2005 Legislation
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HOUSE BILL NO. 109 – Property tax exemption/over 65

HOUSE BILL NO. 109

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Bill Status



H0109...............................................by REVENUE AND TAXATION
PROPERTY TAX EXEMPTION - Adds to existing law to provide for a tax
exemption for property owned by qualified persons aged sixty-five or older;
to provide for application of the exemption; to provide conditions for the
exemption; to provide when taxes are due; and to provide civil penalties.
                                                                        
02/04    House intro - 1st rdg - to printing
02/07    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 109
                                                                        
                             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 AGED SIXTY-FIVE
  5        YEARS OR OLDER, TO PROVIDE FOR APPLICATION OF THE EXEMPTION TO  HOMESTEAD,
  6        TO  PROVIDE CONDITIONS FOR THE EXEMPTION, TO DEFINE TERMS, TO PROVIDE THAT
  7        AN OWNER IS REQUIRED TO MAKE APPLICATION FOR THE EXEMPTION  ONLY  ONCE  IF
  8        CERTAIN  CONDITIONS ARE MET, TO PROVIDE FOR RECORDS, TO PROVIDE WHEN TAXES
  9        ARE DUE, TO PROVIDE CIVIL PENALTIES AND TO DECLARE THAT THE  EXEMPTION  IS
 10        NECESSARY AND JUST; AND PROVIDING AN EFFECTIVE DATE.
                                                                        
 11    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 12        SECTION  1.  That  Chapter  6,  Title  63, Idaho Code, be, and the same is
 13    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 14    ignated as Section 63-602HH, Idaho Code, and to read as follows:
                                                                        
 15        63-602HH.  PROPERTY  EXEMPT  FROM  TAXATION -- PERSONS SIXTY-FIVE YEARS OF
 16    AGE OR OLDER. (1) During the tax year 2006 and each year thereafter, owners of
 17    owner-occupied residences who are over age sixty-five (65) years and who qual-
 18    ify for the exemption provided in section  63-602G,  Idaho  Code,  shall  also
 19    receive  an  exemption  for  any  increases above two percent (2%) per year in
 20    taxes on homesteads if timely application is made therefor. Provided  however,
 21    the  revaluation  of the property shall continue and any increase in the prop-
 22    erty tax above two percent (2%) per year shall become a lien on  the  property
 23    which shall become due upon the sale of the property or discontinued residency
 24    of  the  residence  by  the  sixty-five  (65)  years of age or older owner and
 25    claimed resident as provided in subsection (5) of this section.
 26        (a)  This exemption applies to the homestead.
 27        (b)  To qualify to receive this exemption in tax year  2006  or  any  year
 28        thereafter,  an  owner  must have qualified for and received the exemption
 29        provided in section 63-602G, Idaho Code, in the previous year.
 30        (c)  The owner must be aged sixty-five (65) years or older as of January 1
 31        of the year in which the owner applies for  and  otherwise  qualifies  for
 32        this exemption and shall apply to the county assessor by April 15.
 33        (d)  An owner who applies for and receives tax relief as provided in chap-
 34        ter 7, title 63, Idaho Code, may not also qualify for this exemption.
 35        (2)  The exemption allowed by this section may be granted only if:
 36        (a)  The  homestead  is   owner-occupied  and used as the primary dwelling
 37        place of the owner. The homestead may consist of part of  a  multidwelling
 38        or  multipurpose building and shall include all of such dwelling or build-
 39        ing except any portion used exclusively for anything other than  the  pri-
 40        mary  dwelling  of  the  owner.  The presence of an office in a homestead,
 41        which office is used for multiple purposes, including  business  and  per-
 42        sonal  use,  shall  not prevent the owner from claiming the exemption pro-
 43        vided 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 that:
  6             (i)   He is making application for the exemption allowed by this sec-
  7             tion;
  8             (ii)  That the homestead is his primary dwelling place; and
  9             (iii) That he has not made application in any other  county  for  the
 10             exemption,  and  has  not  made  application for the exemption on any
 11             other residential improvements or residential lots in the county.
 12        (d)  For the purpose of this section, the definition of "owner"  shall  be
 13        the same definition set forth in section 63-701(7), Idaho Code.
 14        (e)  For  the purpose of this section, the definition of "primary dwelling
 15        place" shall be the same definition set forth in section 63-701(8),  Idaho
 16        Code.
 17        (f)  For  the  purpose of this section, the definition of "occupied" shall
 18        be the same definition set forth in section 63-701(6), Idaho Code.
 19        (g)  For the purpose of this section, the definition of "homestead"  shall
 20        be the same definition as set forth in section 63-701(2), Idaho Code.
 21        (3)  An  owner  need  only make application for the exemption described in
 22    subsection (1) of this section once, as long as all of  the  following  condi-
 23    tions are met:
 24        (a)  The  owner  has  received the exemption during the previous year as a
 25        result of his making a valid application as defined in  subsection  (3)(c)
 26        of this section.
 27        (b)  The  owner  who  is  over sixty-five (65) years of age or the owner's
 28        spouse who is over sixty-five (65) years of age,  continues to occupy  the
 29        same homestead for which the owner made application.
 30        (c)  The  homestead  described  in  subsection  (2)(a)  of this section is
 31        owner-occupied and used as the primary dwelling place of the owner.
 32        (4) Immediately after claims have been approved, the county assessor shall
 33    by the fourth Monday of June keep a record showing:
 34        (a)  The name of the taxpayer;
 35        (b)  The description of the property for  which  a  deferral  in  property
 36        taxes  is claimed, suitably detailed to meet the requirements of the indi-
 37        vidual county; and
 38        (c)  The property's  market value for assessment purposes.
 39    By the fourth Monday of October, an abstract of the information  contained  in
 40    this  subsection shall be submitted to the state tax commission  including the
 41    number of claims approved and the amount of taxes deferred.  All taxes validly
 42    deferred and approved pursuant to this  section  shall  be  a  perpetual  lien
 43    against  the  property and shall not bear interest or penalties as long as the
 44    deferral is valid.
 45        (5)  Upon sale of the affected premises or change of occupancy or  in  the
 46    event  improvements to the homestead in excess of fifteen percent (15%) of the
 47    market value occur, the deferred taxes provided in this section shall  be  due
 48    and  payable  within six (6) months of the date of sale or change in occupancy
 49    or date  the  improvements  are  completed.  Except  as  provided  in  section
 50    63-701(8),  Idaho  Code, if the last spouse  dies or leaves the homestead  for
 51    other permanent living arrangements, leaving the  homestead  either  nonowner-
 52    occupied   or  occupied by a person not the owner's spouse, all taxes deferred
 53    by this section shall be due and payable within six (6) months of  such  event
 54    occurring.  Recovery of property taxes, penalties and interest shall be calcu-
 55    lated and distributed as provided in section 63-602G(5), Idaho Code.
                                                                        
