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H0680...............................................by REVENUE AND TAXATION
PROPERTY TAX DEFERRAL ACT - Adds to and amends existing law to enact the
"Property Tax Deferral Act"; to provide for definitions; to provide for
application for deferral of property tax; to provide for procedures and
appeals; to provide for a deferral of property taxes and interest and liens
relating to the deferral; to provide for reimbursement by the State Tax
Commission of local taxes deferred; to provide for events terminating the
deferral; to provide for payment of deferred taxes; to provide for recovery
of amounts subject to recovery; to provide a misdemeanor penalty for
knowingly filing a false claim; and to coordinate reimbursement payments
for property tax relief and tax deferrals.
02/13 House intro - 1st rdg - to printing
02/14 Rpt prt - to Rev/Tax
02/15 Rpt out - rec d/p - to 2nd rdg
02/16 2nd rdg - to 3rd rdg
02/17 3rd rdg - PASSED - 67-2-1
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, 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), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood,
Mr. Speaker
NAYS -- Eskridge, Smith(24)
Absent and excused -- Miller
Floor Sponsor - Lake
Title apvd - to Senate
02/20 Senate intro - 1st rdg - to Loc Gov
03/10 Rpt out - to 14th Ord
03/16 Rpt out - w/o amen - to 2nd rdg
03/17 2nd rdg - to 3rd rdg
03/22 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett(Clark),
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 -- None
Absent and excused -- None
Floor Sponsor - Stegner
Title apvd - to House
03/23 To enrol
03/24 Rpt enrol - Sp signed
03/27 Pres signed
03/28 To Governor
03/30 Governor signed
Session Law Chapter 234
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. 680
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAXES; AMENDING CHAPTER 7, TITLE 63, IDAHO CODE, BY THE
3 ADDITION OF NEW SECTIONS 63-712, 63-713, 63-714, 63-715, 63-716, 63-717,
4 63-718, 63-719, 63-720 AND 63-721, IDAHO CODE, TO PROVIDE A SHORT TITLE,
5 TO PROVIDE FOR DEFINITIONS, TO PROVIDE FOR APPLICATION FOR DEFERRAL OF
6 PROPERTY TAX, TO PROVIDE FOR PROCEDURES AND APPEALS, TO PROVIDE FOR A
7 DEFERRAL OF PROPERTY TAXES AND INTEREST AND LIENS RELATING TO THE DEFER-
8 RAL, TO PROVIDE FOR REIMBURSEMENT BY THE STATE TAX COMMISSION OF LOCAL
9 TAXES DEFERRED AND TO PROVIDE A LIMIT TO THE DEFERRAL AND PAYMENT OF TAXES
10 NOT DEFERRED, TO PROVIDE FOR EVENTS TERMINATING THE DEFERRAL AND TO PRO-
11 VIDE FOR PAYMENT OF DEFERRED TAXES AND INTEREST AND TO PROVIDE FOR DISTRI-
12 BUTION AND APPROPRIATION OF PAYMENTS RECEIVED, TO PROVIDE FOR A TAX DEED
13 IN THE EVENT OF FAILURE TO PAY DEFERRED TAXES, TO PROVIDE FOR RECOVERY OF
14 AMOUNTS SUBJECT TO RECOVERY AND TO PROVIDE A MISDEMEANOR PENALTY FOR KNOW-
15 INGLY FILING A FALSE CLAIM; AMENDING SECTION 63-3638, IDAHO CODE, TO
16 REVISE DISTRIBUTION FOR REIMBURSEMENT PAYMENTS FOR PROPERTY TAX RELIEF AND
17 TAX DEFERRALS; DECLARING AN EMERGENCY AND PROVIDING A RETROACTIVE EFFEC-
18 TIVE DATE.
19 Be It Enacted by the Legislature of the State of Idaho:
20 SECTION 1. That Chapter 7, Title 63, Idaho Code, be, and the same is
21 hereby amended by the addition thereto of NEW SECTIONS, to be known and desig-
22 nated as Sections 63-712, 63-713, 63-714, 63-715, 63-716, 63-717, 63-718,
23 63-719, 63-720 and 63-721, Idaho Code, and to read as follows:
24 63-712. SHORT TITLE. The provisions of sections 63-712 through 63-721,
25 Idaho Code, shall be known and may be cited as the "Property Tax Deferral
26 Act."
27 63-713. DEFINITIONS. In addition to the definitions in section 63-701,
28 Idaho Code, the following definitions apply to sections 63-712 through
29 63-721, Idaho Code.
