View Bill Status
View Bill Text
View Amendment
View Engrossed Bill (Original Bill with Amendment(s) Incorporated)
View Statement of Purpose / Fiscal Impact
H0422aaS............................................by REVENUE AND TAXATION
PROPERTY TAX - Amends existing law to delete adjustments to income
limitations; to provide for a maximum income limitation of $28,000 for tax
year 2006 and each year thereafter or 185% of federal poverty guidelines
for tax year 2006 and each year thereafter; to provide for a maximum tax
reduction of $1,320 in tax year 2006 and thereafter for circuit breaker
property tax relief; and to revise the definitions of "claimant" and
"income."
01/19 House intro - 1st rdg - to printing
01/20 Rpt prt - to Rev/Tax
02/08 Rpt out - rec d/p - to 2nd rdg
02/09 2nd rdg - to 3rd rdg
02/17 3rd rdg - PASSED - 69-0-1
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford,
Cannon, Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson,
Ellsworth, Eskridge, Field(18), Field(23), Garrett, Hart(Jacobson),
Harwood, Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour,
Loertscher, Martinez, Mathews, McGeachin, McKague, Mitchell, Moyle,
Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo,
Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer, Shepherd(2),
Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie,
Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker.
NAYS -- None
Absent and excused -- Miller
Floor Sponsor - Lake
Title apvd - to Senate
02/20 Senate intro - 1st rdg - to Loc Gov
03/08 Rpt out - to 14th Ord
03/17 Rpt out amen - to 1st rdg as amen
03/20 1st rdg - to 2nd rdg as amen
03/21 2nd rdg - to 3rd rdg as amen
03/23 3rd rdg as amen - PASSED - 35-0-0
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett(Clark),
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Hill
Title apvd - to House
03/24 House - Held at Desk
03/30 Ret'd to Rev/Tax
04/04 Rpt out
House concurred in Senate amens - to engros
04/05 Rpt engros - 1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 67-0-3
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford,
Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henderson,
Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
Rydalch, Sali, Sayler, Schaefer, Shepherd(8), Shirley, Skippen,
Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills,
Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Cannon, Henbest, Shepherd(2)
Floor Sponsor - Lake
Title apvd - to enrol
04/06 Rpt enrol - Sp signed - Pres signed
To Governor
04/07 Governor signed
Session Law Chapter 350
Effective: 01/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 422
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE CIRCUIT BREAKER PROPERTY TAX RELIEF PROGRAM; AMENDING SECTION
3 63-705, IDAHO CODE, TO PROVIDE FOR A MAXIMUM INCOME LIMITATION OF TWENTY-
4 EIGHT THOUSAND DOLLARS FOR TAX YEAR 2006 AND TO PROVIDE FOR A MAXIMUM TAX
5 REDUCTION OF ONE THOUSAND THREE HUNDRED TWENTY DOLLARS IN TAX YEAR 2006
6 AND THEREAFTER AND TO MAKE TECHNICAL CORRECTIONS; DECLARING AN EMERGENCY
7 AND PROVIDING RETROACTIVE APPLICATION.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 63-705, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 63-705. PUBLICATION OF CHANGES IN INCOME LIMITATIONS AND PROPERTY TAX
12 REDUCTION AMOUNTS. (1) The state tax commission shall publish adjustments to
13 the income limitations, which shall be an individual's income as defined in
14 section 63-701, Idaho Code, of not more than twenty-eight thousand dollars
15 ($28,000) per person for tax year 2006, and property tax reduction amounts to
16 reflect cost-of-living fluctuations. The adjustments shall effect changes in
17 each income limitation by a percentage equal as near as practicable to the
18 annual cost-of-living percentage modification as determined by the secretary
19 of health and human services pursuant to 42 U.S.C. section 415(i). The lowest
20 limitation shall allow a maximum reduction of one thousand one hundred dollars
21 ($1,100) in tax year 1998, and one thousand two three hundred twenty dollars
22 ($1,3200) in tax year 1999 2006 and thereafter, or actual property taxes,
23 whichever is less. Each income limitation and reduction amount shall be pro-
24 rated based on the basic maximum reduction, in practicable increments so that
25 the highest income limitation will provide for a reduction of one hundred
26 fifty dollars ($150), or actual property taxes, whichever is less.
27 (2) The tax commission shall publish the adjustments required by this
28 section each and every year the secretary of health and human services
29 announces said cost-of-living modification. The adjustments shall be published
30 no later than October 1 of each such year and shall be effective for claims
31 filed in and for the following property tax year.
32 (3) The publication of adjustments under this section shall be exempt
33 from the provisions of chapter 52, title 67, Idaho Code, but shall be provided
34 to each county and to members of the public upon request and without charge.