                                           3
                                                                        
  1        (6)  Any person or persons who utilize  this  section  to  evade  property
  2    taxes  by  misrepresenting  facts  shall  be liable for a civil penalty not to
  3    exceed ten thousand dollars ($10,000) for each tax year for which the  misrep-
  4    resentation  occurred.  The  imposition  of  civil  penalties  shall take into
  5    account the owner's intentional act, amount of taxes avoided and circumstances
  6    of the misrepresentation. All moneys collected  pursuant  to  this  subsection
  7    along with any deferred taxes, penalties and interest shall be remitted in the
  8    same manner as property taxes are remitted from the residential improvements.
  9        (7)  The legislature declares that this exemption is necessary and just.
                                                                        
 10        SECTION  2.  This act shall be in full force and effect on and after Janu-
 11    ary 1, 2006.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                            RS 14575C1
     
This legislation would allow a home occupied by a 65 year
old resident to receive a deferment of annual tax increases above
two percent until the 65 year old resident moves out, dies or
rents the residence.  At that time the deferred taxes become due
and they are payable within six months of vacating the premises. 
The deferred taxes shall be a lien upon the premises.

Fraudulent use of this statute, to escape payment of taxes,
is punishable by civil penalty up to $10,000 per year, in
addition to the deferred taxes recovered.


                          FISCAL IMPACT

No fiscal impact to the general fund. County government may suffer a
delay and slight tax shift in the first years of implementation,
but it is expected that the passage of time will result in no
adverse impact to counties and local governmental agencies.



Contact
Name:   Representative Leon Smith 
Phone:  208-332-1000




STATEMENT OF PURPOSE/FISCAL NOTE                      H 109