2005 Legislation
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HOUSE BILL NO. 243 – Property tax, homeowner exmptn

HOUSE BILL NO. 243

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H0243...............................................by REVENUE AND TAXATION
PROPERTY TAXES - Amends existing law relating to property tax to allow land
to be included in the value of the fifty-fifty homeowner's exemption; and
to provide an increased exemption for certain persons.
                                                                        
02/17    House intro - 1st rdg - to printing
02/18    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. 243
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PROPERTY EXEMPT FROM TAXATION;  AMENDING  SECTION  63-602G,  IDAHO
  3        CODE,  TO  ALLOW  LAND  TO  BE  INCLUDED  IN  THE VALUE OF THE FIFTY-FIFTY
  4        HOMEOWNER'S EXEMPTION AND TO PROVIDE AN INCREASED  EXEMPTION  FOR  CERTAIN
  5        PERSONS; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION  1.  That  Section 63-602G, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        63-602G.  PROPERTY EXEMPT FROM TAXATION -- RESIDENTIAL IMPROVEMENTS  HOME-
 10    STEAD.  (1)  During the tax year 1983 2005 and each year thereafter, the first
 11    fifty  thousand dollars ($50,000) of the market value for assessment  purposes
 12    of  residential  improvements the homestead as that term is defined in section
 13    63-701, Idaho Code, or fifty percent (50%) of the market value for  assessment
 14    purposes  of residential improvements the homestead as that term is defined in
 15    section 63-701, Idaho Code, whichever is the  lesser,  shall  be  exempt  from
 16    property taxation. If the owner meets the definition of claimant as defined in
 17    section 63-701, Idaho Code, except for the need to file a claim and has house-
 18    hold  income  that is greater than the maximum allowed by chapter 7, title 63,
 19    Idaho Code, or rules promulgated pursuant thereto but is less than one hundred
 20    fifty percent (150%) of the maximum household income  allowed  by  chapter  7,
 21    title  63, Idaho Code, or rules promulgated pursuant thereto, the first seven-
 22    ty-five thousand dollars ($75,000) of the market value for assessment purposes
 23    of the homestead as that term is defined in section  63-701,  Idaho  Code,  or
 24    fifty  percent  (50%) of the market value for assessment purposes of the home-
 25    stead as that term is defined in section 63-701, Idaho Code, whichever is  the
 26    lesser,   shall be exempt from property taxation. To receive the increased tax
 27    exemption, the owner shall apply annually with  the  county  assessor  between
 28    January  1  and April 15 of each year and shall prove to the assessor's satis-
 29    faction that the owner meets the household  income  requirements  provided  in
 30    this subsection.
 31        (2)  The exemption allowed by this section may be granted only if:
 32        (a)  The residential improvements are homestead is owner-occupied and used
 33        as  the primary dwelling place of the owner as of January 1, provided that
 34        in the event the residential improvements are homestead is  owner-occupied
 35        after January 1 but before April 15, the owner of the property is entitled
 36        to  the  exemption.  The residential improvements homestead may consist of
 37        part of a multidwelling or multipurpose building and shall include all  of
 38        such dwelling or building except any portion used exclusively for anything
 39        other than the primary dwelling of the owner. The presence of an office in
 40        an owner-occupied residential property homestead, which office is used for
 41        multiple  purposes, including business and personal use, shall not prevent
 42        the owner from claiming the exemption provided in this section; and
 43        (b)  The tax commission has certified to the board of county commissioners
                                                                        
