2004 Legislation
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HOUSE BILL NO. 650 – Real property transfer, certificate


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Bill Status

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

Bill Text

  ]]]]              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
 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:
 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
  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:
 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.
  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
  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-
  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 / Fiscal Impact

                      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
                          FISCAL IMPACT
No fiscal impact to the state's general fund or local taxing
Contact:  Idaho Association of Counties
Name:     Dan Chadwick
          Tony Poinelli
          Maggie Mahoney
          Kerry Ellen Elliott
Phone:    345-9126                              H 650