30 (1) "Qualified claimant" means an individual who is a claimant who
31 applies for and properly receives property tax relief under the provisions of
32 sections 63-701 through 63-710, Idaho Code.
33 (2) "Qualified property" means property for which:
34 (a) A qualified claimant is eligible to receive benefits under the provi-
35 sions of sections 63-701 through 63-710, Idaho Code, for the year for
36 which the qualified claimant applies for a deferral of payment of property
37 tax; and
38 (b) Is owned only by the qualified claimant and his or her spouse and is
39 not subject to a trust or life estate or other ownership held by a person
40 who is not the qualified claimant or his or her spouse.
41 63-714. APPLICATION -- DEFERRAL OF PROPERTY TAX. (1) A qualified claimant
2
1 may elect, upon the application for property tax relief filed under section
2 63-703, Idaho Code, to defer payment of any property tax due after application
3 of all benefits available under section 63-704, Idaho Code. The state tax com-
4 mission shall prescribe the form and manner by which the election must be made
5 and may require that the application include information establishing the out-
6 standing balance of any encumbrances, proof of insurance of an amount adequate
7 for the amount of deferred tax and interest, and such other information as the
8 state tax commission reasonably determines to be necessary. The state tax com-
9 mission may require written or other proof of the encumbrances or casualty
10 insurance in such form as the state tax commission may determine.
11 (2) No application for deferral of property taxes shall be granted if:
12 (a) The application fails to show sufficient equity in that property
13 after consideration of encumbrances that are superior to any liens for
14 deferral to secure the payment of all existing deferrals granted in the
15 property; or
16 (b) The application fails to show proof of insurance of an amount ade-
17 quate for the amount of the deferred tax and interest; or
18 (c) The result would be to defer property taxes which, together with the
19 amount of property tax and interest previously deferred on the same prop-
20 erty, would exceed fifty percent (50%) of the qualified claimant's propor-
21 tional share of the market value of the qualified property.
22 63-715. PROCEDURES -- APPEALS. Elections for deferral of payment of prop-
23 erty tax shall be subject to the provisions of section 63-706, Idaho Code, and
24 if approved by the county board of equalization, shall be included on the
25 property tax reduction roll and processed and reviewed as provided in section
26 63-707, Idaho Code, for claims for property tax relief.
27 63-716. DEFERRAL -- INTEREST -- LIEN -- PRIORITY. (1) Upon approval by
28 both the county board of equalization and the state tax commission, payment of
29 any amount of property tax due for the year to which the election relates,
30 after application of the property tax relief available under sections 63-701
31 through 63-710, Idaho Code, and subject to the limitation in section
32 63-717(2), Idaho Code, in regard to the qualified property subject to the
33 election, shall be deferred until the deferral is terminated under section
34 63-718, Idaho Code.
35 (2) During the period of deferral, interest shall accrue on the amount
36 deferred at the annual rate of six percent (6%) annually.
37 (3) The lien imposed by section 63-206, Idaho Code, shall continue to be
38 a lien on the property in the amount of deferred taxes and interest thereon.
39 The state tax commission shall file with the county recorder of the county in
40 which the property is located a notice of lien for deferred property taxes.
41 Notwithstanding the provisions of section 63-206, Idaho Code, the lien for
42 deferred taxes and interest shall not be a first and prior lien, but shall
43 take its priority from the date and time of filing of the notice of lien.
