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H0320.....................................................by WAYS AND MEANS PROPERTY TAX - APPRAISALS - Amends existing law to revise criteria for appraisals; to provide for rules prescribing the types of documentation and supporting data to be collected from a taxpayer by county assessors; to provide for the burden of proof to fall to the taxpayer where the taxpayer has failed to provide documentation or data as required; to provide an exception where the burden of proof falls upon the party seeking affirmative relief and the burden of going forward with the evidence shall shift as in other civil litigation; and to provide that records relating to the appraisal of real or personal property used to determine market value disclosed to a county official or the tax commission by a property taxpayer are exempt from disclosure. 03/11 House intro - 1st rdg - to printing 03/14 Rpt prt - to W/M
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 320 BY WAYS AND MEANS COMMITTEE 1 AN ACT 2 RELATING TO PROPERTY TAXATION; AMENDING SECTION 63-314, IDAHO CODE, TO REVISE 3 CRITERIA FOR APPRAISAL, TO PROVIDE FOR RULES PRESCRIBING THE TYPES OF DOC- 4 UMENTATION AND SUPPORTING DATA TO BE COLLECTED FROM A TAXPAYER BY COUNTY 5 ASSESSORS, TO PROVIDE FOR THE BURDEN OF PROOF TO FALL TO THE TAXPAYER 6 WHERE THE TAXPAYER HAS FAILED TO PROVIDE DOCUMENTATION OR DATA AS REQUIRED 7 AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 63-409, IDAHO CODE, TO 8 PROVIDE THAT THE BURDEN OF PROOF SHALL FALL TO THE TAXPAYER IN CERTAIN 9 INSTANCES; AMENDING SECTION 63-511, IDAHO CODE, TO PROVIDE AN EXCEPTION 10 WHERE THE BURDEN OF PROOF FALLS UPON THE PARTY SEEKING AFFIRMATIVE RELIEF 11 AND THE BURDEN OF GOING FORWARD WITH THE EVIDENCE SHALL SHIFT AS IN OTHER 12 CIVIL LITIGATION; AMENDING SECTION 9-340D, IDAHO CODE, TO PROVIDE THAT 13 RECORDS RELATING TO THE APPRAISAL OF REAL OR PERSONAL PROPERTY USED TO 14 DETERMINE MARKET VALUE DISCLOSED TO A COUNTY OFFICIAL OR THE TAX COMMIS- 15 SION BY A PROPERTY TAXPAYER ARE EXEMPT FROM DISCLOSURE AND TO MAKE A TECH- 16 NICAL CORRECTION; AND DECLARING AN EMERGENCY. 17 Be It Enacted by the Legislature of the State of Idaho: 18 SECTION 1. That Section 63-314, Idaho Code, be, and the same is hereby 19 amended to read as follows: 20 63-314. COUNTY VALUATION PROGRAM TO BE CARRIED ON BY ASSESSOR. (1) It 21 shall be the duty of the county assessor of each county in the state to con- 22 duct and carry out a continuing program of valuation of all taxable properties 23 under his jurisdiction pursuant to such rules as the state tax commission may 24 prescribe, to the end that all parcels of property under the assessor's juris- 25 diction are assessed at current market value. In order to promote uniform 26 assessment of property in the state of Idaho, taxable property shall be 27 appraised or indexed annually to reflect current market value. In order to 28 achieve this goal, all taxable property in a county shall be appraised at 29 least once every five (5) years, except as provided in subsection (6) of this 30 section. Beginning in 2003, or year one (1) of any five (5) year cycle not 31 less than fifteen percent (15%) of the taxable properties in the county shall 32 be appraised during that year; by the end of year two (2) not less than 33 thirty-five percent (35%) of the taxable properties in the county shall have 34 been appraised during that year and the previous year; by the end of year 35 three (3) not less than fifty-five percent (55%) of the taxable properties in 36 the county shall have been appraised during that year and the previous two (2) 37 years; by the end of year four (4) not less than seventy-five percent (75%) of 38 the taxable properties in the county shall have been appraised during that 39 year and the previous three (3) years; and by the end of year five (5) all one 40 hundred percent (100%) of the taxable properties within the county shall have 41 been appraised during that year and the previous four (4) years. Annually, all 42 taxable property, not appraised that year, shall be indexed to reflect current 43 market value for assessment purposes using market value property transactions 2 1 and results of the annual appraisal of taxable property. The county assessor 2 shall maintain in the respective offices sufficient records to show when each 3 parcel or item of property was last appraised. The appraisal required by this 4 section shall include a plan outlining the continuing valuation program. Said 5 plan shall be submitted to the state tax commission for approval on or before 6 the first Monday in February, 1997, and no less frequently than every fifth 7 year thereafter. The state tax commission shall not approve any plan that 8 fails to provide for adequate appraisal and valuation of all taxable proper- 9 ties in any county. 