Print Friendly HOUSE BILL NO. 243 – Property tax, homeowner exmptn
HOUSE BILL NO. 243
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H0243...............................................by REVENUE AND TAXATION
PROPERTY TAXES - Amends existing law relating to property tax to allow land
to be included in the value of the fifty-fifty homeowner's exemption; and
to provide an increased exemption for certain persons.
02/17 House intro - 1st rdg - to printing
02/18 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 243
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY EXEMPT FROM TAXATION; AMENDING SECTION 63-602G, IDAHO
3 CODE, TO ALLOW LAND TO BE INCLUDED IN THE VALUE OF THE FIFTY-FIFTY
4 HOMEOWNER'S EXEMPTION AND TO PROVIDE AN INCREASED EXEMPTION FOR CERTAIN
5 PERSONS; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 63-602G, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 63-602G. PROPERTY EXEMPT FROM TAXATION -- RESIDENTIAL IMPROVEMENTS HOME-
10 STEAD. (1) During the tax year 1983 2005 and each year thereafter, the first
11 fifty thousand dollars ($50,000) of the market value for assessment purposes
12 of residential improvements the homestead as that term is defined in section
13 63-701, Idaho Code, or fifty percent (50%) of the market value for assessment
14 purposes of residential improvements the homestead as that term is defined in
15 section 63-701, Idaho Code, whichever is the lesser, shall be exempt from
16 property taxation. If the owner meets the definition of claimant as defined in
17 section 63-701, Idaho Code, except for the need to file a claim and has house-
18 hold income that is greater than the maximum allowed by chapter 7, title 63,
19 Idaho Code, or rules promulgated pursuant thereto but is less than one hundred
20 fifty percent (150%) of the maximum household income allowed by chapter 7,
21 title 63, Idaho Code, or rules promulgated pursuant thereto, the first seven-
22 ty-five thousand dollars ($75,000) of the market value for assessment purposes
23 of the homestead as that term is defined in section 63-701, Idaho Code, or
24 fifty percent (50%) of the market value for assessment purposes of the home-
25 stead as that term is defined in section 63-701, Idaho Code, whichever is the
26 lesser, shall be exempt from property taxation. To receive the increased tax
27 exemption, the owner shall apply annually with the county assessor between
28 January 1 and April 15 of each year and shall prove to the assessor's satis-
29 faction that the owner meets the household income requirements provided in
30 this subsection.
31 (2) The exemption allowed by this section may be granted only if:
32 (a) The residential improvements are homestead is owner-occupied and used
33 as the primary dwelling place of the owner as of January 1, provided that
34 in the event the residential improvements are homestead is owner-occupied
35 after January 1 but before April 15, the owner of the property is entitled
36 to the exemption. The residential improvements homestead may consist of
37 part of a multidwelling or multipurpose building and shall include all of
38 such dwelling or building except any portion used exclusively for anything
39 other than the primary dwelling of the owner. The presence of an office in
40 a n owner-occupied residential property homestead, which office is used for
41 multiple purposes, including business and personal use, shall not prevent
42 the owner from claiming the exemption provided in this section; and
43 (b) The tax commission has certified to the board of county commissioners
1 that all properties in the county which are subject to appraisal by the
2 county assessor have, in fact, been appraised uniformly so as to secure a
3 just valuation for all property within the county; and
4 (c) The owner has certified to the county assessor by April 15 that:
5 (i) He is making application for the exemption allowed by this sec-
7 (ii) That the residential improvements are homestead is his primary
8 dwelling place; and
9 (iii) That he has not made application in any other county for the
10 exemption, and has not made application for the exemption on any
11 other residential improvements homestead in the county.
12 (d) For the purpose of this section, the definition of owner shall be the
13 same definition set forth in section 63-701(7), Idaho Code.
14 When an "owner," pursuant to the provisions of section 63-701(7),
15 Idaho Code, is any person who is the beneficiary of a revocable or irrevo-
16 cable trust, or who is a partner of a limited partnership, a member of a
17 limited liability company, or shareholder of a corporation, he or she may
18 provide proof of the trust, limited partnership, limited liability com-
19 pany, or corporation in the manner set forth in section 63-703(4), Idaho
21 (e) Any owner may request in writing the return of all copies of any doc-
22 uments submitted with the affidavit set forth in section 63-703(4), Idaho
23 Code, that are held by a county assessor, and the copies shall be returned
24 by the county assessor upon submission of the affidavit in proper form.
25 (f) For the purpose of this section, the definition of "primary dwelling
26 place" shall be the same definition set forth in section 63-701(8), Idaho
28 (g) For the purpose of this section, the definition of "occupied" shall
29 be the same definition set forth in section 63-701(6), Idaho Code.
30 (3) An owner need only make application for the exemption described in
31 subsection (1) of this section once, as long as all of the following condi-
32 tions are met:
33 (a) The owner has received the exemption during the previous year as a
34 result of his making a valid application as defined in subsection (2)(c)
35 of this section.
36 (b) The owner or beneficiary, partner, member or shareholder, as appro-
37 priate, still occupies the same residential improvements homestead for
38 which the owner made application.
