2006 Legislation
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HOUSE BILL NO. 470 – Property tax exmptn, homestead/incr

HOUSE BILL NO. 470

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Bill Status



H0470...............................................by REVENUE AND TAXATION
PROPERTY TAX - Adds to existing law relating to exemptions from taxation to
provide an exemption from property tax of $150,000 of market value for
assessment purposes for the owner-occupied homestead of an individual 70
years of age or older who is the record owner holding title in fee simple
or who has retained or been granted a life estate, who has paid Idaho real
property taxes on Idaho residential real property continuously for the
immediately preceding ten years and who occupies the homestead as the
individual's primary dwelling place; to provide for administration of the
application process; to provide definitions; and to declare the exemption
is necessary and just.
                                                                        
01/25    House intro - 1st rdg - to printing
01/26    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 470
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO EXEMPTIONS FROM TAXATION; AMENDING  CHAPTER  6,  TITLE  63,  IDAHO
  3        CODE, BY THE ADDITION OF A NEW SECTION 63-602KK, IDAHO CODE, TO PROVIDE AN
  4        EXEMPTION  FROM PROPERTY TAX OF ONE HUNDRED FIFTY THOUSAND DOLLARS OF MAR-
  5        KET VALUE FOR ASSESSMENT PURPOSES FOR THE OWNER-OCCUPIED HOMESTEAD  OF  AN
  6        INDIVIDUAL  SEVENTY  YEARS OF AGE OR OLDER WHO IS THE RECORD OWNER HOLDING
  7        TITLE IN FEE SIMPLE OR WHO HAS RETAINED OR BEEN GRANTED A LIFE ESTATE, WHO
  8        HAS PAID IDAHO REAL PROPERTY TAXES ON IDAHO RESIDENTIAL REAL PROPERTY CON-
  9        TINUOUSLY FOR THE IMMEDIATELY PRECEDING TEN YEARS  AND  WHO  OCCUPIES  THE
 10        HOMESTEAD  AS  THE  INDIVIDUAL'S  PRIMARY  DWELLING  PLACE, TO PROVIDE FOR
 11        ADMINISTRATION OF THE APPLICATION PROCESS, TO PROVIDE DEFINITIONS  AND  TO
 12        DECLARE  THE  EXEMPTION  IS NECESSARY AND JUST; AND PROVIDING AN EFFECTIVE
 13        DATE.
                                                                        
 14    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 15        SECTION 1.  That Chapter 6, Title 63, Idaho Code,  be,  and  the  same  is
 16    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 17    ignated as Section 63-602KK, Idaho Code, and to read as follows:
                                                                        
 18        63-602KK.  PROPERTY EXEMPT FROM TAXATION -- ELIGIBILITY BY AGE  OF  APPLI-
 19    CANT,  OWNERSHIP  AND  OCCUPATION  OF HOMESTEAD. (1) The following property is
 20    exempt from taxation if an application has been submitted  and  the  exemption
 21    has been approved as provided in this section: one hundred fifty thousand dol-
 22    lars  ($150,000)  of market value for assessment purposes after application of
 23    the exemption in section 63-602G, Idaho Code, of an  owner-occupied  homestead
 24    used  as  the  primary dwelling place of an individual who is at least seventy
 25    (70) years of age and who is the record owner holding title in fee  simple  or
 26    who has retained or been granted a life estate.
 27        (2)  An  application  for  property  tax exemption under the provisions of
 28    this section shall be filed in the office of the county assessor between Janu-
 29    ary 1 and April 15 of each year for which the exemption is requested, provided
 30    the homestead is occupied after January 1 and before April 15.  The  applicant
 31    shall certify to the county assessor that:
 32        (a)  He is making application for the exemption allowed by this section;
 33        (b)  The homestead is his primary dwelling place;
 34        (c)  He has paid Idaho real property taxes on Idaho residential real prop-
 35        erty continuously for the immediately preceding ten (10) years;
 36        (d)  He is the record owner holding title in fee simple or has retained or
 37        been granted a life estate;
 38        (e)  He is at least seventy (70) years of age on or before April 15 of the
 39        year in which the application for exemption is filed; and
 40        (f)  He  has  not  made application in any other county for the exemption,
 41        and has not made application for the exemption on any other  homestead  in
 42        the county.
 43        (3)  Any application filed shall be signed by the applicant or by any per-
                                                                        
