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H0516...............................................by REVENUE AND TAXATION
PROPERTY TAX RELIEF - Amends existing law to clarify procedures for
submitting, reviewing and finalizing claims for property tax relief.
01/22 House intro - 1st rdg - to printing
01/23 Rpt prt - to Rev/Tax
02/23 Rpt out - rec d/p - to 2nd rdg
02/24 2nd rdg - to 3rd rdg
02/26 3rd rdg - PASSED - 65-1-4
AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
Crow, Cuddy, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet,
Jones, Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin,
McKague, Meyer, Miller, Mitchell, Moyle, Nielsen, Pasley-Stuart,
Raybould, Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali,
Sayler, Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie,
Snodgrass, Stevenson, Trail, Wills, Wood
NAYS -- Kellogg
Absent and excused -- Deal, Naccarato, Schaefer, Mr. Speaker
Floor Sponsor - Moyle
Title apvd - to Senate
02/27 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 - 29-0-6
AYES -- Andreason, Bailey, Bunderson, Burkett, Burtenshaw,
Calabretta, Compton, Darrington, Gannon, Geddes, Goedde, Hill,
Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie,
McWilliams, Noble, Pearce, Richardson, Schroeder, Sorensen, Stegner,
Sweet, Werk
NAYS -- None
Absent and excused -- Brandt, Cameron, Davis, Noh, Stennett, Williams
Floor Sponsor - McKenzie
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 156
Effective: 01/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 516
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAX RELIEF; AMENDING SECTION 63-602G, IDAHO CODE, TO
3 REVISE THE DEFINITION OF "OWNER" BY DELETING REFERENCE TO GRANTOR TRUSTS,
4 BY INCLUDING ANY PERSON WHO IS THE BENEFICIARY OF A REVOCABLE OR IRREVOCA-
5 BLE TRUST, BY DELETING AFFIDAVIT PROCEDURES AND BY REFERENCING THE AFFIDA-
6 VIT PROCEDURES IN CHAPTER 7, TITLE 63, IDAHO CODE; AMENDING SECTION
7 63-701, IDAHO CODE, TO REVISE DEFINITIONS AND TO MAKE A TECHNICAL CORREC-
8 TION; AMENDING SECTION 63-702, IDAHO CODE, TO CLARIFY THE DATES TO WHICH
9 CONDITIONS APPLY WHEN FILING A CLAIM; AMENDING SECTION 63-703, IDAHO CODE,
10 TO REVISE THE TERM "OWNER" BY INCLUDING PERSONS INVOLVED IN REVOCABLE AND
11 IRREVOCABLE TRUSTS, PARTNERSHIPS, LIMITED LIABILITY COMPANIES OR CORPORA-
12 TIONS AND DEPENDING ON SPECIFIED CONDITIONS OF INVOLVEMENT WITH SUCH ENTI-
13 TIES, TO PROVIDE FOR AN AFFIDAVIT FOR TRUST OWNERSHIP AND AN AFFIDAVIT FOR
14 ENTITY OWNERSHIP AND TO DELETE REDUNDANT LANGUAGE; AMENDING SECTION
15 63-707, IDAHO CODE, TO REVISE THE INFORMATION COUNTY ASSESSORS PROVIDE
16 WHEN PREPARING THE PROPERTY TAX REDUCTION ROLL, TO CLARIFY LANGUAGE RELAT-
17 ING TO MARITAL STATUS AND TO SPECIFY INFORMATION THE STATE TAX COMMISSION
18 SHALL CERTIFY TO THE COUNTY AUDITOR AND TAX COLLECTOR REGARDING PROPERTY
19 TAX REDUCTION CLAIMS FOR EACH COUNTY; AMENDING SECTION 63-709, IDAHO CODE,
20 TO DELETE REDUNDANT LANGUAGE; AMENDING SECTION 63-710, IDAHO CODE, TO PRO-
21 VIDE A CORRECT CODE REFERENCE; DECLARING AN EMERGENCY AND PROVIDING A RET-
22 ROACTIVE EFFECTIVE DATE.
23 Be It Enacted by the Legislature of the State of Idaho:
24 SECTION 1. That Section 63-602G, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 63-602G. PROPERTY EXEMPT FROM TAXATION -- RESIDENTIAL IMPROVEMENTS. (1)
27 During the tax year 1983 and each year thereafter, the first fifty thousand
28 dollars ($50,000) of the market value for assessment purposes of residential
29 improvements, or fifty percent (50%) of the market value for assessment pur-
30 poses of residential improvements, whichever is the lesser, shall be exempt
31 from property taxation.
