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H0254aaS............................................by REVENUE AND TAXATION
PROPERTY TAX - Repeals, amends and adds to existing law to provide a
partial property tax exemption for parcels of land in a rural residential
subdivision plat in certain counties; to provide eligibility criteria; to
provide for an application; and to provide for recovery of taxes.
02/21 House intro - 1st rdg - to printing
02/22 Rpt prt - to Rev/Tax
03/02 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/07 3rd rdg - PASSED - 61-7-2
AYES -- Anderson, Andrus, Barraclough, Bastian, Bayer, Bedke, Bell,
Bilbao, Black, Block, Boe, Bolz, Bradford, Chadderdon, Clark,
Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Jones,
LeFavour, Martinez, Mathews, McKague, Miller, Mitchell, Moyle,
Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo,
Roberts, Rusche, Rydalch, Sali, Sayler, Shepherd(2), Shepherd(8),
Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson,
Wills, Wood, Mr. Speaker
NAYS -- Barrett, Field(18), Kemp, Loertscher, McGeachin, Schaefer,
Trail
Absent and excused -- Cannon, Lake
Floor Sponsors - Raybould & Roberts
Title apvd - to Senate
03/08 Senate intro - 1st rdg - to Loc Gov
03/18 Rpt out - to 14th Ord
03/23 Rpt out amen - to 1st rdg as amen
03/24 1st rdg - to 2nd rdg as amen
03/25 2nd rdg - to 3rd rdg as amen
03/29 To 14th Ord
04/06 Rpt out - w/o amen - to 3rd rdg
3rd rdg - PASSED - 21-11-2-1
AYES -- Brandt, Broadsword, Bunderson, Burtenshaw, Cameron, Corder,
Darrington, Davis, Fulcher(Fulcher), Geddes, Goedde, Keough,
Langhorst, Lodge, Malepeai, Marley, McKenzie, Pearce, Richardson,
Sweet, Williams
NAYS -- Burkett, Coiner, Compton, Jorgenson, Kelly, Little, McGee,
Schroeder, Stegner, Stennett, Werk
Absent and excused -- Andreason, Gannon
Excused from voting -- Hill
Floor Sponsor - Corder
Title apvd - to House
04/06 House concurred in Senate amens - to engros
Rpt engros - 1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 48-16-6
AYES -- Anderson, Andrus, Barraclough, Bastian, Bayer, Bedke, Bell,
Bilbao, Black, Block, Bolz, Bradford, Cannon, Chadderdon, Collins,
Crow, Deal, Denney, Edmunson, Ellsworth(Ellsworth), Eskridge,
Field(18), Field(23), Garrett, Hart, Harwood, Jones, Kemp, Lake,
Mathews, McKague, Miller, Moyle, Nonini, Raybould, Ring(Roberge),
Roberts, Rusche, Rydalch, Shepherd(2), Shepherd(8), Shirley, Skippen,
Smith(30), Smylie, Snodgrass, Stevenson, Mr. Speaker
NAYS -- Barrett, Boe, Henbest, Jaquet, LeFavour, Loertscher,
Martinez, Mitchell, Nielsen, Pasley-Stuart, Pence, Ringo, Sali,
Sayler(Callen), Schaefer, Wills
Absent and excused -- Clark, Henderson, McGeachin, Smith(24), Trail,
Wood
Floor Sponsors - Raybould & Roberts
Title apvd - to enrol
04/07 Rpt enrol - Sp/Pres signed - To Governor
04/15 Governor VETOED
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 254
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAXATION; REPEALING SECTION 63-602FF, IDAHO CODE; AMEND-
3 ING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
4 63-602FF, IDAHO CODE, TO PROVIDE A PARTIAL PROPERTY TAX EXEMPTION FOR PAR-
5 CELS OF LAND IN A RURAL RESIDENTIAL SUBDIVISION PLAT IN CERTAIN COUNTIES,
6 TO PROVIDE ELIGIBILITY CRITERIA, TO PROVIDE FOR AN APPLICATION, TO PROVIDE
7 FOR RECOVERY OF TAXES, TO DEFINE TERMS AND TO PROVIDE THE DECLARATION THAT
8 THIS EXEMPTION IS NECESSARY AND JUST; AMENDING SECTION 63-509, IDAHO CODE,
9 TO PROVIDE AN ASSESSMENT ROLL FOR RURAL RESIDENTIAL SUBDIVISION PLATS
10 GRANTED A PARTIAL PROPERTY TAX EXEMPTION; AMENDING SECTION 63-604, IDAHO
11 CODE, TO REVISE CERTAIN ELIGIBILITY CRITERIA FOR LAND TO BE ACTIVELY
12 DEVOTED TO AGRICULTURE FOR PROPERTY TAX PURPOSES; DECLARING AN EMERGENCY
13 AND PROVIDING RETROACTIVE APPLICATION.
14 Be It Enacted by the Legislature of the State of Idaho:
15 SECTION 1. That Section 63-602FF, Idaho Code, be, and the same is hereby
16 repealed.