35 SECTION 2. An emergency existing therefor, which emergency is hereby
36 declared to exist, this act shall be in full force and effect on and after its
37 passage and approval, and retroactively to January 1, 2006.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
Moved by Langhorst
Seconded by Werk
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 422
1 AMENDMENT TO THE BILL
2 On page 1 of the printed bill, following line 34, insert:
3 "SECTION 2. That Section 63-701, Idaho Code, be, and the same is hereby
4 amended to read as follows:
5 63-701. DEFINITIONS. As used in this chapter:
6 (1) "Claimant" means a person who has filed a claim under the provisions
7 of sections 63-701 through 63-710, Idaho Code. Except as provided in section
8 63-702(2), Idaho Code, on January 1, or before April 15, of the year in which
9 the claimant first filed a claim on the homestead in question, a claimant must
10 be an owner of the homestead and on January 1 of said year a claimant must be:
11 (a) Not less than sixty-five (65) years old; or
12 (b) A child under the age of eighteen (18) years who is fatherless or
13 motherless or who has been abandoned by any surviving parent or parents;
14 or
15 (c) A widow or widower; or
16 (d) A disabled person who is recognized as disabled by the social secu-
17 rity administration pursuant to title 42 of the United States Code, or by
18 the railroad retirement board pursuant to title 45 of the United States
19 Code, or by the office of management and budget pursuant to title 5 of the
20 United States Code; or
21 (e) A disabled veteran of any war engaged in by the United States, whose
22 disability is recognized as a service-connected disability of a degree of
23 ten percent (10%) or more, or who has a pension for nonservice-connected
24 disabilities, in accordance with laws and regulations administered by the
25 United States department of veterans affairs; or
26 (f) A person, as specified in 42 U.S.C. 1701, who was or is entitled to
27 receive benefits because he is known to have been taken by a hostile force
28 as a prisoner, hostage or otherwise; or
29 (g) Blind.
30 (2) "Homestead" means the dwelling, owner-occupied by the claimant as
31 described in this chapter and used as the primary dwelling place of the claim-
32 ant and may be occupied by any members of the household as their home, and so
33 much of the land surrounding it, not exceeding one (1) acre, as is reasonably
34 necessary for the use of the dwelling as a home. It may consist of a part of a
35 multidwelling or multipurpose building and part of the land upon which it is
36 built. "Homestead" does not include personal property such as furniture, fur-
37 nishings or appliances, but a manufactured home may be a homestead.
38 (3) "Household" means the claimant and the claimant's spouse. The term
39 does not include bona fide lessees, tenants, or roomers and boarders on con-
40 tract. "Household" includes persons described in subsection (8)(b) of this
41 section.
2
1 (4) "Household income" means all income received by the claimant and, if
2 married, all income received by the claimant's spouse, in a calendar year.
3 (5) "Income" means the sum of federal adjusted gross income as defined in
4 the Internal Revenue Code, as defined in section 63-3004, Idaho Code, and to
5 the extent not already included in federal adjusted gross income:
6 (a) Alimony;
7 (b) Support money;
8 (c) Nontaxable strike benefits;
9 (d) The nontaxable amount of any individual retirement account, pension
10 or annuity, (including railroad retirement benefits, all payments received
11 under the federal social security act except the social security death
12 benefit as specified in this subsection, state unemployment insurance
13 laws, and veterans disability pensions and compensation, excluding any
14 return of principal paid by the recipient of an annuity and excluding
15 rollovers as provided in section 402 or 403 of the Internal Revenue Code);
16 (e) Nontaxable interest received from the federal government or any of
17 its instrumentalities or a state government or any of its instrumentali-
18 ties;
19 (f) Worker's compensation; and
20 (g) The gross amount of loss of earnings insurance.
21 It does not include capital gains, gifts from nongovernmental sources or
22 inheritances. To the extent not reimbursed, the cost of medical care as
23 defined in section 213(d) of the Internal Revenue Code, incurred or paid by
24 the claimant and, if married, the claimant's spouse, may be deducted from
25 income. To the extent not reimbursed, personal funeral expenses, including
26 prepaid funeral expenses and premiums on funeral insurance, of the claimant
27 and claimant's spouse only, may be deducted from income up to an annual maxi-
28 mum of five thousand dollars ($5,000) per claim. "Income" does not include
29 veterans disability pensions received by a person described in subsection
30 (1)(e) who is a claimant or a claimant's spouse if the disability pension is
31 received pursuant to a service-connected disability of a degree of forty per-
32 cent (40%) or more. "Income" does not include dependency and indemnity compen-
33 sation or death benefits paid to a person described in subsection (1) of this
34 section by the United States department of veterans affairs and arising from a
35 service-connected death or disability. "Income" does not include lump sum
36 death benefits made by the social security administration pursuant to 42
37 U.S.C. section 402(i). Documentation of medical expenses may be required by
38 the county assessor, board of equalization and state tax commission in such
39 form as the county assessor, board of equalization or state tax commission
40 shall determine. "Income" shall be that received in the calendar year immedi-
41 ately preceding the year in which a claim is filed. Where a claimant and/or
42 the claimant's spouse does not file a federal tax return, the claimant's
43 and/or the claimant's spouse's federal adjusted gross income, for purposes of
44 this section, shall be an income equivalent to federal adjusted gross income
45 had the claimant and/or the claimant's spouse filed a federal tax return, as
46 determined by the county assessor. The county assessor, board of equalization
47 or state tax commission may require documentation of income in such form as
48 each shall determine, including, but not limited to: copies of federal or
49 state tax returns and any attachments thereto; and income reporting forms such
50 as the W-2 and 1099.
