2006 Legislation
Print Friendly

HOUSE BILL NO. 503 – Property tax exmptn/increased value

HOUSE BILL NO. 503

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



H0503...............................................by REVENUE AND TAXATION
PROPERTY TAX - EXEMPTION - Adds to existing law to provide for a property
tax exemption for property owned by qualified persons; to provide for
application of the exemption to residential improvements and the
residential lot; to provide that the exemption shall continue for spouses
under certain circumstances; to provide conditions for the exemption; to
provide that an owner is required to make application for the exemption
only once if certain conditions are met; to declare the exemption necessary
and just; and to provide that the exemption shall be available for certain
owners who are absent by reason of active military service in a designated
combat zone.
                                                                        
01/30    House intro - 1st rdg - to printing
01/31    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. 503
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PROPERTY TAX EXEMPTIONS; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE,
  3        BY THE ADDITION OF A NEW SECTION 63-602LL, IDAHO CODE, TO  PROVIDE  FOR  A
  4        TAX  EXEMPTION  FOR  PROPERTY  OWNED  BY QUALIFIED PERSONS, TO PROVIDE FOR
  5        APPLICATION OF THE EXEMPTION TO RESIDENTIAL IMPROVEMENTS AND THE  RESIDEN-
  6        TIAL  LOT,  TO PROVIDE THAT THE EXEMPTION SHALL CONTINUE FOR SPOUSES UNDER
  7        CERTAIN CIRCUMSTANCES, TO PROVIDE CONDITIONS FOR THE EXEMPTION, TO PROVIDE
  8        THAT AN OWNER IS REQUIRED TO MAKE APPLICATION FOR THE EXEMPTION ONLY  ONCE
  9        IF  CERTAIN CONDITIONS ARE MET, TO DECLARE THAT THE EXEMPTION IS NECESSARY
 10        AND JUST AND TO PROVIDE THAT THE EXEMPTION SHALL BE AVAILABLE FOR  CERTAIN
 11        OWNERS WHO ARE ABSENT BY REASON OF ACTIVE MILITARY SERVICE IN A DESIGNATED
 12        COMBAT  ZONE; DECLARING AN EMERGENCY AND PROVIDING A RETROACTIVE 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 63-602LL, Idaho Code, and to read as follows:
                                                                        
 18        63-602LL.  PROPERTY EXEMPT FROM TAXATION -- QUALIFIED PERSONS. (1)  During
 19    the  tax  year  2006  and each year thereafter, owners of owner-occupied resi-
 20    dences  and who qualify for the exemption provided in section  63-602G,  Idaho
 21    Code,  shall  also receive an exemption for any increases in the taxable value
 22    of the residential improvements and residential lot. The taxable  value  shall
 23    be no greater than the taxable value of the base year which shall be increased
 24    by  a growth factor of not more than three percent (3%) per year from the base
 25    year  so long as the owner-occupant qualifies for the  exemption  provided  in
 26    section  63-602G,  Idaho Code. When title to the real property changes by sale
 27    or inheritance, then the real property shall acquire a new taxable value equal
 28    to the market value at the time of the transfer. The base year shall be either
 29    tax year 2005 or in the case of transfer of ownership the tax  year  prior  to
 30    the  year in which the owner first applies for and receives the exemption pur-
 31    suant to section 63-602G, Idaho Code.
 32        (a)  This exemption applies to both residential improvements and the resi-
 33        dential lot on which the improvements are located.
 34        (b)  To qualify to receive this exemption in tax year  2006  or  any  year
 35        thereafter,  an  owner  must have qualified for and received the exemption
 36        provided in section 63-602G, Idaho Code, in the previous year.
 37        (c)  An owner who applies for and receives tax relief as provided in chap-
 38        ter 7, title 63, Idaho Code, may not also qualify for this exemption.
 39        (2)  If the home is a duplex, triplex or  fourplex,  the  exemption  shall
 40    apply  to  that  portion of the residential improvements occupied by the owner
 41    and/or the owner's spouse and the respective portion of the residential lot.
 42        (3)  The exemption shall continue for a spouse if the owner resides  in  a
 43    residential care home or a nursing home or becomes deceased.
                                                                        