17 SECTION 2. That Chapter 6, Title 63, Idaho Code, be, and the same is
18 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
19 ignated as Section 63-602FF, Idaho Code, and to read as follows:
20 63-602FF. PARTIAL EXEMPTION FOR PARCELS OF LAND IN A RURAL RESIDENTIAL
21 SUBDIVISION PLAT. (1) Each parcel of land in a rural residential subdivision
22 plat located in a county with a population of one hundred thousand (100,000)
23 or less, that was approved and recorded in 2004 or thereafter, and each parcel
24 of land granted the exemption pursuant to former section 63-602FF, Idaho Code,
25 in 2002, 2003 or 2004 shall be eligible for the following exemption from prop-
26 erty taxation:
27 (a) Beginning January 1 of the year following rural residential subdivi-
28 sion plat approval and recordation, or 2005, whichever is later, and con-
29 tinuing for four (4) additional consecutive years, the exemption from full
30 market value for assessment purposes shall be ninety-five percent (95%);
31 (b) Beginning January 1 of the sixth year following rural residential
32 subdivision plat approval and recordation, or 2005, whichever is later,
33 the exemption from full market value for assessment purposes shall be
34 eighty percent (80%);
35 (c) Beginning January 1 of the seventh year following rural residential
36 subdivision plat approval and recordation, or 2005, whichever is later,
37 the exemption from full market value for assessment purposes shall be
38 sixty percent (60%);
39 (d) Beginning January 1 of the eighth year following rural residential
40 subdivision plat approval and recordation, or 2005, whichever is later,
41 the exemption from full market value for assessment purposes shall be
42 forty percent (40%);
2
1 (e) Beginning January 1 of the ninth year following rural residential
2 subdivision plat approval and recordation, or 2005, whichever is later,
3 the exemption from full market value for assessment purposes shall be
4 twenty percent (20%);
5 (f) Beginning January 1 of the tenth year following rural residential
6 subdivision plat approval and recordation, or 2005, whichever is later,
7 the exemption from full market value for assessment purposes ceases to
8 exist and thereafter the property shall be valued for assessment purposes
9 at full market value.
10 (2) Each parcel in such rural residential subdivision plat shall continue
11 to be eligible for the exemption provided in this section until:
12 (a) The parcel is sold; or
13 (b) Any improvement is built on the parcel; or
14 (c) The parcel is annexed into a city.
15 When any one (1) of these events occurs, the parcel shall lose the exemp-
16 tion in the immediately following tax year.
17 (3) Prior to receiving the exemption, the owner must file a one (1) time
18 application for approval with the county assessor by April 15 of the first
19 year for which the exemption is claimed, identifying the parcels for which the
20 exemption is claimed and certifying that he is the owner of said parcels.
21 Recovery of property tax exemptions allowed by this section due to the exemp-
22 tion being improperly claimed or approved or the failure of the owner to
23 report the sale of any parcel granted the exemption shall be as follows:
24 (a) The taxpayer may appeal to the board of county commissioners the
25 decision by the county assessor to assess the recovery of property tax
26 within thirty (30) days of the date the county assessor sent the notice to
27 the taxpayer pursuant to this section.
28 (b) The county assessor shall assess improperly exempted value for each
29 year the exemption allowed by this section was improperly claimed or
30 approved up to the lesser of a maximum of nine (9) years or until the
31 property was transferred to a bona fide purchaser for value. The amount of
32 the recovery of property tax shall be calculated using the product of the
33 amount of improperly exempted value for each year multiplied by the levy
34 for that year plus costs, late charges and interest for each year at the
35 rates equal to those provided for delinquent property taxes during that
36 year.
37 (c) Recovered property taxes shall be billed, collected and distributed
38 in the same manner as property taxes, except each taxing district or unit
39 shall be notified of the amount of any recovered property taxes included
40 in any distribution.
41 (d) Any unpaid recovered property taxes shall become a lien upon the real
42 property in the same manner as provided for property taxes in section
43 63-206, Idaho Code, except such lien shall attach as of the first day of
44 January in the year following the year the county assessor sent the notice
45 to the taxpayer pursuant to this section.