51 (6) "Occupied" means actual use and possession.
52 (7) "Owner" means a person holding title in fee simple or holding a cer-
53 tificate of motor vehicle title (either of which may be subject to mortgage,
54 deed of trust or other lien) or who has retained or been granted a life estate
55 or who is a person entitled to file a claim under section 63-702, Idaho Code.
3
1 "Owner" shall also include any person who:
2 (a) Is the beneficiary of a revocable or irrevocable trust which is the
3 owner of such homestead and under which the claimant or the claimant's
4 spouse has the primary right of occupancy of the homestead; or
5 (b) Is a partner of a limited partnership, member of a limited liability
6 company or shareholder of a corporation if such entity holds title in fee
7 simple or holds a certificate of motor vehicle title and if the person
8 holds at least a five percent (5%) ownership in such entity, as determined
9 by the county assessor; or
10 (c) Has retained or been granted a life estate.
11 "Owner" includes a vendee in possession under a land sale contract. Any par-
12 tial ownership shall be considered as ownership for determining initial quali-
13 fication for property tax reduction benefits; however, the amount of property
14 tax reduction under section 63-704, Idaho Code, and rules promulgated pursuant
15 to section 63-705, Idaho Code, shall be computed on the value of the
16 claimant's partial ownership. "Partial ownership," for the purposes of this
17 section, means any one (1) person's ownership when property is owned by more
18 than one (1) person or where the homestead is held by an entity, as set forth
19 in this subsection, but more than one (1) person has the right of occupancy of
20 such homestead. A person holding either partial title in fee simple or holding
21 a certificate of motor vehicle title together with another person but who does
22 not occupy the dwelling as his primary dwelling place, shall not be considered
23 an owner for purposes of this section, if such person is a cosignatory of a
24 note secured by the dwelling in question and at least one (1) of the other
25 cosignatories of the note occupies the dwelling as his primary dwelling place.
26 The combined community property interests of both spouses shall not be consid-
27 ered partial ownership so long as the combined community property interests
28 constitute the entire ownership of the homestead, including where the spouses
29 are occupying a homestead owned by an entity, as set forth in this subsection,
30 and the spouses have the primary right of occupancy of the homestead. The pro-
31 portional reduction required under this subsection shall not apply to commu-
32 nity property interests. Where title to property was held by a person who has
33 died without timely filing a claim for property tax reduction, the estate of
34 the deceased person shall be the "owner," provided that the time periods dur-
35 ing which the deceased person held such title shall be attributed to the
36 estate for the computation of any time periods under subsection (8)(a) or
37 (8)(b) of this section.
38 (8) (a) "Primary dwelling place" means the claimant's dwelling place on
39 January 1 or before April 15 of the year for which the claim is made. The
40 primary dwelling place is the single place where a claimant has his true,
41 fixed and permanent home and principal establishment, and to which when-
42 ever the individual is absent he has the intention of returning. A claim-
43 ant must establish the dwelling to which the claim relates to be his pri-
44 mary dwelling place by clear and convincing evidence or by establishing
45 that the dwelling is where the claimant resided on January 1 or before
46 April 15 and:
47 (i) At least six (6) months during the prior year; or
48 (ii) The majority of the time the claimant owned the dwelling if
49 owned by the claimant less than one (1) year; or
50 (iii) The majority of the time after the claimant first occupied the
51 dwelling if occupied by the claimant for less than one (1) year. The
52 county assessor may require written or other proof of the foregoing
53 in such form as the county assessor may determine.
54 (b) Notwithstanding the provisions of paragraph (a) of this subsection,
55 the property upon which the claimant makes application shall be deemed to
4
1 be the claimant's primary dwelling place if the claimant is otherwise
2 qualified and resides in a care facility and does not allow the property
3 upon which the claimant has made application to be occupied by persons
4 paying a consideration to occupy the dwelling. Payment of utilities shall
5 not be payment of a consideration to occupy the dwelling. A claimant's
6 spouse who resides in a care facility shall be deemed to reside at the
7 claimant's primary dwelling place and to be a part of the claimant's
8 household. A care facility is a hospital, nursing facility or intermediate
9 care facility for the mentally retarded as defined in section 39-1301,
10 Idaho Code, or a facility as defined in section 39-3302(14), Idaho Code,
11 or a dwelling other than the one upon which the applicant makes applica-
12 tion where a claimant who is unable to reside in the dwelling upon which
13 the application is made lives and receives help in daily living, protec-
14 tion and security.";
15 and in line 35, delete "SECTION 2" and insert: "SECTION 3".
16 CORRECTION TO TITLE
17 On page 1, in line 6, following "CORRECTIONS;" insert: "AMENDING SECTION
18 63-701, IDAHO CODE, TO REVISE THE DEFINITION OF "INCOME";".
