Print Friendly HOUSE BILL NO. 739 – Property tax exmptn/claim in error
HOUSE BILL NO. 739
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H0739...............................................by REVENUE AND TAXATION
PROPERTY TAX - HOMEOWNERS EXEMPTION - Amends existing law to provide a
procedure for determination and collection of property tax moneys that were
improperly claimed or approved for the fifty-fifty homeowner's property tax
exemption; and to provide application of moneys collected to the three
percent property tax cap.
02/19 House intro - 1st rdg - to printing
02/20 Rpt prt - to Rev/Tax
02/25 Rpt out - rec d/p - to 2nd rdg
02/26 2nd rdg - to 3rd rdg
03/01 3rd rdg - PASSED - 67-0-3
AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
Crow, Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Henbest,
Jaquet, Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez,
McGeachin, McKague, Meyer, Miller, Mitchell, Moyle, Naccarato,
Nielsen, Pasley-Stuart, Raybould, Ridinger, Ringo, Roberts, Robison,
Rydalch, Sali, Sayler, Schaefer, Shepherd, Skippen, Smith(30),
Smith(24), Smylie, Snodgrass, Stevenson, Trail(Bennett), Wills, Wood,
NAYS -- None
Absent and excused -- Jones, Ring, Shirley
Floor Sponsor - Roberts
Title apvd - to Senate
03/02 Senate intro - 1st rdg - to Loc Gov
03/09 Rpt out - rec d/p - to 2nd rdg
03/10 2nd rdg - to 3rd rdg
03/18 3rd rdg - PASSED - 31-0-4
AYES -- Andreason, Bailey, Bunderson, Burkett, Burtenshaw,
Calabretta, Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill,
Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie,
McWilliams, Noble, Noh, Richardson, Sorensen, Stegner, Stennett,
Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Brandt, Cameron, Pearce, Schroeder
Floor Sponsor - Malepeai
Title apvd - to House
03/19 To enrol - Rpt enrol - Sp signed - Pres signed
03/22 To Governor
03/23 Governor signed
Session Law Chapter 190
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 739
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY EXEMPT FROM TAXATION; AMENDING SECTION 63-602G, IDAHO
3 CODE, TO PROVIDE A PROCEDURE FOR DETERMINATION AND COLLECTION OF PROPERTY
4 TAX MONEYS THAT WERE IMPROPERLY CLAIMED OR APPROVED FOR THE FIFTY-FIFTY
5 HOMEOWNER'S PROPERTY TAX EXEMPTION AND TO PROVIDE APPLICATION OF MONEYS
6 COLLECTED TO THE THREE PERCENT PROPERTY TAX CAP.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 63-602G, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 63-602G. PROPERTY EXEMPT FROM TAXATION -- RESIDENTIAL IMPROVEMENTS. (1)
11 During the tax year 1983 and each year thereafter, the first fifty thousand
12 dollars ($50,000) of the market value for assessment purposes of residential
13 improvements, or fifty percent (50%) of the market value for assessment pur-
14 poses of residential improvements, whichever is the lesser, shall be exempt
15 from property taxation.
16 (2) The exemption allowed by this section may be granted only if:
17 (a) The residential improvements are owner-occupied and used as the pri-
18 mary dwelling place of the owner as of January 1, provided that in the
19 event the residential improvements are owner-occupied after January 1 but
20 before April 15, the owner of the property is entitled to the exemption.
21 The residential improvements may consist of part of a multidwelling or
22 multipurpose building and shall include all of such dwelling or building
23 except any portion used exclusively for anything other than the primary
24 dwelling of the owner. The presence of an office in an owner-occupied res-
25 idential property, which office is used for multiple purposes, including
26 business and personal use, shall not prevent the owner from claiming the
27 exemption provided in this section; and
28 (b) The tax commission has certified to the board of county commissioners
29 that all properties in the county which are subject to appraisal by the
30 county assessor have, in fact, been appraised uniformly so as to secure a
31 just valuation for all property within the county; and
32 (c) The owner has certified to the county assessor by April 15 that:
33 (i) He is making application for the exemption allowed by this sec-
35 (ii) That the residential improvements are his primary dwelling
36 place; and
37 (iii) That he has not made application in any other county for the
38 exemption, and has not made application for the exemption on any
39 other residential improvements in the county.