46 (e) For purposes of the limitation provided by section 63-802, Idaho
47 Code, moneys received pursuant to this subsection as recovery of property
48 tax shall be treated as property tax revenue.
49 (4) For purposes of this section, the following definitions shall apply:
50 (a) "Improvement" means any development of a parcel which requires the
51 issuance of a permit by the state of Idaho or the county of jurisdiction,
52 provided such development is to an individual parcel rather than to the
53 rural residential subdivision as a whole.
54 (b) "Owner" means the entity holding title to the property or in posses-
55 sion under a sale contract at the time the rural residential subdivision
3
1 plat was approved and recorded.
2 (c) "Parcel" means a lot in a rural residential subdivision plat.
3 (d) "Plat" means the drawing, map or plan of a subdivision or a replat-
4 ting of such, including certifications, descriptions and approvals.
5 (e) "Rural" means outside city boundaries as described in the documents
6 filed with the state tax commission pursuant to section 63-215, Idaho
7 Code.
8 (f) "Sold" means a transfer of title has occurred from the owner as
9 seller to another entity, except in the event of the first transfer to a
10 surviving spouse or child following the death of an owner or in the event
11 of the first transfer of the entire platted subdivision in which no par-
12 cels have been sold.
13 (5) The legislature declares that this exemption is necessary and just.
14 SECTION 3. That Section 63-509, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 63-509. DELIVERY OF ROLLS TO COUNTY AUDITOR -- ABSTRACTS OF ROLLS. (1) On
17 or before the second Monday of July the board of equalization must deliver the
18 property rolls, with all changes, corrections and additions and exemptions
19 from taxation entered therein, to the county auditor. It shall be the duty of
20 the county auditor to cause to be prepared the roll for delivery to the county
21 tax collector on or before the first Monday of November. It shall be the duty
22 of the county auditor to cause to be prepared a total of the amount and value
23 of each category of property and prepare an abstract of all the property
24 entered upon the roll in the manner and form required by the state tax commis-
25 sion. Such forms must show, but need not be limited to, the market value for
26 assessment purposes of all property by categories, and the exemptions from
27 taxation allowed by categories. Any abstracts needed by and prepared for the
28 state tax commission must be delivered by certified mail to the state tax com-
29 mission by the fourth Monday of July. The value of exemptions will be shown
30 and identified for exemptions granted pursuant to chapters 20 and 29, title
31 50, Idaho Code, for the value in excess of the equalized assessment valuation
32 as shown on the base assessment roll in any revenue allocation area, and sec-
33 tions 63-602G, 63-602K, 63-602P, 63-602AA, 63-602X, 63-602BB, and 63-602CC,
34 and 63-602FF, Idaho Code, as well as the net taxable value for each of the
35 categories. The abstracts shall be prepared and duly verified and must show a
36 correct classification of all the property in accordance with the classifica-
37 tion of such property upon the property roll, and all matters and things
38 required to be shown upon the abstracts must be entered.
39 (2) The subsequent property roll shall be delivered to the county auditor
40 as soon as possible after the first Monday in December. The county auditor
41 shall deliver the subsequent property roll to the county tax collector without
42 delay.
43 (3) The missed property roll shall be delivered to the county auditor as
44 soon as possible, but no later than the first Monday in March of the succeed-
45 ing year. The county auditor shall deliver the missed property roll to the
46 county tax collector without delay.
47 (4) The county auditor must cause to be prepared abstracts of the com-
48 bined subsequent and missed property rolls as prescribed in subsection (1) and
49 submit the abstracts by certified mail to the state tax commission on or
50 before the first Monday in March of the succeeding year.
51 SECTION 4. That Section 63-604, Idaho Code, be, and the same is hereby
52 amended to read as follows:
4
1 63-604. LAND ACTIVELY DEVOTED TO AGRICULTURE DEFINED. (1) For property
2 tax purposes, land which is actively devoted to agriculture as part of an
3 agricultural enterprise shall be eligible for appraisal, assessment and taxa-
4 tion as agricultural property each year it meets one (1) or more of the fol-
5 lowing qualifications:
6 (a) The total area of such land, including the homesite, is more than
7 five (5) contiguous acres, and is actively devoted to agriculture which
8 means:
9 (i) It is used to produce field crops including, but not limited
10 to, grains, feed crops, fruits and vegetables; or
11 (ii) It is used to produce nursery stock as defined in section
12 22-2302(11), Idaho Code; or
13 (iii) It is used by the owner for the grazing of livestock to be sold
14 as part of a net profit-making enterprise, or is leased by the owner
15 to a bona fide lessee for grazing purposes; or
16 (iv) It is in a cropland retirement or rotation program.
