2005 Legislation
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HOUSE BILL NO. 252 – Property tax/income/veteran benefit


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Bill Status

H0252...............................................by REVENUE AND TAXATION
PROPERTY TAX RELIEF - Amends existing law to exclude benefits paid by the
United States Department of Veterans Affairs to dependents of deceased
veterans under the definition of income for circuit breaker property tax
relief purposes.
02/21    House intro - 1st rdg - to printing
02/22    Rpt prt - to Rev/Tax
03/07    Rpt out - rec d/p - to 2nd rdg
03/08    2nd rdg - to 3rd rdg
03/09    3rd rdg - PASSED - 69-0-1
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bell,
      Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark,
      Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson,
      Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
      McGeachin, McKague, Miller, Mitchell, Moyle, 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 -- Bedke
    Floor Sponsor - Eskridge
    Title apvd - to Senate
03/10    Senate intro - 1st rdg - to Loc Gov
03/17    Rpt out - rec d/p - to 2nd rdg
03/18    2nd rdg - to 3rd rdg
03/22    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 Sponsors - McKenzie & Williams
    Title apvd - to House
03/23    To enrol
03/24    Rpt enrol - Sp signed
03/25    Pres signed
03/28    To Governor
04/01    Governor signed
         Session Law Chapter 241
         Effective: 01/01/05

