2006 Legislation
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SENATE BILL NO. 1488 – Tax comm rules, reporting standards


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Bill Status

S1488......................................................by STATE AFFAIRS
STATE TAX COMMISSION - Amends existing law to provide that the State Tax
Commission shall promulgate rules to establish property tax information
reporting standards that will aid in making sound public policy.
03/30    Senate intro - 1st rdg - to printing
03/31    Rpt prt - to Loc Gov

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                       IN THE SENATE
                                    SENATE BILL NO. 1488
                                 BY STATE AFFAIRS COMMITTEE
  1                                        AN ACT
  7    Be It Enacted by the Legislature of the State of Idaho:
  8        SECTION 1.  That Section 63-105A, Idaho Code, be, and the same  is  hereby
  9    amended to read as follows:
 10        63-105A.  POWERS  AND  DUTIES  --  PROPERTY  TAX. The state tax commission
 11    shall be the state board of equalization. In  addition  to  other  powers  and
 12    duties vested in it, the state tax commission shall have the power and duty:
 13        (1)  To  supervise and coordinate the work of the several county boards of
 14    equalization.
 15        (2)  To secure, tabulate and keep records of valuations of all classes  of
 16    property  throughout  the  state, and for that purpose, to  have access to all
 17    records and files of state offices and departments and  county  and  municipal
 18    offices, and to require all public officers and employees whose duties make it
 19    possible to ascertain valuations, including valuations of public utilities for
 20    rate-making  ratemaking  purposes,  to file reports with the state tax commis-
 21    sion, giving such information as to valuation  and  the  source  thereof.  The
 22    nature  and  kind  of  the tabulations, records of valuations and requirements
 23    from public officers as stated herein, shall be in such form  and  cover  such
 24    valuations as the state tax commission may prescribe. The state tax commission
 25    shall  promulgate  rules to establish property tax information reporting stan-
 26    dards that will aid in making sound public policy.
 27        (3)  To coordinate and direct a system of property taxation throughout the
 28    state.
 29        (4)  To require all assessments of property  in  this  state  to  be  made
 30    according  to  law; and for that purpose to correct, when it finds the same to
 31    be erroneous, any assessments made in any county, and  require  correction  of
 32    the county assessment records accordingly.
 33        (5)  To  prescribe forms and to specify and require information with rela-
 34    tion to any duty or power of the state tax commission except  as  provided  in
 35    section 63-219, Idaho Code.
 36        (6)  To instruct, guide, direct and assist the county assessors and county
 37    boards  of equalization as to the methods best calculated to secure uniformity
 38    in the assessment and equalization of property taxes,  to  the  end  that  all
 39    property shall be assessed and taxed as required by law.
 40        (7)  To  reconvene,  whenever the state tax commission may deem necessary,
 41    any county board of equalization, notwithstanding the limitations  of  chapter
 42    5,  title  63,  Idaho  Code,  for  equalization purposes and for correction of
 43    errors. The county board of equalization, when so  reconvened  shall  have  no
  1    power  to  transact  any business except that for which it is specially recon-
  2    vened, or such as may be brought before it by the state tax commission.
  3        (8)  To require prosecuting attorneys to institute and  prosecute  actions
  4    and proceedings in respect to penalties, forfeitures, removals and punishments
  5    for  violations of law in connection with the assessment and taxation of prop-
  6    erty. It shall be the duty of  such  officers  to  comply  promptly  with  the
  7    requirements of the state tax commission in that relation.
  8        (9)  To  require  individuals,  partnerships, companies,  associations and
  9    corporations  to furnish such information as  the  state  tax  commission  may
 10    require  concerning  their  capital,  funded or other debt, current assets and
 11    liabilities, value of property, earnings, operating and other expenses,  taxes
 12    and  all other facts which may be needed to enable the state tax commission to
 13    ascertain the value and the relative tax burden borne by all kinds of property
 14    in the state, and to require from all state and local officers  such  informa-
 15    tion  as  may  be necessary to the proper discharge of the duties of the state
 16    tax commission.
 17        (10) To visit, as a state tax  commission  or  by  individual  members  or
 18    agents  thereof,  whenever  the  state tax commission shall deem it necessary,
 19    each county of the state, for the investigation and direction of the work  and
 20    methods  of  assessment  and equalization, and to ascertain whether or not the
 21    provisions of law requiring the assessment of all property,  not  exempt  from
 22    taxation,  and  just  equalization of the same have been or are being properly
 23    administered and enforced.
 24        (11) To carefully examine all cases where evasion or violation of the laws
 25    of assessment and taxation of property is alleged, complained of,  or  discov-
 26    ered,  and  to ascertain wherein existing laws are defective or are improperly
 27    or negligently administered.
 28        (12) To correct its own errors in property assessment at any  time  before
 29    the first Monday in November, and report such correction to the county auditor
 30    and  county  tax  collector, who shall thereupon enter the correction upon the
 31    operating property roll.
 32        (13) To apportion annually to the state and the  respective  counties  any
 33    moneys  received by the state from the United States or any agency thereof, as
 34    payments in lieu of property taxes; provided, that said moneys shall be appor-
 35    tioned in the same amounts, and to the  same  governmental  divisions  as  the
 36    property  taxes,  in lieu of which payments are made, would be apportioned, if
 37    they were levied. The state treasurer and the state controller shall be bound,
 38    in making distribution of moneys so received, by the apportionment ordered  by
 39    the state tax commission.
 40        (14) To make administrative construction of property tax law whenever nec-
 41    essary or requested by any officer acting under such laws and until judicially
 42    overruled,  such administrative construction shall be binding upon the inquir-
 43    ing officer and all others acting under such laws.
 44        (15) To require the attendance of any assessor in the state at  such  time
 45    and place as may be designated by the commission, and the actual and necessary
 46    expenses  of any assessor in attending any such meeting shall be a legal claim
 47    against his county.
 48        (16) To analyze the work of county assessors at any time and to  have  and
 49    possess all rights and powers of such assessors for the examination of persons
 50    and property, and for the discovery of property subject to taxation; and if it
 51    shall  ascertain  that any taxable property is omitted from the property rolls
 52    or is not assessed or valued according to law, it shall bring the same to  the
 53    attention  of the assessor of the proper county in writing, and if such asses-
 54    sor shall neglect or refuse to comply with the request of the state  tax  com-
 55    mission  to  place such property on the property rolls, or correct such incor-
  1    rect assessment or valuation, the tax commission shall have the power to  pre-
  2    pare  a  supplemental roll, which supplemental roll shall include all property
  3    required by the tax commission to be placed on the property roll and all  cor-
  4    rections  to be made. Such supplement shall be filed with the assessor's prop-
  5    erty roll, and shall thereafter constitute an integral  part  thereof  to  the
  6    exclusion  of  all portions of the original property rolls inconsistent there-
  7    with, and shall be submitted therewith to the county board of equalization.
  8        (17) To provide a program of education and an annual appraisal school for
  9    its employees, for county commissioners and for the assessors of  the  various
 10    counties  of  this state. Additionally, the state tax commission shall provide
 11    for the establishment of a property tax appraiser certification program.  Such
 12    program  shall include, as a minimum, a written examination prepared, adminis-
 13    tered and graded under the supervision and control of an  examination  commit-
 14    tee;  such committee is to be composed as the state tax commission may provide
 15    by rule. The state tax commission's rules shall include, but need not be  lim-
 16    ited to, the following:
 17        (a)  The  composition of the examination committee, provided however, that
 18        the committee shall include a representative of the counties, an agent  of
 19        the  state tax commission and a representative of a professional appraisal
 20        association within this state. The representative of the counties together
 21        with the representatives of such professional appraisal association  shall
 22        constitute a majority of the committee.
 23        (b)  The frequency with which the examination shall be given.
 24        (c)  A  reasonable  review  procedure by which examinees having complaints
 25        may seek review of the examination committee.
 26        (d)  The establishment of a reasonable  period  of  time  within  which  a
 27        county  appraiser  must meet the certification requirements as a condition
 28        to continued  employment  by  the  county  as  a  certified  property  tax
 29        appraiser.
 30        (18) To report at least quarterly to the revenue and taxation committee of
 31    the  house of representatives and to the joint senate finance-house appropria-
 32    tions committee on its program to assist the counties with  the  property  tax
 33    assessments.
 34        (19) To transmit to the governor and to the legislature, an annual report,
 35    with the state tax commission's recommendations as to such legislation as will
 36    correct  or  eliminate  defects in the operations of the property tax laws and
 37    will equalize taxation within the state. Said annual report  shall  include  a
 38    comprehensive study of the property tax laws and detailed statistical informa-
 39    tion  concerning  the  operation  of the property tax laws of this state. Said
 40    report shall be submitted prior to the meeting of any regular session  of  the
 41    legislature.
 42        (20) To  maintain  a forest land and forest product tax section to perform
 43    the functions and duties of the state tax commission under the  provisions  of
 44    chapter 17, title 63, Idaho Code.