17 (b) The area of such land is five (5) contiguous acres or less and such
18 land has been actively devoted to agriculture within the meaning of sub-
19 section (1)(a) of this section during the last three (3) growing seasons;
20 and
21 (i) It agriculturally produces for sale or home consumption the
22 equivalent of fifteen percent (15%) or more of the owner's or
23 lessee's annual gross income; or
24 (ii) It agriculturally produced gross revenues in the immediately
25 preceding year of one thousand dollars ($1,000) or more. When the
26 area of land is five (5) contiguous acres or less, such land shall be
27 presumed to be nonagricultural land until it is established that the
28 requirements of this subsection have been met.
29 (2) Land, whether within or without a city, meeting the criteria provided
30 in subsection (1) of this section shall not be classified or valued as agri-
31 cultural land which continue to be considered actively devoted to agriculture
32 within the meaning of this section, even if it is within a platted subdivi-
33 sion, unless it is part of a platted subdivision with stated restrictions pro-
34 hibiting its use for agricultural purposes, whether within or without a city.
35 (3) Land utilized for the grazing of a horse or other animals kept pri-
36 marily for personal use or pleasure rather than as part of a bona fide
37 profit-making agricultural enterprise shall not be considered to be land which
38 is actively devoted to agriculture.
39 (4) Land actively devoted to agriculture, having previously qualified for
40 exemption under this section in the preceding year, or which would have quali-
41 fied under this section during the current year, shall not lose such qualifi-
42 cation due to the owner's or lessee's absence in the current year by reason of
43 active military service in a designated combat zone, as defined in section 112
44 of the Internal Revenue Code. If an owner fails to timely apply for exemption
45 as required in this section solely by reason of active duty in a designated
46 combat zone, as defined in section 112 of the Internal Revenue Code, and the
47 land would otherwise qualify for exemption under this section, then the board
48 of county commissioners of the county in which the land actively devoted to
49 agriculture is located shall refund property taxes, if previously paid, in an
50 amount equal to the exemption which would otherwise have applied.
51 (5) As used in this section "contiguous" shall mean being in actual con-
52 tact or touching along a boundary or at a point, except no area of land shall
53 be considered not contiguous solely by reason of a roadway or other right-of-
54 way.
5
1 SECTION 5. An emergency existing therefor, which emergency is hereby
2 declared to exist, this act shall be in full force and effect on and after its
3 passage and approval, and retroactively to January 1, 2005.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
Moved by Corder
Seconded by Williams
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 254
1 AMENDMENT TO SECTION 2
2 On page 1 of the printed bill, delete lines 20 through 42, delete page 2
3 and on page 3 delete lines 1 through 13 and insert:
4 "63-602FF. PARTIAL EXEMPTION FOR PARCELS OF LAND IN A RURAL RESIDENTIAL
5 SUBDIVISION PLAT. (1) Each parcel of land in a rural residential subdivision
6 plat located in a county with a population of one hundred thousand (100,000)
7 or less as determined by the state department of commerce and labor, that was
8 approved and recorded in 2004 or thereafter, and each parcel of land granted
9 an exemption in 2002, 2003 or 2004 pursuant to section 63-602FF, Idaho Code,
10 as such was codified for 2002, 2003 and 2004 shall be eligible for the follow-
11 ing exemption from property taxation:
12 (a) Beginning January 1 of the year following rural residential subdivi-
13 sion plat approval and recordation, or 2005, whichever is later, and con-
14 tinuing for fourteen (14) additional consecutive years, the exemption from
15 full market value for assessment purposes shall be ninety-five percent
16 (95%);
17 (b) On January 1 of the fifteenth year following rural residential subdi-
18 vision plat approval and recordation, or 2005, whichever is later, the
19 exemption from full market value for assessment purposes ceases to exist
20 and thereafter the property shall be valued for assessment purposes at
21 full market value.
22 (c) When the population of the county exceeds one hundred thousand
23 (100,000) the exemption ceases to exist.
24 (2) Any parcel eligible for the exemption pursuant to section 63-602FF,
25 Idaho Code, as such was codified for 2002, 2003 and 2004, and upon which an
26 application for such exemption was submitted to the county in 2002, 2003 or
27 2004, but appealed to and denied by the county board of equalization, shall be
28 eligible for the exemption pursuant to this section. For such parcels, the
29 fifteen (15) year limitation for the maximum duration of this exemption begins
30 with tax year 2005.
