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H0676aaS............................................by REVENUE AND TAXATION
PROPERTY TAX - AGRICULTURAL LAND - PLATTING - Amends existing law relating
to property taxation to provide that if the land qualified for the
exemption in Section 63-602FF, Idaho Code, in 2005, the land will qualify
in 2006 for the speculative portion of agricultural land exemption upon
certain events occurring; to provide that the platting of land actively
devoted to agriculture does not alone cause the land to lose its actively
devoted to agriculture status; and to define terms.
02/13 House intro - 1st rdg - to printing
02/14 Rpt prt - to 2nd rdg
02/15 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 - Roberts
Title apvd - to Senate
02/20 Senate intro - 1st rdg - to Loc Gov
03/08 Rpt out - to 14th Ord
03/16 Rpt out amen - to 1st rdg as amen
03/17 1st rdg - to 2nd rdg as amen
03/20 2nd rdg - to 3rd rdg as amen
03/21 3rd rdg as amen - PASSED - 34-1-0
AYES -- Andreason, Brandt, Broadsword, Bunderson, 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 -- Burkett
Absent and excused -- None
Floor Sponsor - Corder
Title apvd - to House
03/22 House concurred in Senate amens - to engros
03/23 Rpt engros - 1st rdg - to 2nd rdg as amen
03/24 2nd rdg - to 3rd rdg as amen
03/27 3rd rdg as amen - PASSED - 63-0-7
AYES -- Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell,
Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
Chadderdon, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, 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(2), Shepherd(8), Shirley, Skippen, Smith(30),
Stevenson, Trail, Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Anderson, Clark, Henbest, Henderson, Smith(24),
Smylie, Snodgrass
Floor Sponsor - Roberts
Title apvd - to enrol
03/28 Rpt enrol - Sp signed
03/29 Pres signed - To Governor
03/30 Governor signed
Session Law Chapter 233
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. 676
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 SECTION 63-604, IDAHO CODE, TO ALLOW LAND LESS THAN
5 FIVE ACRES TO BE CLASSIFIED AS LAND ACTIVELY DEVOTED TO AGRICULTURE IF
6 CERTAIN CIRCUMSTANCES OCCUR, TO PROVIDE THAT PLATTING LAND ACTIVELY
7 DEVOTED TO AGRICULTURE DOES NOT ALONE CAUSE THE LAND TO LOSE ITS ACTIVELY
8 DEVOTED TO AGRICULTURE STATUS AND TO PROVIDE AN ADDITIONAL DEFINITION;
9 AMENDING SECTION 63-602K, IDAHO CODE, TO REVISE A DEFINITION; DECLARING AN
10 EMERGENCY AND PROVIDING A RETROACTIVE EFFECTIVE DATE.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Section 63-602FF, Idaho Code, be, and the same is hereby
13 repealed.
14 SECTION 2. That Section 63-604, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 63-604. LAND ACTIVELY DEVOTED TO AGRICULTURE DEFINED. (1) For property
17 tax purposes, land which is actively devoted to agriculture shall be eligible
18 for appraisal, assessment and taxation as agricultural property each year it
19 meets one (1) or more of the following qualifications:
20 (a) The total area of such land, including the homesite, is more than
21 five (5) contiguous acres, and is actively devoted to agriculture which
22 means:
23 (i) It is used to produce field crops including, but not limited
24 to, grains, feed crops, fruits and vegetables; or
25 (ii) It is used to produce nursery stock as defined in section
26 22-2302(11), Idaho Code; or
27 (iii) It is used by the owner for the grazing of livestock to be sold
28 as part of a for-profit enterprise, or is leased by the owner to a
29 bona fide lessee for grazing purposes; or
30 (iv) It is in a cropland retirement or rotation program.
31 (b) The area of such land is five (5) contiguous acres or less and such
32 land has been actively devoted to agriculture within the meaning of sub-
33 section (1)(a) of this section during the last three (3) growing seasons;
34 and
35 (i) It agriculturally produces for sale or home consumption the
36 equivalent of fifteen percent (15%) or more of the owner's or
37 lessee's annual gross income; or
38 (ii) It agriculturally produced gross revenues in the immediately
39 preceding year of one thousand dollars ($1,000) or more. When the
40 area of land is five (5) contiguous acres or less, such land shall be
41 presumed to be nonagricultural land until it is established that the
42 requirements of this subsection have been met;
2
1 (iii) It agriculturally produces crops, nursery stock or grazing of
2 livestock as enumerated in subsection (1)(a) of this section and is
3 transferred to the child or spouse of the owner who filed the origi-
4 nal plat.
