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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 an11 agricultural enterpriseshall 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-makingfor-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 agriculturalfor-profit enterprise shall not be considered to be land 43 which isactively 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" shallmeans 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