32 (2) The exemption allowed by this section may be granted only if:
33 (a) The residential improvements are owner-occupied and used as the pri-
34 mary dwelling place of the owner as of January 1, provided that in the
35 event the residential improvements are owner-occupied after January 1 but
36 before April 15, the owner of the property is entitled to the exemption.
37 The residential improvements may consist of part of a multidwelling or
38 multipurpose building and shall include all of such dwelling or building
39 except any portion used exclusively for anything other than the primary
40 dwelling of the owner. The presence of an office in an owner-occupied res-
41 idential property, which office is used for multiple purposes, including
42 business and personal use, shall not prevent the owner from claiming the
43 exemption provided in this section; and
2
1 (b) The tax commission has certified to the board of county commissioners
2 that all properties in the county which are subject to appraisal by the
3 county assessor have, in fact, been appraised uniformly so as to secure a
4 just valuation for all property within the county; and
5 (c) The owner has certified to the county assessor by April 15 that:
6 (i) He is making application for the exemption allowed by this sec-
7 tion;
8 (ii) That the residential improvements are his primary dwelling
9 place; and
10 (iii) That he has not made application in any other county for the
11 exemption, and has not made application for the exemption on any
12 other residential improvements in the county.
13 (d) For the purpose of this section, the definition of owner shall be the
14 same definition set forth in section 63-701(7), Idaho Code.
15 When an "owner," pursuant to the provisions of section 63-701(7),
16 Idaho Code, is any person who as grantor, or whose spouse as grantor, cre-
17 ated a revocable or irrevocable trust and was named as is the beneficiary
18 of that a revocable or irrevocable trust, or who is a partner of a limited
19 partnership, a member of a limited liability company, or shareholder of a
20 corporation, he or she may provide proof of the trust, limited partner-
21 ship, limited liability company, or corporation in the manner set forth in
22 section 63-703(4), Idaho Code. with an affidavit stating: (i) the name of
23 the grantor, partner, member or shareholder; (ii) a statement that the
24 grantor, or the grantor's spouse, is the beneficiary of the trust, or the
25 person is a partner of the limited partnership, or a member of the limited
26 liability company, or a shareholder of the corporation; (iii) the grantor,
27 the grantor's spouse, partner, member or shareholder is the occupier of
28 the residential property and uses the property as the primary dwelling
29 place of the grantor, the grantor's spouse, partner, member or shareholder
30 as of January 1; and (iv) if applicable, the person holds at least a five
31 percent (5%) ownership in the limited partnership, limited liability com-
32 pany or corporation.
33 The affidavit shall include the attaching of the copies of those por-
34 tions of the trust or other document which set forth the grantor, the
35 grantor or the grantor's spouse as beneficiary and the signature page of
36 the trust or other document; those portions of the articles of organiza-
37 tion or operating agreement of the limited liability company indicating
38 the person's membership in the company and the ownership percentage held
39 by such person; those portions of the limited partnership agreement or
40 other records of the limited partnership indicating that the person has
41 been admitted to the partnership and the ownership percentage held by such
42 person; or those portions of the articles of incorporation indicating that
43 the person is a shareholder of the corporation and the ownership percent-
44 age held by such person.
45 (e) Any owner may request in writing the return of all copies of any doc-
46 uments submitted with the affidavit set forth in paragraph (d) of this
47 subsection section 63-703(4), Idaho Code, that are held by a county asses-
48 sor, and the copies shall be returned by the county assessor upon submis-
49 sion of the affidavit in proper form.
50 (f) For the purpose of this section, the definition of "primary dwelling
51 place" shall be the same definition set forth in section 63-701(8), Idaho
52 Code.
53 (g) For the purpose of this section, the definition of "occupied" shall
54 be the same definition set forth in section 63-701(6), Idaho Code.
55 (3) An owner need only make application for the exemption described in
3
1 subsection (1) of this section once, as long as all of the following condi-
2 tions are met:
3 (a) The owner has received the exemption during the previous year as a
4 result of his making a valid application as defined in subsection (2)(c)
5 of this section.
