Print Friendly HOUSE BILL NO. 438 – Property tax, agric land, plat
HOUSE BILL NO. 438
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H0438...............................................by REVENUE AND TAXATION
PROPERTY TAX - AGRICULTURAL LAND - Amends existing law to provide that the
exemption for the speculative portion of the value of agricultural property
shall not change only because the property is included in a plat; to
provide that the exemption for land in a rural homesite development plat is
available only to property eligible for the exemption in 2005 and is lost
after the earlier of December 31, 2010, the beginning of construction of a
building, when the property is sold or transferred or when the property is
annexed into a city; to provide that an application is required only in the
case of property first eligible in 2005; to provide that the exemption is
not available for property platted on and after January 1, 2006; to define
"sold or transferred"; and to provide for reporting on the property tax
rolls the exempted value within rural home site development plats.
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. 438
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAXES; AMENDING SECTION 63-602K, IDAHO CODE, TO PROVIDE
3 THAT THE EXEMPTION FOR THE SPECULATIVE PORTION OF THE VALUE OF AGRICUL-
4 TURAL PROPERTY SHALL NOT CHANGE ONLY BECAUSE THE PROPERTY IS INCLUDED IN A
5 PLAT; AMENDING SECTION 63-602FF, IDAHO CODE, TO PROVIDE THAT THE EXEMPTION
6 FOR LAND IN A RURAL HOME SITE DEVELOPMENT PLAT IS AVAILABLE ONLY TO PROP-
7 ERTY ELIGIBLE FOR THE EXEMPTION IN 2005 AND IS LOST AFTER THE EARLIER OF
8 DECEMBER 31, 2010, OR THE BEGINNING OF CONSTRUCTION OF A BUILDING, OR WHEN
9 THE PROPERTY IS SOLD OR TRANSFERRED OR WHEN THE PROPERTY IS ANNEXED INTO A
10 CITY, TO PROVIDE THAT AN APPLICATION IS REQUIRED ONLY IN THE CASE OF PROP-
11 ERTY FIRST ELIGIBLE IN 2005, TO PROVIDE THAT THE EXEMPTION IS NOT AVAIL-
12 ABLE FOR PROPERTY PLATTED ON AND AFTER JANUARY 1, 2006 AND TO DEFINE "SOLD
13 OR TRANSFERRED"; AMENDING SECTION 63-509, IDAHO CODE, TO PROVIDE FOR
14 REPORTING ON THE PROPERTY TAX ROLLS THE EXEMPTED VALUE WITHIN RURAL HOME
15 SITE DEVELOPMENT PLATS; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE
17 Be It Enacted by the Legislature of the State of Idaho:
18 SECTION 1. That Section 63-602K, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 63-602K. PROPERTY EXEMPT FROM TAXATION -- SPECULATIVE PORTION OF VALUE OF
21 AGRICULTURAL LAND. (1) The speculative portion of the value of land devoted to
22 agriculture is exempt from taxation.
23 (2) "Land devoted to agriculture" shall mean that property defined by
24 section 63-604, Idaho Code.
25 (3) "Speculative portion" shall mean that portion of the value of agri-
26 cultural land which represents the excess over the actual use value of such
27 land established by comparable sales data compared to value established by
28 capitalization of economic rent or long-term average crop rental at a capital-
29 ization rate which shall be the rate of interest charged by the Spokane office
30 of the farm credit system averaged over the immediate past five (5) years plus
31 a component for the local tax rate.
32 (4) The state tax commission shall adopt rules implementing this section
33 which shall provide the procedure by which it shall establish economic rent,
34 average crop rental and capitalization rates and for the publication of crop
35 prices and the discount rate to be used to determine the capitalization rate.
36 (5) Property otherwise qualified for the exemption in this section shall
37 not be disqualified only by reason of being included in a plat, as that term
38 is defined in section 63-602FF, Idaho Code, if the plat is not subject to
39 restrictions prohibiting agricultural use, nor shall such platting cause prop-
40 erty to become subject to the provisions of section 63-604(1)(b), Idaho Code.
41 SECTION 2. That Section 63-602FF, Idaho Code, be, and the same is hereby
42 amended to read as follows:
1 63-602FF. PARTIAL EXEMPTION FOR PARCELS OF LAND IN A RURAL HOME SITE
2 DEVELOPMENT PLAT. (1) Each parcel of land in a rural home site development
3 plat previously eligible for the exemption pursuant to this section 63-602K,
4 Idaho Code as in effect in 2005, shall continue to be eligible for the same
5 exemption until the earlier of:
6 (a) December 31, 2010; or
7 (b) S such time as improvements are a building is being built upon the
8 parcel; . Once construction of the improvements has begun, no acreage in
9 the parcel shall be eligible for the exemption pursuant to section
10 63-602K, Idaho Code, unless the requirements of the exemption have been
11 met or
12 (c) The title to the property is sold or transferred; or
13 (d) The property is annexed into a city.
