2005 Legislation
Print Friendly

HOUSE BILL NO. 320 – Property tax/appraisal/documentatn

HOUSE BILL NO. 320

View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact



                       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