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H0299...............................................by REVENUE AND TAXATION HOMEOWNER EXEMPTION - Amends existing law to allow residential improvements to still qualify for the fifty-fifty homeowner's exemption if the residential improvements, which previously qualified, have been leased because the owner, beneficiary, partner, member or shareholder is absent in the current year by reason of active military service in a designated combat zone. 03/07 House intro - 1st rdg - to printing 03/08 Rpt prt - to Rev/Tax 03/15 Rpt out - rec d/p - to 2nd rdg 03/16 2nd rdg - to 3rd rdg Rls susp - PASSED - 66-0-4 AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark, Collins, Crow, Deal, Denney, Ellsworth, Eskridge, Field(18), Field(23), Garrett, Hart(Jacobson), Harwood, Henbest, Henderson, Jaquet, Jones, 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), Skippen, Smith(30), Smith(24), Smylie, Stevenson, Trail, Wills, Wood, Mr. Speaker NAYS -- None Absent and excused -- Edmunson, Kemp, Shirley, Snodgrass Floor Sponsor - Denney 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 - Pearce 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 283 Effective: 01/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 299 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO RESIDENTIAL IMPROVEMENTS EXEMPT FROM PROPERTY TAXATION; AMENDING 3 SECTION 63-602G, IDAHO CODE, TO ALLOW RESIDENTIAL IMPROVEMENTS TO STILL 4 QUALIFY FOR THE FIFTY-FIFTY HOMEOWNER'S EXEMPTION IF THE RESIDENTIAL 5 IMPROVEMENTS, WHICH PREVIOUSLY QUALIFIED, HAVE BEEN LEASED BECAUSE THE 6 OWNER, BENEFICIARY, PARTNER, MEMBER OR SHAREHOLDER IS ABSENT IN THE CUR- 7 RENT YEAR BY REASON OF ACTIVE MILITARY SERVICE IN A DESIGNATED COMBAT 8 ZONE; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION. 9 Be It Enacted by the Legislature of the State of Idaho: 10 SECTION 1. That Section 63-602G, Idaho Code, be, and the same is hereby 11 amended to read as follows: 12 63-602G. PROPERTY EXEMPT FROM TAXATION -- RESIDENTIAL IMPROVEMENTS. (1) 13 During the tax year 1983 and each year thereafter, the first fifty thousand 14 dollars ($50,000) of the market value for assessment purposes of residential 15 improvements, or fifty percent (50%) of the market value for assessment pur- 16 poses of residential improvements, whichever is the lesser, shall be exempt 17 from property taxation. 18 (2) The exemption allowed by this section may be granted only if: 19 (a) The residential improvements are owner-occupied and used as the pri- 20 mary dwelling place of the owner as of January 1, provided that in the 21 event the residential improvements are owner-occupied after January 1 but 22 before April 15, the owner of the property is entitled to the exemption. 23 The residential improvements may consist of part of a multidwelling or 24 multipurpose building and shall include all of such dwelling or building 25 except any portion used exclusively for anything other than the primary 26 dwelling of the owner. The presence of an office in an owner-occupied res- 27 idential property, which office is used for multiple purposes, including 28 business and personal use, shall not prevent the owner from claiming the 29 exemption provided in this section; and 30 (b) The tax commission has certified to the board of county commissioners 31 that all properties in the county which are subject to appraisal by the 32 county assessor have, in fact, been appraised uniformly so as to secure a 33 just valuation for all property within the county; and 34 (c) The owner has certified to the county assessor by April 15 that: 35 (i) He is making application for the exemption allowed by this sec- 36 tion; 37 (ii) That the residential improvements are his primary dwelling 38 place; and 39 (iii) That he has not made application in any other county for the 40 exemption, and has not made application for the exemption on any 41 other residential improvements in the county. 42 (d) For the purpose of this section, the definition of owner shall be the 43 same definition set forth in section 63-701(7), Idaho Code. 2 1 When an "owner," pursuant to the provisions of section 63-701(7), 2 Idaho Code, is any person who is the beneficiary of a revocable or irrevo- 3 cable trust, or who is a partner of a limited partnership, a member of a 4 limited liability company, or shareholder of a corporation, he or she may 5 provide proof of the trust, limited partnership, limited liability com- 6 pany, or corporation in the manner set forth in section 63-703(4), Idaho 7 Code. 8 (e) Any owner may request in writing the return of all copies of any doc- 9 uments submitted with the affidavit set forth in section 63-703(4), Idaho 10 Code, that are held by a county assessor, and the copies shall be returned 11 by the county assessor upon submission of the affidavit in proper form. 12 (f) For the purpose of this section, the definition of "primary dwelling 13 place" shall be the same definition set forth in section 63-701(8), Idaho 14 Code. 15 (g) For the purpose of this section, the definition of "occupied" shall 16 be the same definition set forth in section 63-701(6), Idaho Code. 17 (3) An owner need only make application for the exemption described in 18 subsection (1) of this section once, as long as all of the following condi- 19 tions are met: 20 (a) The owner has received the exemption during the previous year as a 21 result of his making a valid application as defined in subsection (2)(c) 22 of this section. 23 (b) The owner or beneficiary, partner, member or shareholder, as appro- 24 priate, still occupies the same residential improvements for which the 25 owner made application. 