5 (2) Land shall not be classified or valued as agricultural land which is
6 part of a platted subdivision with stated restrictions prohibiting its use for
7 agricultural purposes, whether within or without a city.
8 (3) Land utilized for the grazing of a horse or other animals kept pri-
9 marily for personal use or pleasure rather than as part of a bona fide for-
10 profit enterprise shall not be considered to be land actively devoted to agri-
11 culture.
12 (4) Land actively devoted to agriculture, having previously qualified for
13 exemption under this section in the preceding year, or which would have quali-
14 fied under this section during the current year, shall not lose such qualifi-
15 cation due to the owner's or lessee's absence in the current year by reason of
16 active military service in a designated combat zone, as defined in section 112
17 of the Internal Revenue Code. If an owner fails to timely apply for exemption
18 as required in this section solely by reason of active duty in a designated
19 combat zone, as defined in section 112 of the Internal Revenue Code, and the
20 land would otherwise qualify for exemption under this section, then the board
21 of county commissioners of the county in which the land actively devoted to
22 agriculture is located shall refund property taxes, if previously paid, in an
23 amount equal to the exemption which would otherwise have applied.
24 (5) For purposes of this section, the act of platting land actively
25 devoted to agriculture does not, in and of itself, cause the land to lose its
26 status as land being actively devoted to agriculture if the land otherwise
27 qualifies for the exemption under this section.
28 (6) As used in this section:
29 (a) "Contiguous" means being in actual contact or touching along a bound-
30 ary or at a point, except no area of land shall be considered not contigu-
31 ous solely by reason of a roadway or other right-of-way; and.
32 (b) "For-profit" means the enterprise will, over some period of time,
33 make or attempt to make a return of income exceeding expenses.
34 (c) "Platting" means the filing of the drawing, map or plan of a subdivi-
35 sion or a replatting of such, including certification, descriptions and
36 approvals with the proper county or city official.
37 SECTION 3. That Section 63-602K, Idaho Code, be, and the same is hereby
38 amended to read as follows:
39 63-602K. PROPERTY EXEMPT FROM TAXATION -- SPECULATIVE PORTION OF VALUE OF
40 AGRICULTURAL LAND. (1) The speculative portion of the value of land actively
41 devoted to agriculture is exempt from taxation.
42 (2) "Land actively devoted to agriculture" shall means that property
43 defined by section 63-604, Idaho Code. For purposes of this section, the act
44 of platting land actively devoted to agriculture does not, in and of itself,
45 cause the land to lose its status as land being actively devoted to agricul-
46 ture if the land otherwise qualifies for the exemption under this section.
47 (3) "Speculative portion" shall mean that portion of the value of agri-
48 cultural land which represents the excess over the actual use value of such
49 land established by comparable sales data compared to value established by
50 capitalization of economic rent or long-term average crop rental at a capital-
51 ization rate which shall be the rate of interest charged by the Spokane office
52 of the farm credit system averaged over the immediate past five (5) years plus
53 a component for the local tax rate.
3
1 (4) The state tax commission shall adopt rules implementing this section
2 which shall provide the procedure by which it shall establish economic rent,
3 average crop rental and capitalization rates and for the publication of crop
4 prices and the discount rate to be used to determine the capitalization rate.
5 SECTION 4. An emergency existing therefor, which emergency is hereby
6 declared to exist, this act shall be in full force and effect on and after its
7 passage and approval, and retroactively to January 1, 2006.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
Moved by Corder
Seconded by Langhorst
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 676
1 AMENDMENTS TO SECTION 2
2 On page 1 of the printed bill, in line 42, delete ";" and insert: "."; on
3 page 2, delete lines 1 through 4; in line 24, following "(5)" insert: "If the
4 land qualified for exemption pursuant to section 63-602FF, Idaho Code, in
5 2005, then the land will qualify in 2006 for the exemption pursuant to section
6 63-602K, Idaho Code, upon the filing of a statement by the owner with the
7 board of county commissioners that the land will be actively devoted to agri-
8 culture pursuant to this section in 2006.
