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H0650...............................................by REVENUE AND TAXATION REAL PROPERTY - TRANSFERS - Adds to and amends existing law relating to the transfer of real property to provide a statement of intent; to provide definitions; to provide for reporting of a transfer and change in ownership records; to provide for a property transfer certificate whereby the purchaser discloses the sales price or declares that the information is exempt from disclosure; to provide confidentiality; to provide civil and criminal penalties; and to provide that property transfer certificates are exempt from disclosure. 02/11 House intro - 1st rdg - to printing 02/12 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. 650 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO TRANSFER OF REAL PROPERTY; AMENDING CHAPTER 3, TITLE 63, IDAHO 3 CODE, BY THE ADDITION OF A NEW SECTION 63-307A, IDAHO CODE, TO PROVIDE A 4 STATEMENT OF INTENT, TO PROVIDE DEFINITIONS, TO PROVIDE FOR A REPORT OF 5 TRANSFERS AND CHANGE IN OWNERSHIP RECORDS, TO PROVIDE FOR A PROPERTY 6 TRANSFER CERTIFICATE, TO PROVIDE FOR EXEMPTIONS FROM DISCLOSURE OF VALUE, 7 TO PROHIBIT DISCLOSURE OF INFORMATION AND TO PROVIDE PENALTIES; AND AMEND- 8 ING SECTION 9-340D, IDAHO CODE, TO EXEMPT FROM DISCLOSURE PROPERTY TRANS- 9 FER CERTIFICATES FILED PURSUANT TO SECTION 63-307A, IDAHO CODE. 10 Be It Enacted by the Legislature of the State of Idaho: 11 SECTION 1. That Chapter 3, Title 63, Idaho Code, be, and the same is 12 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 13 ignated as Section 63-307A, Idaho Code, and to read as follows: 14 63-307A. CHANGE OF OWNERSHIP -- TRANSFER OF REAL PROPERTY -- DISCLOSURE. 15 (1) The purpose of this section is to comply with the dictates of the consti- 16 tution of the state of Idaho and the requirements of sections 63-314 and 17 63-315, Idaho Code, by establishing a procedure to obtain sales price data 18 necessary to ensure that all parcels of property under the assessor's juris- 19 diction are appraised and assessed at current market value and that the 20 adjusted market value annually certified to the state department of education 21 is accurately determined. Information received under this procedure shall not 22 be used for the assessment or collection of either a transfer tax or an excise 23 tax by the state of Idaho or any of its political subdivisions. In addition, 24 the assessor shall screen each sale to be used for the annual ratio study in 25 accordance with nationally accepted published standards to ensure that the 26 sale price is a valid indicator of market value. 27 (2) As used in this section: 28 (a) "Property transfer certificate" means a form designed by the state 29 tax commission required for statewide use by all county assessors, and 30 which requires the person making the certification to declare the sale 31 price or state that the transfer is exempt from disclosure of the value as 32 provided in this section. 33 (b) "Purchaser" means one who has become an owner of real property 34 through taking title by deed, grant or contract of sale of real property 35 for an agreed upon sales price. 36 (c) "Sale price" means the amount of the sale price attributable to real 37 and personal property therefore paid or to be paid, including the amount 38 of any lien or liens thereon. 39 (d) "Transfer" means an act of the parties or of the law in which title 40 to real property or ownership in real property is conveyed from one (1) 41 person to another. 42 (3) All transfers of real property, including the transfer of a partial 43 interest, executed by the purchaser after January 1, 2005, shall be reported 2 1 and delivered to the office of the county assessor in the county in which the 2 real property is located on a property transfer certificate as defined in this 3 section. All property transfer certificates shall be delivered to the office 4 of the county assessor within thirty (30) days from the closing of the trans- 5 fer of real property. 6 (4) The purchaser, who is a party to the real property transfer, shall 7 cause to be delivered to the county assessor within thirty (30) days from the 8 closing of the transfer of real property, a property transfer certificate 9 declaring the consideration paid for the real property transferred or claiming 10 an exemption from disclosure. 11 (5) The disclosure of value required by this section shall not apply to: 12 (a) An instrument executed by the purchaser prior to January 1, 2005. 13 (b) A transfer not requiring a name change or change of ownership on the 14 assessor's property records as provided in section 63-307, Idaho Code. 15 (6) The certificate required by this section and the information therein 16 shall be held confidential by the county assessor not to be disclosed except 17 as follows: 18 (a) To Idaho licensed or certified appraisers; 19 (b) To Idaho licensed realtors and real estate brokers; 20 (c) To the Idaho state tax commission; 21 (d) To a person owning at least a five percent (5%) ownership in the 22 property; 23 (e) To the board of equalization, the board of tax appeals, and the Idaho 24 system of courts having jurisdiction over property tax matters or to the 25 appellant taxpayer who has filed an appeal concerning property tax or 26 assessments at any of these appellate levels. Provided however, summaries, 27 analyses and evaluations of data drawn from the certificates are not con- 28 fidential. 