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H0781...............................................by REVENUE AND TAXATION
PROPERTY TAX - EXEMPTION - Adds to existing law to provide for a property
tax exemption for property owned by qualified persons; to provide for
application of the exemption to residential improvements and the
residential lot; to provide that the exemption shall continue for spouses
under certain circumstances; to provide conditions for the exemption; to
provide that an owner is required to make application for the exemption
only once if certain conditions are met; to declare the exemption is
necessary and just; and to provide that the exemption shall be available
for certain owners who are absent by reason of active military service in a
designated combat zone.
02/26 House intro - 1st rdg - to printing
02/27 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. 781
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAX EXEMPTIONS; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE,
3 BY THE ADDITION OF A NEW SECTION 63-602HH, IDAHO CODE, TO PROVIDE FOR A
4 TAX EXEMPTION FOR PROPERTY OWNED BY QUALIFIED PERSONS, TO PROVIDE FOR
5 APPLICATION OF THE EXEMPTION TO RESIDENTIAL IMPROVEMENTS AND THE RESIDEN-
6 TIAL LOT, TO PROVIDE THAT THE EXEMPTION SHALL CONTINUE FOR SPOUSES UNDER
7 CERTAIN CIRCUMSTANCES, TO PROVIDE CONDITIONS FOR THE EXEMPTION, TO PROVIDE
8 THAT AN OWNER IS REQUIRED TO MAKE APPLICATION FOR THE EXEMPTION ONLY ONCE
9 IF CERTAIN CONDITIONS ARE MET, TO DECLARE THAT THE EXEMPTION IS NECESSARY
10 AND JUST AND TO PROVIDE THAT THE EXEMPTION SHALL BE AVAILABLE FOR CERTAIN
11 OWNERS WHO ARE ABSENT BY REASON OF ACTIVE MILITARY SERVICE IN A DESIGNATED
12 COMBAT ZONE; DECLARING AN EMERGENCY AND PROVIDING A RETROACTIVE EFFECTIVE
13 DATE.
14 Be It Enacted by the Legislature of the State of Idaho:
15 SECTION 1. That Chapter 6, Title 63, Idaho Code, be, and the same is
16 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
17 ignated as Section 63-602HH, Idaho Code, and to read as follows:
18 63-602HH. PROPERTY EXEMPT FROM TAXATION -- QUALIFIED PERSONS. (1) During
19 the tax year 2004 and each year thereafter, owners of owner-occupied resi-
20 dences and who qualify for the exemption provided in section 63-602G, Idaho
21 Code, shall also receive an exemption for any increases in the taxable value
22 of the residential improvements and residential lot. The taxable value shall
23 be no greater than the taxable value of the base year which shall be
24 increased by a growth factor of not more than three percent (3%) per year from
25 the base year so long as the owner-occupant qualifies for the exemption pro-
26 vided in section 63-602G, Idaho Code. When title to the real property changes
27 by sale or inheritance, then the real property shall acquire a new taxable
28 value equal to the market value at the time of the transfer. The base year
29 shall be the calendar year prior to the year in which the owner first applies
30 for and receives this exemption.
31 (a) This exemption applies to both residential improvements and the resi-
32 dential lot on which the improvements are located.
33 (b) To qualify to receive this exemption in tax year 2004 or any year
34 thereafter, an owner must have qualified for and received the exemption
35 provided in section 63-602G, Idaho Code, in the previous year.
36 (c) An owner who applies for and receives tax relief as provided in chap-
37 ter 7, title 63, Idaho Code, may not also qualify for this exemption.
38 (2) If the home is a duplex, triplex or fourplex, the exemption shall
39 apply to that portion of the residential improvements occupied by the owner
40 and/or the owner's spouse and the respective portion of the residential lot.
41 (3) The exemption shall continue for a spouse if the owner resides in a
42 residential care home or a nursing home.