26 (c) The residential improvements described in subsection (3)(b) of this 27 section are owner-occupied or occupied by a beneficiary, partner, member 28 or shareholder, as appropriate, and used as the primary dwelling place of 29 the owner or beneficiary, partner, member or shareholder, as appropriate, 30 as of January 1; provided however, that in the event the residential 31 improvements are owner-occupied after January 1, but before April 15, the 32 owner of the property is entitled to the exemption. 33 (4) The exemption allowed by this section must be taken before the reduc- 34 tion in taxes provided by sections 63-701 through 63-710, Idaho Code, is 35 applied. 36 (5) Recovery of property tax exemptions allowed by this section but 37 improperly claimed or approved. 38 (a) Upon discovery of evidence, facts or circumstances indicating any 39 exemption allowed by this section was improperly claimed or approved, the 40 county assessor shall decide whether the exemption claimed should be 41 allowed and if not, notify the taxpayer in writing, assess a recovery of 42 property tax and notify the county treasurer of this assessment. 43 (b) When information indicating that an improper claim for the exemption 44 allowed by this section is discovered by the state tax commission, the 45 state tax commission may disclose this information to the appropriate 46 county assessor, board of county commissioners and county treasurer. 47 Information disclosed to county officials by the state tax commission 48 under this subsection may be used to decide the validity of any entitle- 49 ment to the exemption provided in this section and is not otherwise sub- 50 ject to public disclosure pursuant to chapter 3, title 9, Idaho Code. 51 (c) The assessment and collection of the recovery of property tax must 52 begin within the seven (7) year period beginning the date the assessment 53 notice reflecting the improperly claimed or approved exemption was 54 required to be mailed to the taxpayer. 55 (d) The taxpayer may appeal to the board of county commissioners the 3 1 decision by the county assessor to assess the recovery of property tax 2 within thirty (30) days of the date the county assessor sent the notice to 3 the taxpayer pursuant to this section. 4 (e) A recovery of property tax shall be for each year the exemption 5 allowed by this section was improperly claimed or approved up to the 6 lesser of a maximum of seven (7) years or until the property was trans- 7 ferred to a bona fide purchaser for value. The amount of the recovery of 8 property tax shall be calculated using the product of the amount of 9 exempted value for each year multiplied by the levy for that year plus 10 costs, late charges and interest for each year at the rates equal to those 11 provided for delinquent property taxes during that year. 12 (f) Any recovery of property tax shall be due and payable no later than 13 the date provided for property taxes in section 63-903, Idaho Code, and if 14 not timely paid, late charges and interest, beginning the first day of 15 January in the year following the year the county assessor sent the notice 16 to the taxpayer pursuant to this section, shall be calculated at the cur- 17 rent rate provided for property taxes. 18 (g) Recovered property taxes shall be billed, collected and distributed 19 in the same manner as property taxes, except each taxing district or unit 20 shall be notified of the amount of any recovered property taxes included 21 in any distribution. 22 (h) Any unpaid recovered property taxes shall become a lien upon the real 23 property in the same manner as provided for property taxes in section 24 63-206, Idaho Code, except such lien shall attach as of the first day of 25 January in the year following the year the county assessor sent the notice 26 to the taxpayer pursuant to this section. 27 (i) For purposes of the limitation provided by section 63-802, Idaho 28 Code, moneys received pursuant to this subsection as recovery of property 29 tax shall be treated as property tax revenue. 30 (6) The legislature declares that this exemption is necessary and just. 31 (7) Residential improvements having previously qualified for exemption 32 under this section in the preceding year, shall not lose such qualification 33 due to: the owner's, beneficiary's, partner's, member's or shareholder's 34 absence in the current year by reason of active military service in a desig- 35 nated combat zone, as defined in section 112 of the Internal Revenue Code, or 36 because the residential improvements have been leased because the owner, bene- 37 ficiary, partner, member or shareholder is absent in the current year by rea- 38 son of active military service in a designated combat zone, as defined in sec- 39 tion 112 of the Internal Revenue Code. If an owner fails to timely apply for 40 exemption as required in this section solely by reason of active duty in a 41 designated combat zone by the owner, beneficiary, partner, member or share- 42 holder, as appropriate, as defined in section 112 of the Internal Revenue 43 Code, and such improvements would have otherwise qualified under this section, 44 then the board of county commissioners of the county in which the residential 45 improvements are located shall refund property taxes, if previously paid, in 46 an amount equal to the exemption which would otherwise have applied. 47 SECTION 2. An emergency existing therefor, which emergency is hereby 48 declared to exist, this act shall be in full force and effect on and after its 49 passage and approval, and retroactively to January 1, 2005.
STATEMENT OF PURPOSE RS 15122 This legislation allows residential improvements to still qualify for the fifty-fifty homeowners exemption when the property has been leased because the owner is absent in the current year by reason of active military service in a designated combat zone. FISCAL NOTE There is no fiscal impact. Contact Name: Rep. Lawerence Denney Rep. Mike Moyle Phone: (208) 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 299