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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
]]]] 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
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