40 (d) For the purpose of this section, the definition of owner shall be the
41 same definition set forth in section 63-701(7), Idaho Code.
42 When an "owner," pursuant to the provisions of section 63-701(7),
43 Idaho Code, is any person who as grantor, or whose spouse as grantor, cre-
1 ated a revocable or irrevocable trust and was named as beneficiary of that
2 trust, or who is a partner of a limited partnership, a member of a limited
3 liability company, or shareholder of a corporation, he or she may provide
4 proof of the trust, limited partnership, limited liability company, or
5 corporation with an affidavit stating: (i) the name of the grantor, part-
6 ner, member or shareholder; (ii) a statement that the grantor, or the
7 grantor's spouse, is the beneficiary of the trust, or the person is a
8 partner of the limited partnership, or a member of the limited liability
9 company, or a shareholder of the corporation; (iii) the grantor, the
10 grantor's spouse, partner, member or shareholder is the occupier of the
11 residential property and uses the property as the primary dwelling place
12 of the grantor, the grantor's spouse, partner, member or shareholder as of
13 January 1; and (iv) if applicable, the person holds at least a five per-
14 cent (5%) ownership in the limited partnership, limited liability company
15 or corporation.
16 The affidavit shall include the attaching of the copies of those por-
17 tions of the trust or other document which set forth the grantor, the
18 grantor or the grantor's spouse as beneficiary and the signature page of
19 the trust or other document; those portions of the articles of organiza-
20 tion or operating agreement of the limited liability company indicating
21 the person's membership in the company and the ownership percentage held
22 by such person; those portions of the limited partnership agreement or
23 other records of the limited partnership indicating that the person has
24 been admitted to the partnership and the ownership percentage held by such
25 person; or those portions of the articles of incorporation indicating that
26 the person is a shareholder of the corporation and the ownership percent-
27 age held by such person.
28 (e) Any owner may request in writing the return of all copies of any doc-
29 uments submitted with the affidavit set forth in paragraph (d) of this
30 subsection that are held by a county assessor, and the copies shall be
31 returned by the county assessor upon submission of the affidavit in proper
33 (f) For the purpose of this section, the definition of "primary dwelling
34 place" shall be the same definition set forth in section 63-701(8), Idaho
36 (g) For the purpose of this section, the definition of "occupied" shall
37 be the same definition set forth in section 63-701(6), Idaho Code.
38 (3) An owner need only make application for the exemption described in
39 subsection (1) of this section once, as long as all of the following condi-
40 tions are met:
41 (a) The owner has received the exemption during the previous year as a
42 result of his making a valid application as defined in subsection (2)(c)
43 of this section.
44 (b) The owner or beneficiary, partner, member or shareholder, as appro-
45 priate, still occupies the same residential improvements for which the
46 owner made application.
47 (c) The residential improvements described in subsection (3)(b) of this
48 section are owner-occupied or occupied by a beneficiary, partner, member
49 or shareholder, as appropriate, and used as the primary dwelling place of
50 the owner or beneficiary, partner, member or shareholder, as appropriate,
51 as of January 1; provided however, that in the event the residential
52 improvements are owner-occupied after January 1, but before April 15, the
53 owner of the property is entitled to the exemption.
54 (4) The exemption allowed by this section must be taken before the reduc-
55 tion in taxes provided by sections 63-701 through 63-710, Idaho Code, is
2 (5) Recovery of property tax exemptions allowed by this section but
3 improperly claimed or approved.