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 252
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  7    Be It Enacted by the Legislature of the State of Idaho:
  8        SECTION  1.  That  Section  63-701, Idaho Code, be, and the same is hereby
  9    amended to read as follows:
 10        63-701.  DEFINITIONS. As used in this chapter:
 11        (1)  "Claimant" means a person who has filed a claim under the  provisions
 12    of  sections  63-701 through 63-710, Idaho Code. Except as provided in section
 13    63-702(2), Idaho Code, on January 1 of the year or before April  15  in  which
 14    the claim was filed a claimant must be an owner of a homestead and be:
 15        (a)  Not less than sixty-five (65) years old; or
 16        (b)  A  child  under  the  age of eighteen (18) years who is fatherless or
 17        motherless or who has been abandoned by any surviving parent  or  parents;
 18        or
 19        (c)  A widow or widower; or
 20        (d)  A  disabled  person who is recognized as disabled by the social secu-
 21        rity administration pursuant to title 42 of the United States Code, or  by
 22        the  railroad  retirement  board pursuant to title 45 of the United States
 23        Code, or by the office of management and budget pursuant to title 5 of the
 24        United States Code; or
 25        (e)  A disabled veteran of any war engaged in by the United States,  whose
 26        disability  is recognized as a service-connected disability of a degree of
 27        ten percent (10%) or more, or who has a pension  for  nonservice-connected
 28        disabilities,  in accordance with laws and regulations administered by the
 29        United States department of veterans affairs; administration; or
 30        (f)  A person, as specified in 42 U.S.C. 1701, who was or is  entitled  to
 31        receive benefits because he is known to have been taken by a hostile force
 32        as a prisoner, hostage or otherwise; or
 33        (g)  Blind.
 34        (2)  "Homestead"  means  the  dwelling,  owner-occupied by the claimant as
 35    described in this chapter and used as the primary dwelling place of the claim-
 36    ant and may be occupied by any members of the household as their home, and  so
 37    much  of the land surrounding it, not exceeding one (1) acre, as is reasonably
 38    necessary for the use of the dwelling as a home. It may consist of a part of a
 39    multidwelling or multipurpose building and part of the land upon which  it  is
 40    built.  "Homestead" does not include personal property such as furniture, fur-
 41    nishings or appliances, but a manufactured home may be a homestead.
 42        (3)  "Household" means the claimant and the claimant's  spouse.  The  term
 43    does  not  include bona fide lessees, tenants, or roomers and boarders on con-
  1    tract. "Household" includes persons described in  subsection  (8)(b)  of  this
  2    section.
  3        (4)  "Household  income" means all income received by the claimant and, if
  4    married, all income received by the claimant's spouse, in a calendar year.
  5        (5)  "Income" means the sum of federal adjusted gross income as defined in
  6    the Internal Revenue Code, as defined in section 63-3004, Idaho Code,  and  to
  7    the extent not already included in federal adjusted gross income:
  8        (a)  Alimony;
  9        (b)  Support money;
 10        (c)  Nontaxable strike benefits;
 11        (d)  The  nontaxable  amount of any individual retirement account, pension
 12        or annuity, (including railroad retirement benefits, all payments received
 13        under the federal social security act except  the  social  security  death
 14        benefit  as  specified  in  this  subsection, state unemployment insurance
 15        laws,  and  veterans  disability  pensions  and  compensation,   excluding
 16        rollovers as provided in section 402 or 403 of the Internal Revenue Code);
 17        (e)  Nontaxable  interest  received  from the federal government or any of
 18        its instrumentalities or a state government or any of  its  instrumentali-
 19        ties;
 20        (f)  Worker's compensation; and
 21        (g)  The gross amount of loss of earnings insurance.
 22    It  does  not  include  capital  gains,  gifts from nongovernmental sources or
 23    inheritances. To the extent not  reimbursed,  the  cost  of  medical  care  as
 24    defined  in  section  213(d) of the Internal Revenue Code, incurred or paid by
 25    the claimant and, if married, the claimant's  spouse,  may  be  deducted  from
 26    income.  To  the  extent  not reimbursed, personal funeral expenses, including
 27    prepaid funeral expenses and premiums on funeral insurance,  of  the  claimant
 28    and  claimant's spouse only, may be deducted from income up to an annual maxi-
 29    mum of five thousand dollars ($5,000) per claim.  "Income"  does  not  include
 30    veterans  disability  pensions  received  by  a person described in subsection
 31    (1)(e) who is a claimant or a claimant's spouse if the disability  pension  is
 32    received  pursuant to a service-connected disability of a degree of forty per-
 33    cent (40%) or more. "Income" does not include dependency and indemnity compen-
 34    sation or death benefits paid to a person described in subsection (1) of  this
 35    section by the United States department of veterans affairs and arising from a
 36    service-connected  death  or  disability.  "Income"  does not include lump sum
 37    death benefits made by the  social  security  administration  pursuant  to  42
 38    U.S.C.  section  402(i).  Documentation of medical expenses may be required by
 39    the county assessor, board of equalization and state tax  commission  in  such
 40    form  as  the  county  assessor, board of equalization or state tax commission
 41    shall determine. "Income" shall be that received in the calendar year  immedi-
 42    ately  preceding  the  year in which a claim is filed. Where a claimant and/or
 43    the claimant's spouse does not file  a  federal  tax  return,  the  claimant's
 44    and/or  the claimant's spouse's federal adjusted gross income, for purposes of
 45    this section, shall be an income equivalent to federal adjusted  gross  income
 46    had  the  claimant and/or the claimant's spouse filed a federal tax return, as
 47    determined by the county assessor. The county assessor, board of  equalization
 48    or  state  tax  commission may require documentation of income in such form as
 49    each shall determine, including, but not limited  to:  copies  of  federal  or
 50    state tax returns and any attachments thereto; and income reporting forms such