5
Moved by Hill
Seconded by Corder
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 422
1 AMENDMENT TO THE BILL
2 On page 1 of the printed bill, following line 34, insert:
3 "SECTION 2. That Section 63-701, Idaho Code, be, and the same is hereby
4 amended to read as follows:
5 63-701. DEFINITIONS. As used in this chapter:
6 (1) "Claimant" means a person who has filed an application under section
7 63-602G, Idaho Code, and has filed a claim under the provisions of sections
8 63-701 through 63-710, Idaho Code. Except as provided in section 63-702(2),
9 Idaho Code, on January 1, or before April 15, of the year in which the claim-
10 ant first filed a claim on the homestead in question, a claimant must be an
11 owner of the homestead and on January 1 of said year a claimant must be:
12 (a) Not less than sixty-five (65) years old; or
13 (b) A child under the age of eighteen (18) years who is fatherless or
14 motherless or who has been abandoned by any surviving parent or parents;
15 or
16 (c) A widow or widower; or
17 (d) A disabled person who is recognized as disabled by the social secu-
18 rity administration pursuant to title 42 of the United States Code, or by
19 the railroad retirement board pursuant to title 45 of the United States
20 Code, or by the office of management and budget pursuant to title 5 of the
21 United States Code; or
22 (e) A disabled veteran of any war engaged in by the United States, whose
23 disability is recognized as a service-connected disability of a degree of
24 ten percent (10%) or more, or who has a pension for nonservice-connected
25 disabilities, in accordance with laws and regulations administered by the
26 United States department of veterans affairs; or
27 (f) A person, as specified in 42 U.S.C. 1701, who was or is entitled to
28 receive benefits because he is known to have been taken by a hostile force
29 as a prisoner, hostage or otherwise; or
30 (g) Blind.
31 (2) "Homestead" means the dwelling, owner-occupied by the claimant as
32 described in this chapter and used as the primary dwelling place of the claim-
33 ant and may be occupied by any members of the household as their home, and so
34 much of the land surrounding it, not exceeding one (1) acre, as is reasonably
35 necessary for the use of the dwelling as a home. It may consist of a part of a
36 multidwelling or multipurpose building and part of the land upon which it is
37 built. "Homestead" does not include personal property such as furniture, fur-
38 nishings or appliances, but a manufactured home may be a homestead.
39 (3) "Household" means the claimant and the claimant's spouse. The term
40 does not include bona fide lessees, tenants, or roomers and boarders on con-
41 tract. "Household" includes persons described in subsection (8)(b) of this
42 section.
43 (4) "Household income" means all income received by the claimant and, if
44 married, all income received by the claimant's spouse, in a calendar year.
45 (5) "Income" means the sum of federal adjusted gross income as defined in
46 the Internal Revenue Code, as defined in section 63-3004, Idaho Code, and to
6
1 the extent not already included in federal adjusted gross income:
2 (a) Alimony;
3 (b) Support money;
4 (c) Nontaxable strike benefits;
5 (d) The nontaxable amount of any individual retirement account, pension
6 or annuity, (including railroad retirement benefits, all payments received
7 under the federal social security act except the social security death
8 benefit as specified in this subsection, state unemployment insurance
9 laws, and veterans disability pensions and compensation, excluding
10 rollovers as provided in section 402 or 403 of the Internal Revenue Code);
11 (e) Nontaxable interest received from the federal government or any of
12 its instrumentalities or a state government or any of its instrumentali-
13 ties;
14 (f) Worker's compensation; and
15 (g) The gross amount of loss of earnings insurance.
16 It does not include capital gains, gifts from nongovernmental sources or
17 inheritances. To the extent not reimbursed, the cost of medical care as
18 defined in section 213(d) of the Internal Revenue Code, incurred or paid by
19 the claimant and, if married, the claimant's spouse, may be deducted from
20 income. To the extent not reimbursed, personal funeral expenses, including
21 prepaid funeral expenses and premiums on funeral insurance, of the claimant
22 and claimant's spouse only, may be deducted from income up to an annual maxi-
23 mum of five thousand dollars ($5,000) per claim. "Income" does not include
24 veterans disability pensions received by a person described in subsection
25 (1)(e) who is a claimant or a claimant's spouse if the disability pension is
26 received pursuant to a service-connected disability of a degree of forty per-
27 cent (40%) or more. "Income" does not include dependency and indemnity compen-
28 sation or death benefits paid to a person described in subsection (1) of this
29 section by the United States department of veterans affairs and arising from a
30 service-connected death or disability. "Income" does not include lump sum
31 death benefits made by the social security administration pursuant to 42
32 U.S.C. section 402(i). Documentation of medical expenses may be required by
33 the county assessor, board of equalization and state tax commission in such
34 form as the county assessor, board of equalization or state tax commission
35 shall determine. "Income" shall be that received in the calendar year immedi-
36 ately preceding the year in which a claim is filed. Where a claimant and/or
37 the claimant's spouse does not file a federal tax return, the claimant's
38 and/or the claimant's spouse's federal adjusted gross income, for purposes of
39 this section, shall be an income equivalent to federal adjusted gross income
40 had the claimant and/or the claimant's spouse filed a federal tax return, as
41 determined by the county assessor. The county assessor, board of equalization
42 or state tax commission may require documentation of income in such form as
43 each shall determine, including, but not limited to: copies of federal or
44 state tax returns and any attachments thereto; and income reporting forms such
45 as the W-2 and 1099.
