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H0215...............................................by REVENUE AND TAXATION
PROPERTY TAX - Amends existing law to revise the definition for "land
actively devoted to agriculture" for property tax purposes; and to define
"for-profit."
02/14 House intro - 1st rdg - to printing
02/15 Rpt prt - to Rev/Tax
03/14 Rpt out - rec d/p - to 2nd rdg
03/15 2nd rdg - to 3rd rdg
03/16 3rd rdg - PASSED - 69-0-1
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon,
Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Hart(Jacobson), Harwood,
Henbest, Henderson, Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher,
Martinez, Mathews, McGeachin, McKague, Miller, Mitchell, Nielsen,
Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Moyle
Floor Sponsor - Barrett
Title apvd - to Senate
03/17 Senate intro - 1st rdg - to Loc Gov
03/22 Rpt out - rec d/p - to 2nd rdg
03/23 2nd rdg - to 3rd rdg
03/24 3rd rdg - PASSED - 34-0-0, 1 vacancy
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst,
Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
Schroeder, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- (District 21 seat vacant)
Floor Sponsor - Burtenshaw
Title apvd - to House
03/24 To enrol
03/28 Rpt enrol - Sp signed
03/29 Pres signed
03/30 To Governor
04/05 Governor signed
Session Law Chapter 271
Effective: 01/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 215
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAXATION; AMENDING SECTION 63-604, IDAHO CODE, TO REVISE
3 THE DEFINITION FOR "LAND ACTIVELY DEVOTED TO AGRICULTURE" FOR PROPERTY TAX
4 PURPOSES, TO MAKE GRAMMATICAL CHANGES AND TO DEFINE "FOR-PROFIT"; DECLAR-
5 ING AN EMERGENCY AND PROVIDING FOR RETROACTIVE APPLICATION.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 63-604, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 63-604. LAND ACTIVELY DEVOTED TO AGRICULTURE DEFINED. (1) For property
10 tax purposes, land which is actively devoted to agriculture as part of an
11 agricultural enterprise shall be eligible for appraisal, assessment and taxa-
12 tion as agricultural property each year it meets one (1) or more of the fol-
13 lowing qualifications:
14 (a) The total area of such land, including the homesite, is more than
15 five (5) contiguous acres, and is actively devoted to agriculture which
16 means:
17 (i) It is used to produce field crops including, but not limited
18 to, grains, feed crops, fruits and vegetables; or
19 (ii) It is used to produce nursery stock as defined in section
20 22-2302(11), Idaho Code; or
21 (iii) It is used by the owner for the grazing of livestock to be sold
22 as part of a net profit-making for-profit enterprise, or is leased by
23 the owner to a bona fide lessee for grazing purposes; or
24 (iv) It is in a cropland retirement or rotation program.
25 (b) The area of such land is five (5) contiguous acres or less and such
26 land has been actively devoted to agriculture within the meaning of sub-
27 section (1)(a) of this section during the last three (3) growing seasons;
28 and
29 (i) It agriculturally produces for sale or home consumption the
30 equivalent of fifteen percent (15%) or more of the owner's or
31 lessee's annual gross income; or
32 (ii) It agriculturally produced gross revenues in the immediately
33 preceding year of one thousand dollars ($1,000) or more. When the
34 area of land is five (5) contiguous acres or less, such land shall be
35 presumed to be nonagricultural land until it is established that the
36 requirements of this subsection have been met.
37 (2) Land shall not be classified or valued as agricultural land which is
38 part of a platted subdivision with stated restrictions prohibiting its use for
39 agricultural purposes, whether within or without a city.
40 (3) Land utilized for the grazing of a horse or other animals kept pri-
41 marily for personal use or pleasure rather than as part of a bona fide profit-
42 making agricultural for-profit enterprise shall not be considered to be land
43 which is actively devoted to agriculture.
2
1 (4) Land actively devoted to agriculture, having previously qualified for
2 exemption under this section in the preceding year, or which would have quali-
3 fied under this section during the current year, shall not lose such qualifi-
4 cation due to the owner's or lessee's absence in the current year by reason of
5 active military service in a designated combat zone, as defined in section 112
6 of the Internal Revenue Code. If an owner fails to timely apply for exemption
7 as required in this section solely by reason of active duty in a designated
8 combat zone, as defined in section 112 of the Internal Revenue Code, and the
9 land would otherwise qualify for exemption under this section, then the board
10 of county commissioners of the county in which the land actively devoted to
11 agriculture is located shall refund property taxes, if previously paid, in an
12 amount equal to the exemption which would otherwise have applied.
13 (5) As used in this section:
14 (a) "C"contiguous" shall means being in actual contact or touching along
15 a boundary or at a point, except no area of land shall be considered not
16 contiguous solely by reason of a roadway or other right-of-way; and
17 (b) "For-profit" means the enterprise will, over some period of time,
18 make or attempt to make a return of income exceeding expenses.
19 SECTION 2. An emergency existing therefor, which emergency is hereby
20 declared to exist, this act shall be in full force and effect on and after its
21 passage and approval, and retroactively to January 1, 2005.
STATEMENT OF PURPOSE
RS 14897
This legislation clarifies that "land actively devoted to
agriculture" includes land that is leased for the grazing of
livestock. The legislation also changes the term "net profit
making" enterprise to "for-profit" enterprise and provides a
definition of "for-profit."
An emergency clause is added in Section 2 and is retroactive to
January 1, 2005 to achieve consistent application for the tax year
of 2005.
FISCAL NOTE
There is no fiscal impact to the state or to the counties in the
collection of property taxes.
Contact
Name: Rep JoAn Wood, Rep Lenore Barrett, and Sen Don Burtenshaw
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 215