2005 Legislation
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HOUSE BILL NO. 319 – Property tax exmptn, certain value

HOUSE BILL NO. 319

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Bill Status



H0319...............................................by REVENUE AND TAXATION
PROPERTY TAX EXEMPTION - Adds to existing law to exempt from property tax
the net taxable value of all property of a taxpayer in excess of eight
hundred million dollars within a single county; to provide application to
owned real property and to owned, leased or rented personal property; to
provide that leased or rented personal property included in the calculation
of the exemption shall not be assessable against the owner of such
property; to provide an order in which a taxpayer may designate property to
which the exemption applies; to provide for designation in certain
instances; to provide requirements for capital investment and jobs; to
provide for no other property tax exemptions, with an exception; and to
provide for rules.
                                                                        
03/10    House intro - 1st rdg - to printing
    Rpt prt - to Rev/Tax
03/11    Rpt out - rec d/p - to 2nd rdg
03/14    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 67-3-0
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      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,
      Henbest, Henderson, Jaquet, Jones, Kemp, Lake, Loertscher, Martinez,
      Mathews, McGeachin, McKague, Miller, Moyle, Nielsen, Nonini,
      Pasley-Stuart, Pence, Raybould, Ring, 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 -- LeFavour, Mitchell, Ringo
      Absent and excused -- None
    Floor Sponsors - Crow & Field(18)
    Title apvd - to Senate
03/16    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 Sponsors - Bunderson & Sweet
    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 284
         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. 319
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PROPERTY TAX; AMENDING CHAPTER 6, TITLE 63,  IDAHO  CODE,  BY  THE
  3        ADDITION OF A NEW SECTION 63-602HH, IDAHO CODE, TO  EXEMPT  FROM  PROPERTY
  4        TAX   THE   NET  TAXABLE  VALUE OF ALL PROPERTY OF A TAXPAYER IN EXCESS OF
  5        EIGHT HUNDRED MILLION DOLLARS WITHIN A SINGLE COUNTY, TO PROVIDE  APPLICA-
  6        TION  TO OWNED REAL PROPERTY AND TO OWNED, LEASED OR RENTED PERSONAL PROP-
  7        ERTY, TO PROVIDE THAT LEASED OR RENTED PERSONAL PROPERTY INCLUDED  IN  THE
  8        CALCULATION  OF THE EXEMPTION SHALL NOT BE ASSESSABLE AGAINST THE OWNER OF
  9        SUCH PROPERTY, TO PROVIDE AN ORDER IN WHICH A TAXPAYER MAY DESIGNATE PROP-
 10        ERTY TO WHICH THE EXEMPTION APPLIES,  TO PROVIDE FOR DESIGNATION  IN  CER-
 11        TAIN  INSTANCES,  TO PROVIDE REQUIREMENTS FOR CAPITAL INVESTMENT AND JOBS,
 12        TO PROVIDE FOR NO OTHER PROPERTY TAX EXEMPTIONS WITH AN EXCEPTION  AND  TO
 13        PROVIDE FOR RULES; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLI-
 14        CATION.
                                                                        
 15    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 16        SECTION  1.  That  Chapter  6,  Title  63, Idaho Code, be, and the same is
 17    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 18    ignated as Section 63-602HH, Idaho Code, and to read as follows:
                                                                        
 19        63-602HH.  PROPERTY  EXEMPT  FROM  TAXATION -- SIGNIFICANT CAPITAL INVEST-
 20    MENTS. (1) The net taxable value of all property of a taxpayer  in  excess  of
 21    eight hundred million dollars ($800,000,000) located within a single county in
 22    Idaho shall be exempt from property taxation and any special assessment.
 23        (2)  The  property  included in the calculation of the exemption set forth
 24    in this section shall include all real property owned, and all personal  prop-
 25    erty owned, leased, or rented that would otherwise be subject to property tax;
 26    provided  however,  with  respect  to leased or rented personal property, only
 27    that portion of the property which a taxpayer is contractually liable for pay-
 28    ment of property taxes thereon shall be included in  the  calculation  of  the
 29    exemption.
 30        (3)  Leased  or  rented  personal property, included in the calculation of
 31    the exemption provided by this section shall not  be  assessable  against  the
 32    owner of such property.
 33        (4)  The  exemption  set  forth in this section shall apply first to owned
 34    real and personal property and, if exhausted, shall then apply  to  leased  or
 35    rented personal property.
 36        (5)  The taxpayer owning, leasing, or renting the property included in the
 37    calculation  of the exemption shall designate the property to which the exemp-
 38    tion applies.
 39        (6)  The exemption set forth in this section shall not be available to any
 40    taxpayer with respect to a given year who, in the immediately preceding calen-
 41    dar year, failed to make significant capital investments of at  least  twenty-
 42    five  million dollars ($25,000,000), by the acquisition or improvement of real
 43    or personal property located within the county referred to in  subsection  (1)
                                                                        
                                           2
                                                                        
  1    of this section.
  2        (7)  The exemption set forth in this section shall not be available to any
  3    taxpayer  with  respect to a given year who, as of the first day of such year,
  4    did not employ or engage on a  regular  full-time  basis,  or  the  equivalent
  5    thereof,  at least one thousand five hundred (1,500) workers within the county
  6    referred to in subsection (1) of this section.
  7        (8)  Except for the exemption provided for in subsection (4) of  63-3029B,
  8    Idaho  Code,  no  other  exemption from property tax or any special assessment
  9    provided by the statutes of this state shall be  applicable  to  any  property
 10    described  in  subsection  (2) of this section with respect to a year in which
 11    the exemption set forth in subsection (1) of this section applies  to  any  of
 12    the same property.
 13        (9)  The  state tax commission shall adopt all rules that may be necessary
 14    to implement this section.
                                                                        
 15        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
 16    declared to exist, this act shall be in full force and effect on and after its
 17    passage and approval and retroactively to January 1, 2005.

Statement of Purpose / Fiscal Impact




                      STATEMENT OF PURPOSE

                            RS15132

This bill exempts from property tax "significant capital
investment."  The exemption is for the market value of all
property of a business or person in excess of eight hundred
million dollars ($800,000,000) within a single county.

A business or person would qualify for this exemption if
they make a significant capital investment which would put the
market value of their operations over $800,000,000, along with
maintaining the following annual investment objectives:
-    The taxpayer must make a capital investment of at least
     twenty five million dollars ($25,000,000) in the county of
     the qualifying exemption each year prior to claiming the
     exemption.
-    The taxpayer must employ a minimum of one thousand five
     hundred (1,500) full time employees in the county of the
     qualifying exemption during the year of the exemption. 

The bill is effective January 1, 2005.



                          FISCAL NOTE

No effect on the general fund.  The cost to local
governments and schools should be zero as it is estimated that no
single taxpayer will have a market value of more than
$800,000,000.



Contact
Name:  Dolores Crow     
Phone: 332-1000
Name:  Debbie Field
Phone: 332-1000
Name:  Mike Reynoldson, Micron
Phone: 599-0510

STATEMENT OF PURPOSE/FISCAL                         H 319