46 (6) "Occupied" means actual use and possession.
47 (7) "Owner" means a person holding title in fee simple or holding a cer-
48 tificate of motor vehicle title (either of which may be subject to mortgage,
49 deed of trust or other lien) or who has retained or been granted a life estate
50 or who is a person entitled to file a claim under section 63-702, Idaho Code.
51 "Owner" shall also include any person who:
52 (a) Is the beneficiary of a revocable or irrevocable trust which is the
53 owner of such homestead and under which the claimant or the claimant's
54 spouse has the primary right of occupancy of the homestead; or
55 (b) Is a partner of a limited partnership, member of a limited liability
7
1 company or shareholder of a corporation if such entity holds title in fee
2 simple or holds a certificate of motor vehicle title and if the person
3 holds at least a five percent (5%) ownership in such entity, as determined
4 by the county assessor; or
5 (c) Has retained or been granted a life estate.
6 "Owner" includes a vendee in possession under a land sale contract. Any par-
7 tial ownership shall be considered as ownership for determining initial quali-
8 fication for property tax reduction benefits; however, the amount of property
9 tax reduction under section 63-704, Idaho Code, and rules promulgated pursuant
10 to section 63-705, Idaho Code, shall be computed on the value of the
11 claimant's partial ownership. "Partial ownership," for the purposes of this
12 section, means any one (1) person's ownership when property is owned by more
13 than one (1) person or where the homestead is held by an entity, as set forth
14 in this subsection, but more than one (1) person has the right of occupancy of
15 such homestead. A person holding either partial title in fee simple or holding
16 a certificate of motor vehicle title together with another person but who does
17 not occupy the dwelling as his primary dwelling place, shall not be considered
18 an owner for purposes of this section, if such person is a cosignatory of a
19 note secured by the dwelling in question and at least one (1) of the other
20 cosignatories of the note occupies the dwelling as his primary dwelling place.
21 The combined community property interests of both spouses shall not be consid-
22 ered partial ownership so long as the combined community property interests
23 constitute the entire ownership of the homestead, including where the spouses
24 are occupying a homestead owned by an entity, as set forth in this subsection,
25 and the spouses have the primary right of occupancy of the homestead. The pro-
26 portional reduction required under this subsection shall not apply to commu-
27 nity property interests. Where title to property was held by a person who has
28 died without timely filing a claim for property tax reduction, the estate of
29 the deceased person shall be the "owner," provided that the time periods dur-
30 ing which the deceased person held such title shall be attributed to the
31 estate for the computation of any time periods under subsection (8)(a) or
32 (8)(b) of this section.
33 (8) (a) "Primary dwelling place" means the claimant's dwelling place on
34 January 1 or before April 15 of the year for which the claim is made. The
35 primary dwelling place is the single place where a claimant has his true,
36 fixed and permanent home and principal establishment, and to which when-
37 ever the individual is absent he has the intention of returning. A claim-
38 ant must establish the dwelling to which the claim relates to be his pri-
39 mary dwelling place by clear and convincing evidence or by establishing
40 that the dwelling is where the claimant resided on January 1 or before
41 April 15 and:
42 (i) At least six (6) months during the prior year; or
43 (ii) The majority of the time the claimant owned the dwelling if
44 owned by the claimant less than one (1) year; or
45 (iii) The majority of the time after the claimant first occupied the
46 dwelling if occupied by the claimant for less than one (1) year. The
47 county assessor may require written or other proof of the foregoing
48 in such form as the county assessor may determine.
49 (b) Notwithstanding the provisions of paragraph (a) of this subsection,
50 the property upon which the claimant makes application shall be deemed to
51 be the claimant's primary dwelling place if the claimant is otherwise
52 qualified and resides in a care facility and does not allow the property
53 upon which the claimant has made application to be occupied by persons
54 paying a consideration to occupy the dwelling. Payment of utilities shall
55 not be payment of a consideration to occupy the dwelling. A claimant's
8
1 spouse who resides in a care facility shall be deemed to reside at the
2 claimant's primary dwelling place and to be a part of the claimant's
3 household. A care facility is a hospital, nursing facility or intermediate
4 care facility for the mentally retarded as defined in section 39-1301,
5 Idaho Code, or a facility as defined in section 39-3302(14), Idaho Code,
6 or a dwelling other than the one upon which the applicant makes applica-
7 tion where a claimant who is unable to reside in the dwelling upon which
8 the application is made lives and receives help in daily living, protec-
9 tion and security.";
10 and in line 35, delete "SECTION 2" and insert: "SECTION 3".
11 CORRECTION TO TITLE
12 On page 1, in line 6, following "CORRECTIONS;" insert: "AMENDING SECTION
13 63-701, IDAHO CODE, TO REVISE THE DEFINITIONS OF "CLAIMANT" AND "INCOME";".