Statement of Purpose / Fiscal Impact

                        STATEMENT OF PURPOSE

                             RS 16280

     This legislation enables the State Tax Commission to
promulgate rules to establish property tax information reporting
standards that will aid in making sound public policy.

     The counties have made significant progress in improving
their data processing systems for property classifications and
assessment purposes.  However, the information is not adequately
collected in a manner and format suitable for statewide analysis.

     In cooperation with county assessors and the legislature,
the Tax Commission will undertake development of rules that will
establish common reporting standards so that clear and consistent
statewide information regarding property tax matters will be
available for the public and policy makers.

     Examples of current property tax classifications that could
improve analysis if they were separately classified include the

     Non-owner occupied residential:
         4-plex and under apartments and rental homes
         Previously occupied homes for sale
         Platted lots - either bare lots or under construction
         Second homes - both out-of-state and in-state owners   
         Condominiums, and rental units for which the
               homeowner's exemption
          is not claimed

     Commercial and Industrial:
         Apartment buildings larger than a 4-plex
         Commercial and Industrial properties    

                           FISCAL NOTE

None.  This work will be performed by the Tax Commission within
it's existing appropriation.  The counties already either have or
are working to have systems that will provide the Tax Commission
more complete and precise information.

Name: Senator Bunderson 
Phone: (208) 332-1319

STATEMENT OF PURPOSE/FISCAL NOTE                         S 1488