39 (c) The residential improvements homestead described in subsection (3)(b)
40 of this section are is owner-occupied or occupied by a beneficiary, part-
41 ner, member or shareholder, as appropriate, and used as the primary dwell-
42 ing place of the owner or beneficiary, partner, member or shareholder, as
43 appropriate, as of January 1; provided however, that in the event the res-
44 idential improvements are homestead is owner-occupied after January 1, but
45 before April 15, the owner of the property is entitled to the exemption.
46 (4) The exemption allowed by this section must be taken before the reduc-
47 tion in taxes provided by sections 63-701 through 63-710, Idaho Code, is
49 (5) Recovery of property tax exemptions allowed by this section but
50 improperly claimed or approved.
51 (a) Upon discovery of evidence, facts or circumstances indicating any
52 exemption allowed by this section was improperly claimed or approved, the
53 county assessor shall decide whether the exemption claimed should be
54 allowed and if not, notify the taxpayer in writing, assess a recovery of
55 property tax and notify the county treasurer of this assessment.
1 (b) When information indicating that an improper claim for the exemption
2 allowed by this section is discovered by the state tax commission, the
3 state tax commission may disclose this information to the appropriate
4 county assessor, board of county commissioners and county treasurer.
5 Information disclosed to county officials by the state tax commission
6 under this subsection may be used to decide the validity of any entitle-
7 ment to the exemption provided in this section and is not otherwise sub-
8 ject to public disclosure pursuant to chapter 3, title 9, Idaho Code.
9 (c) The assessment and collection of the recovery of property tax must
10 begin within the seven (7) year period beginning the date the assessment
11 notice reflecting the improperly claimed or approved exemption was
12 required to be mailed to the taxpayer.
13 (d) The taxpayer may appeal to the board of county commissioners the
14 decision by the county assessor to assess the recovery of property tax
15 within thirty (30) days of the date the county assessor sent the notice to
16 the taxpayer pursuant to this section.
17 (e) A recovery of property tax shall be for each year the exemption
18 allowed by this section was improperly claimed or approved up to the
19 lesser of a maximum of seven (7) years or until the property was trans-
20 ferred to a bona fide purchaser for value. The amount of the recovery of
21 property tax shall be calculated using the product of the amount of
22 exempted value for each year multiplied by the levy for that year plus
23 costs, late charges and interest for each year at the rates equal to those
24 provided for delinquent property taxes during that year.
25 (f) Any recovery of property tax shall be due and payable no later than
26 the date provided for property taxes in section 63-903, Idaho Code, and if
27 not timely paid, late charges and interest, beginning the first day of
28 January in the year following the year the county assessor sent the notice
29 to the taxpayer pursuant to this section, shall be calculated at the cur-
30 rent rate provided for property taxes.
31 (g) Recovered property taxes shall be billed, collected and distributed
32 in the same manner as property taxes, except each taxing district or unit
33 shall be notified of the amount of any recovered property taxes included
34 in any distribution.
35 (h) Any unpaid recovered property taxes shall become a lien upon the real
36 property in the same manner as provided for property taxes in section
37 63-206, Idaho Code, except such lien shall attach as of the first day of
38 January in the year following the year the county assessor sent the notice
39 to the taxpayer pursuant to this section.
40 (i) For purposes of the limitation provided by section 63-802, Idaho
41 Code, moneys received pursuant to this subsection as recovery of property
42 tax shall be treated as property tax revenue.
43 (6) The legislature declares that this exemption is necessary and just.
44 (7) Residential improvements A homestead having previously qualified for
45 exemption under this section in the preceding year, shall not lose such quali-
46 fication due to the owner's, beneficiary's, partner's, member's or
47 shareholder's absence in the current year by reason of active military service
48 in a designated combat zone, as defined in section 112 of the Internal Revenue
49 Code. If an owner fails to timely apply for exemption as required in this sec-
50 tion solely by reason of active duty in a designated combat zone by the owner,
51 beneficiary, partner, member or shareholder, as appropriate, as defined in
52 section 112 of the Internal Revenue Code, and such improvements homestead
53 would have otherwise qualified under this section, then the board of county
54 commissioners of the county in which the residential improvements are home-
55 stead is located shall refund property taxes, if previously paid, in an amount
1 equal to the exemption which would otherwise have applied.
2 SECTION 2. An emergency existing therefor, which emergency is hereby
3 declared to exist, this act shall be in full force and effect on and after its
4 passage and approval, and retroactively to January 1, 2005.
STATEMENT OF PURPOSE
The purpose of this legislation is to provide property tax
relief by increasing the amount of the Homeowner's Exemption for
those over the age 65 and by expanding its application to the
land directly associated with the residential improvement. The
relief is provided in three increments. First, it retains the
Homeowner's Exemption for all owner-occupied residences at the
present $50,000 level but expands its applicability to the land.
Second it authorizes an increase in the Homeowner's Exemption to
$75,000 for all persons 65 years of age whose income is less than
$33,090 per year. Third, this legislation makes a $75,000
Homeowner's Exemption available to special categories of people
of any age, who have an annual income of no more than $33,090,
including: Widow(er), Blind, former Prisoner of War/Hostage,
Veteran with a 30 percent or more of service connected disability
or a Disabled Person recognized by the Social Security
Administration, Railroad Retirement Board or Federal Civil
Increase $1.7 million to the general fund.
Name: Representative Frank Henderson
STATEMENT OF PURPOSE/FISCAL NOTE H 243