9
Moved by Bunderson
Seconded by Corder
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 422
1 AMENDMENT TO SECTION 1
2 On page 1 of the printed bill, delete lines 13 through 19 and insert: "the
3 income limitations, and property tax reduction amounts to reflect cost-of-
4 living fluctuations. The adjustments shall effect changes in each income limi-
5 tation by a percentage equal as near as practicable to the annual cost-of-
6 living percentage modification as determined by the secretary of health and
7 human services pursuant to 42 USC 415(i) which shall be the greater of: (a) an
8 individual's income as defined in section 63-701, Idaho Code, of not more than
9 twenty-eight thousand dollars ($28,000) per household for tax year 2006, and
10 each tax year thereafter; or (b) one hundred eighty-five percent (185%) of the
11 federal poverty guidelines for a household of two (2) for tax year 2006, and
12 each tax year thereafter. The lowest".
13 CORRECTION TO TITLE
14 On page 1, delete lines 3 and 4 and insert: "63-705, IDAHO CODE, TO DELETE
15 ADJUSTMENTS TO INCOME LIMITATIONS, TO PROVIDE FOR A MAXIMUM INCOME LIMITATION
16 OF THE GREATER OF TWENTY-EIGHT THOUSAND DOLLARS FOR TAX YEAR 2006, AND EACH
17 TAX YEAR THEREAFTER OR ONE HUNDRED EIGHTY-FIVE PERCENT OF THE FEDERAL POVERTY
18 GUIDELINES FOR A HOUSEHOLD OF TWO FOR TAX YEAR 2006, AND EACH TAX YEAR THERE-
19 AFTER, AND TO PROVIDE FOR A MAXIMUM TAX".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 422, As Amended in the Senate
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE CIRCUIT BREAKER PROPERTY TAX RELIEF PROGRAM; AMENDING SECTION
3 63-705, IDAHO CODE, TO DELETE ADJUSTMENTS TO INCOME LIMITATIONS, TO PRO-
4 VIDE FOR A MAXIMUM INCOME LIMITATION OF THE GREATER OF TWENTY-EIGHT THOU-
5 SAND DOLLARS FOR TAX YEAR 2006, AND EACH TAX YEAR THEREAFTER OR ONE HUN-
6 DRED EIGHTY-FIVE PERCENT OF THE FEDERAL POVERTY GUIDELINES FOR A HOUSEHOLD
7 OF TWO FOR TAX YEAR 2006, AND EACH TAX YEAR THEREAFTER, AND TO PROVIDE FOR
8 A MAXIMUM TAX REDUCTION OF ONE THOUSAND THREE HUNDRED TWENTY DOLLARS IN
9 TAX YEAR 2006 AND THEREAFTER AND TO MAKE TECHNICAL CORRECTIONS; AMENDING
10 SECTION 63-701, IDAHO CODE, TO REVISE THE DEFINITIONS OF "CLAIMANT" AND
11 "INCOME"; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. That Section 63-705, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 63-705. PUBLICATION OF CHANGES IN INCOME LIMITATIONS AND PROPERTY TAX
16 REDUCTION AMOUNTS. (1) The state tax commission shall publish adjustments to
17 the income limitations, and property tax reduction amounts to reflect cost-of-
18 living fluctuations. The adjustments shall effect changes in each income limi-
19 tation by a percentage equal as near as practicable to the annual cost-of-
20 living percentage modification as determined by the secretary of health and
21 human services pursuant to 42 USC 415(i) which shall be the greater of: (a) an
22 individual's income as defined in section 63-701, Idaho Code, of not more than
23 twenty-eight thousand dollars ($28,000) per household for tax year 2006, and
24 each tax year thereafter; or (b) one hundred eighty-five percent (185%) of the
25 federal poverty guidelines for a household of two (2) for tax year 2006, and
26 each tax year thereafter. The lowest limitation shall allow a maximum reduc-
27 tion of one thousand one hundred dollars ($1,100) in tax year 1998, and one
28 thousand two three hundred twenty dollars ($1,3200) in tax year 1999 2006 and
29 thereafter, or actual property taxes, whichever is less. Each income limita-
30 tion and reduction amount shall be prorated based on the basic maximum reduc-
31 tion, in practicable increments so that the highest income limitation will
32 provide for a reduction of one hundred fifty dollars ($150), or actual prop-
33 erty taxes, whichever is less.
34 (2) The tax commission shall publish the adjustments required by this
35 section each and every year the secretary of health and human services
36 announces said cost-of-living modification. The adjustments shall be published
37 no later than October 1 of each such year and shall be effective for claims
38 filed in and for the following property tax year.
39 (3) The publication of adjustments under this section shall be exempt
40 from the provisions of chapter 52, title 67, Idaho Code, but shall be provided
41 to each county and to members of the public upon request and without charge.
