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H0474aa.............................................by REVENUE AND TAXATION
PROPERTY TAX - Amends existing law to provide that the occupancy tax
applies to industrial property, but not to operating property; and to
provide that electrical generation plants under construction, whether or
not owned by or operated in connection with any public utility, shall be
defined as operating property; and to provide that certain property
apportioned based on physical location shall be placed on the new
construction roll.
01/25 House intro - 1st rdg - to printing
01/26 Rpt prt - to Rev/Tax
03/02 Rpt out - to Gen Ord
03/13 Rpt out amen - to engros
03/14 Rpt engros - 1st rdg - to 2nd rdg as amen
03/15 2nd rdg - to 3rd rdg as amen
03/21 3rd rdg as amen - PASSED - 67-0-3
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford,
Cannon, Chadderdon, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Hart, Henbest, Henderson,
Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
Pasley-Stuart, Pence, Raybould, Ring, Ringo, Rusche, Rydalch, Sali,
Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen,
Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills,
Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Clark, Harwood, Roberts
Floor Sponsor - Wood
Title apvd - to Senate
03/22 Senate intro - 1st rdg - to Loc Gov
03/24 Rpt out - rec d/p - to 2nd rdg
03/27 2nd rdg - to 3rd rdg
03/28 3rd rdg - PASSED - 34-0-1
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, Werk, Williams
NAYS -- None
Absent and excused -- Sweet
Floor Sponsor - Corder
Title apvd - to House
03/29 To enrol
03/30 Rpt enrol - Sp signed
03/31 Pres signed - To Governor
03/31 Governor signed
Session Law Chapter 302
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. 474
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAXES; AMENDING SECTION 63-317, IDAHO CODE, TO PROVIDE
3 THAT THE OCCUPANCY TAX APPLIES TO INDUSTRIAL PROPERTY BUT NOT TO OPERATING
4 PROPERTY; AMENDING SECTION 63-201, IDAHO CODE, TO PROVIDE THAT ELECTRICAL
5 GENERATION PLANTS UNDER CONSTRUCTION, WHETHER OR NOT OWNED BY OR OPERATED
6 IN CONNECTION WITH ANY PUBLIC UTILITY, SHALL BE DEFINED AS OPERATING PROP-
7 ERTY; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 63-317, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 63-317. OCCUPANCY TAX -- PROCEDURES. (1) All real property subject to
12 property taxation shall be valued and taxed based upon its status as of Janu-
13 ary 1 of each tax year. Improvements, other than additions to existing
14 improvements, constructed upon real property shall not be subject to property
15 taxation during the year of construction other than that portion actually in
16 place as of January 1 of each calendar year; new manufactured housing shall
17 not be subject to property taxation during the first year of occupancy if
18 occupied after January 1. For the purposes of this section, "new manufactured
19 housing" means manufactured housing, whether real or personal, never previ-
20 ously occupied.
21 (2) There is hereby levied an occupancy tax upon all newly constructed
22 and occupied residential, and commercial and industrial structures, including
23 new manufactured housing, except additions to existing improvements or manu-
24 factured housing, prorated for the portion of the year for which the structure
25 was occupied. The occupancy tax shall be upon those improvements or new manu-
26 factured housing for that portion of the calendar year in which first occu-
27 pancy occurs. The occupancy tax does not apply to operating property. For the
28 purposes of this section, the term "occupied" means:
29 (a) Use of the property by any person as a residence including occupancy
30 of improvements or use in storage of vehicles, boats or household goods,
31 provided such use is not solely related to construction or sale of the
32 property; or
33 (b) Use of the property for any business or commercial purpose unrelated
34 to the construction and sale of the property; or
35 (c) Any possessory use of the property for which the owner received any
36 compensation or consideration.
37 (3) The owner of any newly constructed improvement or new manufactured
38 housing, as described in this section, upon which no occupancy tax has been
39 charged shall report to the county assessor that the improvement or new manu-
40 factured housing has been occupied. As soon as practical after receiving such
41 a report, the county assessor shall appraise and determine the market value
42 for assessment purposes.
43 (a) At the time the county assessor determines the market value for
2
1 assessment purposes of any improvement, he shall allow as an offset
2 against the market value of the improvement, the market value of any por-
3 tion of that improvement which was existing on January 1 and placed upon
4 the property roll.
