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H0461...............................................by REVENUE AND TAXATION
PROPERTY TAX - Amends existing law to provide that property in a single
county which is valued in excess of $800,000,000 and not taxed due to the
exemption for significant capital improvements shall not be included on any
new construction roll; and to delete obsolete language requiring a
percentage reduction of state money under the circuit breaker property tax
relief program.
01/24 House intro - 1st rdg - to printing
01/25 Rpt prt - to Rev/Tax
02/17 Rpt out - rec d/p - to 2nd rdg
02/20 2nd rdg - to 3rd rdg
02/23 3rd rdg - PASSED - 64-0-6
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Block, Boe, Bolz, Bradford, Cannon, Chadderdon,
Clark, Collins, Crow, Denney, Edmunson, Ellsworth, Eskridge,
Field(18), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp,
Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague,
Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence,
Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sayler, Schaefer,
Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24),
Smylie(Luker), Snodgrass, Stevenson, Trail, Wills, Mr. Speaker
NAYS -- None
Absent and excused -- Black, Brackett, Deal, Field(23), Sali, Wood
Floor Sponsor - Moyle
Title apvd - to Senate
02/24 Senate intro - 1st rdg - to Loc Gov
03/02 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/07 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Cameron,
Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
Malepeai, Marley, McGee, McKenzie, Richardson, Schroeder, Stegner,
Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Burtenshaw, Pearce
Floor Sponsor - Langhorst
Title apvd - to House
03/08 To enrol
03/09 Rpt enrol - Sp signed
03/10 Pres signed
03/13 To Governor
03/14 Governor signed
Session Law Chapter 59
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. 461
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TECHNICAL CORRECTIONS TO THE PROPERTY TAX LAWS; AMENDING SECTION
3 63-602HH, IDAHO CODE, TO PROVIDE THAT EXEMPTED SIGNIFICANT CAPITAL
4 IMPROVEMENTS SHALL NOT BE INCLUDED ON A NEW CONSTRUCTION ROLL AND TO MAKE
5 A TECHNICAL CORRECTION; AMENDING SECTION 63-710, IDAHO CODE, TO DELETE
6 LANGUAGE REQUIRING A PERCENTAGE REDUCTION OF STATE MONEY UNDER THE CIRCUIT
7 BREAKER PROPERTY TAX RELIEF PROGRAM; AMENDING SECTION 63-2909, IDAHO CODE,
8 TO DELETE THE REQUIREMENT THAT EXEMPTED PROPERTY BE INCLUDED ON ANY NEW
9 CONSTRUCTION ROLL; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLI-
10 CATION.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Section 63-602HH, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 63-602HH. PROPERTY EXEMPT FROM TAXATION -- SIGNIFICANT CAPITAL INVEST-
15 MENTS. (1) The net taxable value of all property of a taxpayer in excess of
16 eight hundred million dollars ($800,000,000) located within a single county in
17 Idaho shall be exempt from property taxation and any special assessment.
18 (2) The property included in the calculation of the exemption set forth
19 in this section shall include all real property owned, and all personal prop-
20 erty owned, leased, or rented that would otherwise be subject to property tax;
21 provided however, with respect to leased or rented personal property, only
22 that portion of the property which a taxpayer is contractually liable for pay-
23 ment of property taxes thereon shall be included in the calculation of the
24 exemption.
25 (3) Leased or rented personal property, included in the calculation of
26 the exemption provided by this section shall not be assessable against the
27 owner of such property.
28 (4) The exemption set forth in this section shall apply first to owned
29 real and personal property and, if exhausted, shall then apply to leased or
30 rented personal property.
31 (5) The taxpayer owning, leasing, or renting the property included in the
32 calculation of the exemption shall designate the property to which the exemp-
33 tion applies.
34 (6) The exemption set forth in this section shall not be available to any
35 taxpayer with respect to a given year who, in the immediately preceding calen-
36 dar year, failed to make significant capital investments of at least twenty-
37 five million dollars ($25,000,000), by the acquisition or improvement of real
38 or personal property located within the county referred to in subsection (1)
39 of this section.
40 (7) The exemption set forth in this section shall not be available to any
41 taxpayer with respect to a given year who, as of the first day of such year,
42 did not employ or engage on a regular full-time basis, or the equivalent
43 thereof, at least one thousand five hundred (1,500) workers within the county
2
1 referred to in subsection (1) of this section.
2 (8) Except for the exemption provided for in subsection (4) of section
3 63-3029B, Idaho Code, no other exemption from property tax or any special
4 assessment provided by the statutes of this state shall be applicable to any
5 property described in subsection (2) of this section with respect to a year in
6 which the exemption set forth in subsection (1) of this section applies to any
7 of the same property.
8 (9) Property exempted under this section shall not be included on any new
9 construction roll prepared by the county assessor in accordance with section
10 63-301A, Idaho Code.