42 SECTION 2. That Section 63-701, Idaho Code, be, and the same is hereby
2
1 amended to read as follows:
2 63-701. DEFINITIONS. As used in this chapter:
3 (1) "Claimant" means a person who has filed an application under section
4 63-602G, Idaho Code, and has filed a claim under the provisions of sections
5 63-701 through 63-710, Idaho Code. Except as provided in section 63-702(2),
6 Idaho Code, on January 1, or before April 15, of the year in which the claim-
7 ant first filed a claim on the homestead in question, a claimant must be an
8 owner of the homestead and on January 1 of said year a claimant must be:
9 (a) Not less than sixty-five (65) years old; or
10 (b) A child under the age of eighteen (18) years who is fatherless or
11 motherless or who has been abandoned by any surviving parent or parents;
12 or
13 (c) A widow or widower; or
14 (d) A disabled person who is recognized as disabled by the social secu-
15 rity administration pursuant to title 42 of the United States Code, or by
16 the railroad retirement board pursuant to title 45 of the United States
17 Code, or by the office of management and budget pursuant to title 5 of the
18 United States Code; or
19 (e) A disabled veteran of any war engaged in by the United States, whose
20 disability is recognized as a service-connected disability of a degree of
21 ten percent (10%) or more, or who has a pension for nonservice-connected
22 disabilities, in accordance with laws and regulations administered by the
23 United States department of veterans affairs; or
24 (f) A person, as specified in 42 U.S.C. 1701, who was or is entitled to
25 receive benefits because he is known to have been taken by a hostile force
26 as a prisoner, hostage or otherwise; or
27 (g) Blind.
28 (2) "Homestead" means the dwelling, owner-occupied by the claimant as
29 described in this chapter and used as the primary dwelling place of the claim-
30 ant and may be occupied by any members of the household as their home, and so
31 much of the land surrounding it, not exceeding one (1) acre, as is reasonably
32 necessary for the use of the dwelling as a home. It may consist of a part of a
33 multidwelling or multipurpose building and part of the land upon which it is
34 built. "Homestead" does not include personal property such as furniture, fur-
35 nishings or appliances, but a manufactured home may be a homestead.
36 (3) "Household" means the claimant and the claimant's spouse. The term
37 does not include bona fide lessees, tenants, or roomers and boarders on con-
38 tract. "Household" includes persons described in subsection (8)(b) of this
39 section.
40 (4) "Household income" means all income received by the claimant and, if
41 married, all income received by the claimant's spouse, in a calendar year.
42 (5) "Income" means the sum of federal adjusted gross income as defined in
43 the Internal Revenue Code, as defined in section 63-3004, Idaho Code, and to
44 the extent not already included in federal adjusted gross income:
45 (a) Alimony;
46 (b) Support money;
47 (c) Nontaxable strike benefits;
48 (d) The nontaxable amount of any individual retirement account, pension
49 or annuity, (including railroad retirement benefits, all payments received
50 under the federal social security act except the social security death
51 benefit as specified in this subsection, state unemployment insurance
52 laws, and veterans disability pensions and compensation, excluding any
53 return of principal paid by the recipient of an annuity and excluding
54 rollovers as provided in section 402 or 403 of the Internal Revenue Code);
3
1 (e) Nontaxable interest received from the federal government or any of
2 its instrumentalities or a state government or any of its instrumentali-
3 ties;
4 (f) Worker's compensation; and
5 (g) The gross amount of loss of earnings insurance.
6 It does not include capital gains, gifts from nongovernmental sources or
7 inheritances. To the extent not reimbursed, the cost of medical care as
8 defined in section 213(d) of the Internal Revenue Code, incurred or paid by
9 the claimant and, if married, the claimant's spouse, may be deducted from
10 income. To the extent not reimbursed, personal funeral expenses, including
11 prepaid funeral expenses and premiums on funeral insurance, of the claimant
12 and claimant's spouse only, may be deducted from income up to an annual maxi-
13 mum of five thousand dollars ($5,000) per claim. "Income" does not include
14 veterans disability pensions received by a person described in subsection
15 (1)(e) who is a claimant or a claimant's spouse if the disability pension is
16 received pursuant to a service-connected disability of a degree of forty per-
17 cent (40%) or more. "Income" does not include dependency and indemnity compen-
18 sation or death benefits paid to a person described in subsection (1) of this
19 section by the United States department of veterans affairs and arising from a
20 service-connected death or disability. "Income" does not include lump sum
21 death benefits made by the social security administration pursuant to 42
22 U.S.C. section 402(i). Documentation of medical expenses may be required by
23 the county assessor, board of equalization and state tax commission in such
24 form as the county assessor, board of equalization or state tax commission
25 shall determine. "Income" shall be that received in the calendar year immedi-
26 ately preceding the year in which a claim is filed. Where a claimant and/or
27 the claimant's spouse does not file a federal tax return, the claimant's
28 and/or the claimant's spouse's federal adjusted gross income, for purposes of
29 this section, shall be an income equivalent to federal adjusted gross income
30 had the claimant and/or the claimant's spouse filed a federal tax return, as
31 determined by the county assessor. The county assessor, board of equalization
32 or state tax commission may require documentation of income in such form as
33 each shall determine, including, but not limited to: copies of federal or
34 state tax returns and any attachments thereto; and income reporting forms such
35 as the W-2 and 1099.
36 (6) "Occupied" means actual use and possession.
37 (7) "Owner" means a person holding title in fee simple or holding a cer-
38 tificate of motor vehicle title (either of which may be subject to mortgage,
39 deed of trust or other lien) or who has retained or been granted a life estate
40 or who is a person entitled to file a claim under section 63-702, Idaho Code.
