View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
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 building cost 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, tThe 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 (189) 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