6 (b) The owner or beneficiary, partner, member or shareholder, as appro-
7 priate, still occupies the same residential improvements for which the
8 owner made application.
9 (c) The residential improvements described in subsection (3)(b) of this
10 section are owner-occupied or occupied by a beneficiary, partner, member
11 or shareholder, as appropriate, and used as the primary dwelling place of
12 the owner or beneficiary, partner, member or shareholder, as appropriate,
13 as of January 1; provided however, that in the event the residential
14 improvements are owner-occupied after January 1, but before April 15, the
15 owner of the property is entitled to the exemption.
16 (4) The exemption allowed by this section must be taken before the reduc-
17 tion in taxes provided by sections 63-701 through 63-710, Idaho Code, is
18 applied.
19 (5) The legislature declares that this exemption is necessary and just.
20 (6) Residential improvements having previously qualified for exemption
21 under this section in the preceding year, shall not lose such qualification
22 due to the owner's, beneficiary's, partner's, member's or shareholder's
23 absence in the current year by reason of active military service in a desig-
24 nated combat zone, as defined in section 112 of the Internal Revenue Code. If
25 an owner fails to timely apply for exemption as required in this section
26 solely by reason of active duty in a designated combat zone by the owner, ben-
27 eficiary, partner, member or shareholder, as appropriate, as defined in sec-
28 tion 112 of the Internal Revenue Code, and such improvements would have other-
29 wise qualified under this section, then the board of county commissioners of
30 the county in which the residential improvements are located shall refund
31 property taxes, if previously paid, in an amount equal to the exemption which
32 would otherwise have applied.
33 SECTION 2. That Section 63-701, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 63-701. DEFINITIONS. As used in this chapter:
36 (1) "Claimant" means a person who has filed a claim under the provisions
37 of sections 63-701 through 63-710, Idaho Code. Except as provided in section
38 63-702(2), Idaho Code, on January 1 of the year or before April 15 in which
39 the claim was filed a claimant must be an owner of a homestead and be:
40 (a) Not less than sixty-five (65) years old; or
41 (b) A child under the age of eighteen (18) years who is fatherless or
42 motherless or who has been abandoned by any surviving parent or parents;
43 or
44 (c) A widow or widower; or
45 (d) A disabled person who is recognized as disabled by the social secu-
46 rity administration pursuant to title 42 of the United States Code, or by
47 the railroad retirement board pursuant to title 45 of the United States
48 Code, or by the office of management and budget pursuant to title 5 of the
49 United States Code; or
50 (e) A disabled veteran of any war engaged in by the United States, whose
51 disability is recognized as a service-connected disability of a degree of
52 ten percent (10%) or more, or who has a pension for nonservice-connected
53 disabilities, in accordance with laws and regulations administered by the
4
1 United States veterans administration; or
2 (f) A person, as specified in 42 U.S.C. 1701, who was or is entitled to
3 receive benefits because he is known to have been taken by a hostile force
4 as a prisoner, hostage or otherwise; or
5 (g) Blind.
6 (2) "Homestead" means the dwelling, owner-occupied by the claimant as
7 described in this chapter and used as the primary dwelling place of the claim-
8 ant and may be occupied by any members of the household as their home, and so
9 much of the land surrounding it, not exceeding one (1) acre, as is reasonably
10 necessary for the use of the dwelling as a home. It may consist of a part of a
11 multidwelling or multipurpose building and part of the land upon which it is
12 built. "Homestead" does not include personal property such as furniture, fur-
13 nishings or appliances, but a manufactured home may be a homestead.
14 (3) "Household" means the claimant and the claimant's spouse. The term
15 does not include bona fide lessees, tenants, or roomers and boarders on con-
16 tract. "Household" includes persons described in subsection (8)(b) of this
17 section.
18 (4) "Household income" means all income received by the claimant and, if
19 applicable married, all income received by the claimant's spouse, in a calen-
20 dar year.