10 (2) The state tax commission is hereby authorized, empowered and directed 11 to promulgate rules for the implementation of this program, and to provide any 12 such county assessor with such supervision and technical assistance as may be 13 necessary. 14 (3) The county commissioners of each county shall furnish the assessor 15 with such additional funds and personnel as may be required to carry out the 16 program hereby provided, and for this purpose may levy annually a property tax 17 of not to exceed four-hundredths percent (.04%) of the market value for 18 assessment purposes on all taxable property in the county to be collected and 19 paid into the county treasury and appropriated to the property valuation fund 20 which is hereby created. 21 (4) If compliance with the requirements of subsection (1) of this section 22 is not obtained, or if any county fails to meet the goals set in subsection 23 (1) of this section, the state tax commission may proceed as required by sec- 24 tion 63-316, Idaho Code. If a county fails to meet the timelines in subsection 25 (1) of this section, the state tax commission shall require a remediation 26 plan. 27 (5) As used in this section the term "adequate appraisal and valuation of 28 all taxable properties in any county" means a process which includes a field 29 inspection of not less than the number of taxable properties necessary to meet 30 the requirements of subsection (1) of this section. Appraisal also includes 31 collection, verification and analysis of market value sales, applicable income 32 and expense data, and buildingcost information, earnings information, and 33 application of this information to predict market value. The state tax commis- 34 sion shall adopt rules prescribing the types of documentation and supporting 35 data to be collected from the taxpayer by county assessors as provided in this 36 subsection. In the event of an appeal disputing market value for assessment 37 purposes by the taxpayer to the county board of equalization, board of tax 38 appeals, or district court, where the taxpayer has failed to provide documen- 39 tation or data as provided in this subsection, the burden of proof shall fall 40 to the taxpayer. 41 (6) The board of county commissioners may request that the Idaho state 42 tax commission grant an extension of the five (5) year reappraisal deadline 43 set forth in subsection (1) of this section. The request shall be in writing 44 and shall set forth the reason(s) that the county is unable to complete the 45 reappraisal process as required by subsection (1) of this section and shall 46 set forth the measures the county will undertake in order to complete the 47 reappraisal program within the extension of time requested. In no case shall 48 an extension exceed two (2) years. The state tax commission may approve or 49 deny any request for an extension and shall notify the board of county commis- 50 sioners of its decision in writing. The state tax commission shall not approve 51 any extension absent a showing by the county of extraordinary circumstances. 52 Extraordinary circumstances may include, but are not limited to, natural 53 disasters or unforeseen circumstances that result in extreme financial hard- 54 ship to the county. Circumstances that will not qualify for an extension may 55 include, but are not limited to, failure to adequately fund the county valua- 3 1 tion program as provided by this section, malfeasance, or mismanagement by a 2 current elected official. The state tax commission shall not grant the exten- 3 sion provided in this section if studies conducted by the commission indicate 4 that any category of property affected by such extension is not assessed at 5 market value. 6 (7) The Idaho state tax commission shall report back to the Idaho house 7 of representatives revenue and taxation committee and the senate local govern- 8 ment and taxation committee whenever an extension authorized under subsection 9 (6) of this section is granted. 10 SECTION 2. That Section 63-409, Idaho Code, be, and the same is hereby 11 amended to read as follows: 12 63-409. APPEALS FROM STATE TAX COMMISSION VALUATIONS OF OPERATING PROP- 13 ERTY. (1) Any taxpayer or county assessor who is aggrieved by a state tax com- 14 mission decision assessing a taxpayer's operating property may file an appeal 15 to the district court of Ada county or, if such operating property is located 16 in only one (1) county, to the district court in and for the county in which 17 such operating property is located. The appeal shall be filed within thirty 18 (30) days after service upon the taxpayer of the decision. The appeal may be 19 based upon any issue presented by the taxpayer to the state tax commission and 20 shall be heard by the district court in a trial de novo without a jury in the 21 same manner as though it were an original proceeding in that court. Nothing in 22 this section shall be construed to suspend the payment of taxes pending 23 appeal. Payment of taxes while an appeal hereunder is pending shall not oper- 24 ate to waive the right to an appeal. Any final order of the district court 25 under this section shall be subject to appeal to the Idaho supreme court in 26 the manner provided by the Idaho appellate rules. 