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H0470...............................................by REVENUE AND TAXATION
PROPERTY TAX - Adds to existing law relating to exemptions from taxation to
provide an exemption from property tax of $150,000 of market value for
assessment purposes for the owner-occupied homestead of an individual 70
years of age or older who is the record owner holding title in fee simple
or who has retained or been granted a life estate, who has paid Idaho real
property taxes on Idaho residential real property continuously for the
immediately preceding ten years and who occupies the homestead as the
individual's primary dwelling place; to provide for administration of the
application process; to provide definitions; and to declare the exemption
is necessary and just.
01/25 House intro - 1st rdg - to printing
01/26 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. 470
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO EXEMPTIONS FROM TAXATION; AMENDING CHAPTER 6, TITLE 63, IDAHO
3 CODE, BY THE ADDITION OF A NEW SECTION 63-602KK, IDAHO CODE, TO PROVIDE AN
4 EXEMPTION FROM PROPERTY TAX OF ONE HUNDRED FIFTY THOUSAND DOLLARS OF MAR-
5 KET VALUE FOR ASSESSMENT PURPOSES FOR THE OWNER-OCCUPIED HOMESTEAD OF AN
6 INDIVIDUAL SEVENTY YEARS OF AGE OR OLDER WHO IS THE RECORD OWNER HOLDING
7 TITLE IN FEE SIMPLE OR WHO HAS RETAINED OR BEEN GRANTED A LIFE ESTATE, WHO
8 HAS PAID IDAHO REAL PROPERTY TAXES ON IDAHO RESIDENTIAL REAL PROPERTY CON-
9 TINUOUSLY FOR THE IMMEDIATELY PRECEDING TEN YEARS AND WHO OCCUPIES THE
10 HOMESTEAD AS THE INDIVIDUAL'S PRIMARY DWELLING PLACE, TO PROVIDE FOR
11 ADMINISTRATION OF THE APPLICATION PROCESS, TO PROVIDE DEFINITIONS AND TO
12 DECLARE THE EXEMPTION IS NECESSARY AND JUST; AND PROVIDING AN EFFECTIVE
13 DATE.
14 Be It Enacted by the Legislature of the State of Idaho:
15 SECTION 1. That Chapter 6, Title 63, Idaho Code, be, and the same is
16 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
17 ignated as Section 63-602KK, Idaho Code, and to read as follows:
18 63-602KK. PROPERTY EXEMPT FROM TAXATION -- ELIGIBILITY BY AGE OF APPLI-
19 CANT, OWNERSHIP AND OCCUPATION OF HOMESTEAD. (1) The following property is
20 exempt from taxation if an application has been submitted and the exemption
21 has been approved as provided in this section: one hundred fifty thousand dol-
22 lars ($150,000) of market value for assessment purposes after application of
23 the exemption in section 63-602G, Idaho Code, of an owner-occupied homestead
24 used as the primary dwelling place of an individual who is at least seventy
25 (70) years of age and who is the record owner holding title in fee simple or
26 who has retained or been granted a life estate.
27 (2) An application for property tax exemption under the provisions of
28 this section shall be filed in the office of the county assessor between Janu-
29 ary 1 and April 15 of each year for which the exemption is requested, provided
30 the homestead is occupied after January 1 and before April 15. The applicant
31 shall certify to the county assessor that:
32 (a) He is making application for the exemption allowed by this section;
33 (b) The homestead is his primary dwelling place;
34 (c) He has paid Idaho real property taxes on Idaho residential real prop-
35 erty continuously for the immediately preceding ten (10) years;
36 (d) He is the record owner holding title in fee simple or has retained or
37 been granted a life estate;
38 (e) He is at least seventy (70) years of age on or before April 15 of the
39 year in which the application for exemption is filed; and
40 (f) He has not made application in any other county for the exemption,
41 and has not made application for the exemption on any other homestead in
42 the county.