21 (5) "Income" means the sum of federal adjusted gross income as defined in
22 the Internal Revenue Code, as defined in section 63-3004, Idaho Code, and to
23 the extent not already included in federal adjusted gross income:
24 (a) Alimony;
25 (b) Support money;
26 (c) Nontaxable strike benefits;
27 (d) The nontaxable amount of any individual retirement account, pension
28 or annuity, (including railroad retirement benefits, all payments received
29 under the federal social security act except the social security death
30 benefit as specified in this subsection, state unemployment insurance
31 laws, and veterans disability pensions and compensation, excluding
32 rollovers as provided in section 402 or 403 of the Internal Revenue Code);
33 (e) Nontaxable interest received from the federal government or any of
34 its instrumentalities or a state government or any of its instrumentali-
35 ties;
36 (f) Worker's compensation; and
37 (g) The gross amount of loss of earnings insurance.
38 It does not include capital gains, gifts from nongovernmental sources or
39 inheritances. To the extent not reimbursed, the cost of medical care as
40 defined in section 213(d) of the Internal Revenue Code, incurred or paid by
41 the claimant and/or, if applicable married, the claimant's spouse, may be
42 deducted from income. To the extent not reimbursed, personal funeral expenses,
43 including prepaid funeral expenses and premiums on funeral insurance, of the
44 claimant and claimant's spouse only, may be deducted from income up to an
45 annual maximum of five thousand dollars ($5,000) per claim. "Income" does not
46 include veterans disability pensions received by a person described in subsec-
47 tion (1)(e) who is a claimant or a claimant's spouse if the disability pension
48 is received pursuant to a service-connected disability of a degree of forty
49 percent (40%) or more. "Income" does not include lump sum death benefits made
50 by the social security administration pursuant to 42 U.S.C. section 402(i).
51 Documentation of medical expenses may be required by the county assessor,
52 board of equalization and state tax commission in such form as the county
53 assessor, board of equalization or state tax commission shall determine.
54 "Income" shall be that received in the calendar year immediately preceding the
55 year in which a claim is filed. Where a claimant and/or the claimant's spouse
5
1 does not file a federal tax return, the claimant's and/or the claimant's
2 spouse's federal adjusted gross income, for purposes of this section, shall be
3 an income equivalent to federal adjusted gross income had the claimant and/or
4 the claimant's spouse filed a federal tax return, as determined by the county
5 assessor. The county assessor, board of equalization or state tax commission
6 may require documentation of income in such form as each shall determine,
7 including, but not limited to: copies of federal or state tax returns and any
8 attachments thereto; and income reporting forms such as the W-2 and 1099.
9 (6) years "Occupied" means actual use and possession.
10 (7) "Owner" means a person holding title in fee simple or holding a cer-
11 tificate of motor vehicle title (either of which may be subject to mortgage,
12 deed of trust or other lien) or who has retained or been granted a life estate
13 or who is a person entitled to file a claim under section 63-702, Idaho Code.
14 "Owner" shall also include any person who:
15 (a) As grantor, or whose spouse as grantor, created a revocable or irrev-
16 ocable trust and was named as a beneficiary of that trust; or
17 (b) Is the beneficiary of a revocable or irrevocable trust which is the
18 owner of such homestead and under which the claimant or the claimant's
19 spouse has the primary right of occupancy of the homestead; or
20 (cb) Is a partner of a limited partnership, member of a limited liability
21 company or shareholder of a corporation if such entity holds title in fee
22 simple or holds a certificate of motor vehicle title and if the person
23 holds at least a five percent (5%) ownership in such entity, as determined
24 by the county assessor; or
25 (dc) Has retained or been granted a life estate.
26 "Owner" includes a vendee in possession under a land sale contract. Any par-
27 tial ownership shall be considered as ownership for determining initial quali-
28 fication for property tax reduction benefits; however, the amount of property
29 tax reduction under section 63-704, Idaho Code, and rules promulgated pursuant
30 to section 63-705, Idaho Code, shall be computed on the value of the
31 claimant's partial ownership. "Partial ownership," for the purposes of this
32 section, means any one (1) person's ownership when property is owned by more
33 than one (1) person or where the homestead is held by an entity, as set forth
34 in this subsection, but more than one (1) person has the right of occupancy of
35 such homestead. A person holding either partial title in fee simple or holding
36 a certificate of motor vehicle title together with another person but who does
37 not occupy the dwelling as his primary dwelling place, shall not be considered
38 an owner for purposes of this section, if such person is a cosignatory of a
39 note secured by the dwelling in question and at least one (1) of the other
40 cosignatories of the note occupies the dwelling as his primary dwelling place.