9 (6)";
10 in line 28, delete "(6)" and insert: "(7)".
11 CORRECTION TO TITLE
12 On page 1, delete lines 4 through 6 and insert: "MENT PLAT; AMENDING SEC-
13 TION 63-604, IDAHO CODE, TO PROVIDE THAT IF LAND QUALIFIED FOR THE EXEMPTION
14 IN SECTION 63-602FF, IDAHO CODE, IN 2005, THE LAND WILL QUALIFY IN 2006 FOR
15 THE SPECULATIVE PORTION OF AGRICULTURAL LAND EXEMPTION UPON THE FILING OF A
16 STATEMENT BY THE OWNER WITH THE BOARD OF COUNTY COMMISSIONERS THAT THE LAND
17 WILL BE ACTIVELY DEVOTED TO AGRICULTURE IN 2006, TO PROVIDE THAT PLATTING LAND
18 ACTIVELY".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 676, As Amended in the Senate
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 SECTION 63-604, IDAHO CODE, TO PROVIDE THAT IF LAND
5 QUALIFIED FOR THE EXEMPTION IN SECTION 63-602FF, IDAHO CODE, IN 2005, THE
6 LAND WILL QUALIFY IN 2006 FOR THE SPECULATIVE PORTION OF AGRICULTURAL LAND
7 EXEMPTION UPON THE FILING OF A STATEMENT BY THE OWNER WITH THE BOARD OF
8 COUNTY COMMISSIONERS THAT THE LAND WILL BE ACTIVELY DEVOTED TO AGRICULTURE
9 IN 2006, TO PROVIDE THAT PLATTING LAND ACTIVELY DEVOTED TO AGRICULTURE
10 DOES NOT ALONE CAUSE THE LAND TO LOSE ITS ACTIVELY DEVOTED TO AGRICULTURE
11 STATUS AND TO PROVIDE AN ADDITIONAL DEFINITION; AMENDING SECTION 63-602K,
12 IDAHO CODE, TO REVISE A DEFINITION; DECLARING AN EMERGENCY AND PROVIDING A
13 RETROACTIVE EFFECTIVE DATE.
14 Be It Enacted by the Legislature of the State of Idaho:
15 SECTION 1. That Section 63-602FF, Idaho Code, be, and the same is hereby
16 repealed.
17 SECTION 2. That Section 63-604, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 63-604. LAND ACTIVELY DEVOTED TO AGRICULTURE DEFINED. (1) For property
20 tax purposes, land which is actively devoted to agriculture shall be eligible
21 for appraisal, assessment and taxation as agricultural property each year it
22 meets one (1) or more of the following qualifications:
23 (a) The total area of such land, including the homesite, is more than
24 five (5) contiguous acres, and is actively devoted to agriculture which
25 means:
26 (i) It is used to produce field crops including, but not limited
27 to, grains, feed crops, fruits and vegetables; or
28 (ii) It is used to produce nursery stock as defined in section
29 22-2302(11), Idaho Code; or
30 (iii) It is used by the owner for the grazing of livestock to be sold
31 as part of a for-profit enterprise, or is leased by the owner to a
32 bona fide lessee for grazing purposes; or
33 (iv) It is in a cropland retirement or rotation program.
34 (b) The area of such land is five (5) contiguous acres or less and such
35 land has been actively devoted to agriculture within the meaning of sub-
36 section (1)(a) of this section during the last three (3) growing seasons;
37 and
38 (i) It agriculturally produces for sale or home consumption the
39 equivalent of fifteen percent (15%) or more of the owner's or
40 lessee's annual gross income; or
41 (ii) It agriculturally produced gross revenues in the immediately
42 preceding year of one thousand dollars ($1,000) or more. When the
2
1 area of land is five (5) contiguous acres or less, such land shall be
2 presumed to be nonagricultural land until it is established that the
3 requirements of this subsection have been met.
4 (2) Land shall not be classified or valued as agricultural land which is
5 part of a platted subdivision with stated restrictions prohibiting its use for
6 agricultural purposes, whether within or without a city.