31 (3) Each parcel in such rural residential subdivision plat shall continue
32 to be eligible for the exemption provided in this section until:
33 (a) The parcel is sold; or
34 (b) Any improvement is built on the parcel; or
35 (c) The parcel is annexed into a city; or
36 (d) December 31, 2007, in the event that three (3) or fewer lots were
37 purchased by a single person prior to January 1, 2005.
38 When any one (1) of these events occurs, the parcel shall lose the exemp-
39 tion in the immediately following tax year.
40 (4) Prior to receiving the exemption, the owner must file a one (1) time
41 application for approval with the county assessor by April 15 of the first
42 year for which the exemption is claimed, identifying the parcels for which the
43 exemption is claimed and certifying that he is the owner of said parcels.
44 Provided however, a purchaser of four (4) or more lots who is not using the
2
1 lots for his residential or recreational purposes, shall make application
2 annually with the county assessor and will be granted the exemption allowed by
3 this section, if qualified, for the year of application, but the total number
4 of years of exemption shall not exceed fifteen (15) years for both the pur-
5 chaser and the original owner of the parcels and the purchaser attests to
6 those facts, under penalty of perjury, to the county assessor and files the
7 same with the assessor. Failure to make annual application shall prohibit
8 future eligibility for this exemption.
9 (5) Recovery of property tax exemptions allowed by this section due to
10 the exemption being improperly claimed or approved for whatever reason shall
11 be as follows:
12 (a) The taxpayer may appeal to the board of county commissioners the
13 decision by the county assessor to assess the recovery of property tax
14 within thirty (30) days of the date the county assessor sent the notice to
15 the taxpayer pursuant to this section.
16 (b) The county assessor shall assess improperly exempted value for each
17 year the exemption allowed by this section was improperly claimed or
18 approved up to the lesser of a maximum of fourteen (14) years or until the
19 property lost this exemption pursuant to subsection (3) of this section.
20 The amount of the recovery of property tax shall be calculated using the
21 product of the amount of improperly exempted value for each year multi-
22 plied by the levy for that year plus costs, late charges and interest for
23 each year at the rates equal to those provided for delinquent property
24 taxes during that year.
25 (c) Recovered property taxes shall be billed, collected and distributed
26 in the same manner as property taxes, except each taxing district or unit
27 shall be notified of the amount of any recovered property taxes included
28 in any distribution.
29 (d) Any unpaid recovered property taxes shall become a lien upon the real
30 property in the same manner as provided for property taxes in section
31 63-206, Idaho Code, except such lien shall attach as of the first day of
32 January in the year following the year the county assessor sent the notice
33 to the taxpayer pursuant to this section.
34 (e) For purposes of the limitation provided by section 63-802, Idaho
35 Code, moneys received pursuant to this subsection as recovery of property
36 tax shall be treated as property tax revenue.
37 (6) For purposes of this section, the following definitions shall apply:
38 (a) "Improvement" means any development of a parcel which requires the
39 issuance of a permit by the state of Idaho or the county of jurisdiction,
40 provided such development is to an individual parcel rather than to the
41 rural residential subdivision as a whole.
42 (b) "Owner" means the entity holding title to the property or in posses-
43 sion under a sale contract at the time the rural residential subdivision
44 plat was approved and recorded.
45 (c) "Parcel" means a lot in a rural residential subdivision plat.
46 (d) "Plat" means the drawing, map or plan of a subdivision or a replat-
47 ting of such, including certifications, descriptions and approvals.
48 (e) "Rural" means outside city boundaries as described in the documents
49 filed with the state tax commission pursuant to section 63-215, Idaho
50 Code.
51 (f) "Sold" means a transfer of title has occurred from the owner to
52 another entity, except in the event of the first transfer to a spouse or
53 child or in the event of the first transfer of four (4) or more lots of
54 the platted subdivision to a purchaser who will not use the lots for his
55 residential or recreational purposes.
3
1 (7) The legislature declares that this exemption is necessary and just.".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 254, As Amended in the Senate