29 (7) (a) If an Idaho court finds that any public official has willfully or 30 intentionally disclosed information protected from disclosure by subsec- 31 tion (6) of this section, a civil penalty may be assessed by the court 32 against that official in an amount not to exceed one thousand dollars 33 ($1,000) which shall, upon collection, be paid into the county's general 34 fund, or in the case of Idaho state level officials, as the court may 35 direct. 36 (b) A purchaser who willfully makes a false statement on the certificate 37 declaring the consideration paid for the real property transferred, or who 38 claims an exemption from disclosure knowing that the transfer is not one 39 in which an exemption applies, shall be guilty of a misdemeanor. Failure, 40 by the purchaser, to deliver the property transfer certificate to the 41 office of the county assessor within thirty (30) days from the closing of 42 the transfer, shall be subject to a civil penalty of one hundred dollars 43 ($100) plus court costs and attorney's fees and enforceable by the prose- 44 cuting attorney as a civil judgment through the district court of the 45 county wherein the property is located. 46 SECTION 2. That Section 9-340D, Idaho Code, be, and the same is hereby 47 amended to read as follows: 48 9-340D. RECORDS EXEMPT FROM DISCLOSURE -- TRADE SECRETS, PRODUCTION 49 RECORDS, APPRAISALS, BIDS, PROPRIETARY INFORMATION. The following records are 50 exempt from disclosure: 51 (1) Trade secrets including those contained in response to public agency 52 or independent public body corporate and politic requests for proposal, 53 requests for clarification, requests for information and similar requests. 3 1 "Trade secrets" as used in this section means information, including a for- 2 mula, pattern, compilation, program, computer program, device, method, tech- 3 nique, process, or unpublished or in progress research that: 4 (a) Derives independent economic value, actual or potential, from not 5 being generally known to, and not being readily ascertainable by proper 6 means by other persons who can obtain economic value from its disclosure 7 or use; and 8 (b) Is the subject of efforts that are reasonable under the circumstances 9 to maintain its secrecy. 10 (2) Production records, housing production, rental and financing records, 11 sale or purchase records, catch records, mortgage portfolio loan documents, or 12 similar business records of a private concern or enterprise required by law to 13 be submitted to or inspected by a public agency or submitted to or otherwise 14 obtained by an independent public body corporate and politic. Nothing in this 15 subsection shall limit the use which can be made of such information for regu- 16 latory purposes or its admissibility in any enforcement proceeding. 17 (3) Records relating to the appraisal of real property, timber or mineral 18 rights prior to its acquisition, sale or lease by a public agency or indepen- 19 dent public body corporate and politic. 20 (4) Any estimate prepared by a public agency or independent public body 21 corporate and politic that details the cost of a public project until such 22 time as disclosed or bids are opened, or upon award of the contract for con- 23 struction of the public project. 24 (5) Examination, operating or condition reports and all documents relat- 25 ing thereto, prepared by or supplied to any public agency or independent pub- 26 lic body corporate and politic responsible for the regulation or supervision 27 of financial institutions including, but not limited to, banks, savings and 28 loan associations, regulated lenders, business and industrial development cor- 29 porations, credit unions, and insurance companies, or for the regulation or 30 supervision of the issuance of securities. 31 (6) Records gathered by a local agency or the Idaho department of com- 32 merce, as described in chapter 47, title 67, Idaho Code, for the specific pur- 33 pose of assisting a person to locate, maintain, invest in, or expand business 34 operations in the state of Idaho. 35 (7) Shipping and marketing records of commodity commissions used to eval- 36 uate marketing and advertising strategies and the names and addresses of grow- 37 ers and shippers maintained by commodity commissions. 38 (8) Financial statements and business information and reports submitted 39 by a legal entity to a port district organized under title 70, Idaho Code, in 40 connection with a business agreement, or with a development proposal or with a 41 financing application for any industrial, manufacturing, or other business 42 activity within a port district. 43 (9) Names and addresses of seed companies, seed crop growers, seed crop 44 consignees, locations of seed crop fields, variety name and acreage by vari- 45 ety. Upon the request of the owner of the proprietary variety, this informa- 46 tion shall be released to the owner. Provided however, that if a seed crop has 47 been identified as diseased or has been otherwise identified by the Idaho 48 department of agriculture, other state departments of agriculture, or the 49 United States department of agriculture to represent a threat to that particu- 50 lar seed or commercial crop industry or to individual growers, information as 51 to test results, location, acreage involved and disease symptoms of that par- 52 ticular seed crop, for that growing season, shall be available for public 53 inspection and copying. This exemption shall not supersede the provisions of 54 section 22-436, Idaho Code. 55 (10) Information obtained from books, records and accounts required in 4 1 chapter 47, title 22, Idaho Code, to be maintained by the Idaho canola and 2 rapeseed commission and pertaining to the individual production records of ca- 3 nola or rapeseed growers. 