                                           2
                                                                        
  1    son  or  entity  described  in  section 63-711(3), Idaho Code. By signing such
  2    application, the applicant, or the person or entity signing  such  application
  3    shall  attest  to  the  truth of such application, and shall be subject to the
  4    penalties provided in section 18-5401, Idaho Code, for stating   as  true  any
  5    material  fact known to be false. All applications shall be made on forms pre-
  6    scribed by the state tax commission and shall be in triplicate. One  (1)  copy
  7    of  the form shall be provided to the applicant or the person or entity acting
  8    on behalf of the applicant, one (1) copy shall be kept  for  all  county  pur-
  9    poses,  and  one  (1) copy shall be forwarded to the state tax commission with
 10    the property tax reduction roll.
 11        (4)  The county assessor shall  examine  each  application  and  determine
 12    whether  it  is  in conformity with the requirements of subsection (2) of this
 13    section, and shall approve or disapprove the application. The county  assessor
 14    shall  notify  the  applicant, or the person or entity acting on behalf of the
 15    applicant, in writing by May 1 if the application has been approved or  disap-
 16    proved. The notice of disapproval shall declare that the applicant or the per-
 17    son  or  entity  acting  on  behalf of the applicant may appeal the assessor's
 18    decision to the county board of equalization, and shall  state  the  time  and
 19    place  that  the  county board of equalization shall meet for such purpose. In
 20    considering any appeal of the assessor's decision, the board  of  equalization
 21    may  affirm  or  reject  the assessor's decision. The decision of the board of
 22    equalization shall be final, except that within thirty (30) days,  the  appli-
 23    cant, or any person or entity acting on behalf of the applicant, may appeal to
 24    the district court on matters of law, and may appeal the decision of the board
 25    of  equalization  when  the board has acted arbitrarily. The applicant, or the
 26    person or entity acting on behalf of the applicant, shall be notified  immedi-
 27    ately, in writing, of the board of equalization's action on his appeal to it.
 28        (5)  The  exemption  allowed by section 63-602G, Idaho Code, must be taken
 29    before the exemption allowed in this section is  applied;  and  the  exemption
 30    allowed  in  this  section shall be in addition to the exemption granted under
 31    section 63-602G, Idaho Code.
 32        (6)  The exemption granted under the  provisions  of  this  section  shall
 33    become effective on the first day of January of the year in which the applica-
 34    tion is filed, is effective only for the tax year in which the application for
 35    exemption  is  filed and approved, and shall exempt from property taxation one
 36    hundred fifty thousand dollars ($150,000) of market value for assessment  pur-
 37    poses  of  the  homestead, based upon the current year's assessed value, after
 38    application of the provisions of section 63-602G, Idaho Code.
 39        (7)  If an applicant dies after having filed  a  timely  application,  the
 40    exemption shall be allowed to his personal representative if one is appointed,
 41    or to surviving heirs, or to the trust or other entity owning the property, as
 42    appropriate, for that tax year only.
 43        (8)  For  the purpose of this section, the definition of "homestead" shall
 44    have the same meaning as set forth in section 63-701(2), Idaho Code.
 45        (9)  For the purpose of this section, the definition of  "occupied"  shall
 46    have the same meaning as set forth in section 63-701(6), Idaho Code.
 47        (10) For  the purpose of this section, the definition of "primary dwelling
 48    place" shall have the same meaning as set forth in  section  63-701(8),  Idaho
 49    Code.
 50        (11) The legislature declares that this exemption is necessary and just.
                                                                        
 51        SECTION  2.  This act shall be in full force and effect on and after Janu-
 52    ary 1, 2007.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15761

     Provides that the owner-occupied homestead used as the
primary dwelling place of an individual who is at least seventy
(70) years of age; has paid Idaho real property taxes on Idaho
residential real property continuously for the immediately
preceding ten(10) years, and who is the record owner holding
title or who has retained or been granted a life estate, may
apply for an exemption from the tax on the property each year
upon application.  If the owner dies, after the exemption has
been approved, it shall be in force for the rest of the year.   


                           FISCAL NOTE

     Positive impact on the state general fund, but it may impact
the counties in a negative way temporarily, as the number of
households now on circuit breaker could apply for this exemption
instead.  
     Each time one of these homes sells it goes back on the tax
rolls and most likely at a higher rate.  In time, the counties
should recoup whatever losses it may incur.  



Contact
Name: Rep. Shirley McKague 
Phone: 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                         H 470