27 (2) In any appeal taken pursuant to this section, the burden of proof 28 shall fall upon the party seeking affirmative relief to establish that the 29 valuation from which the appeal is taken is erroneous, or that the state tax 30 commission erred in its decision regarding a claim that certain property is 31 exempt from taxation, the value thereof, or any other relief sought before the 32 state tax commission. A preponderance of the evidence shall suffice to sustain 33 the burden of proof. In the event of an appeal disputing market value for 34 assessment purposes by the taxpayer to the state tax commission, board of tax 35 appeals or district court, where the taxpayer has failed to provide data as 36 provided in section 63-404, Idaho Code, the burden of proof shall fall to the 37 taxpayer. The burden of proof shall fall upon the party seeking affirmative 38 relief and the burden of going forward with the evidence shall shift as in 39 other civil litigation. The district court shall render its decision in writ- 40 ing, including therein a concise statement of the facts found by the court and 41 the conclusions of law reached by the court. The court may affirm, reverse, 42 modify, or remand any order of the state tax commission, and shall grant other 43 relief, invoke such other remedies and issue such orders, in accordance with 44 its decision, as appropriate. 45 SECTION 3. That Section 63-511, Idaho Code, be, and the same is hereby 46 amended to read as follows: 47 63-511. APPEALS FROM COUNTY BOARD OF EQUALIZATION. (1) Any time within 48 thirty (30) days after mailing of notice of a decision of the board of equal- 49 ization, or pronouncement of a decision announced at a hearing, an appeal of 50 any act, order or proceeding of the board of equalization, or the failure of 51 the board of equalization to act may be taken to the board of tax appeals. 4 1 Such appeal may only be filed by the property owner, the assessor, the state 2 tax commission or by a person aggrieved when he deems such action illegal or 3 prejudicial to the public interest. Nothing in this section shall be construed 4 so as to suspend the payment of property taxes pending said appeal. 5 (2) Notice of such appeal stating the grounds therefor shall be filed 6 with the county auditor, who shall forthwith transmit to the board of tax 7 appeals a copy of said notice, together with a certified copy of the minutes 8 of the proceedings of the board of equalization resulting in such act, order 9 or proceeding, or a certificate to be furnished by the clerk of the board that 10 said board of equalization has failed to act in the time required by law on 11 any complaint, protest, objection, application or petition in regard to 12 assessment of the complainant's property, or a petition of the state tax com- 13 mission. The county auditor shall also forthwith transmit all evidence taken 14 in connection with the matter appealed. The county auditor shall submit all 15 such appeals to the board of tax appeals within thirty (30) days of being 16 notified of the appeal or by no later than October 1, whichever is later. The 17 board of tax appeals may receive further evidence and will hear the appeal as 18 provided in chapter 38, title 63, Idaho Code. 19 (3) Any appeal that may be taken to the board of tax appeals may, during 20 the same time period, be taken to the district court for the county in which 21 the property is located. 22 (4) In any appeal taken to the board of tax appeals or the district court 23 pursuant to this section, the burden of proof shall fall upon the party seek- 24 ing affirmative relief to establish that the valuation from which the appeal 25 is taken is erroneous, or that the board of equalization erred in its decision 26 regarding a claim that certain property is exempt from taxation, the value 27 thereof, or any other relief sought before the board of equalization. A pre- 28 ponderance of the evidence shall suffice to sustain the burden of proof. 29 Except as provided in subsection (5) of section 63-314, Idaho Code, t The bur- 30 den of proof shall fall upon the party seeking affirmative relief and the bur- 31 den of going forward with the evidence shall shift as in other civil litiga- 32 tion. The board of tax appeals or the district court shall render its decision 33 in writing, including therein a concise statement of the facts found by the 34 court and the conclusions of law reached by the court. The board of tax 35 appeals or the court may affirm, reverse, modify or remand any order of the 36 board of equalization, and shall grant other relief, invoke such other reme- 37 dies, and issue such orders in accordance with its decision, as appropriate. 