44 63-717. REIMBURSEMENT BY STATE TAX COMMISSION. (1) By no later than
45 December 20 of each year, the state tax commission shall pay to the county tax
46 collector of each county one-half (1/2) of the amount due each county as reim-
47 bursement for property taxes deferred as provided in sections 63-712 through
48 63-721, Idaho Code, as shown on the property tax reduction roll required under
49 section 63-707, Idaho Code, as modified by actions of the state tax commission
50 relating to claims approved or disapproved by the state tax commission, and
51 shall pay the second one-half (1/2) of such amount by not later than June 20
52 of the following year. The payments may be combined with payments made under
3
1 section 63-709, Idaho Code.
2 (2) The total amount of reimbursement payable to all counties under this
3 section shall not exceed five hundred thousand dollars ($500,000) in regard to
4 property taxes for one (1) calendar year. In the event that the amount of
5 taxes approved for deferral exceeds five hundred thousand dollars ($500,000),
6 the amount of taxes deferred for each qualifying property shall be reduced
7 proportionately and the balance of property tax not deferred shall be entered
8 on the property tax notice required by section 63-902, Idaho Code, and shall
9 be payable as required by chapter 9, title 63, Idaho Code.
10 63-718. EVENTS TERMINATING DEFERRAL -- PAYMENT OF DEFERRED TAX AND INTER-
11 EST. (1) A deferral of property tax payments shall terminate on the earlier
12 of:
13 (a) Voluntary payment of the full amount of deferred tax and interest to
14 the state tax commission;
15 (b) The death of the qualified claimant. In the case of more than one (1)
16 qualified claimant, the death of the last surviving qualified claimant;
17 (c) A sale or other transfer of title to the property or any part of the
18 property except a transfer of title to a surviving spouse of a deceased
19 qualified claimant;
20 (d) The property no longer qualifies for the exemption provided in sec-
21 tion 63-602G, Idaho Code, for residential improvements;
22 (e) A determination by the state tax commission under section 63-720,
23 Idaho Code, that the deferral of property tax payments was erroneously
24 granted to a person who is not a qualified claimant or in regard to prop-
25 erty that is not qualified property.
26 (2) When a deferral of property tax is terminated any unpaid amount of
27 deferred tax and interest shall be paid to the state tax commission no later
28 than one hundred eighty (180) days after the termination.
29 (3) Any payments of deferred property tax received by the state tax com-
30 mission under this section or under sections 63-719 and 63-720, Idaho Code,
31 shall be distributed to the property tax deferral recovery fund which is
32 hereby created. Amounts in the property tax deferral recovery fund are hereby
33 continuously appropriated for the purposes of section 63-3638(5), Idaho Code.
34 63-719. TAX DEED FOR DEFICIENCY IN REPAYMENT. Any amount of deferred tax
35 due under section 63-718, Idaho Code, which is not paid to the state tax com-
36 mission on the due date, is a delinquency subject to the provisions of chapter
37 10, title 63, Idaho Code, except that references to county and county offi-
38 cials in that chapter shall be taken as references to the state tax commis-
39 sion.
40 63-720. RECOVERY OF ERRONEOUS AND OTHER IMPROPER DEFERRALS. (1) In addi-
41 tion to the provisions of section 63-719, Idaho Code, the state tax commission
42 may recover deferrals of tax payments made under sections 63-712 through
43 63-721, Idaho Code, from any person who elected the deferral under section
44 63-714, Idaho Code, if the commission determines that:
45 (a) A deferral was granted to a person who is not a qualified claimant or
46 in regard to property that is not qualified property, or
47 (b) The owner of the property subject to the deferral possesses insuffi-
48 cient equity in that property, after consideration of encumbrances that
49 are superior to any liens for deferral, to secure the payment of all
50 existing deferrals granted in the property.
