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H0437...............................................by REVENUE AND TAXATION
PROPERTY TAX - CIRCUIT BREAKER - Amends existing law to increase the
qualifying income levels for circuit breaker property tax relief.
01/23 House intro - 1st rdg - to printing
01/24 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. 437
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAX RELIEF; AMENDING SECTION 63-705, IDAHO CODE, TO
3 INCREASE THE QUALIFYING INCOME LEVELS AND TO MAKE TECHNICAL CORRECTIONS;
4 DEFERRING FOR ONE MONTH CERTAIN DATES FOR APPLYING AND FOR ADMINISTRATIVE
5 ACTION IN REGARD TO PROPERTY TAX RELIEF FOR THE YEAR 2006 ONLY; DECLARING
6 AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 63-705, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 63-705. PUBLICATION OF CHANGES IN INCOME LIMITATIONS AND PROPERTY TAX
11 REDUCTION AMOUNTS. (1) The state tax commission shall publish adjustments to
12 the income limitations and property tax reduction amounts to reflect cost-of-
13 living fluctuations, except that for the year 2006, the state tax commission
14 shall adjust the income brackets referred to in section 63-704(4), Idaho Code,
15 by applying a multiplier of 1.884422, which shall in subsequent years be
16 adjusted as provided in this section. The adjustments shall effect changes in
17 each income limitation by a percentage equal as near as practicable to the
18 annual cost-of-living percentage modification as determined by the secretary
19 of health and human services pursuant to 42 U.S.C. section 415(i). The lowest
20 limitation shall allow a maximum reduction of one thousand one hundred dollars
21 ($1,100) in tax year 1998, and one thousand two hundred dollars ($1,200) in
22 tax year 1999, or actual property taxes, whichever is less. Each income limi-
23 tation and reduction amount shall be prorated based on the basic maximum
24 reduction, in practicable increments so that the highest income limitation
25 will provide for a reduction of one hundred fifty dollars ($150), or actual
26 property taxes, whichever is less.
27 (2) The tax commission shall publish the adjustments required by this
28 section each and every year the secretary of health and human services
29 announces said cost-of-living modification. The adjustments shall be published
30 no later than October 1 of each such year and shall be effective for claims
31 filed in and for the following property tax year.
32 (3) The publication of adjustments under this section shall be exempt
33 from the provisions of chapter 52, title 67, Idaho Code, but shall be provided
34 to each county and to members of the public upon request and without charge.
35 SECTION 2. For the year 2006 only, in Section 63-706, Idaho Code, the
36 references to April 15, May 1 and May 15 shall not apply and May 15 shall be
37 substituted for April 15, June 1 shall be substituted for May 1 and June 15
38 shall be substituted for May 15.
39 SECTION 3. An emergency existing therefor, which emergency is hereby
40 declared to exist, this act shall be in full force and effect on and after its
2
1 passage and approval, and retroactively to January 1, 2006.
STATEMENT OF PURPOSE
R.S. 15685
This bill increases the income brackets for low income
elderly, widowed, and disabled homeowners who qualify for the
"circuit breaker" property tax relief program. It will increase
the maximum income level from $22,630 in 2005 to $30,000 in 2006.
The increase is accomplished by a one-time mathematical
adjustment increasing the base brackets enacted in 1992. The
bill retains the requirement that the State Tax Commission
annually adjust the income bracket amounts to reflect changes in
the consumer price index. The brackets that will be in effect in
2006 are:
Lower Upper Benefits Lower Upper Benefits
$0 $12,050 $1,200 $21,271 $21,790 $630
$12,051 $12,580 $1,170 $21,791 $22,310 $600
$12,581 $13,090 $1,140 $22,311 $22,820 $570
$13,091 $13,600 $1,110 $22,821 $23,350 $540
$13,601 $14,120 $1,080 $23,351 $23,870 $510
$14,121 $14,600 $1,050 $23,871 $24,370 $480
$14,601 $15,120 $1,020 $24,371 $24,890 $450
$15,121 $15,640 $990 $24,891 $25,390 $420
$15,641 $16,170 $960 $25,391 $25,890 $390
$16,171 $16,660 $930 $25,891 $26,400 $360
$16,661 $17,190 $900 $26,401 $26,910 $330
$17,191 $17,670 $870 $26,911 $27,420 $300
$17,671 $18,180 $840 $27,421 $27,930 $270
$18,181 $18,700 $810 $27,931 $28,440 $240
$18,701 $19,220 $780 $28,441 $28,980 $210
$19,221 $19,710 $750 $28,981 $29,480 $180
$19,711 $20,240 $720 $29,481 $30,000 $150
$20,241 $20,750 $690
$20,751 $21,270 $660
FISCAL NOTE
Reimbursements to local governments, paid from the general
fund (from sales tax receipts), will increase by $7.3 million.
Contact
Name: Brian Whitlock
Agency: Governor's Office
Phone: 334-2100
STATEMENT OF PURPOSE/FISCAL NOTE H 437