41 "Owner" shall also include any person who:
42 (a) Is the beneficiary of a revocable or irrevocable trust which is the
43 owner of such homestead and under which the claimant or the claimant's
44 spouse has the primary right of occupancy of the homestead; or
45 (b) Is a partner of a limited partnership, member of a limited liability
46 company or shareholder of a corporation if such entity holds title in fee
47 simple or holds a certificate of motor vehicle title and if the person
48 holds at least a five percent (5%) ownership in such entity, as determined
49 by the county assessor; or
50 (c) Has retained or been granted a life estate.
51 "Owner" includes a vendee in possession under a land sale contract. Any par-
52 tial ownership shall be considered as ownership for determining initial quali-
53 fication for property tax reduction benefits; however, the amount of property
54 tax reduction under section 63-704, Idaho Code, and rules promulgated pursuant
55 to section 63-705, Idaho Code, shall be computed on the value of the
4
1 claimant's partial ownership. "Partial ownership," for the purposes of this
2 section, means any one (1) person's ownership when property is owned by more
3 than one (1) person or where the homestead is held by an entity, as set forth
4 in this subsection, but more than one (1) person has the right of occupancy of
5 such homestead. A person holding either partial title in fee simple or holding
6 a certificate of motor vehicle title together with another person but who does
7 not occupy the dwelling as his primary dwelling place, shall not be considered
8 an owner for purposes of this section, if such person is a cosignatory of a
9 note secured by the dwelling in question and at least one (1) of the other
10 cosignatories of the note occupies the dwelling as his primary dwelling place.
11 The combined community property interests of both spouses shall not be consid-
12 ered partial ownership so long as the combined community property interests
13 constitute the entire ownership of the homestead, including where the spouses
14 are occupying a homestead owned by an entity, as set forth in this subsection,
15 and the spouses have the primary right of occupancy of the homestead. The pro-
16 portional reduction required under this subsection shall not apply to commu-
17 nity property interests. Where title to property was held by a person who has
18 died without timely filing a claim for property tax reduction, the estate of
19 the deceased person shall be the "owner," provided that the time periods dur-
20 ing which the deceased person held such title shall be attributed to the
21 estate for the computation of any time periods under subsection (8)(a) or
22 (8)(b) of this section.
23 (8) (a) "Primary dwelling place" means the claimant's dwelling place on
24 January 1 or before April 15 of the year for which the claim is made. The
25 primary dwelling place is the single place where a claimant has his true,
26 fixed and permanent home and principal establishment, and to which when-
27 ever the individual is absent he has the intention of returning. A claim-
28 ant must establish the dwelling to which the claim relates to be his pri-
29 mary dwelling place by clear and convincing evidence or by establishing
30 that the dwelling is where the claimant resided on January 1 or before
31 April 15 and:
32 (i) At least six (6) months during the prior year; or
33 (ii) The majority of the time the claimant owned the dwelling if
34 owned by the claimant less than one (1) year; or
35 (iii) The majority of the time after the claimant first occupied the
36 dwelling if occupied by the claimant for less than one (1) year. The
37 county assessor may require written or other proof of the foregoing
38 in such form as the county assessor may determine.
39 (b) Notwithstanding the provisions of paragraph (a) of this subsection,
40 the property upon which the claimant makes application shall be deemed to
41 be the claimant's primary dwelling place if the claimant is otherwise
42 qualified and resides in a care facility and does not allow the property
43 upon which the claimant has made application to be occupied by persons
44 paying a consideration to occupy the dwelling. Payment of utilities shall
45 not be payment of a consideration to occupy the dwelling. A claimant's
46 spouse who resides in a care facility shall be deemed to reside at the
47 claimant's primary dwelling place and to be a part of the claimant's
48 household. A care facility is a hospital, nursing facility or intermediate
49 care facility for the mentally retarded as defined in section 39-1301,
50 Idaho Code, or a facility as defined in section 39-3302(14), Idaho Code,
51 or a dwelling other than the one upon which the applicant makes applica-
52 tion where a claimant who is unable to reside in the dwelling upon which
53 the application is made lives and receives help in daily living, protec-
54 tion and security.
5
1 SECTION 3. 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, 2006.
STATEMENT OF PURPOSE
RS 15508
This legislation expands the "Circuit Breaker" law because the
assessed valuation of homes is increasing faster than the
consumer price index to which the law indexed. This represents a
movement from the current $22,500 to $28,000 as the income
qualifier and an increase from $1200 to $1,320 as the maximum
amount of participation by the state. After this one time step
up, the law will continue to be indexed to the CPI.
FISCAL IMPACT
Reduction of $6,600,000 to the General Fund---If this law is
passed without changing the homeowners exemption.
Reduction of $4,200,000 to the General Fund---If this law is
passed in conjunction with the expansion of the homeowners
exemption to $75,000.
Contact
Name: Rep. Lake
Phone: 332-1000
Sen. Keough
STATEMENT OF PURPOSE/FISCAL NOTE H 422