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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