41 The combined community property interests of both spouses shall not be consid-
42 ered partial ownership so long as the combined community property interests
43 constitute the entire ownership of the homestead, including where the spouses
44 are occupying a homestead owned by an entity, as set forth in this subsection,
45 and the spouses have the primary right of occupancy of the homestead. The pro-
46 portional reduction required under this subsection shall not apply to commu-
47 nity property interests. Where title to property is held by a person who has
48 died without timely filing a claim for property tax reduction, the estate of
49 the deceased person shall be the "owner," provided that the time periods dur-
50 ing which the deceased person held such title shall be attributed to the
51 estate for the computation of any time periods under subsection (8)(a) or
52 (8)(b) of this section.
53 (8) (a) "Primary dwelling place" means the claimant's dwelling place on
54 January 1 or before April 15 of the year for which the claim is made. The
55 primary dwelling place is the single place where a claimant has his true,
6
1 fixed and permanent home and principal establishment, and to which when-
2 ever the individual is absent he has the intention of returning. A claim-
3 ant must establish the dwelling to which the claim relates to be his pri-
4 mary dwelling place by clear and convincing evidence or by establishing
5 that the dwelling is where the claimant resided on January 1 or before
6 April 15 and:
7 (i) At least six (6) months during the prior year; or
8 (ii) The majority of the time the claimant owned the dwelling if
9 owned by the claimant less than one (1) year; or
10 (iii) The majority of the time after the claimant first occupied the
11 dwelling if occupied by the claimant for less than one (1) year. The
12 county assessor may require written or other proof of the foregoing
13 in such form as the county assessor may determine.
14 (b) Notwithstanding the provisions of paragraph (a) of this subsection,
15 the property upon which the claimant makes application shall be deemed to
16 be the claimant's primary dwelling place if the claimant is otherwise
17 qualified and resides in a care facility and does not allow the property
18 upon which the claimant has made application to be occupied by persons
19 paying a consideration to occupy the dwelling. Payment of utilities shall
20 not be payment of a consideration to occupy the dwelling. A claimant's
21 spouse who resides in a care facility shall be deemed to reside at the
22 claimant's primary dwelling place and to be a part of the claimant's
23 household. A care facility is a hospital, nursing facility or intermediate
24 care facility for the mentally retarded as defined in section 39-1301,
25 Idaho Code, or a facility as defined in section 39-3302(16), Idaho Code,
26 or a dwelling other than the one upon which the applicant makes applica-
27 tion where a claimant who is unable to reside in the dwelling upon which
28 the application is made lives and receives help in daily living, protec-
29 tion and security.
30 SECTION 3. That Section 63-702, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 63-702. CLAIM IS PERSONAL -- EXCEPTIONS. (1) The right to file a claim
33 under the provisions of sections 63-701 through 63-710, Idaho Code, shall be
34 personal to the claimant and shall not survive his death except as otherwise
35 provided in this section. A property tax reduction shall be allowed pursuant
36 to the provisions of sections 63-701 and 63-710, Idaho Code, if the owner
37 occupies the residential improvements after January 1 but before April 15, and
38 if no other property tax reductions have been claimed. Such right may be exer-
39 cised on behalf of a living claimant by an agent authorized in writing to so
40 act, by a guardian or other representative acting pursuant to judicial author-
41 ity or by any person or entity described in section 63-711(3), Idaho Code. If
42 a claimant dies after having filed a timely claim, the amount thereof shall be
43 allowed to his personal representative, if one is appointed, or to surviving
44 heirs or to the trust or other entity owning the property, as appropriate.
45 (2) In the case of property owned by an estate, revocable trust, irrevo-
46 cable trust, limited partnership, limited liability company or corporation,
47 where the deceased person's widow or widower succeeds to the interest of the
48 deceased person in that entity and occupies the dwelling as required in this
49 chapter, the deceased owner's widow or widower, or any person or entity
50 described in section 63-711(3), Idaho Code, on behalf of that widow or wid-
51 ower:
52 (a) May file a claim on behalf of the deceased spouse if the deceased
53 spouse qualified or would have qualified as a claimant on January 1 or
7
1 before April 15 of the year in which the claim is filed; or
2 (b) The widow or widower shall be deemed the owner of the property in any
3 year after the year of the death of the spouse.