5 (b) Upon completion of the appraisal, the county assessor shall notify
6 the owner of the appraisal, and further shall notify the owner of their
7 right to apply for the exemption provided in sections 63-602G and
8 63-602X, Idaho Code. If the owner applies for and meets the requirements
9 for such exemption within thirty (30) days of the notification by the
10 county assessor, the exemption shall be extended to the newly constructed
11 and occupied residential structures in compliance with section 63-602G,
12 Idaho Code, notwithstanding limitations requiring occupancy as of January
13 1 of the tax year.
14 (c) In the event that the owner fails to report to the county assessor
15 that the property is ready for occupancy, the assessor shall notify the
16 county board of equalization, who may impose as penalty an additional
17 amount equal to five percent (5%) of the tax for each month following the
18 date of first occupancy during which the report is not made, to a maximum
19 of twenty-five percent (25%) of the tax.
20 (4) Appeals of the market value for assessment purposes shall be resolved
21 in the same manner as all other appeals of valuation by the board of equaliza-
22 tion.
23 (5) The occupancy tax calculated upon the values set by the county asses-
24 sor, and any penalty imposed by the board of equalization shall be collected
25 in the same manner as all other property taxes.
26 (6) An occupancy tax lien shall be imposed in the manner provided in sec-
27 tion 63-206, Idaho Code.
28 (7) Occupancy taxes shall be billed, collected and distributed in the
29 same manner as all other property taxes.
30 SECTION 2. That Section 63-201, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 63-201. DEFINITIONS. As used for property tax purposes in title 63, chap-
33 ters 1 through 23, Idaho Code, the terms defined in this section shall have
34 the following meanings, unless the context clearly indicates another meaning:
35 (1) "Appraisal" means an estimate of property value for property tax pur-
36 poses.
37 (a) For the purpose of estimated property value to place the value on any
38 assessment roll, the value estimation must be made by the assessor or a
39 certified property tax appraiser.
40 (b) For the purpose of estimating property value to present for an appeal
41 filed pursuant to sections 63-501A, 63-407 and 63-409, Idaho Code, the
42 value estimation may be made by the assessor, a certified property tax
43 appraiser, a licensed appraiser, or a certified appraiser or any party as
44 specified by law.
45 (2) "Bargeline" means those water transportation tugs, boats, barges,
46 lighters and other equipment and property used in conjunction with waterways
47 for bulk transportation of freight or ship assist.
48 (3) "Cogenerators" means facilities which produce electric energy, and
49 steam or forms of useful energy which are used for industrial, commercial,
50 heating or cooling purposes.
51 (4) "Collection costs" are amounts authorized by law to be added after
52 the date of delinquency and collected in the same manner as property tax.
53 (5) "Delinquency" means any property tax, special assessment, fee, col-
3
1 lection cost, or charge collected in the same manner as property tax, that has
2 not been paid in the manner and within the time limits provided by law.
3 (6) "Improvements" means all buildings, structures, fixtures and fences
4 erected upon or affixed to the land, and all fruit, nut-bearing and ornamental
5 trees or vines not of natural growth, growing upon the land, except nursery
6 stock.
7 (7) "Late charge" means a charge of two percent (2%) of the delinquency.
8 (8) "Lawful money of the United States" means currency and coin of the
9 United States at par value and checks and drafts which are payable in dollars
10 of the United States at par value, payable upon demand or presentment.
11 (9) "Manufactured home" means a structure defined as a manufactured home
12 in section 39-4105, Idaho Code.
13 (10) "Market value" means the amount of United States dollars or equiva-
14 lent for which, in all probability, a property would exchange hands between a
15 willing seller, under no compulsion to sell, and an informed, capable buyer,
16 with a reasonable time allowed to consummate the sale, substantiated by a rea-
17 sonable down or full cash payment.
18 (11) "Operating property" means all rights-of-way accompanied by title;
19 roadbeds; tracks; pipelines; bargelines; equipment and docks; terminals;
20 rolling stock; equipment; power stations; power sites; lands; reservoirs, gen-
21 erating plants, transmission lines, distribution lines and substations; and
22 all immovable or movable property operated in connection with any public util-
23 ity, railroad or private railcar fleet, wholly or partly within this state,
24 and necessary to the maintenance and operation of such road or line, or in
25 conducting its business, and shall include all title and interest in such
26 property, as owner, lessee or otherwise. The term includes electrical genera-
27 tion plants under construction, whether or not owned by or operated in connec-
28 tion with any public utility. The term does not include personal property
29 exempt from taxation pursuant to section 63-602L, Idaho Code.
30 (12) "Party in interest" means a person who holds a properly recorded
31 mortgage, deed of trust or security interest.