                                           2
                                                                        
  1        that all properties in the county which are subject to  appraisal  by  the
  2        county  assessor have, in fact, been appraised uniformly so as to secure a
  3        just valuation for all property within the county; and
  4        (c)  The owner has certified to the county assessor by April 15 that:
  5             (i)   He is making application for the exemption allowed by this sec-
  6             tion;
  7             (ii)  That the residential improvements are homestead is his  primary
  8             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 homestead in the county.
 12        (d)  For the purpose of this section, the definition of owner shall be the
 13        same definition set forth in section 63-701(7), Idaho Code.
 14             When  an  "owner,"  pursuant  to the provisions of section 63-701(7),
 15        Idaho Code, is any person who is the beneficiary of a revocable or irrevo-
 16        cable trust, or who is a partner of a limited partnership, a member  of  a
 17        limited  liability company, or shareholder of a corporation, he or she may
 18        provide proof of the trust, limited partnership,  limited  liability  com-
 19        pany,  or  corporation in the manner set forth in section 63-703(4), Idaho
 20        Code.
 21        (e)  Any owner may request in writing the return of all copies of any doc-
 22        uments submitted with the affidavit set forth in section 63-703(4),  Idaho
 23        Code, that are held by a county assessor, and the copies shall be returned
 24        by the county assessor upon submission of the affidavit in proper form.
 25        (f)  For  the purpose of this section, the definition of "primary dwelling
 26        place" shall be the same definition set forth in section 63-701(8),  Idaho
 27        Code.
 28        (g)  For  the  purpose of this section, the definition of "occupied" shall
 29        be the same definition set forth in section 63-701(6), Idaho Code.
 30        (3)  An owner need only make application for the  exemption  described  in
 31    subsection  (1)  of  this section once, as long as all of the following condi-
 32    tions are met:
 33        (a)  The owner has received the exemption during the previous  year  as  a
 34        result  of  his making a valid application as defined in subsection (2)(c)
 35        of this section.
 36        (b)  The owner or beneficiary, partner, member or shareholder,  as  appro-
 37        priate,  still  occupies  the  same residential improvements homestead for
 38        which the owner made application.
 39        (c)  The residential improvements homestead described in subsection (3)(b)
 40        of this section are is owner-occupied or occupied by a beneficiary,  part-
 41        ner, member or shareholder, as appropriate, and used as the primary dwell-
 42        ing  place of the owner or beneficiary, partner, member or shareholder, as
 43        appropriate, as of January 1; provided however, that in the event the res-
 44        idential improvements are homestead is owner-occupied after January 1, but
 45        before April 15, the owner of the property is entitled to the exemption.
 46        (4)  The exemption allowed by this section must be taken before the reduc-
 47    tion in taxes provided by sections  63-701  through  63-710,  Idaho  Code,  is
 48    applied.
 49        (5)  Recovery  of  property  tax  exemptions  allowed  by this section but
 50    improperly claimed or approved.
 51        (a)  Upon discovery of evidence, facts  or  circumstances  indicating  any
 52        exemption  allowed by this section was improperly claimed or approved, the
 53        county assessor shall decide  whether  the  exemption  claimed  should  be
 54        allowed  and  if not, notify the taxpayer in writing, assess a recovery of
 55        property tax and notify the county treasurer of this assessment.
                                                                        
