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H0569...............................................by REVENUE AND TAXATION
PROPERTY TAX - SUBDIVISIONS - Repeals and adds to existing law relating to
property taxation to exempt the speculative portion of each vacant
subdivision or planned unit development lot from property taxation until
improvements are being built on the lot or it is sold or transferred to an
unrelated entity; and to provide definitions.
02/07 House intro - 1st rdg - to printing
02/08 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 569
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAXATION; REPEALING SECTION 63-602FF, IDAHO CODE, RELAT-
3 ING TO PARTIAL EXEMPTION FOR PARCELS OF LAND IN A RURAL HOME SITE DEVELOP-
4 MENT PLAT; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF A
5 NEW SECTION 63-602JJ, IDAHO CODE, TO EXEMPT THE SPECULATIVE PORTION OF
6 EACH VACANT SUBDIVISION OR PLANNED UNIT DEVELOPMENT LOT FROM PROPERTY TAX-
7 ATION UNTIL IMPROVEMENTS ARE BEING BUILT ON THE LOT OR IT IS SOLD OR
8 TRANSFERRED TO AN UNRELATED ENTITY AND TO PROVIDE DEFINITIONS; DECLARING
9 AN EMERGENCY AND PROVIDING A RETROACTIVE EFFECTIVE DATE.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 63-602FF, Idaho Code, be, and the same is hereby
12 repealed.
13 SECTION 2. That Chapter 6, Title 63, Idaho Code, be, and the same is
14 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
15 ignated as Section 63-602JJ, Idaho Code, and to read as follows:
16 63-602JJ. ECONOMIC DEVELOPMENT INITIATIVE. (1) The speculative portion of
17 the taxable value of each vacant subdivision or planned unit development lot
18 shall be exempt from property taxation until such time as improvements are
19 being built upon the lot or any interest in the ownership of the lot is sold
20 or transferred to an unrelated entity.
21 (2) For the purposes of this section, the following definitions shall
22 apply:
23 (a) "Improvements" means any development of a lot created by the plat
24 which requires the issuance of a permit by the state of Idaho or the
25 county of jurisdiction, provided such development is to an individual lot
26 rather than to the vacant subdivision or planned unit development lot as a
27 whole.
28 (b) "Plat" means the drawing, map or plan of a subdivision or planned
29 unit development lot or a replatting of such, including certifications,
30 descriptions and approvals.
31 (c) "Speculative portion" means two-thirds (2/3) of the market value of
32 comparable individual subdivision lots for the current assessment year.
33 (d) "Taxable value" means the assessed value of comparable individual
34 lots within a subdivision or planned unit development less the speculative
35 portion, for the current assessment year.
36 (e) "Undeveloped land" means land upon which no site improvements or
37 improvements have been built.
38 (f) "Unrelated entity" means any business entity or trust which is owned
39 fifty percent (50%) or less by the seller or transferor of the property,
40 or any individual who is not a spouse or lineal descendent of the seller
41 or transferor of the property.
2
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 15836C1
This legislation repeals the partial exemption for parcels of
land in a rural home site development plat (Idaho code 63-602FF)
This legislation also exempts the speculative portion of unsold
or unimproved lots.
FISCAL IMPACT
None.
Contact
Name: Scott Turlington
Phone: 472-1750
STATEMENT OF PURPOSE/FISCAL NOTE H 569