38 SECTION 4. That Section 9-340D, Idaho Code, be, and the same is hereby 39 amended to read as follows: 40 9-340D. RECORDS EXEMPT FROM DISCLOSURE -- TRADE SECRETS, PRODUCTION 41 RECORDS, APPRAISALS, BIDS, PROPRIETARY INFORMATION. The following records are 42 exempt from disclosure: 43 (1) Trade secrets including those contained in response to public agency 44 or independent public body corporate and politic requests for proposal, 45 requests for clarification, requests for information and similar requests. 46 "Trade secrets" as used in this section means information, including a for- 47 mula, pattern, compilation, program, computer program, device, method, tech- 48 nique, process, or unpublished or in progress research that: 49 (a) Derives independent economic value, actual or potential, from not 50 being generally known to, and not being readily ascertainable by proper 51 means by other persons who can obtain economic value from its disclosure 52 or use; and 53 (b) Is the subject of efforts that are reasonable under the circumstances 5 1 to maintain its secrecy. 2 (2) Production records, housing production, rental and financing records, 3 sale or purchase records, catch records, mortgage portfolio loan documents, or 4 similar business records of a private concern or enterprise required by law to 5 be submitted to or inspected by a public agency or submitted to or otherwise 6 obtained by an independent public body corporate and politic. Nothing in this 7 subsection shall limit the use which can be made of such information for regu- 8 latory purposes or its admissibility in any enforcement proceeding. 9 (3) Records relating to the appraisal of real property, timber or mineral 10 rights prior to its acquisition, sale or lease by a public agency or indepen- 11 dent public body corporate and politic. 12 (4) Any estimate prepared by a public agency or independent public body 13 corporate and politic that details the cost of a public project until such 14 time as disclosed or bids are opened, or upon award of the contract for con- 15 struction of the public project. 16 (5) Examination, operating or condition reports and all documents relat- 17 ing thereto, prepared by or supplied to any public agency or independent pub- 18 lic body corporate and politic responsible for the regulation or supervision 19 of financial institutions including, but not limited to, banks, savings and 20 loan associations, regulated lenders, business and industrial development cor- 21 porations, credit unions, and insurance companies, or for the regulation or 22 supervision of the issuance of securities. 23 (6) Records gathered by a local agency or the Idaho department of com- 24 merce, as described in chapter 47, title 67, Idaho Code, for the specific pur- 25 pose of assisting a person to locate, maintain, invest in, or expand business 26 operations in the state of Idaho. 27 (7) Shipping and marketing records of commodity commissions used to eval- 28 uate marketing and advertising strategies and the names and addresses of grow- 29 ers and shippers maintained by commodity commissions. 30 (8) Financial statements and business information and reports submitted 31 by a legal entity to a port district organized under title 70, Idaho Code, in 32 connection with a business agreement, or with a development proposal or with a 33 financing application for any industrial, manufacturing, or other business 34 activity within a port district. 35 (9) Names and addresses of seed companies, seed crop growers, seed crop 36 consignees, locations of seed crop fields, variety name and acreage by vari- 37 ety. Upon the request of the owner of the proprietary variety, this informa- 38 tion shall be released to the owner. Provided however, that if a seed crop has 39 been identified as diseased or has been otherwise identified by the Idaho 40 department of agriculture, other state departments of agriculture, or the 41 United States department of agriculture to represent a threat to that particu- 42 lar seed or commercial crop industry or to individual growers, information as 43 to test results, location, acreage involved and disease symptoms of that par- 44 ticular seed crop, for that growing season, shall be available for public 45 inspection and copying. This exemption shall not supersede the provisions of 46 section 22-436, Idaho Code. 47 (10) Information obtained from books, records and accounts required in 48 chapter 47, title 22, Idaho Code, to be maintained by the Idaho canola and 49 rapeseed commission and pertaining to the individual production records of ca- 50 nola or rapeseed growers. 