4 SECTION 4. That Section 63-703, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 63-703. PROCEDURE FOR FILING CLAIMS. (1) Any claim filed shall be signed
7 by the claimant or by any person or entity described in section 63-711(3),
8 Idaho Code. By signing such claim, the claimant or other person or entity
9 signing such claim shall attest to the truth of such claim, and shall be sub-
10 ject to the penalties provided by section 18-5401, Idaho Code, for stating as
11 true any material fact known to be false. All claims shall be made on forms
12 prescribed by the state tax commission and shall be in triplicate. One (1)
13 copy of the form shall be provided to the claimant or the person or entity
14 acting on behalf of the claimant, one (1) copy shall be kept for all county
15 purposes, and one (1) copy shall be forwarded to the state tax commission with
16 the property tax reduction roll. Except as provided in section 63-707, Idaho
17 Code, the claim and its documentation shall not be deemed to be public records
18 and may not be used for any commercial purpose; provided however, the state
19 tax commission and the county assessor may use the contents of such claims and
20 documentation for general statistical analysis and may publish such analysis,
21 or any part of such analysis, as appropriate.
22 (2) By filing a claim, a claimant does not relinquish any right he or any
23 member of his household may have to apply for a cancellation of property taxes
24 pursuant to section 63-711, Idaho Code. The county commissioners may grant any
25 such claimant, or any member of his household, a cancellation of property
26 taxes, late charges and interest under such section, if a claim has been filed
27 under the provisions of sections 63-701 through 63-710, Idaho Code.
28 (3) If two (2) or more individuals of a household are able to meet the
29 qualifications of a claimant, they may decide between themselves who may
30 obtain a reduction in property taxes under the provisions of sections 63-701
31 through 63-710, Idaho Code, and shall certify such division in writing to the
32 county assessor in such form as the county assessor shall require, but if they
33 do not decide between themselves, then the reduction shall be divided equally
34 among or between the claimants in the household or shall be divided as deter-
35 mined under section 63-701(7), Idaho Code, whichever is appropriate.
36 (4) When an "owner" is any person who as grantor, or whose spouse as
37 grantor, created a revocable or irrevocable trust and was named as is the ben-
38 eficiary of that a revocable or irrevocable trust, or is a partner of a lim-
39 ited partnership, or member of a limited liability company, or shareholder of
40 a corporation, if such entity holds title in fee simple or holds a certificate
41 of motor vehicle title, and if said person holds at least a five percent (5%)
42 ownership in such entity, he or she, or any person or entity described in sec-
43 tion 63-711(3), Idaho Code, may provide proof of the foregoing as follows:
44 (a) If the owner of the homestead is a revocable or irrevocable trust,
45 with by an affidavit stating:
46 (i) the name of the grantor, (ii) a statement tThat the grantor,
47 claimant or the grantor's claimant's spouse, is the a beneficiary of
48 the trust; and
49 (iii) That the grantor claimant, or the grantor's claimant's spouse,
50 is the occupier of the residential property and uses the property as
51 the primary dwelling place of the occupier as of January 1 or before
52 April 15.
53 The affidavit shall include the attaching of copies of those portions
8
1 of the trust which set forth the name of the grantor, the status of the
2 grantor claimant or the grantor's claimant's spouse as beneficiary and
3 which contain the signature page or pages of the trust. The county asses-
4 sor may require such additional documentation as is necessary to carry out
5 the provisions of this chapter including, but not limited to:
6 (b) If the owner is a limited partnership, limited liability company, or
7 corporation, by an affidavit stating the entity holds title in fee simple
8 or holds a certificate of motor vehicle title, and if said person holds at
9 least a five percent (5%) ownership in such entity. The affidavit shall
10 include the attaching of:
11 (ai) Proof of the current status of the entity owning the property,
12 including statements from the secretary of state as to such status if
13 appropriate;
14 (bii) Copies of any documents, or portions thereof, relating to the
15 entity including, but not limited to, those portions of the articles
16 of organization or operating agreements of the entity indicating the
17 person's membership or ownership in the entity and the membership or
18 ownership percentage held by such person; and
19 (ciii) Copies of any contracts or other agreements between the entity
20 and the claimant or the claimant's spouse including, but not limited
21 to, any portions thereof that show the right of occupancy of the
22 homestead by the person.; and
23 (dc) Any other documentation which the county assessor determines would
24 aid the county assessor in carrying out the provisions of this chapter.