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAXATION; REPEALING SECTION 63-602FF, IDAHO CODE; AMEND-
3 ING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
4 63-602FF, IDAHO CODE, TO PROVIDE A PARTIAL PROPERTY TAX EXEMPTION FOR PAR-
5 CELS OF LAND IN A RURAL RESIDENTIAL SUBDIVISION PLAT IN CERTAIN COUNTIES,
6 TO PROVIDE ELIGIBILITY CRITERIA, TO PROVIDE FOR AN APPLICATION, TO PROVIDE
7 FOR RECOVERY OF TAXES, TO DEFINE TERMS AND TO PROVIDE THE DECLARATION THAT
8 THIS EXEMPTION IS NECESSARY AND JUST; AMENDING SECTION 63-509, IDAHO CODE,
9 TO PROVIDE AN ASSESSMENT ROLL FOR RURAL RESIDENTIAL SUBDIVISION PLATS
10 GRANTED A PARTIAL PROPERTY TAX EXEMPTION; AMENDING SECTION 63-604, IDAHO
11 CODE, TO REVISE CERTAIN ELIGIBILITY CRITERIA FOR LAND TO BE ACTIVELY
12 DEVOTED TO AGRICULTURE FOR PROPERTY TAX PURPOSES; DECLARING AN EMERGENCY
13 AND PROVIDING RETROACTIVE APPLICATION.
14 Be It Enacted by the Legislature of the State of Idaho:
15 SECTION 1. That Section 63-602FF, Idaho Code, be, and the same is hereby
16 repealed.
17 SECTION 2. That Chapter 6, Title 63, Idaho Code, be, and the same is
18 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
19 ignated as Section 63-602FF, Idaho Code, and to read as follows:
20 63-602FF. PARTIAL EXEMPTION FOR PARCELS OF LAND IN A RURAL RESIDENTIAL
21 SUBDIVISION PLAT. (1) Each parcel of land in a rural residential subdivision
22 plat located in a county with a population of one hundred thousand (100,000)
23 or less as determined by the state department of commerce and labor, that was
24 approved and recorded in 2004 or thereafter, and each parcel of land granted
25 an exemption in 2002, 2003 or 2004 pursuant to section 63-602FF, Idaho Code,
26 as such was codified for 2002, 2003 and 2004 shall be eligible for the follow-
27 ing exemption from property taxation:
28 (a) Beginning January 1 of the year following rural residential subdivi-
29 sion plat approval and recordation, or 2005, whichever is later, and con-
30 tinuing for fourteen (14) additional consecutive years, the exemption from
31 full market value for assessment purposes shall be ninety-five percent
32 (95%);
33 (b) On January 1 of the fifteenth year following rural residential subdi-
34 vision plat approval and recordation, or 2005, whichever is later, the
35 exemption from full market value for assessment purposes ceases to exist
36 and thereafter the property shall be valued for assessment purposes at
37 full market value.
38 (c) When the population of the county exceeds one hundred thousand
39 (100,000) the exemption ceases to exist.
40 (2) Any parcel eligible for the exemption pursuant to section 63-602FF,
41 Idaho Code, as such was codified for 2002, 2003 and 2004, and upon which an
42 application for such exemption was submitted to the county in 2002, 2003 or
2
1 2004, but appealed to and denied by the county board of equalization, shall be
2 eligible for the exemption pursuant to this section. For such parcels, the
3 fifteen (15) year limitation for the maximum duration of this exemption begins
4 with tax year 2005.
5 (3) Each parcel in such rural residential subdivision plat shall continue
6 to be eligible for the exemption provided in this section until:
7 (a) The parcel is sold; or
8 (b) Any improvement is built on the parcel; or
9 (c) The parcel is annexed into a city; or
10 (d) December 31, 2007, in the event that three (3) or fewer lots were
11 purchased by a single person prior to January 1, 2005.
12 When any one (1) of these events occurs, the parcel shall lose the exemp-
13 tion in the immediately following tax year.
14 (4) Prior to receiving the exemption, the owner must file a one (1) time
15 application for approval with the county assessor by April 15 of the first
16 year for which the exemption is claimed, identifying the parcels for which the
17 exemption is claimed and certifying that he is the owner of said parcels.
18 Provided however, a purchaser of four (4) or more lots who is not using the
19 lots for his residential or recreational purposes, shall make application
20 annually with the county assessor and will be granted the exemption allowed by
21 this section, if qualified, for the year of application, but the total number
22 of years of exemption shall not exceed fifteen (15) years for both the pur-
23 chaser and the original owner of the parcels and the purchaser attests to
24 those facts, under penalty of perjury, to the county assessor and files the
25 same with the assessor. Failure to make annual application shall prohibit
26 future eligibility for this exemption.
27 (5) Recovery of property tax exemptions allowed by this section due to
28 the exemption being improperly claimed or approved for whatever reason shall
29 be as follows:
30 (a) The taxpayer may appeal to the board of county commissioners the
31 decision by the county assessor to assess the recovery of property tax
32 within thirty (30) days of the date the county assessor sent the notice to
33 the taxpayer pursuant to this section.
34 (b) The county assessor shall assess improperly exempted value for each
35 year the exemption allowed by this section was improperly claimed or
36 approved up to the lesser of a maximum of fourteen (14) years or until the
37 property lost this exemption pursuant to subsection (3) of this section.