51 (11) Records of any risk retention or self-insurance program prepared in 52 anticipation of litigation or for analysis of or settlement of potential or 53 actual money damage claims against a public entity and its employees or 54 against the industrial special indemnity fund except as otherwise discoverable 55 under the Idaho or federal rules of civil procedure. These records shall 6 1 include, but are not limited to, claims evaluations, investigatory records, 2 computerized reports of losses, case reserves, internal documents and corre- 3 spondence relating thereto. At the time any claim is concluded, only statisti- 4 cal data and actual amounts paid in settlement shall be deemed a public record 5 unless otherwise ordered to be sealed by a court of competent jurisdiction. 6 Provided however, nothing in this subsection is intended to limit the attorney 7 client privilege or attorney work product privilege otherwise available to any 8 public agency or independent public body corporate and politic. 9 (12) Records of laboratory test results provided by or retained by the 10 Idaho food quality assurance laboratory. Nothing in this subsection shall 11 limit the use which can be made, or availability of such information if used, 12 for regulatory purposes or its admissibility in any enforcement proceeding. 13 (13) Reports required to be filed under chapter 13, title 62, Idaho Code, 14 identifying electrical or natural or manufactured gas consumption data for 15 an individual customer or account. 16 (14) Voluntarily prepared environmental audits, and voluntary disclosures 17 of information submitted on or before December 31, 1997, to an environmental 18 agency as defined in section 9-803, Idaho Code, which are claimed to be confi- 19 dential business information. 20 (15) Computer programs developed or purchased by or for any public agency 21 or independent public body corporate and politic for its own use. As used in 22 this subsection, "computer program" means a series of instructions or state- 23 ments which permit the functioning of a computer system in a manner designed 24 to provide storage, retrieval and manipulation of data from the computer sys- 25 tem, and any associated documentation and source material that explain how to 26 operate the computer program. Computer program does not include: 27 (a) The original data including, but not limited to, numbers, text, 28 voice, graphics and images; 29 (b) Analysis, compilation and other manipulated forms of the original 30 data produced by use of the program; or 31 (c) The mathematical or statistical formulas that would be used if the 32 manipulated forms of the original data were to be produced manually. 33 (16) Active investigative records and trademark usage audits of the Idaho 34 potato commission specifically relating to the enforcement of chapter 12, 35 title 22, Idaho Code, until the commencement of formal proceedings as provided 36 by rules of the commission; purchase and sales information submitted to the 37 Idaho potato commission during a trademark usage audit, and investigation or 38 enforcement proceedings. Inactive investigatory records shall be disclosed 39 unless the disclosure would violate the standards set forth in subsections 40 (1)(a) through (f) of section 9-335, Idaho Code. Nothing in this subsection 41 shall limit the use which can be made, or availability of such information if 42 used, for regulatory purposes or its admissibility in any enforcement proceed- 43 ing. 44 (17) All records copied or obtained by the director of the department of 45 agriculture or his designee as a result of an inspection pursuant to section 46 25-3806, Idaho Code, except: 47 (a) Records otherwise deemed to be public records not exempt from disclo- 48 sure pursuant to this chapter; and 49 (b) Inspection reports, determinations of compliance or noncompliance and 50 all other records created by the director or his designee pursuant to sec- 51 tion 25-3806, Idaho Code. 52 (18) All data and information collected by the division of animal indus- 53 tries or the state brand board pursuant to the provisions of section 25-207B, 54 Idaho Code, or rules promulgated thereunder. 55 (1 89) Records disclosed to a county official by the state tax commission 7 1 pursuant to subsection (4)(c) of section 63-3029B, Idaho Code, and records 2 relating to the appraisal of real or personal property used to determine mar- 3 ket value, disclosed to a county official or the state tax commission by a 4 property taxpayer pursuant to subsection (5) of section 63-314, Idaho Code. 5 SECTION 5. An emergency existing therefor, which emergency is hereby 6 declared to exist, this act shall be in full force and effect on and after its 7 passage and approval.
STATEMENT OF PURPOSE RS 15081 This legislation would amend criteria relating to property taxation by revising criteria for appraisal and by providing that the burden of proof fall to the taxpayer where the taxpayer has failed to provide documentation or data as required. FISCAL NOTE There is no fiscal impact. Contact Name: Dan Chadwick, Idaho Association of Counties Phone: (208) 345-9126 STATEMENT OF PURPOSE/FISCAL NOTE H 320