4 (11) Records of any risk retention or self-insurance program prepared in 5 anticipation of litigation or for analysis of or settlement of potential or 6 actual money damage claims against a public entity and its employees or 7 against the industrial special indemnity fund except as otherwise discoverable 8 under the Idaho or federal rules of civil procedure. These records shall 9 include, but are not limited to, claims evaluations, investigatory records, 10 computerized reports of losses, case reserves, internal documents and corre- 11 spondence relating thereto. At the time any claim is concluded, only statis- 12 tical data and actual amounts paid in settlement shall be deemed a public 13 record unless otherwise ordered to be sealed by a court of competent jurisdic- 14 tion. Provided however, nothing in this subsection is intended to limit the 15 attorney client privilege or attorney work product privilege otherwise avail- 16 able to any public agency or independent public body corporate and politic. 17 (12) Records of laboratory test results provided by or retained by the 18 Idaho food quality assurance laboratory. Nothing in this subsection shall 19 limit the use which can be made, or availability of such information if used, 20 for regulatory purposes or its admissibility in any enforcement proceeding. 21 (13) Reports required to be filed under chapter 13, title 62, Idaho Code, 22 identifying electrical or natural or manufactured gas consumption data for 23 an individual customer or account. 24 (14) Voluntarily prepared environmental audits, and voluntary disclosures 25 of information submitted on or before December 31, 1997, to an environmental 26 agency as defined in section 9-803, Idaho Code, which are claimed to be confi- 27 dential business information. 28 (15) Computer programs developed or purchased by or for any public agency 29 or independent public body corporate and politic for its own use. As used in 30 this subsection, "computer program" means a series of instructions or state- 31 ments which permit the functioning of a computer system in a manner designed 32 to provide storage, retrieval and manipulation of data from the computer sys- 33 tem, and any associated documentation and source material that explain how to 34 operate the computer program. Computer program does not include: 35 (a) The original data including, but not limited to, numbers, text, 36 voice, graphics and images; 37 (b) Analysis, compilation and other manipulated forms of the original 38 data produced by use of the program; or 39 (c) The mathematical or statistical formulas that would be used if the 40 manipulated forms of the original data were to be produced manually. 41 (16) Active investigative records and trademark usage audits of the Idaho 42 potato commission specifically relating to the enforcement of chapter 12, 43 title 22, Idaho Code, until the commencement of formal proceedings as provided 44 by rules of the commission; purchase and sales information submitted to the 45 Idaho potato commission during a trademark usage audit, and investigation or 46 enforcement proceedings. Inactive investigatory records shall be disclosed 47 unless the disclosure would violate the standards set forth in subsections 48 (1)(a) through (f) of section 9-335, Idaho Code. Nothing in this subsection 49 shall limit the use which can be made, or availability of such information if 50 used, for regulatory purposes or its admissibility in any enforcement proceed- 51 ing. 52 (17) All records copied or obtained by the director of the department of 53 agriculture or his designee as a result of an inspection pursuant to section 54 25-3806, Idaho Code, except: 55 (a) Records otherwise deemed to be public records not exempt from disclo- 5 1 sure pursuant to this chapter; and 2 (b) Inspection reports, determinations of compliance or noncompliance and 3 all other records created by the director or his designee pursuant to sec- 4 tion 25-3806, Idaho Code. 5 (18) Property transfer certificates filed with the county assessor pursu- 6 ant to section 63-307A, Idaho Code.
STATEMENT OF PURPOSE RS 13781 The purpose of this bill is to require mandatory disclosure of sales price for all real estate transactions. Transfer of ownership and the amount of consideration paid for such transfer would be certified and submitted to the county assessor by the purchaser within 30 days of the transfer. Disclosure of sales price information would be limited to licensed appraisers, real estate brokers, the Idaho State Tax Commission, and persons with 5% ownership interest in the property. Idaho public records law is amended to exempt further disclosure, and penalties for unauthorized disclosure are provided. The bill provides county assessors, who are required by state law to value property at market value, with an additional tool to perform accurate and equitable appraisals. FISCAL IMPACT No fiscal impact to the state's general fund or local taxing districts. Contact: Idaho Association of Counties Name: Dan Chadwick Tony Poinelli Maggie Mahoney Kerry Ellen Elliott Phone: 345-9126 H 650