                                           3
                                                                        
  1        (b)  When information indicating that an improper claim for the  exemption
  2        allowed  by  this  section  is discovered by the state tax commission, the
  3        state tax commission may disclose  this  information  to  the  appropriate
  4        county  assessor,  board  of  county   commissioners and county treasurer.
  5        Information disclosed to county officials  by  the  state  tax  commission
  6        under  this  subsection may be used to decide the validity of any entitle-
  7        ment to the exemption provided in this section and is not  otherwise  sub-
  8        ject to public disclosure pursuant to chapter 3, title 9, Idaho Code.
  9        (c)  The  assessment  and  collection of the recovery of property tax must
 10        begin within the seven (7) year period beginning the date  the  assessment
 11        notice  reflecting  the  improperly  claimed  or  approved  exemption  was
 12        required to be mailed to the taxpayer.
 13        (d)  The  taxpayer  may  appeal  to  the board of county commissioners the
 14        decision by the county assessor to assess the  recovery  of  property  tax
 15        within thirty (30) days of the date the county assessor sent the notice to
 16        the taxpayer pursuant to this section.
 17        (e)  A  recovery  of  property  tax  shall  be for each year the exemption
 18        allowed by this section was improperly  claimed  or  approved  up  to  the
 19        lesser  of  a  maximum of seven (7) years or until the property was trans-
 20        ferred to a bona fide purchaser for value. The amount of the  recovery  of
 21        property  tax  shall  be  calculated  using  the  product of the amount of
 22        exempted value for each year multiplied by the levy  for  that  year  plus
 23        costs, late charges and interest for each year at the rates equal to those
 24        provided for delinquent property taxes during that year.
 25        (f)  Any  recovery  of property tax shall be due and payable no later than
 26        the date provided for property taxes in section 63-903, Idaho Code, and if
 27        not timely paid, late charges and interest, beginning  the  first  day  of
 28        January in the year following the year the county assessor sent the notice
 29        to  the taxpayer pursuant to this section, shall be calculated at the cur-
 30        rent rate provided for property taxes.
 31        (g)  Recovered property taxes shall be billed, collected  and  distributed
 32        in  the same manner as property taxes, except each taxing district or unit
 33        shall be notified of the amount of any recovered property  taxes  included
 34        in any distribution.
 35        (h)  Any unpaid recovered property taxes shall become a lien upon the real
 36        property  in  the  same  manner  as provided for property taxes in section
 37        63-206, Idaho Code, except such lien shall attach as of the first  day  of
 38        January in the year following the year the county assessor sent the notice
 39        to the taxpayer pursuant to this section.
 40        (i)  For  purposes  of  the  limitation  provided by section 63-802, Idaho
 41        Code, moneys received pursuant to this subsection as recovery of  property
 42        tax shall be treated as property tax revenue.
 43        (6)  The legislature declares that this exemption is necessary and just.
 44        (7)  Residential  improvements A homestead having previously qualified for
 45    exemption under this section in the preceding year, shall not lose such quali-
 46    fication  due  to  the  owner's,   beneficiary's,   partner's,   member's   or
 47    shareholder's absence in the current year by reason of active military service
 48    in a designated combat zone, as defined in section 112 of the Internal Revenue
 49    Code. If an owner fails to timely apply for exemption as required in this sec-
 50    tion solely by reason of active duty in a designated combat zone by the owner,
 51    beneficiary,  partner,  member  or  shareholder, as appropriate, as defined in
 52    section 112 of the Internal Revenue  Code,  and  such  improvements  homestead
 53    would  have  otherwise  qualified under this section, then the board of county
 54    commissioners of the county in which the residential  improvements  are  home-
 55    stead is located shall refund property taxes, if previously paid, in an amount
                                                                        
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  1    equal to the exemption which would otherwise have applied.
                                                                        
  2        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
  3    declared to exist, this act shall be in full force and effect on and after its
  4    passage and approval, and retroactively to January 1, 2005.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15030

The purpose of this legislation is to provide property tax
relief by increasing the amount of the Homeowner's Exemption for
those over the age 65 and by expanding its application to the
land directly associated with the residential improvement.  The
relief is provided in three increments.  First, it retains the
Homeowner's Exemption for all owner-occupied residences at the
present $50,000 level but expands its applicability to the land. 
Second it authorizes an increase in the Homeowner's Exemption to
$75,000 for all persons 65 years of age whose income is less than
$33,090 per year.  Third, this legislation makes a $75,000
Homeowner's Exemption available to special categories of people
of any age, who have an annual income of no more than $33,090,
including: Widow(er), Blind, former Prisoner of War/Hostage,
Veteran with a 30 percent or more of service connected disability
or a Disabled Person recognized by the Social Security
Administration, Railroad Retirement Board or Federal Civil
Service.


                           FISCAL NOTE

Increase $1.7 million to the general fund.




Contact
Name:  Representative Frank Henderson 
Phone: 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                      H 243