Print Friendly HOUSE BILL NO. 599 – Property tax, rural homesite dvlp
HOUSE BILL NO. 599
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H0599...............................................by REVENUE AND TAXATION
PROPERTY TAX - RURAL HOMESITE DEVELOPMENT - Amends existing law to specify
conditions for determining eligibility for the exemption from property
taxes for certain parcels of land in a rural homesite 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; to provide that the
reordering of a plat subdivision shall not by itself prohibit the
exemption; and to define terms.
02/02 House intro - 1st rdg - to printing
02/03 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. 599
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PARTIAL EXEMPTION FOR PARCELS OF LAND IN A RURAL HOMESITE DEVELOP-
3 MENT PLAT; AMENDING SECTION 63-602FF, IDAHO CODE, TO SPECIFY CONDITIONS
4 FOR DETERMINING ELIGIBILITY FOR THE EXEMPTION, TO SPECIFY EVENTS WHICH
5 WILL TERMINATE ELIGIBILITY, TO PROVIDE AN EFFECTIVE DATE UPON LOSS OF ELI-
6 GIBILITY FOR THE EXEMPTION, TO PROVIDE FOR APPLICATION FOR THE EXEMPTION
7 AND AN EFFECTIVE DATE, TO PROVIDE THAT THE EXEMPTION SHALL NOT APPLY TO
8 LAND WHICH IS PART OF A PLATTED SUBDIVISION IF THERE ARE RESTRICTIONS ON
9 ITS USE FOR AGRICULTURAL PURPOSES, TO PROVIDE THAT THE RECORDING OF A PLAT
10 OF SUBDIVISION SHALL NOT BY ITSELF PROHIBIT THE EXEMPTION, TO DEFINE
11 "IMPROVEMENT," "OWNER," "PARCEL," AND "SALE" AND TO MAKE TECHNICAL CORREC-
12 TIONS; AMENDING SECTION 63-604, IDAHO CODE, TO PROVIDE AN EXCEPTION TO THE
13 PROHIBITION ON CLASSIFYING OR VALUING LAND AS AGRICULTURAL WHEN IT IS PART
14 OF A RURAL HOMESITE PLATTED SUBDIVISION AND TO MAKE A TECHNICAL CORREC-
15 TION; DECLARING AN EMERGENCY AND PROVIDING A RETROACTIVE EFFECTIVE DATE.
16 Be It Enacted by the Legislature of the State of Idaho:
17 SECTION 1. That Section 63-602FF, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 63-602FF. PARTIAL EXEMPTION FOR PARCELS OF LAND IN A RURAL HOME SITE
20 HOMESITE DEVELOPMENT PLAT. (1) Each parcel of land in a rural home site
21 homesite development plat previously shall be eligible for the exemption pur-
22 suant to section 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 within a rural homesite development plat was, on
28 or after January 1, 2002, actively devoted to agriculture as defined in
29 subsection (1)(a) of section 63-604, Idaho Code, except there shall be no
30 requirement for total area of land 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 is sold by the owner; or
34 (b) The owner leases the parcel for a nonagricultural purpose; or
35 (c) Any construction which qualifies as an improvement s are being to the
36 site is built upon the parcel . Once construction of the improvements has
37 begun, no acreage in the parcel shall be eligible for the exemption pursu-
38 ant to section 63-602K, Idaho Code, unless the requirements of the exemp-
39 tion have been met.; or
40 (d) The rural homesite development is annexed into a city.
41 (3) When any one (1) of the events specified in subsection (2) of this
42 section occurs, loss of the exemption shall become effective in the tax year
43 immediately following the event which resulted in loss of the exemption.
1 (4) Upon annual application as provided by law, the exemption provided in
2 this section shall become effective the first day of January following the
3 year in which an application for the exemption is filed by the owner with the
4 county board of equalization in the county in which the rural homesite devel-
5 opment is located. The application shall be filed on a form prescribed by the
6 state tax commission. The county board of equalization may require the person
7 filing for the exemption to certify that such person is the owner of the prop-
8 erty, and provide evidence that at the time of platting, the property quali-
9 fied for the exemption pursuant to section 63-602K, Idaho Code.
10 (5) The exemption provided in this section shall not apply to land which
11 is part of a platted subdivision with stated restrictions prohibiting its use
12 for agricultural purposes. The recording of a plat of subdivision shall not by
13 itself prohibit the exemption.