32 (13) "Person" means any entity, individual, corporation, partnership,
33 firm, association, limited liability company, limited liability partnership or
34 other such entities as recognized by the state of Idaho.
35 (14) "Personal property" includes all goods, chattels, stocks and bonds,
36 equities in state lands, easements, reservations, leasehold real properties
37 and all other property which the law defines, or the courts may interpret,
38 declare and hold to be personal property under the letter, spirit, intent and
39 meaning of the law, for the purposes of property taxation. For the purposes of
40 payment and collection of property taxes pursuant to chapter 9, title 63,
41 Idaho Code, collection of delinquency pursuant to chapter 10, title 63, Idaho
42 Code, and seizure and sale of personal property for taxes pursuant to chapter
43 11, title 63, Idaho Code, personal property includes manufactured homes not
44 declared as real property pursuant to section 63-304, Idaho Code.
45 (15) "Private railcar fleet" means railroad cars or locomotives owned by,
46 leased to, occupied by or franchised to any person other than a railroad com-
47 pany operating a line of railroad in Idaho or any company classified as a
48 railroad by the interstate commerce commission and entitled to possess such
49 railroad cars and locomotives except those possessed solely for the purpose of
50 repair, rehabilitation or remanufacturing of such locomotives or railroad
51 cars.
52 (16) "Public utility" means electrical companies, pipeline companies, nat-
53 ural gas distribution companies, or power producers included within federal
54 law, bargelines, and water companies which are under the jurisdiction of the
55 Idaho public utilities commission. The term also includes telephone corpora-
4
1 tions, as that term is defined in section 62-603, Idaho Code, except as here-
2 inafter provided, whether or not such telephone corporation has been issued a
3 certificate of convenience and necessity by the Idaho public utilities commis-
4 sion.
5 This term does not include cogenerators, mobile telephone service or com-
6 panies, nor does it include pager service or companies, except when such ser-
7 vices are an integral part of services provided by a certificated utility com-
8 pany nor does the term "public utility" include companies or persons engaged
9 in the business of providing solely on a resale basis, any telephone or tele-
10 communication service which is purchased from a telephone corporation or com-
11 pany.
12 (17) "Railroad" means every kind of railway, whether its line of rails or
13 tracks be at, above or below the surface of the earth, and without regard to
14 the kind of power used in moving its rolling stock, and shall be considered to
15 include every kind of street railway, suburban railway or interurban railway
16 excepting facilities established solely for maintenance and rebuilding of
17 railroad cars or locomotives.
18 (18) "Real property" means land, and all standing timber thereon, includ-
19 ing standing timber owned separately from the ownership of the land upon
20 which the same may stand, except as modified in chapter 17, title 63, Idaho
21 Code, and all buildings, structures and improvements, or other fixtures of
22 whatsoever kind on land, including water ditches constructed for mining, manu-
23 facturing or irrigation purposes, water and gas mains, wagon and turnpike toll
24 roads, and toll bridges, and all rights and privileges thereto belonging, or
25 any way appertaining, all quarries and fossils in and under the land, and all
26 other property which the law defines, or the courts may interpret, declare and
27 hold to be real property under the letter, spirit, intent and meaning of the
28 law, for the purposes of property taxation. Manufactured homes constitute real
29 property when located on taxable land, and after a statement of intent to
30 declare as real property has been recorded, provided said statement has not
31 been revoked. Timber, forest, forest land, and forest products shall be
32 defined as provided in chapter 17, title 63, Idaho Code.
33 (19) "Record owner" means the person or persons in whose name or names the
34 property stands upon the records of the county recorder's office. Where the
35 record owners are husband and wife at the time of notice of pending issue of
36 tax deed, notice to one (1) shall be deemed and imputed as notice to the other
37 spouse.
38 (20) "Special assessment" means a charge imposed upon property for a spe-
39 cific purpose, collected and enforced in the same manner as property taxes.
40 (21) "System value" means the market value for assessment purposes of the
41 operating property when considered as a unit.
42 (22) "Tax code area" means a geographical area made up of one (1) or more
43 taxing districts with one (1) total levy within the geographic area, except as
44 otherwise provided by law.
45 (23) "Taxing district" means any entity or unit with the statutory author-
46 ity to levy a property tax.
47 (24) "Taxable value" means market value for assessment purposes, less
48 applicable exemptions or other statutory provisions.
49 (25) "Transient personal property" is personal property, specifically such
50 construction, logging or mining machinery and equipment which is kept, moved,
51 transported, shipped, hauled into or remaining for periods of not less than
52 thirty (30) days, in more than one (1) county in the state during the same
53 year.