38 The amount of the recovery of property tax shall be calculated using the
39 product of the amount of improperly exempted value for each year multi-
40 plied by the levy for that year plus costs, late charges and interest for
41 each year at the rates equal to those provided for delinquent property
42 taxes during that year.
43 (c) Recovered property taxes shall be billed, collected and distributed
44 in the same manner as property taxes, except each taxing district or unit
45 shall be notified of the amount of any recovered property taxes included
46 in any distribution.
47 (d) Any unpaid recovered property taxes shall become a lien upon the real
48 property in the same manner as provided for property taxes in section
49 63-206, Idaho Code, except such lien shall attach as of the first day of
50 January in the year following the year the county assessor sent the notice
51 to the taxpayer pursuant to this section.
52 (e) For purposes of the limitation provided by section 63-802, Idaho
53 Code, moneys received pursuant to this subsection as recovery of property
54 tax shall be treated as property tax revenue.
55 (6) For purposes of this section, the following definitions shall apply:
3
1 (a) "Improvement" means any development of a parcel which requires the
2 issuance of a permit by the state of Idaho or the county of jurisdiction,
3 provided such development is to an individual parcel rather than to the
4 rural residential subdivision as a whole.
5 (b) "Owner" means the entity holding title to the property or in posses-
6 sion under a sale contract at the time the rural residential subdivision
7 plat was approved and recorded.
8 (c) "Parcel" means a lot in a rural residential subdivision plat.
9 (d) "Plat" means the drawing, map or plan of a subdivision or a replat-
10 ting of such, including certifications, descriptions and approvals.
11 (e) "Rural" means outside city boundaries as described in the documents
12 filed with the state tax commission pursuant to section 63-215, Idaho
13 Code.
14 (f) "Sold" means a transfer of title has occurred from the owner to
15 another entity, except in the event of the first transfer to a spouse or
16 child or in the event of the first transfer of four (4) or more lots of
17 the platted subdivision to a purchaser who will not use the lots for his
18 residential or recreational purposes.
19 (7) The legislature declares that this exemption is necessary and just.
20 SECTION 3. That Section 63-509, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 63-509. DELIVERY OF ROLLS TO COUNTY AUDITOR -- ABSTRACTS OF ROLLS. (1) On
23 or before the second Monday of July the board of equalization must deliver the
24 property rolls, with all changes, corrections and additions and exemptions
25 from taxation entered therein, to the county auditor. It shall be the duty of
26 the county auditor to cause to be prepared the roll for delivery to the county
27 tax collector on or before the first Monday of November. It shall be the duty
28 of the county auditor to cause to be prepared a total of the amount and value
29 of each category of property and prepare an abstract of all the property
30 entered upon the roll in the manner and form required by the state tax commis-
31 sion. Such forms must show, but need not be limited to, the market value for
32 assessment purposes of all property by categories, and the exemptions from
33 taxation allowed by categories. Any abstracts needed by and prepared for the
34 state tax commission must be delivered by certified mail to the state tax com-
35 mission by the fourth Monday of July. The value of exemptions will be shown
36 and identified for exemptions granted pursuant to chapters 20 and 29, title
37 50, Idaho Code, for the value in excess of the equalized assessment valuation
38 as shown on the base assessment roll in any revenue allocation area, and sec-
39 tions 63-602G, 63-602K, 63-602P, 63-602AA, 63-602X, 63-602BB, and 63-602CC,
40 and 63-602FF, Idaho Code, as well as the net taxable value for each of the
41 categories. The abstracts shall be prepared and duly verified and must show a
42 correct classification of all the property in accordance with the classifica-
43 tion of such property upon the property roll, and all matters and things
44 required to be shown upon the abstracts must be entered.
45 (2) The subsequent property roll shall be delivered to the county auditor
46 as soon as possible after the first Monday in December. The county auditor
47 shall deliver the subsequent property roll to the county tax collector without
48 delay.
49 (3) The missed property roll shall be delivered to the county auditor as
50 soon as possible, but no later than the first Monday in March of the succeed-
51 ing year. The county auditor shall deliver the missed property roll to the
52 county tax collector without delay.
53 (4) The county auditor must cause to be prepared abstracts of the com-
4
1 bined subsequent and missed property rolls as prescribed in subsection (1) and
2 submit the abstracts by certified mail to the state tax commission on or
3 before the first Monday in March of the succeeding year.