51 (2) The deficiency determination, collection, and enforcement procedures
52 provided by the Idaho income tax act, sections 63-3039, 63-3042, 63-3043
4
1 through 63-3064, Idaho Code, shall apply and be available to the commission
2 for enforcement and collection under sections 63-712 through 63-721, Idaho
3 Code, and such sections shall, for this purpose, be considered part of sec-
4 tions 63-712 through 63-721, Idaho Code. Wherever liens or any other proceed-
5 ings are defined as income tax liens or proceedings, they shall, when applied
6 in enforcement or collection under sections 63-712 through 63-721, Idaho Code,
7 be described as tax deferral liens and proceedings. In connection with such
8 sections, a deficiency shall consist of any amount subject to recovery under
9 this section together with any interest and penalty due thereon.
10 63-721. KNOWINGLY FILING A FALSE CLAIM A MISDEMEANOR. Every person who
11 applies for deferral of taxes under section 63-714, Idaho Code, knowing that
12 the person for whom the application is made is not a qualified claimant or
13 knowing that the property is not qualified property, is guilty of a misde-
14 meanor and on conviction thereof shall be punished as provided for misdemean-
15 ors in section 18-303, Idaho Code.
16 SECTION 2. That Section 63-3638, Idaho Code, be, and the same is hereby
17 amended to read as follows:
18 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
19 ter, except as may otherwise be required in sections 63-3203 and 63-3709,
20 Idaho Code, shall be distributed by the tax commission as follows:
21 (1) An amount of money shall be distributed to the state refund account
22 sufficient to pay current refund claims. All refunds authorized under this
23 chapter by the commission shall be paid through the state refund account, and
24 those moneys are continuously appropriated.
25 (2) Five million dollars ($5,000,000) per year is continuously appropri-
26 ated and shall be distributed to the permanent building fund, provided by sec-
27 tion 57-1108, Idaho Code.
28 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
29 continuously appropriated and shall be distributed to the water pollution con-
30 trol account established by section 39-3605, Idaho Code.
31 (4) An amount equal to the sum required to be certified by the chairman
32 of the Idaho housing and finance association to the state tax commission pur-
33 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
34 ated and shall be paid to any capital reserve fund, established by the Idaho
35 housing and finance association pursuant to section 67-6211, Idaho Code. Such
36 amounts, if any, as may be appropriated hereunder to the capital reserve fund
37 of the Idaho housing and finance association shall be repaid for distribution
38 under the provisions of this section, subject to the provisions of section
39 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
40 possible, from any moneys available therefor and in excess of the amounts
41 which the association determines will keep it self-supporting.
42 (5) An amount equal to the sum required by the provisions of sections
43 63-709 and 63-717, Idaho Code, after allowance for the amount appropriated by
44 section 63-718(3), Idaho Code, is continuously appropriated and shall be paid
45 as provided by sections 63-709 and 63-717, Idaho Code.
46 (6) An amount required by the provisions of chapter 53, title 33, Idaho
47 Code.
48 (7) An amount required by the provisions of chapter 87, title 67, Idaho
49 Code.
50 (8) One dollar ($1.00) on each application for certificate of title or
51 initial application for registration of a motor vehicle, snowmobile, all-
52 terrain vehicle or other vehicle processed by the county assessor or the Idaho
5
1 transportation department excepting those applications in which any sales or
2 use taxes due have been previously collected by a retailer, shall be a fee for
3 the services of the assessor of the county or the Idaho transportation depart-
4 ment in collecting such taxes, and shall be paid into the current expense fund
5 of the county or state highway account established in section 40-702, Idaho
6 Code.
7 (9) Thirteen and three-quarters percent (13.75%) is continuously appro-
8 priated and shall be distributed to the revenue sharing account which is cre-
9 ated in the state treasury, and the moneys in the revenue sharing account will
10 be paid in installments each calendar quarter by the tax commission as fol-
11 lows:
12 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
13 ious cities as follows:
14 (i) Fifty percent (50%) of such amount shall be paid to the various
15 cities, and each city shall be entitled to an amount in the propor-
16 tion that the population of that city bears to the population of all
17 cities within the state; and
18 (ii) Fifty percent (50%) of such amount shall be paid to the various
19 cities, and each city shall be entitled to an amount in the propor-
20 tion that the preceding year's market value for assessment purposes
21 for that city bears to the preceding year's market value for assess-
22 ment purposes for all cities within the state.