14 (2) (a) In the case of property actually receiving the exemption in 2005,
15 the exemption shall be reflected on the valuation assessment notice
16 required by section 63-308, Idaho Code, without any requirement for an
18 (b) In the case of property platted in 2005, the owner of the property
19 shall file an application with the county assessor on or before April 30,
20 2006, establishing that the property qualifies for the exemption.
21 (3) No property platted on or after January 1, 2006, shall qualify for an
22 exemption under this section.
23 (4) For purposes of this section, the following definitions shall apply:
24 (a) "Plat" means the drawing, map or plan of a subdivision or a replat-
25 ting of such, including certifications, descriptions and approvals.
26 (b) "Rural home site development plat" means a subdivision plat for the
27 development of property outside the boundaries of an incorporated munici-
28 pality within a county of less than one hundred thousand (100,000) popula-
29 tion, recorded with the county recorder.
30 (c) "Sold or transferred" means a conveyance of title has occurred from
31 the owner to another entity, except in the event of the first transfer to
32 a surviving spouse or child following the death of an owner.
33 SECTION 3. That Section 63-509, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 63-509. DELIVERY OF ROLLS TO COUNTY AUDITOR -- ABSTRACTS OF ROLLS. (1) On
36 or before the second Monday of July the board of equalization must deliver the
37 property rolls, with all changes, corrections and additions and exemptions
38 from taxation entered therein, to the county auditor. It shall be the duty of
39 the county auditor to cause to be prepared the roll for delivery to the county
40 tax collector on or before the first Monday of November. It shall be the duty
41 of the county auditor to cause to be prepared a total of the amount and value
42 of each category of property and prepare an abstract of all the property
43 entered upon the roll in the manner and form required by the state tax commis-
44 sion. Such forms must show, but need not be limited to, the market value for
45 assessment purposes of all property by categories, and the exemptions from
46 taxation allowed by categories. Any abstracts needed by and prepared for the
47 state tax commission must be delivered by certified mail to the state tax com-
48 mission by the fourth Monday of July. The value of exemptions will be shown
49 and identified for exemptions granted pursuant to chapters 20 and 29, title
50 50, Idaho Code, for the value in excess of the equalized assessment valuation
51 as shown on the base assessment roll in any revenue allocation area, and sec-
52 tions 63-602G, 63-602K, 63-602P, 63-602AA, 63-602X, 63-602BB, and 63-602CC,
53 and 63-602FF, Idaho Code, as well as the net taxable value for each of the
1 categories. The abstracts shall be prepared and duly verified and must show a
2 correct classification of all the property in accordance with the classifica-
3 tion of such property upon the property roll, and all matters and things
4 required to be shown upon the abstracts must be entered.
5 (2) The subsequent property roll shall be delivered to the county auditor
6 as soon as possible after the first Monday in December. The county auditor
7 shall deliver the subsequent property roll to the county tax collector without
9 (3) The missed property roll shall be delivered to the county auditor as
10 soon as possible, but no later than the first Monday in March of the succeed-
11 ing year. The county auditor shall deliver the missed property roll to the
12 county tax collector without delay.
13 (4) The county auditor must cause to be prepared abstracts of the com-
14 bined subsequent and missed property rolls as prescribed in subsection (1) and
15 submit the abstracts by certified mail to the state tax commission on or
16 before the first Monday in March of the succeeding year.
17 SECTION 4. An emergency existing therefor, which emergency is hereby
18 declared to exist, this act shall be in full force and effect on and after its
19 passage and approval, and retroactively to January 1, 2006.
STATEMENT OF PURPOSE
This bill ends the rural home site development exemption
from property tax as of January 1, 2006, but extends the
exemption for properties eligible for the exemption in 2005. For
properties protected by the extension, the exemption ends upon
the occurrence of the earlier of December 31, 2010, the beginning
of construction of a building, or the sale or transfer of the
property (except the first transfer to a surviving spouse or
child following the death of an owner).
The bill also provides that the exemption for the
speculative portion of the value of agricultural property shall
not change only because the property is included in a plat and
provides for reporting on the property tax rolls the exempted
value within rural subdivision plats.
The bill is effective for taxes for 2006 and after.
No effect to the state general fund.
Name: Brian Whitlock
Agency: Governor's Office
STATEMENT OF PURPOSE/FISCAL NOTE H 438