43 (3) Any application filed shall be signed by the applicant or by any per-
2
1 son or entity described in section 63-711(3), Idaho Code. By signing such
2 application, the applicant, or the person or entity signing such application
3 shall attest to the truth of such application, and shall be subject to the
4 penalties provided in section 18-5401, Idaho Code, for stating as true any
5 material fact known to be false. All applications shall be made on forms pre-
6 scribed by the state tax commission and shall be in triplicate. One (1) copy
7 of the form shall be provided to the applicant or the person or entity acting
8 on behalf of the applicant, one (1) copy shall be kept for all county pur-
9 poses, and one (1) copy shall be forwarded to the state tax commission with
10 the property tax reduction roll.
11 (4) The county assessor shall examine each application and determine
12 whether it is in conformity with the requirements of subsection (2) of this
13 section, and shall approve or disapprove the application. The county assessor
14 shall notify the applicant, or the person or entity acting on behalf of the
15 applicant, in writing by May 1 if the application has been approved or disap-
16 proved. The notice of disapproval shall declare that the applicant or the per-
17 son or entity acting on behalf of the applicant may appeal the assessor's
18 decision to the county board of equalization, and shall state the time and
19 place that the county board of equalization shall meet for such purpose. In
20 considering any appeal of the assessor's decision, the board of equalization
21 may affirm or reject the assessor's decision. The decision of the board of
22 equalization shall be final, except that within thirty (30) days, the appli-
23 cant, or any person or entity acting on behalf of the applicant, may appeal to
24 the district court on matters of law, and may appeal the decision of the board
25 of equalization when the board has acted arbitrarily. The applicant, or the
26 person or entity acting on behalf of the applicant, shall be notified immedi-
27 ately, in writing, of the board of equalization's action on his appeal to it.
28 (5) The exemption allowed by section 63-602G, Idaho Code, must be taken
29 before the exemption allowed in this section is applied; and the exemption
30 allowed in this section shall be in addition to the exemption granted under
31 section 63-602G, Idaho Code.
32 (6) The exemption granted under the provisions of this section shall
33 become effective on the first day of January of the year in which the applica-
34 tion is filed, is effective only for the tax year in which the application for
35 exemption is filed and approved, and shall exempt from property taxation one
36 hundred fifty thousand dollars ($150,000) of market value for assessment pur-
37 poses of the homestead, based upon the current year's assessed value, after
38 application of the provisions of section 63-602G, Idaho Code.
39 (7) If an applicant dies after having filed a timely application, the
40 exemption shall be allowed to his personal representative if one is appointed,
41 or to surviving heirs, or to the trust or other entity owning the property, as
42 appropriate, for that tax year only.
43 (8) For the purpose of this section, the definition of "homestead" shall
44 have the same meaning as set forth in section 63-701(2), Idaho Code.
45 (9) For the purpose of this section, the definition of "occupied" shall
46 have the same meaning as set forth in section 63-701(6), Idaho Code.
47 (10) For the purpose of this section, the definition of "primary dwelling
48 place" shall have the same meaning as set forth in section 63-701(8), Idaho
49 Code.
50 (11) The legislature declares that this exemption is necessary and just.
51 SECTION 2. This act shall be in full force and effect on and after Janu-
52 ary 1, 2007.
STATEMENT OF PURPOSE
RS 15761
Provides that the owner-occupied homestead used as the
primary dwelling place of an individual who is at least seventy
(70) years of age; has paid Idaho real property taxes on Idaho
residential real property continuously for the immediately
preceding ten(10) years, and who is the record owner holding
title or who has retained or been granted a life estate, may
apply for an exemption from the tax on the property each year
upon application. If the owner dies, after the exemption has
been approved, it shall be in force for the rest of the year.
FISCAL NOTE
Positive impact on the state general fund, but it may impact
the counties in a negative way temporarily, as the number of
households now on circuit breaker could apply for this exemption
instead.
Each time one of these homes sells it goes back on the tax
rolls and most likely at a higher rate. In time, the counties
should recoup whatever losses it may incur.
Contact
Name: Rep. Shirley McKague
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 470