23 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
24 ious counties as follows:
25 (i) One million three hundred twenty thousand dollars ($1,320,000)
26 annually shall be distributed one forty-fourth (1/44) to each of the
27 various counties; and
28 (ii) The balance of such amount shall be paid to the various coun-
29 ties, and each county shall be entitled to an amount in the propor-
30 tion that the population of that county bears to the population of
31 the state;
32 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
33 ated in this subsection (9) shall be paid to the several counties for dis-
34 tribution to the cities and counties as follows:
35 (i) Each city and county which received a payment under the provi-
36 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
37 calendar year 1999, shall be entitled to a like amount during suc-
38 ceeding calendar quarters.
39 (ii) If the dollar amount of money available under this subsection
40 (9)(c) in any quarter does not equal the amount paid in the fourth
41 quarter of calendar year 1999, each city's and county's payment shall
42 be reduced proportionately.
43 (iii) If the dollar amount of money available under this subsection
44 (9)(c) in any quarter exceeds the amount paid in the fourth quarter
45 of calendar year 1999, each city and county shall be entitled to a
46 proportionately increased payment, but such increase shall not exceed
47 one hundred five percent (105%) of the total payment made in the
48 fourth quarter of calendar year 1999.
49 (iv) If the dollar amount of money available under this subsection
50 (9)(c) in any quarter exceeds one hundred five percent (105%) of the
51 total payment made in the fourth quarter of calendar year 1999, any
52 amount over and above such one hundred five percent (105%) shall be
53 paid fifty percent (50%) to the various cities in the proportion that
54 the population of the city bears to the population of all cities
55 within the state, and fifty percent (50%) to the various counties in
6
1 the proportion that the population of a county bears to the popula-
2 tion of the state; and
3 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
4 this subsection (9) shall be paid to the several counties for distribution
5 to special purpose taxing districts as follows:
6 (i) Each such district which received a payment under the provi-
7 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
8 calendar year 1999, shall be entitled to a like amount during suc-
9 ceeding calendar quarters.
10 (ii) If the dollar amount of money available under this subsection
11 (9)(d) in any quarter does not equal the amount paid in the fourth
12 quarter of calendar year 1999, each special purpose taxing district's
13 payment shall be reduced proportionately.
14 (iii) If the dollar amount of money available under this subsection
15 (9)(d) in any quarter exceeds the amount distributed under paragraph
16 (i) of this subsection (9)(d), each special purpose taxing district
17 shall be entitled to a share of the excess based on the proportion
18 each such district's current property tax budget bears to the sum of
19 the current property tax budgets of all such districts in the state.
20 The state tax commission shall calculate district current property
21 tax budgets to include any unrecovered foregone amounts as determined
22 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
23 district is situated in more than one (1) county, the tax commission
24 shall determine the portion attributable to the special purpose tax-
25 ing district from each county in which it is situated.
26 (iv) If special purpose taxing districts are consolidated, the
27 resulting district is entitled to a base amount equal to the sum of
28 the base amounts which were received in the last calendar quarter by
29 each district prior to the consolidation.
30 (v) If a special purpose taxing district is dissolved or
31 disincorporated, the state tax commission shall continuously distrib-
32 ute to the board of county commissioners an amount equal to the last
33 quarter's distribution prior to dissolution or disincorporation. The
34 board of county commissioners shall determine any redistribution of
35 moneys so received.
36 (vi) Taxing districts formed after January 1, 2001, are not entitled
37 to a payment under the provisions of this subsection (9)(d).
38 (vii) For purposes of this subsection (9)(d), a special purpose tax-
39 ing district is any taxing district which is not a city, a county or
40 a school district.
