2005 Legislation
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HOUSE BILL NO. 253 – Property tax, unused infrastructure

HOUSE BILL NO. 253

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Bill Status



H0253...............................................by REVENUE AND TAXATION
PROPERTY TAX EXEMPTION - Adds to existing law to provide an exemption from
property taxation for unused infrastructure.
                                                                        
02/21    House intro - 1st rdg - to printing
02/22    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 - 60-8-2
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, 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, Henderson,
      Jaquet, Jones, Kemp, Lake, Loertscher, Mathews, McGeachin, McKague,
      Miller, Nielsen, Nonini, Pence, Raybould, Ring, Roberts, Rydalch,
      Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen,
      Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr.
      Speaker
      NAYS -- Henbest, LeFavour, Martinez, Mitchell, Pasley-Stuart, Ringo,
      Rusche, Smith(30)
      Absent and excused -- Bayer, Moyle
    Floor Sponsor - Bedke
    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 - McKenzie
    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 279
         Effective: 07/01/05

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 253
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO EXEMPTION FROM PROPERTY TAXATION; AMENDING CHAPTER  6,  TITLE  63,
  3        IDAHO CODE, BY THE ADDITION OF A NEW SECTION 63-602HH, IDAHO CODE, TO PRO-
  4        VIDE AN EXEMPTION FROM PROPERTY TAX FOR UNUSED INFRASTRUCTURE.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION  1.  That  Chapter  6,  Title  63, Idaho Code, be, and the same is
  7    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  8    ignated as Section 63-602HH, Idaho Code, and to read as follows:
                                                                        
  9        63-602HH.  PROPERTY  EXEMPT FROM TAXATION -- UNUSED INFRASTRUCTURE. (1) It
 10    is the intent of this section to preserve infrastructure  and  encourage  eco-
 11    nomic  development  in the limited circumstances when a business or other com-
 12    mercial entity ceases to operate on property within a county.
 13        (2)  Following notice as prescribed in section  31-710,  Idaho  Code,  and
 14    public  hearings,  the  board of county commissioners of any county shall have
 15    the authority to exempt from taxation the unused infrastructure of a business,
 16    provided that the business states that such infrastructure  is  nonoperational
 17    under penalty of perjury.
 18        (3)  The exemption shall be for a period of up to five (5) years, provided
 19    that  the board of county commissioners may vote to extend the exemption for a
 20    period not exceeding five (5) additional years.
 21        (4)  The board of county commissioners shall publish in  its  minutes  any
 22    decision  to  grant  or  deny the exemption provided in this section and shall
 23    notify the county assessor and state tax commission of any exemption  and  the
 24    duration  of such exemption. It shall be the responsibility of the assessor to
 25    return the property valuation of the unused infrastructure to  the  tax  rolls
 26    upon the expiration of the exemption.
 27        (5)  The  exemption  provided in this section shall not be granted for any
 28    portion of an operating public utility.
 29        (6)  As used in this  section,  "unused  infrastructure"  means  installed
 30    utilities including, but not limited to, rail, water, natural gas and electri-
 31    cal lines.

Statement of Purpose / Fiscal Impact



                        STATEMENT OF PURPOSE
                                
                              RS 14939
                                
The purpose of this legislation is to provide an incentive for
the owners of defunct industrial sites to preserve imbedded
infrastructure for possible use by a successor business. Defunct
industries frequently remove all property improvements for
salvage value and to reduce legal and tax liabilities. Imbedded
rail tracks, water lines and electrical lines can be very
expensive to install.  Preservation can be an asset for reuse or
sale to another industry or business. County commissioners would
have the sole authority to issue the ad valorem exemption for up
to five years with a possible renewal if warranted.  The
exemption would cause a tax shift, but removal would result in a
permanent loss of the same magnitude. Public notice and a public
hearing are prerequisites to the county commissioners' action.
The impact of the exemption would be almost entirely up to the
county and other taxing districts within the county.


                           FISCAL IMPACT
                                
There is no cost to the state.  Variable cost to local
government.  




Contact   
Name:   Moon Wheeler 
Phone:  (208) 343-4692
Name:   Rep. Scott Bedke
        (208) 332-1263 



STATEMENT OF PURPOSE/FISCAL NOTE                   H 253