4 SECTION 4. That Section 63-604, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 63-604. LAND ACTIVELY DEVOTED TO AGRICULTURE DEFINED. (1) For property
7 tax purposes, land which is actively devoted to agriculture as part of an
8 agricultural enterprise shall be eligible for appraisal, assessment and taxa-
9 tion as agricultural property each year it meets one (1) or more of the fol-
10 lowing qualifications:
11 (a) The total area of such land, including the homesite, is more than
12 five (5) contiguous acres, and is actively devoted to agriculture which
13 means:
14 (i) It is used to produce field crops including, but not limited
15 to, grains, feed crops, fruits and vegetables; or
16 (ii) It is used to produce nursery stock as defined in section
17 22-2302(11), Idaho Code; or
18 (iii) It is used by the owner for the grazing of livestock to be sold
19 as part of a net profit-making enterprise, or is leased by the owner
20 to a bona fide lessee for grazing purposes; or
21 (iv) It is in a cropland retirement or rotation program.
22 (b) The area of such land is five (5) contiguous acres or less and such
23 land has been actively devoted to agriculture within the meaning of sub-
24 section (1)(a) of this section during the last three (3) growing seasons;
25 and
26 (i) It agriculturally produces for sale or home consumption the
27 equivalent of fifteen percent (15%) or more of the owner's or
28 lessee's annual gross income; or
29 (ii) It agriculturally produced gross revenues in the immediately
30 preceding year of one thousand dollars ($1,000) or more. When the
31 area of land is five (5) contiguous acres or less, such land shall be
32 presumed to be nonagricultural land until it is established that the
33 requirements of this subsection have been met.
34 (2) Land, whether within or without a city, meeting the criteria provided
35 in subsection (1) of this section shall not be classified or valued as agri-
36 cultural land which continue to be considered actively devoted to agriculture
37 within the meaning of this section, even if it is within a platted subdivi-
38 sion, unless it is part of a platted subdivision with stated restrictions pro-
39 hibiting its use for agricultural purposes, whether within or without a city.
40 (3) Land utilized for the grazing of a horse or other animals kept pri-
41 marily for personal use or pleasure rather than as part of a bona fide
42 profit-making agricultural enterprise shall not be considered to be land which
43 is actively devoted to agriculture.
44 (4) Land actively devoted to agriculture, having previously qualified for
45 exemption under this section in the preceding year, or which would have quali-
46 fied under this section during the current year, shall not lose such qualifi-
47 cation due to the owner's or lessee's absence in the current year by reason of
48 active military service in a designated combat zone, as defined in section 112
49 of the Internal Revenue Code. If an owner fails to timely apply for exemption
50 as required in this section solely by reason of active duty in a designated
51 combat zone, as defined in section 112 of the Internal Revenue Code, and the
52 land would otherwise qualify for exemption under this section, then the board
53 of county commissioners of the county in which the land actively devoted to
5
1 agriculture is located shall refund property taxes, if previously paid, in an
2 amount equal to the exemption which would otherwise have applied.
3 (5) As used in this section "contiguous" shall mean being in actual con-
4 tact or touching along a boundary or at a point, except no area of land shall
5 be considered not contiguous solely by reason of a roadway or other right-of-
6 way.
7 SECTION 5. An emergency existing therefor, which emergency is hereby
8 declared to exist, this act shall be in full force and effect on and after its
9 passage and approval, and retroactively to January 1, 2005.
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STATEMENT OF PURPOSE
RS15018C2
Section 1 repeals section 63-602FF, Idaho Code.
Section 2 replaces 63-602FF, Idaho Code with a new section that
provides a ten year, phased out exemption on parcels within rural
subdivisions outside city limits. Qualifying parcels are
appraised at full market value, but receive a 95% exemption for
assessment purposes for the first 5 years after approval and
recorded. In years 6 through 9, the exemption decreases to 80%,
60%, 40%, and 20%. In the tenth year the parcel is appraised at
full market value for assessment purposes. Those landowners
enjoying the exemption provided for in the repealed section are
eligible to apply for this new exemption. The exemption is lost
upon sale, annexation, or improvement to the parcel. The
exemption applies to all counties with under 100,000 population
or less.
Section 3 amends section 63-509(1), Idaho Code, to provide for
tracking of the exemption by the county and state tax commission.
Section 4 amends section 63-604(2), Idaho Code, to clarify, for
appraisal purposes, that subdivision platting alone does not
extinguish the agricultural exemption, provided the requirements
for the exemption continue to be met. The purpose of such
clarification language is to provide consistency among counties.
FISCAL IMPACT
There is no fiscal impact to the state general fund. However,
depending on the number of eligible subdivisions, local taxing
districts may experience a change in taxable value.
Contact: Phone:
Rep. Ken Roberts 332-1000
Rep. Dell Raybould 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 254