25 SECTION 5. That Section 63-707, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 63-707. PROCEDURE AFTER CLAIM APPROVAL. (1) Immediately after claims have
28 been approved by the board of equalization, the county assessor shall prepare
29 a property tax reduction roll, which shall be in addition to the property
30 roll, the subsequent property roll and missed property rolls which property
31 tax reduction roll shall show:
32 (a) The name of the taxpayer;
33 (b) The description of the property for which a reduction in property
34 taxes is claimed, suitably detailed to meet the requirements of the indi-
35 vidual county;
36 (c) The property's prior year's market value for assessment purposes or
37 the assessor's best estimate of current market value, and any prorated net
38 taxable value of the eligible portion of the property's current market
39 value for assessment purposes; and
40 (d) The amount of tax reduction for which the applicant is eligible as
41 determined by the income of the claimant and, if applicable married, the
42 claimant's spouse, pursuant to sections 63-704 and 63-705, Idaho Code.
43 (2) As soon as possible, but in any event by no later than the fourth
44 Monday of June, the property tax reduction roll shall be certified to the
45 county auditor and to the state tax commission in the manner prescribed by
46 rules promulgated by the state tax commission. The property tax reduction roll
47 shall be accompanied by a copy of the claim forms for disapproved claims, when
48 requested by the state tax commission and a copy of the approved claims form.
49 (3) (a) As soon as possible, but in any event by no later than the fourth
50 Monday of October, the county auditor shall complete the property tax
51 reduction roll by adding the following information:
52 (i) The current year's levy for the code area in which the property
53 is situated;
9
1 (ii) The amount of property tax reduction claimed based on the cur-
2 rent year's market value for assessment purposes and the current
3 year's levy; and
4 (iii) The current year's market value for assessment purposes.
5 (b) As soon as possible, but in any event no later than the fourth Monday
6 of October, the county auditor shall certify the completed property tax
7 reduction roll to the state tax commission in the manner prescribed by
8 rules promulgated by the state tax commission.
9 (4) The state tax commission shall calculate determine the total number
10 of all claims for reduction in property taxes from current year's property
11 taxes, evidenced by the abstracts and claims forms from all the counties. Each
12 to be allowed in each county, the dollar amount of each claim allowed, and the
13 total dollar amount for all claims for each county. These amounts shall be
14 certified to the county auditor shall be notified and tax collector by the
15 state tax commission by no later than the third Monday in November. of the
16 amount of property tax reduction to be granted.
17 (5) The state tax commission may audit each and every claim submitted to
18 it, and, any other provision of law notwithstanding, may utilize income tax
19 returns filed by the claimant or by the claimant's spouse to determine the
20 income of the claimant or the claimant's spouse.
21 (6) If it is determined by the state tax commission that a claim is erro-
22 neous, the tax commission shall disapprove so much of the claim as necessary
23 in order to conform with statutory standards. The tax commission shall provide
24 the claimant, or the person or entity acting on behalf of the claimant, writ-
25 ten notice of the tax commission's intent to disapprove all or a portion of
26 the claim. The claimant, or the person or entity acting on behalf of the
27 claimant, shall have fourteen (14) days to make written protest to the tax
28 commission of the intended action. The claimant, or the person or entity act-
29 ing on behalf of the claimant, may submit additional information and may
30 request an informal hearing with the commission. If the claimant, or the per-
31 son or entity acting on behalf of the claimant, fails to make written protest
32 within fourteen (14) days, the tax commission shall provide written notice of
33 disapproval to the claimant, or the person or entity acting on behalf of the
34 claimant, by the fourth Monday of October and to the county auditor of the
35 county from which the claim was received. Any claimant, or person or entity
36 acting on behalf of the claimant, whose claim is disapproved in whole or in
37 part by the state tax commission may:
38 (a) File a claim with the county commissioners for a special cancellation
39 pursuant to section 63-711, Idaho Code;
40 (b) Appeal such disapproval by the state tax commission to the board of
41 tax appeals or to the district court of the county of residence of the
42 taxpayer within thirty (30) days.