4 (a) Upon discovery of evidence, facts or circumstances indicating any
5 exemption allowed by this section was improperly claimed or approved, the
6 county assessor shall decide whether the exemption claimed should be
7 allowed and if not, notify the taxpayer in writing, assess a recovery of
8 property tax and notify the county treasurer of this assessment.
9 (b) When information indicating that an improper claim for the exemption
10 allowed by this section is discovered by the state tax commission, the
11 state tax commission may disclose this information to the appropriate
12 county assessor, board of county commissioners and county treasurer.
13 Information disclosed to county officials by the state tax commission
14 under this subsection may be used to decide the validity of any entitle-
15 ment to the exemption provided in this section and is not otherwise sub-
16 ject to public disclosure pursuant to chapter 3, title 9, Idaho Code.
17 (c) The assessment and collection of the recovery of property tax must
18 begin within the seven (7) year period beginning the date the assessment
19 notice reflecting the improperly claimed or approved exemption was
20 required to be mailed to the taxpayer.
21 (d) The taxpayer may appeal to the board of county commissioners the
22 decision by the county assessor to assess the recovery of property tax
23 within thirty (30) days of the date the county assessor sent the notice to
24 the taxpayer pursuant to this section.
25 (e) A recovery of property tax shall be for each year the exemption
26 allowed by this section was improperly claimed or approved up to the
27 lesser of a maximum of seven (7) years or until the property was trans-
28 ferred to a bona fide purchaser for value. The amount of the recovery of
29 property tax shall be calculated using the product of the amount of
30 exempted value for each year multiplied by the levy for that year plus
31 costs, late charges and interest for each year at the rates equal to those
32 provided for delinquent property taxes during that year.
33 (f) Any recovery of property tax shall be due and payable no later than
34 the date provided for property taxes in section 63-903, Idaho Code, and if
35 not timely paid, late charges and interest, beginning the first day of
36 January in the year following the year the county assessor sent the notice
37 to the taxpayer pursuant to this section, shall be calculated at the cur-
38 rent rate provided for property taxes.
39 (g) Recovered property taxes shall be billed, collected and distributed
40 in the same manner as property taxes, except each taxing district or unit
41 shall be notified of the amount of any recovered property taxes included
42 in any distribution.
43 (h) Any unpaid recovered property taxes shall become a lien upon the real
44 property in the same manner as provided for property taxes in section
45 63-206, Idaho Code, except such lien shall attach as of the first day of
46 January in the year following the year the county assessor sent the notice
47 to the taxpayer pursuant to this section.
48 (i) For purposes of the limitation provided by section 63-802, Idaho
49 Code, moneys received pursuant to this subsection as recovery of property
50 tax shall be treated as property tax revenue.
51 (6) The legislature declares that this exemption is necessary and just.
52 ( 67) Residential improvements having previously qualified for exemption
53 under this section in the preceding year, shall not lose such qualification
54 due to the owner's, beneficiary's, partner's, member's or shareholder's
55 absence in the current year by reason of active military service in a desig-
1 nated combat zone, as defined in section 112 of the Internal Revenue Code. If
2 an owner fails to timely apply for exemption as required in this section
3 solely by reason of active duty in a designated combat zone by the owner, ben-
4 eficiary, partner, member or shareholder, as appropriate, as defined in sec-
5 tion 112 of the Internal Revenue Code, and such improvements would have other-
6 wise qualified under this section, then the board of county commissioners of
7 the county in which the residential improvements are located shall refund
8 property taxes, if previously paid, in an amount equal to the exemption which
9 would otherwise have applied.
STATEMENT OF PURPOSE
The purpose of this bill is to amend Section 63-602G, Idaho Code,
to provide authority and procedures for determination and
collection of homeowner's exemptions from property tax in
situations where the exemption is improperly claimed and allowed
as a result of error, misstatement or misunderstanding.
Name: Rep. Ken Roberts
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 739