7 (3) Land utilized for the grazing of a horse or other animals kept pri-
8 marily for personal use or pleasure rather than as part of a bona fide for-
9 profit enterprise shall not be considered to be land actively devoted to agri-
10 culture.
11 (4) Land actively devoted to agriculture, having previously qualified for
12 exemption under this section in the preceding year, or which would have quali-
13 fied under this section during the current year, shall not lose such qualifi-
14 cation due to the owner's or lessee's absence in the current year by reason of
15 active military service in a designated combat zone, as defined in section 112
16 of the Internal Revenue Code. If an owner fails to timely apply for exemption
17 as required in this section solely by reason of active duty in a designated
18 combat zone, as defined in section 112 of the Internal Revenue Code, and the
19 land would otherwise qualify for exemption under this section, then the board
20 of county commissioners of the county in which the land actively devoted to
21 agriculture is located shall refund property taxes, if previously paid, in an
22 amount equal to the exemption which would otherwise have applied.
23 (5) If the land qualified for exemption pursuant to section 63-602FF,
24 Idaho Code, in 2005, then the land will qualify in 2006 for the exemption pur-
25 suant to section 63-602K, Idaho Code, upon the filing of a statement by the
26 owner with the board of county commissioners that the land will be actively
27 devoted to agriculture pursuant to this section in 2006.
28 (6) For purposes of this section, the act of platting land actively
29 devoted to agriculture does not, in and of itself, cause the land to lose its
30 status as land being actively devoted to agriculture if the land otherwise
31 qualifies for the exemption under this section.
32 (7) As used in this section:
33 (a) "Contiguous" means being in actual contact or touching along a bound-
34 ary or at a point, except no area of land shall be considered not contigu-
35 ous solely by reason of a roadway or other right-of-way; and.
36 (b) "For-profit" means the enterprise will, over some period of time,
37 make or attempt to make a return of income exceeding expenses.
38 (c) "Platting" means the filing of the drawing, map or plan of a subdivi-
39 sion or a replatting of such, including certification, descriptions and
40 approvals with the proper county or city official.
41 SECTION 3. That Section 63-602K, Idaho Code, be, and the same is hereby
42 amended to read as follows:
43 63-602K. PROPERTY EXEMPT FROM TAXATION -- SPECULATIVE PORTION OF VALUE OF
44 AGRICULTURAL LAND. (1) The speculative portion of the value of land actively
45 devoted to agriculture is exempt from taxation.
46 (2) "Land actively devoted to agriculture" shall means that property
47 defined by section 63-604, Idaho Code. For purposes of this section, the act
48 of platting land actively devoted to agriculture does not, in and of itself,
49 cause the land to lose its status as land being actively devoted to agricul-
50 ture if the land otherwise qualifies for the exemption under this section.
51 (3) "Speculative portion" shall mean that portion of the value of agri-
52 cultural land which represents the excess over the actual use value of such
53 land established by comparable sales data compared to value established by
3
1 capitalization of economic rent or long-term average crop rental at a capital-
2 ization rate which shall be the rate of interest charged by the Spokane office
3 of the farm credit system averaged over the immediate past five (5) years plus
4 a component for the local tax rate.
5 (4) The state tax commission shall adopt rules implementing this section
6 which shall provide the procedure by which it shall establish economic rent,
7 average crop rental and capitalization rates and for the publication of crop
8 prices and the discount rate to be used to determine the capitalization rate.
9 SECTION 4. An emergency existing therefor, which emergency is hereby
10 declared to exist, this act shall be in full force and effect on and after its
11 passage and approval, and retroactively to January 1, 2006.
STATEMENT OF PURPOSE
RS 16030C1
This legislation repeals the partial exemption for parcels of
land in a rural home site development plat (Idaho code 63-602FF).
It also provides that platting land actively devoted to
agriculture or transferring a parcel to a child or spouse does
not alone cause the land to lose its agriculture exemption.
FISCAL NOTE
There is no fiscal impact to the General Fund.
Contact
Name: Rep. Lake
Phone: 332-1000
Rep. Raybould
Rep. Roberts
STATEMENT OF PURPOSE/FISCAL NOTE H 676