43 (4) The exemption allowed by this section may be granted only if:
2
1 (a) The residential improvements are owner-occupied and used as the pri-
2 mary dwelling place of the owner and/or the owner's spouse. The residen-
3 tial improvements may consist of part of a multidwelling or multipurpose
4 building and shall include all of such dwelling or building except any
5 portion used exclusively for anything other than the primary dwelling of
6 the owner. The presence of an office in an owner-occupied residential
7 property, which office is used for multiple purposes, including business
8 and personal use, shall not prevent the owner from claiming the exemption
9 provided in this section; and
10 (b) The tax commission has certified to the board of county commissioners
11 that all properties in the county which are subject to appraisal by the
12 county assessor have, in fact, been appraised uniformly so as to secure a
13 just valuation for all property within the county; and
14 (c) The owner has certified to the county assessor that:
15 (i) He is making application for the exemption allowed by this sec-
16 tion;
17 (ii) The residential improvements are his or his spouse's primary
18 dwelling place; and
19 (iii) He has not made application in any other county for the exemp-
20 tion, and has not made application for the exemption on any other
21 residential improvements or residential lots in the county.
22 (d) For the purpose of this section, the definition of "owner" shall be
23 the same definition set forth in section 63-701(7), Idaho Code.
24 (e) For the purpose of this section, the definition of "primary dwelling
25 place" shall be the same definition set forth in section 63-701(8), Idaho
26 Code.
27 (f) For the purpose of this section, the definition of "occupied" shall
28 be the same definition set forth in section 63-701(6), Idaho Code.
29 (5) An owner need only make application for the exemption described in
30 subsection (1) of this section once, as long as all of the following condi-
31 tions are met:
32 (a) The owner has received the exemption during the previous year as a
33 result of his making a valid application as defined in subsection (4)(c)
34 of this section.
35 (b) The owner and/or the owner's spouse still occupies the same residen-
36 tial improvements for which the owner made application.
37 (c) The residential improvements described in subsection (4)(a) of this
38 section are owner-occupied or occupied by the spouse of the owner, and
39 used as the primary dwelling place of the owner or spouse, as appropriate.
40 (6) The legislature declares that this exemption is necessary and just.
41 (7) Residential improvements having previously qualified for exemption
42 under this section in the preceding year shall not lose such qualification due
43 to the owner's or the spouse of the owner's absence in the current year by
44 reason of active military service in a designated combat zone, as defined in
45 section 112 of the Internal Revenue Code. If an owner fails to timely apply
46 for exemption as required in this section solely by reason of active duty in a
47 designated combat zone by the owner or the owner's spouse, as appropriate, as
48 defined in section 112 of the Internal Revenue Code, and such improvements
49 would have otherwise qualified under this section, then the board of county
50 commissioners of the county in which the residential improvements are located
51 shall refund property taxes, if previously paid, in an amount equal to the
52 exemption which would otherwise have applied.
53 SECTION 2. An emergency existing therefor, which emergency is hereby
54 declared to exist, this act shall be in full force and effect on and after its
3
1 passage and approval, and retroactively to January 1, 2004.
STATEMENT OF PURPOSE
RS 13920C1
This legislation proposes to cap the percent of increase that can
be experienced in any one year by a residential property owner
for his/her primary residence. Residential property owners in
various areas have been levied high property valuations as a
result of homes in their locale selling at prices considerably
higher than the price originally paid by existing home owners,
even though they may have only owned their homes for a short
period. This has resulted in property tax increases up to as
much as 100-200 percent or higher, resulting in a hardship on
residential owners, especially those on fixed incomes. This
legislation avoids this hardship by capping property increases to
no more than 3% per year.
FISCAL IMPACT
This legislation has no impact on state general funds, but will
impact the amount of taxes collected by counties.
Contact
Name: Rep. Bill Deal
Rep. George Eskridge
Rep. John Campbell
Sen. Shawn Keough
Phone: 208/332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 781