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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
]]]] 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 IMPROVEMENTSHOME- 10 STEAD. (1) During the tax year 19832005 and each year thereafter, the first 11 fifty thousand dollars ($50,000) of the market value for assessment purposes 12 of residential improvementsthe 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 improvementsthe 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 arehomestead 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 arehomestead is owner-occupied 35 after January 1 but before April 15, the owner of the property is entitled 36 to the exemption. The residential improvementshomestead 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 a n owner-occupied residential propertyhomestead, 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 arehomestead 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 improvementshomestead 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 improvementshomestead for 38 which the owner made application. 39 (c) The residential improvementshomestead described in subsection (3)(b) 40 of this section areis 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 arehomestead 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 improvementsA 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 improvementshomestead 53 would have otherwise qualified under this section, then the board of county 54 commissioners of the county in which the residential improvements arehome- 55 stead is located shall refund property taxes, if previously paid, in an amount 4 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 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