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H0663...............................................by REVENUE AND TAXATION
FOREST LAND - Amends existing law to provide that in the event payment is
offered or made for taxation of forest lands, it shall be accepted by the
county treasurer and applied in the manner of payment of other property
tax.
02/11 House intro - 1st rdg - to printing
02/12 Rpt prt - to Rev/Tax
02/19 Rpt out - rec d/p - to 2nd rdg
02/20 2nd rdg - to 3rd rdg
02/25 3rd rdg - PASSED - 65-0-5
AYES -- Andersen, Barrett, Bauer, Bayer, Bedke, Bell, Black, Block,
Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Cuddy, Denney,
Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18), Gagner,
Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg, Kulczyk, Lake,
Langford, Langhorst, Martinez, McGeachin, McKague, Miller, Mitchell,
Moyle, Naccarato, Nielsen, Pasley-Stuart, Raybould, Ridinger, Ring,
Ringo, Roberts, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd,
Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson,
Trail, Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Barraclough, Crow, Deal, Field(23), Meyer
Floor Sponsor - Cuddy
Title apvd - to Senate
02/26 Senate intro - 1st rdg - to Loc Gov
03/02 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/15 3rd rdg - PASSED - 26-0-9
AYES -- Bailey, Bunderson, Burtenshaw, Calabretta, Compton,
Darrington, Gannon, Geddes, Goedde, Hill, Ingram, Kennedy, Keough,
Little, Lodge, Malepeai, Marley, McKenzie, McWilliams, Pearce,
Richardson, Schroeder, Sorensen, Stegner, Sweet, Werk
NAYS -- None
Absent and excused -- Andreason, Brandt, Burkett, Cameron, Davis,
Noble, Noh, Stennett, Williams
Floor Sponsor - Malepeai
Title apvd - to House
03/16 To enrol
03/17 Rpt enrol - Sp signed
03/18 Pres signed - To Governor
03/23 Governor signed
Session Law Chapter 183
Effective: 07/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 663
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION OF FOREST LANDS; AMENDING SECTION 63-1703, IDAHO CODE, TO
3 PROVIDE THAT IN THE EVENT PAYMENT IS OFFERED OR MADE FOR TAXATION OF FOR-
4 EST LANDS, IT SHALL BE ACCEPTED BY THE COUNTY TREASURER AND APPLIED IN THE
5 MANNER OF PAYMENT OF OTHER PROPERTY TAX AND TO PROVIDE A CORRECT CODE REF-
6 ERENCE.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 63-1703, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 63-1703. CERTAIN FOREST LANDS TO BE DESIGNATED FOR TAXATION BY OWNER --
11 LIMITATIONS. For the purposes of appraisal, assessment and taxation under the
12 provisions of this chapter, all forest lands in parcels of five (5) or more
13 acres but less than five thousand (5,000), whether contiguous or not, as long
14 as such parcels are held in common ownership, must be designated by the forest
15 landowner to be subject to the provisions of either subsection (a) or (b) of
16 this section. A forest landowner cannot have parcels designated under the pro-
17 visions of both subsections (a) and (b) of this section at one (1) time. If
18 the forest landowner fails to make a designation, his forest lands shall be
19 subject to appraisal, assessment and taxation under the provisions of section
20 63-1702, Idaho Code. Once a designation is made by the forest landowner, such
21 designation must remain in effect until the designation period expires, unless
22 the forest lands are transferred to another owner using a different taxing
23 category; in such case, the taxing category of the transferred forest lands
24 shall be the same as that maintained by the new owner.
25 A forest landowner may change the designation of all forest lands in com-
26 mon ownership at the end of any designation period, subject to the recapture
27 of any deferred taxes due as a result of such change. After January 1 and by
28 December 31 of the tenth year of each designation period the forest landowner
29 must notify the county assessor of any change in forest land designation.
30 Failure to notify the county assessor will result in the continuation of the
31 landowner's present designation until the end of the next designation period.
32 Any substantial change in the use of forest lands not conforming with the
33 definition of forest land in section 63-1701, Idaho Code, during such ten (10)
34 year period under the designations made in subsection (a) or (b) shall be
35 reported by the landowner to the county assessor within thirty (30) days of
36 the change in use. Upon notification of the change in use, the assessor shall
37 appraise, assess and tax those acres as provided by applicable laws and rules.
38 Failure to notify the assessor of the change in use when forest lands have
39 been designated as subject to the provisions of subsection (a) or (b) shall
40 cause forfeiture of such designation, and cause that property to be appraised,
41 assessed and taxed as provided in section 63-1702, Idaho Code.
