or
12 (c) The dollar amount of the actual budget request, if the taxing dis-
13 trict is newly created; or
14 (d) In the case of school districts, the restriction imposed in section
15 33-802, Idaho Code; or
16 (e) In the case of a nonschool district for which less than the maximum
17 allowable increase in the dollar amount of property taxes is certified
18 for annual budget purposes in any one (1) year, such a district may, in
19 any following year, recover the foregone increase by certifying, in addi-
20 tion to any increase otherwise allowed, an amount not to exceed one hun-
21 dred percent (100%) of the increase originally foregone. Said additional
22 amount shall be included in future calculations for increases as allowed;
23 or
24 (f) In the case of cities, if the immediately preceding year's levy sub-
25 ject to the limitation provided by this section, is less than 0.004, the
26 city may increase its budget by an amount not to exceed the difference
27 between 0.004 and actual prior year's levy multiplied by the prior year's
28 market value for assessment purposes. The additional amount must be
29 approved by sixty percent (60%) of the voters voting on the question at an
30 election called for that purpose and held on the date in May or November
31 provided by law, and may be included in the annual budget of the city for
32 purposes of this section; or
33 (g) A library district may submit to the electors within the district the
34 question of whether the budget from property tax revenues may be increased
35 beyond the amount authorized in this section, but not beyond the levy
36 authorized in section 33-2724, Idaho Code. The additional amount must be
37 approved by sixty-six and two-thirds percent (66 2/3%) or more of the
38 voters voting on the question at an election called for that purpose and
39 held on the May or November dates provided by section 34-106, Idaho Code.
40 If approved by the required minimum sixty-six and two-thirds percent
41 (66 2/3%) of the voters voting at the election, the new budget amount
42 shall be the base budget for the purposes of this section; or
43 (h) In the instance or case of cooperative service agencies, the restric-
44 tions imposed in sections 33-315 through 33-318, Idaho Code.
45 (2) In the case of fire districts, during the year immediately following
46 the election of a public utility or public utilities to consent to be provided
47 fire protection pursuant to section 31-1422, Idaho Code, the maximum amount of
48 property tax revenues permitted in subsection (1) of this section may be
49 increased by an amount equal to the current year's taxable value of the con-
50 senting public utility or public utilities multiplied by that portion of the
51 prior year's levy subject to the limitation provided by subsection (1) of this
52 section.
53 (3) In the case of counties with a population of less than twenty thou-
54 sand (20,000) according to the 2000 census figures and a total taxable value
55 in the current tax year of less than two billion five hundred million dollars
4
1 ($2,500,000,000) and a growth in taxable value of at least fifteen percent
2 (15%) in either the current tax year or the previous tax year which taxable
3 value shall include the value of property exempt pursuant to section 63-602EE,
4 Idaho Code, as established in tax year 2001, the amount of moneys collected
5 from the agricultural land preservation tax pursuant to chapter 43, title 63,
6 Idaho Code, shall not be considered property tax revenues for the purposes of
7 this section.
8 (4) No board of county commissioners shall set a levy, nor shall the
9 state tax commission approve a levy for annual budget purposes which exceeds
10 the limitation imposed in subsection (1) of this section, unless authority to
11 exceed such limitation has been approved by a majority of the taxing
12 district's electors voting on the question at an election called for that pur-
13 pose and held pursuant to section 34-106, Idaho Code, provided however, that
14 such voter approval shall be for a period of not to exceed two (2) years.
15 (45) The amount of property tax revenues to finance an annual budget does
16 not include revenues from nonproperty tax sources, and does not include reve-
17 nue from levies that are voter approved for bonds, override levies or supple-
18 mental levies, plant facilities reserve fund levies, school emergency fund
19 levies or for levies applicable to newly annexed property or for levies appli-
20 cable to new construction as evidenced by the value of property subject to the
21 occupancy tax pursuant to section 63-317, Idaho Code, for the preceding tax
22 year.
23 SECTION 3. An emergency existing therefor, which emergency is hereby
24 declared to exist, this act shall be in full force and effect on and after its
25 passage and approval, and retroactively to January 1, 2004.
STATEMENT OF PURPOSE
RS 13815
The purpose of this legislation in to add a new chapter to Title 63,
Chapter 43, Idaho Code, and to amend Section 63-802, Idaho Code;
thereby allowing rapidly-growing, small counties to encourage the
preservation of agricultural land and to help said counties to recover
a portions of the cost of providing for a rapidly-growing population.
FISCAL IMPACT
There is no impact to the state general fund. The impact at the county
level will depend on the amount of land transferred in qualifying
counties that decide to exercise the option provided by this
legislation.
Contact
Name: Eulalie Langford
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 594