 51    as the W-2 and 1099.
 52        (6)  "Occupied" means actual use and possession.
 53        (7)  "Owner"  means a person holding title in fee simple or holding a cer-
 54    tificate of motor vehicle title (either of which may be subject  to  mortgage,
 55    deed of trust or other lien) or who has retained or been granted a life estate
  1    or  who is a person entitled to file a claim under section 63-702, Idaho Code.
  2    "Owner" shall also include any person who:
  3        (a)  Is the beneficiary of a revocable or irrevocable trust which  is  the
  4        owner  of  such  homestead  and under which the claimant or the claimant's
  5        spouse has the primary right of occupancy of the homestead; or
  6        (b)  Is a partner of a limited partnership, member of a limited  liability
  7        company  or shareholder of a corporation if such entity holds title in fee
  8        simple or holds a certificate of motor vehicle title  and  if  the  person
  9        holds at least a five percent (5%) ownership in such entity, as determined
 10        by the county assessor; or
 11        (c)  Has retained or been granted a life estate.
 12    "Owner"  includes  a vendee in possession under a land sale contract. Any par-
 13    tial ownership shall be considered as ownership for determining initial quali-
 14    fication for property tax reduction benefits; however, the amount of  property
 15    tax reduction under section 63-704, Idaho Code, and rules promulgated pursuant
 16    to  section  63-705,  Idaho  Code,  shall  be  computed  on  the  value of the
 17    claimant's partial ownership. "Partial ownership," for the  purposes  of  this
 18    section,  means  any one (1) person's ownership when property is owned by more
 19    than one (1) person or where the homestead is held by an entity, as set  forth
 20    in this subsection, but more than one (1) person has the right of occupancy of
 21    such homestead. A person holding either partial title in fee simple or holding
 22    a certificate of motor vehicle title together with another person but who does
 23    not occupy the dwelling as his primary dwelling place, shall not be considered
 24    an  owner  for  purposes of this section, if such person is a cosignatory of a
 25    note secured by the dwelling in question and at least one  (1)  of  the  other
 26    cosignatories of the note occupies the dwelling as his primary dwelling place.
 27    The combined community property interests of both spouses shall not be consid-
 28    ered  partial  ownership  so long as the combined community property interests
 29    constitute the entire ownership of the homestead, including where the  spouses
 30    are occupying a homestead owned by an entity, as set forth in this subsection,
 31    and the spouses have the primary right of occupancy of the homestead. The pro-
 32    portional  reduction  required under this subsection shall not apply to commu-
 33    nity property interests. Where title to property is held by a person  who  has
 34    died  without  timely filing a claim for property tax reduction, the estate of
 35    the deceased person shall be the "owner," provided that the time periods  dur-
 36    ing  which  the  deceased  person  held  such title shall be attributed to the
 37    estate for the computation of any time  periods  under  subsection  (8)(a)  or
 38    (8)(b) of this section.
 39        (8)  (a) "Primary  dwelling  place" means the claimant's dwelling place on
 40        January 1 or before April 15 of the year for which the claim is made.  The
 41        primary  dwelling place is the single place where a claimant has his true,
 42        fixed  and  permanent home and principal establishment, and to which when-
 43        ever the individual is absent he has the intention of returning. A  claim-
 44        ant  must establish the dwelling to which the claim relates to be his pri-
 45        mary dwelling place by clear and convincing evidence  or  by  establishing
 46        that  the  dwelling  is  where the claimant resided on January 1 or before
 47        April 15 and:
 48             (i)   At least six (6) months during the prior year; or
 49             (ii)  The majority of the time the claimant  owned  the  dwelling  if
 50             owned by the claimant less than one (1) year; or
 51             (iii) The  majority of the time after the claimant first occupied the
 52             dwelling if occupied by the claimant for less than one (1) year.  The
 53             county  assessor  may require written or other proof of the foregoing
 54             in such form as the county assessor may determine.
 55        (b)  Notwithstanding the provisions of paragraph (a) of  this  subsection,
  1        the  property upon which the claimant makes application shall be deemed to
  2        be the claimant's primary dwelling place  if  the  claimant  is  otherwise
  3        qualified  and  resides in a care facility and does not allow the property
  4        upon which the claimant has made application to be occupied    by  persons
  5        paying  a consideration to occupy the dwelling. Payment of utilities shall
  6        not be payment of a consideration to occupy  the  dwelling.  A  claimant's
  7        spouse  who  resides  in  a care facility shall be deemed to reside at the
  8        claimant's primary dwelling place and to  be  a  part  of  the  claimant's
  9        household. A care facility is a hospital, nursing facility or intermediate
 10        care  facility  for  the  mentally retarded as defined in section 39-1301,
 11        Idaho Code, or a facility as defined in section 39-3302(16),  Idaho  Code,
 12        or  a  dwelling other than the one upon which the applicant makes applica-
 13        tion where a claimant who is unable to reside in the dwelling  upon  which
 14        the  application  is made lives and receives help in daily living, protec-
 15        tion and security.
 16        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
 17    declared to exist, this act shall be in full force and effect on and after its
 18    passage and approval, and retroactively to January 1, 2005.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                            RS 14924

This measure allows exemption as income from the Dependency and
Indemnity Compensation and widow's pension benefits for widows of
veterans applying for the Circuit Breaker Program.

                          FISCAL IMPACT

A negative impact of $150,000 to the general fund.

Name:  Rep. George Eskridge 
Phone: 332-1000
       Rep. Lawerence Denney
Phone: 332-1000
       Pat Teague, Division of Veteran's Services
Phone: 334-3513