42 Forest lands designated for assessment pursuant to the provisions of sec-
43 tion 63-1706, Idaho Code, shall be subject to the recapture of deferred taxes
2
1 upon removal of such designation, a substantial change in use, or ownership
2 transfer, except that there shall be no recapture initiated upon ownership
3 transfer of forest lands designated as subject to the provisions of section
4 63-1706, Idaho Code, to a landowner with forest lands already designated as
5 subject to the provisions of section 63-1706, Idaho Code, prior to the trans-
6 fer, or who so designates his lands to be subject to the provisions of section
7 63-1706, Idaho Code. In the event payment is offered or made, it shall be
8 accepted by the county treasurer and applied in the manner of payment of other
9 property tax.
10 The dollar amount of deferred taxes subject to recapture shall be deter-
11 mined by the county assessor by applying current tax levies against the cur-
12 rent values that would have been in effect if the lands were subject to
13 appraisal and assessment during the current year under the provisions of sec-
14 tion 63-1705, Idaho Code, if there has been a change in ownership or a removal
15 of designation, or section 63-1702, Idaho Code, if there has been a change in
16 use with no change in ownership, which amount shall be multiplied by the num-
17 ber of years that the lands have been subject to the designation under section
18 63-1706, Idaho Code. The amount of the deferred tax shall accrue through des-
19 ignation periods, up to a maximum of ten (10) years, and shall apply to the
20 most recent ten (10) years in which the parcel has been designated under the
21 provisions of section 63-1706, Idaho Code. A credit shall be allowed for taxes
22 actually paid under the provisions of section 63-1706, Idaho Code, for an
23 identical ten (10) year period, up to the total amount of the deferred taxes.
24 All deferred amounts shall be a lien against the land. Deferred tax amounts
25 shall be calculated by the county assessor on forms prescribed by the state
26 tax commission. Deferred tax amounts shall be supplied by the county assessor
27 to the county treasurer by May 15 of the year following conveyance or within
28 thirty (30) days of removal of designation, or of learning of a change in use.
29 All deferred tax amounts shall be due and payable to the county treasurer on
30 demand and shall become delinquent if not paid by the demand due date speci-
31 fied by the county treasurer on the forms prescribed by the state tax commis-
32 sion. If the deferred tax is not paid as provided above, the payment becomes
33 delinquent and subject to late charges, and interest in the amounts provided
34 in sections 63-201(67) and 63-1001, Idaho Code, and subject to collection in
35 the manner as set forth in chapter 10, title 63, Idaho Code. Estimated
36 deferred tax amounts may be held by the county treasurer in a tax anticipation
37 account from the date of conveyance until June 1 of the year following convey-
38 ance.
39 The county treasurer shall cause the deferred taxes and any penalty and
40 interest paid pursuant to the provisions of this section to be apportioned to
41 the various taxing authorities within which the property subject to the tax is
42 located in the same manner as property taxes.
43 (a) A forest landowner may choose to have his forest land assessed,
44 appraised and taxed under the provisions of section 63-1705, Idaho Code, by
45 filing such choice with the county assessor on a form prescribed by the state
46 tax commission. Designation filed pursuant to section 63-1705, Idaho Code,
47 shall become effective the first day of January following the year of designa-
48 tion.
49 (b) A forest landowner may choose to have his forest land assessed,
50 appraised and taxed under the provisions of section 63-1706, Idaho Code, by
51 filing such choice with the county assessor on a form prescribed by the state
52 tax commission. Designation filed pursuant to section 63-1706, Idaho Code,
53 shall become effective the first day of January following the year of designa-
54 tion.
55 (c) All forest products or timber harvested from investment lands not
3
1 designated as subject to the provisions of section 63-1702, 63-1705 or
2 63-1706, Idaho Code, and delivered to a point of utilization as logs or
3 semiprocessed forest products (except those forest products harvested for the
4 domestic use of the landowner under the provisions of section 63-1708, Idaho
5 Code) shall be subject to the yield tax at the time of harvest in the same
6 manner provided for in section 63-1706, Idaho Code.
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STATEMENT OF PURPOSE
RS 13819
This legislation deals with section 63-1703 of the Idaho Code
that allows for taxing forestland on a bare land and yield basis.
When this method of taxation is used the property owner pays tax
only on the land until the timber on the land is harvested or at
the end of the 10 year period, If during this period the property
title is transferred the existing code does not address how taxes
collected and dispersed between regular taxing and dispersment of
these collections are to be handled. This legislation is intended
to clarify the code in regards to collection and distribution.
FISCAL IMPACT
This change does not alter the amount of tax ultimately assessed
or collected involving property taxed under the bare land and
yield method. There is no impact to the general fund or to county
tax rolls.
Contact
Name: Representative Chuck Cuddy
Phone: 332-1132
STATEMENT OF PURPOSE/FISCAL NOTE H 663