54 (26) "Warrant of distraint" means a warrant ordering the seizure of per-
55 sonal property to enforce payment of property tax, special assessment,
5
1 expense, fee, collection cost or charge collected in the same manner as per-
2 sonal property tax.
3 SECTION 3. An emergency existing therefor, which emergency is hereby
4 declared to exist, this act shall be in full force and effect on and after its
5 passage and approval, and retroactively to January 1, 2006.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
Moved by Wood
Seconded by Smith (24)
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 474
1 AMENDMENT TO THE BILL
2 On page 5 of the printed bill, following line 2, insert:
3 "SECTION 3. That Section 63-405, Idaho Code, be, and the same is hereby
4 amended to read as follows:
5 63-405. ASSESSMENT OF OPERATING PROPERTY. (1) The state tax commission
6 must assess all operating property at a meeting of the commission convening on
7 the second Monday of August in each year, and must complete the assessment of
8 such property on the fourth Monday in August.
9 (2) The state tax commission shall determine the system value and calcu-
10 late the allocation and apportionment of the system value for all operating
11 property and specifically determine:
12 (a) The number of miles and the value per mile of each railroad in the
13 state and for each taxing district in which such railroad may exist.
14 (b) The number of miles and the value per mile of each telephone corpora-
15 tion in the state and for each taxing district in which such telephone
16 corporation may exist.
17 (c) The number of miles and the value per mile of each pipeline in the
18 state and for each taxing district in which such pipeline may exist.
19 (d) The number of miles and the value per mile of each water company
20 under the jurisdiction of the public utilities commission in the state,
21 and for each taxing district in which such water company may exist. The
22 value per mile of any line included in this subsection, except railroads,
23 shall be determined by dividing the total value of such line within the
24 state by the number of miles of such line within the state. The value per
25 mile of railroad line shall be determined by apportionment of the total
26 value of line within the state. The apportionment shall be based twenty
27 percent (20%) on the ratio of line miles in the state to line miles in the
28 county; forty percent (40%) on the ratio of net ton miles in the state to
29 net ton miles in the county; and forty percent (40%) on the ratio of sta-
30 tion revenues in the state to station revenues in the county. All operat-
31 ing property of railroads shall be apportioned to the counties as part of
32 the railroad line in the county. The apportionment for taxing districts
33 shall be the same as the apportionment among counties.
34 (e) The system value, the number of miles and the value per mile of each
35 electric current transmission line and each electric current distribution
36 line in each county separately, and for each taxing district within said
37 county in which such transmission and distribution lines may exist. The
38 value per mile of any line included in this subsection shall be determined
39 by dividing the apportioned value of such line within each county by the
40 number of miles of such line within said county.
41 (f) The system value of private railcar fleets entering or standing in
42 Idaho in the year preceding the constituted lien as provided in section
2
1 63-411(3), Idaho Code.
2 (g) The system value and calculate the allocation and apportionment of
3 the system value for all other operating property.
4 (3) On and after January 1, 2004, any newly installed or constructed
5 equipment located within a city corporate limit or within five (5) miles of a
6 city corporate limit and used for and in conjunction with the thermal genera-
7 tion of electricity shall be apportioned based on physical location. For pur-
8 poses of this subsection newly installed or constructed equipment used for
9 and in conjunction with the thermal generation of electricity shall not
10 include the remodeling, retrofitting, rehabilitation, refurbishing or modifi-
11 cation of an existing electrical generation facility, or integration or trans-
12 formation facilities such as substations or transmission lines. Notwithstand-
13 ing the provisions of section 63-301A, Idaho Code, property apportioned based
14 on physical location pursuant to this subsection shall be placed on the new
15 construction roll.
16 (4) If the value of property of any company assessable under this section
17 is of such a nature that it cannot reasonably be apportioned on the basis of
18 rail, wire, pipeline mileage, such as microwave and radio relay stations, the
19 tax commission may adopt such other method or basis of apportionment to the
20 county and taxing districts in which the property is situate as may be feasi-
21 ble and proper.";
22 and in line 3, delete "SECTION 3" and insert: "SECTION 4".
