Print Friendly HOUSE BILL NO. 253 – Property tax, unused infrastructure
HOUSE BILL NO. 253
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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.
NAYS -- Henbest, LeFavour, Martinez, Mitchell, Pasley-Stuart, Ringo,
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
]]]] 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
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.
There is no cost to the state. Variable cost to local
Name: Moon Wheeler
Phone: (208) 343-4692
Name: Rep. Scott Bedke
STATEMENT OF PURPOSE/FISCAL NOTE H 253