                                           2
                                                                        
  1        (4)  The exemption allowed by this section may be granted only if:
  2        (a)  The  residential improvements are owner-occupied and used as the pri-
  3        mary dwelling place of the owner and/or the owner's spouse.  The  residen-
  4        tial  improvements  may consist of part of a multidwelling or multipurpose
  5        building and shall include all of  such dwelling or  building  except  any
  6        portion  used  exclusively for anything other than the primary dwelling of
  7        the owner. The presence of an  office  in  an  owner-occupied  residential
  8        property,  which  office is used for multiple purposes, including business
  9        and personal use, shall not prevent the owner from claiming the  exemption
 10        provided in this section; and
 11        (b)  The tax commission has certified to the board of county commissioners
 12        that  all  properties  in the county which are subject to appraisal by the
 13        county assessor have, in fact, been appraised uniformly so as to secure  a
 14        just valuation for all property within the county; and
 15        (c)  The owner has certified to the county assessor that:
 16             (i)   He is making application for the exemption allowed by this sec-
 17             tion;
 18             (ii)  The  residential  improvements  are his or his spouse's primary
 19             dwelling place; and
 20             (iii) He has not made application in any other county for the  exemp-
 21             tion,  and  has  not  made application for the exemption on any other
 22             residential improvements or residential lots in the county.
 23        (d)  For the purpose of this section, the definition of "owner"  shall  be
 24        the same definition set forth in section 63-701(7), Idaho Code.
 25        (e)  For  the purpose of this section, the definition of "primary dwelling
 26        place" shall be the same definition set forth in section 63-701(8),  Idaho
 27        Code.
 28        (f)  For  the  purpose of this section, the definition of "occupied" shall
 29        be the same definition set forth in section 63-701(6), Idaho Code.
 30        (5)  An owner need only make application for the  exemption  described  in
 31    subsection  (1)  of  this section once, as long as all of the following condi-
 32    tions are met:
 33        (a)  The owner has received the exemption during the previous  year  as  a
 34        result  of  his making a valid application as defined in subsection (4)(c)
 35        of this section.
 36        (b)  The owner and/or the owner's spouse still occupies the same  residen-
 37        tial improvements for which the owner made application.
 38        (c)  The  residential  improvements described in subsection (4)(a) of this
 39        section are owner-occupied or occupied by the spouse  of  the  owner,  and
 40        used as the primary dwelling place of the owner or spouse, as appropriate.
 41        (6)  The legislature declares that this exemption is necessary and just.
 42        (7)  Residential  improvements  having  previously qualified for exemption
 43    under this section in the preceding year shall not lose such qualification due
 44    to the owner's or the spouse of the owner's absence in  the  current  year  by
 45    reason  of  active military service in a designated combat zone, as defined in
 46    section 112 of the Internal Revenue Code. If an owner fails  to  timely  apply
 47    for exemption as required in this section solely by reason of active duty in a
 48    designated  combat zone by the owner or the owner's spouse, as appropriate, as
 49    defined in section 112 of the Internal Revenue  Code,  and  such  improvements
 50    would  have  otherwise  qualified under this section, then the board of county
 51    commissioners of the county in which the residential improvements are  located
 52    shall  refund  property  taxes,  if previously paid, in an amount equal to the
 53    exemption which would otherwise have applied.
                                                                        
 54        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
                                                                        
                                           3
                                                                        
  1    declared to exist, this act shall be in full force and effect on and after its
  2    passage and approval, and retroactively to January 1, 2006.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                            RS 15740

This legislation puts a 3% cap on increases in valuation on
residential property used as a primary residence.


                           FISCAL NOTE

This legislation has no impact on state general funds, however,
the state tax commission estimates a reduction in 2005 taxable
values by $2.9 billion, resulting in a tax shift of about $42.5
million in taxes the first year and a reduction in the school M&0
of about $10 million in the second year.




Contact:
Name: Rep. George Eskridge, Sen. Shawn Keough 
Phone: 322-1270
Rep. Eric Anderson
Rep. Bill Deal
Rep. Frank Henderson
Rep. Bob Nonini
Rep. Clifford Bayer
Sen. Joyce Broadsword





STATEMENT OF PURPOSE/FISCAL NOTE                         H 503