14 ( 26) For purposes of this section, the following definitions shall apply:
15 (a) "Improvement" means any development of a parcel which requires the
16 issuance of a permit by the state of Idaho or the county of jurisdiction,
17 provided such development is to an individual parcel rather than to the
18 subdivision as a whole.
19 (b) "Owner" means the entity holding title to the property at the time
20 the plat was approved and recorded.
21 (c) "Parcel" means a lot in a rural homesite development plat.
22 (d) "Plat" means the drawing, map or plan of a subdivision or a replat-
23 ting of such, including certifications, descriptions and approvals.
24 ( be) "Rural home site homesite development plat" means a subdivision plat
25 for the development of property outside the boundaries of an incorporated
26 municipality within a county of less than one hundred thousand (100,000)
27 population, recorded with the county recorder.
28 (f) "Sale" means a transfer of title from the owner as seller to another
29 entity, except the initial transfer to a surviving spouse or child follow-
30 ing the death of an owner shall not be considered a sale.
31 SECTION 2. That Section 63-604, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 63-604. LAND ACTIVELY DEVOTED TO AGRICULTURE DEFINED. (1) For property
34 tax purposes, land which is actively devoted to agriculture as part of an
35 agricultural enterprise shall be eligible for appraisal, assessment and taxa-
36 tion as agricultural property each year it meets one (1) or more of the fol-
37 lowing qualifications:
38 (a) The total area of such land, including the homesite, is more than
39 five (5) contiguous acres, and is actively devoted to agriculture which
41 (i) It is used to produce field crops including, but not limited
42 to, grains, feed crops, fruits and vegetables; or
43 (ii) It is used to produce nursery stock as defined in section
44 22-2302(11), Idaho Code; or
45 (iii) It is used by the owner for the grazing of livestock to be sold
46 as part of a net profit-making enterprise, or is leased by the owner
47 to a bona fide lessee for grazing purposes; or
48 (iv) It is in a cropland retirement or rotation program.
49 (b) The area of such land is five (5) contiguous acres or less and such
50 land has been actively devoted to agriculture within the meaning of sub-
51 section (1)(a) of this section during the last three (3) growing seasons;
53 (i) It agriculturally produces for sale or home consumption the
1 equivalent of fifteen percent (15%) or more of the owner's or
2 lessee's annual gross income; or
3 (ii) It agriculturally produced gross revenues in the immediately
4 preceding year of one thousand dollars ($1,000) or more. When the
5 area of land is five (5) contiguous acres or less, such land shall be
6 presumed to be nonagricultural land until it is established that the
7 requirements of this subsection have been met.
8 (2) Except as provided in section 63-602FF, Idaho Code, l Land shall not
9 be classified or valued as agricultural land which is part of a platted subdi-
10 vision with stated restrictions prohibiting its use for agricultural purposes,
11 whether within or without a city.
12 (3) Land utilized for the grazing of a horse or other animals kept pri-
13 marily for personal use or pleasure rather than as part of a bona fide profit-
14 making agricultural enterprise shall not be considered to be land which is
15 actively devoted to agriculture.
16 (4) Land actively devoted to agriculture, having previously qualified for
17 exemption under this section in the preceding year, or which would have quali-
18 fied under this section during the current year, shall not lose such qualifi-
19 cation due to the owner's or lessee's absence in the current year by reason of
20 active military service in a designated combat zone, as defined in section 112
21 of the Internal Revenue Code. If an owner fails to timely apply for exemption
22 as required in this section solely by reason of active duty in a designated
23 combat zone, as defined in section 112 of the Internal Revenue Code, and the
24 land would otherwise qualify for exemption under this section, then the board
25 of county commissioners of the county in which the land actively devoted to
26 agriculture is located shall refund property taxes, if previously paid, in an
27 amount equal to the exemption which would otherwise have applied.
28 (5) As used in this section "contiguous" shall mean being in actual con-
29 tact or touching along a boundary or at a point, except no area of land shall
30 be considered not contiguous solely by reason of a roadway or other right-of-
32 SECTION 3. An emergency existing therefor, which emergency is hereby
33 declared to exist, this act shall be in full force and effect on and after its
34 passage and approval, and retroactively to January 1, 2004.
STATEMENT OF PURPOSE
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 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.
Name: Rep. Ken Roberts
STATEMENT OF PURPOSE/FISCAL NOTE H 599