41 (10) Amounts calculated in accordance with section 2, chapter 356, Laws of
42 2001, for annual distribution to counties and other taxing districts beginning
43 in October 2001 for replacement of property tax on farm machinery and equip-
44 ment exempted pursuant to section 63-602EE, Idaho Code. For nonschool dis-
45 tricts, the state tax commission shall distribute one-fourth (1/4) of this
46 amount certified quarterly to each county. For school districts, the state tax
47 commission shall distribute one-fourth (1/4) of the amount certified quarterly
48 to each school district. For nonschool districts, the county auditor shall
49 distribute to each district within thirty (30) calendar days from receipt of
50 moneys from the tax commission. Moneys received by each taxing district for
51 replacement shall be utilized in the same manner and in the same proportions
52 as revenues from property taxation. The moneys remitted to the county trea-
53 surer for replacement of property exempt from taxation pursuant to section
54 63-602EE, Idaho Code, may be considered by the counties and other taxing dis-
55 tricts and budgeted at the same time, in the same manner and in the same year
7
1 as revenues from taxation on personal property which these moneys replace. If
2 taxing districts are consolidated, the resulting district is entitled to an
3 amount equal to the sum of the amounts which were received in the last calen-
4 dar quarter by each district pursuant to this subsection prior to the consol-
5 idation. If a taxing district is dissolved or disincorporated, the state tax
6 commission shall continuously distribute to the board of county commissioners
7 an amount equal to the last quarter's distribution prior to dissolution or
8 disincorporation. The board of county commissioners shall determine any redis-
9 tribution of moneys so received. If a taxing district annexes territory, the
10 distribution of moneys received pursuant to this subsection shall be unaf-
11 fected. Taxing districts formed after January 1, 2001, are not entitled to a
12 payment under the provisions of this subsection. School districts shall
13 receive an amount determined by multiplying the sum of the year 2000 school
14 district levy plus .001 times the market value on December 31, 2000, in the
15 district of the property exempt from taxation pursuant to section 63-602EE,
16 Idaho Code. For school districts, beginning January 1, 2002, only the portion
17 of property tax replacement received to replace property exempt from taxation
18 pursuant to section 63-602EE, Idaho Code, based on the tax year 2000 tax
19 charges for maintenance and operation as limited by sections 33-802 2. and
20 33-1002D, Idaho Code, shall not be subtracted from the maximum school district
21 maintenance and operation property taxes permitted in accordance with section
22 33-802 2., Idaho Code. For purposes of the limitation provided by section
23 63-802, Idaho Code, moneys received pursuant to this section as property tax
24 replacement for property exempt from taxation pursuant to section 63-602EE,
25 Idaho Code, shall be treated as property tax revenues.
26 (11) Any moneys remaining over and above those necessary to meet and
27 reserve for payments under other subsections of this section shall be distrib-
28 uted to the general fund.
29 SECTION 3. An emergency existing therefor, which emergency is hereby
30 declared to exist, this act shall be in full force and effect on and after its
31 passage and approval, and retroactively to January 1, 2006.
STATEMENT OF PURPOSE
RS 16047
This bill would allow individual homeowners with low incomes who
are elderly, disabled or widowed and who qualify for
circuit breaker" property tax relief to postpone payment of
property taxes on their homes. To qualify, the homeowner must
have sufficient equity in that property, after consideration of
encumbrances that are superior to any liens for deferral, to
secure the payment of all existing deferrals granted in the
property, and the home must not be co-owned by other persons
(other than a spouse) or be held in trust or subject to a life
estate. The taxes and interest (at six percent {6%}) would
become payable when both the homeowner and the spouse have died,
or the property is sold, or it no longer qualified for the
homeowner's exemption. The State will reimburse counties and
local governments for the tax that is not collected in the
current year, up to an annual maximum of $500,000. Repayment,
when due, is to the State. The payments are deposited in a
dedicated fund to be used for financing future property tax
deferrals. Until the tax is paid, the State is protected by
recording the tax lien on the property which takes its priority
as to other encumbrances based on the date of recording.
FISCAL NOTE
The maximum annual cost to the general fund is $500,000.
Contact
Name: Brian Whitlock, Governor's Office
Phone: (208) 334-2100
STATEMENT OF PURPOSE/FISCAL NOTE H 680