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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