43 SECTION 6. That Section 63-709, Idaho Code, be, and the same is hereby
44 amended to read as follows:
45 63-709. REIMBURSEMENT BY STATE TAX COMMISSION. (1) The state tax commis-
46 sion shall determine the total number of claims to be allowed in each county,
47 the dollar amount of each claim allowed, and the total dollar amount for all
48 claims for each county. These amounts shall be certified to the county auditor
49 and tax collector by the state tax commission by no later than the first Mon-
50 day in November.
51 (2) By no later than December 20 of each year the state tax commission
52 shall pay to the county tax collector of each county one-half (1/2) of the
53 amount due each county as reimbursement for reduction in property taxes as
10
1 provided in sections 63-701 through 63-710, Idaho Code, as shown on the
2 abstract of property tax reduction roll and claims forms approved by the state
3 tax commission, and shall pay the second one-half (1/2) of such amount by not
4 later than June 20 of the following year.
5 SECTION 7. That Section 63-710, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 63-710. PROCEDURE AFTER REIMBURSEMENT. (1) Upon receipt of the notice of
8 percentage reduction from the state tax commission, the county auditor shall
9 immediately notify the county commissioners, and the commissioners may take
10 this reduction into consideration in making its property tax levies, and the
11 county commissioners are authorized, but not required, to increase any levy to
12 the extent necessary to compensate for the percentage reduction.
13 (2) The money received by the county tax collector under the provisions
14 of section 63-709(2), Idaho Code, may be considered by the counties and other
15 taxing districts and budgeted against at the same time, in the same manner and
16 in the same year as revenues from taxation.
17 SECTION 8. An emergency existing therefor, which emergency is hereby
18 declared to exist, this act shall be in full force and effect on and after its
19 passage and approval, and retroactively to January 1, 2004.
STATEMENT OF PURPOSE
RS13575
Major revisions to the circuit breaker and "50-50" homeowners tax
reduction provisions of the Idaho Code were made in 2001. This
bill is furtherance of those prior revisions by making further
changes to carry out the best administration and purpose of the
prior changes. The changes are:
(1) In 63-701, Definitions, parts 4 and 7, and other sections in
the bill, reference to grantor trusts is eliminated, since that
status is no longer required to receive the benefits of the
property tax reductions.
(2) In 63-701, part 4, the definition of income in relation to
dual principal residence applications is clarified.
(3) In 63-703, procedure for filing claims, the application
procedure is simplified, especially as to the affidavit in
support of the application, by limiting the information to only
information actually needed. The difference between an affidavit
for trust ownership and an affidavit for entity ownership is also
clarified. The use of the word "grantor" is changed to "claimant"
since, as noted above, grantor status is no longer relevant.
Section d is redundant and is eliminated.
(4) In 63-707, procedure after claim approval, part 1(c) is
amended to properly state what the assessor shall include on the
property tax reduction roll. Part 4 of 63-707, and part 1 of 63-
709, reimbursement by State Tax Commission, are contracted and
amended to eliminate dual reference to the same determination and
to provide a single date, the third Monday in November, for the
provision of such data and payment by the State Tax Commission to
the county. This makes the layout of the two sections more
logical and compact and eliminates the conflict in dates in the
two sections.
(5) In 63-602G, property exempt from taxation residential
improvements, lengthy affidavit procedures are eliminated, since
the same informational requirements are already set forth in
section 63-703(4), and a cross-reference to that section is
substituted. This also eliminates differences and conflicts in
the two code sections as to what information and supporting
documents were required to be submitted.
Since making the change in the midst of a tax year would be
difficult, the bill also declares an effective date of January 1,
2004.
All of the language of the bill has been submitted to the state-
wide organization of the Assessors, including to their
legislative committee, and to the State Tax Commission, and has
been reviewed by them and approved by them.
FISCAL NOTE
This bill will have no fiscal impact. The bill will greatly
clarify and simplify the administration of the property tax
reduction procedures of the State of Idaho which may lead to
administrative savings.
CONTACT: Robert L. Aldridge
1209 North Eighth Street
Boise, Idaho 83702-4297
Telephone: office: (208) 336-9880 home: (208) 888-4668
cell: (208) 631-2481
Fax: (208) 336-9882
e-mail: rlaldridge@hotmail.com
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