11 (10) The state tax commission shall adopt all rules that may be necessary
12 to implement this section.
13 SECTION 2. That Section 63-710, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 63-710. PROCEDURE AFTER REIMBURSEMENT. (1) Upon receipt of the notice of
16 percentage reduction from the state tax commission, the county auditor shall
17 immediately notify the county commissioners, and the commissioners may take
18 this reduction into consideration in making its property tax levies, and the
19 county commissioners are authorized, but not required, to increase any levy to
20 the extent necessary to compensate for the percentage reduction.
21 (2) The money received by the county tax collector under the provisions
22 of section 63-709, Idaho Code, may be considered by the counties and other
23 taxing districts and budgeted against at the same time, in the same manner and
24 in the same year as revenues from taxation.
25 SECTION 3. That Section 63-2909, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 63-2909. PROPERTY TAX INCENTIVES. (1) Subject to the limitations of this
28 chapter, both improvements to real property and personal property which are
29 newly constructed, including construction in progress during the year, or
30 acquired during a project period and located in the project site and owned by
31 a taxpayer who has certified that the tax incentive criteria will be met in
32 regard to that site, shall be entitled to receive a rebate of the lesser of:
33 (a) All property taxes the taxpayer actually paid for any of the years
34 2005 through 2012 that are properly levied upon any property constructed
35 or installed within the project site during the project period for that
36 site; or
37 (b) All property tax the taxpayer actually paid for any of the years 2005
38 through 2012 that are properly levied upon any property constructed or
39 installed within the area described in subsection (2)(g)(ii) of section
40 63-2902, Idaho Code, within which eighty percent (80%) or more of the
41 investment required in subsection (2)(j)(i) of section 63-2902, Idaho
42 Code, is made during the project period for that site; or
43 (c) Two million dollars ($2,000,000) of property tax paid in any one (1)
44 calendar year.
45 Property upon which tax is rebated by this section, which is included on the
46 new construction roll provided in section 63-301A, Idaho Code, shall be sepa-
47 rately identified on that roll.
48 (2) Upon filing of a written claim by the taxpayer entitled to the
49 rebate, which shall include a description of the property upon which the tax
50 sought to be rebated was levied, the property's assessed value for property
51 tax purposes, and its location and subject to such reasonable documentation
3
1 and verification as the commission may require, the rebate shall be paid by
2 the commission as provided in section 63-3067, Idaho Code. A claim for rebate
3 under this section must be filed on or before the last day of the third calen-
4 dar year following the year of the property taxes sought to be rebated or the
5 right to the rebate is lost.
6 (3) The taxpayer shall be subject to recapture of any rebate paid under
7 this section:
8 (a) At one hundred percent (100%) in the event that the tax incentive
9 criteria are not met at the project site during the project period, or
10 (b) In the event that the property is disposed of, or otherwise ceases to
11 qualify with respect to the taxpayer before five (5) full years from the
12 date the project period ends, or
13 (c) In the event that the employment required in section 63-2902(2)(j),
14 Idaho Code, is not maintained for sixty (60) consecutive full months from
15 the date the project period ends.
16 (d) Any recapture required by subsection (3)(b) or (3)(c) of this section
17 shall be in the same proportion of the credit required to be recaptured
18 under section 63-3029B, Idaho Code.
19 (e) Any amount subject to recapture is a deficiency in tax for the amount
20 of the rebate in the taxable year in which the disqualification first
21 occurs and may be enforced and collected in the manner provided by the
22 Idaho income tax act, provided however, that in lieu of the provisions of
23 section 63-3068(a), Idaho Code, the period of time within which the com-
24 mission may issue a notice under section 63-3045, Idaho Code, in regard to
25 an amount subject to recapture shall be five (5) years after the end of
26 the taxable year in which the project period ends.
27 (4) The rebate allowed by this section is limited to improvements to real
28 property and personal property which are newly constructed, including con-
29 struction in progress during the year, or acquired related to headquarters or
30 administrative facilities.
31 SECTION 4. An emergency existing therefor, which emergency is hereby
32 declared to exist, this act shall be in full force and effect on and after its
33 passage and approval, and retroactively to January 1, 2006.
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STATEMENT OF PURPOSE
RS 15424
This bill makes the following technical corrections to the
property tax laws:
Section 1 provides that property not taxed due to the
exemption for "significant capital improvements" (property in a
single county in excess of $800,000,000) shall not be included on
any new construction roll.
Section 2 strikes any requirement that exempted property be
included on any new construction roll.
Section 3 deletes obsolete language requiring percentage
reduction of state money under the circuit breaker property tax
relief program.
FISCAL NOTE
None
CONTACT
Name: Dan John
Agency: State Tax Commission
Phone: 334-7530
STATEMENT OF PURPOSE/FISCAL NOTE H 461