23 CORRECTION TO TITLE
24 On page 1, in line 7, following "ERTY;" insert: "AMENDING SECTION 63-405,
25 IDAHO CODE, TO PROVIDE THAT CERTAIN PROPERTY APPORTIONED BASED ON PHYSICAL
26 LOCATION SHALL BE PLACED ON THE NEW CONSTRUCTION ROLL;".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 474, As Amended
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAXES; AMENDING SECTION 63-317, IDAHO CODE, TO PROVIDE
3 THAT THE OCCUPANCY TAX APPLIES TO INDUSTRIAL PROPERTY BUT NOT TO OPERATING
4 PROPERTY; AMENDING SECTION 63-201, IDAHO CODE, TO PROVIDE THAT ELECTRICAL
5 GENERATION PLANTS UNDER CONSTRUCTION, WHETHER OR NOT OWNED BY OR OPERATED
6 IN CONNECTION WITH ANY PUBLIC UTILITY, SHALL BE DEFINED AS OPERATING PROP-
7 ERTY; AMENDING SECTION 63-405, IDAHO CODE, TO PROVIDE THAT CERTAIN PROP-
8 ERTY APPORTIONED BASED ON PHYSICAL LOCATION SHALL BE PLACED ON THE NEW
9 CONSTRUCTION ROLL; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLI-
10 CATION.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Section 63-317, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 63-317. OCCUPANCY TAX -- PROCEDURES. (1) All real property subject to
15 property taxation shall be valued and taxed based upon its status as of Janu-
16 ary 1 of each tax year. Improvements, other than additions to existing
17 improvements, constructed upon real property shall not be subject to property
18 taxation during the year of construction other than that portion actually in
19 place as of January 1 of each calendar year; new manufactured housing shall
20 not be subject to property taxation during the first year of occupancy if
21 occupied after January 1. For the purposes of this section, "new manufactured
22 housing" means manufactured housing, whether real or personal, never previ-
23 ously occupied.
24 (2) There is hereby levied an occupancy tax upon all newly constructed
25 and occupied residential, and commercial and industrial structures, including
26 new manufactured housing, except additions to existing improvements or manu-
27 factured housing, prorated for the portion of the year for which the structure
28 was occupied. The occupancy tax shall be upon those improvements or new manu-
29 factured housing for that portion of the calendar year in which first occu-
30 pancy occurs. The occupancy tax does not apply to operating property. For the
31 purposes of this section, the term "occupied" means:
32 (a) Use of the property by any person as a residence including occupancy
33 of improvements or use in storage of vehicles, boats or household goods,
34 provided such use is not solely related to construction or sale of the
35 property; or
36 (b) Use of the property for any business or commercial purpose unrelated
37 to the construction and sale of the property; or
38 (c) Any possessory use of the property for which the owner received any
39 compensation or consideration.
40 (3) The owner of any newly constructed improvement or new manufactured
41 housing, as described in this section, upon which no occupancy tax has been
42 charged shall report to the county assessor that the improvement or new manu-
43 factured housing has been occupied. As soon as practical after receiving such
2
1 a report, the county assessor shall appraise and determine the market value
2 for assessment purposes.
3 (a) At the time the county assessor determines the market value for
4 assessment purposes of any improvement, he shall allow as an offset
5 against the market value of the improvement, the market value of any por-
6 tion of that improvement which was existing on January 1 and placed upon
7 the property roll.
8 (b) Upon completion of the appraisal, the county assessor shall notify
9 the owner of the appraisal, and further shall notify the owner of their
10 right to apply for the exemption provided in sections 63-602G and
11 63-602X, Idaho Code. If the owner applies for and meets the requirements
12 for such exemption within thirty (30) days of the notification by the
13 county assessor, the exemption shall be extended to the newly constructed
14 and occupied residential structures in compliance with section 63-602G,
15 Idaho Code, notwithstanding limitations requiring occupancy as of January
16 1 of the tax year.
17 (c) In the event that the owner fails to report to the county assessor
18 that the property is ready for occupancy, the assessor shall notify the
19 county board of equalization, who may impose as penalty an additional
20 amount equal to five percent (5%) of the tax for each month following the
21 date of first occupancy during which the report is not made, to a maximum
22 of twenty-five percent (25%) of the tax.
23 (4) Appeals of the market value for assessment purposes shall be resolved
24 in the same manner as all other appeals of valuation by the board of equaliza-
25 tion.
26 (5) The occupancy tax calculated upon the values set by the county asses-
27 sor, and any penalty imposed by the board of equalization shall be collected
28 in the same manner as all other property taxes.
29 (6) An occupancy tax lien shall be imposed in the manner provided in sec-
30 tion 63-206, Idaho Code.
31 (7) Occupancy taxes shall be billed, collected and distributed in the
32 same manner as all other property taxes.
33 SECTION 2. That Section 63-201, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 63-201. DEFINITIONS. As used for property tax purposes in title 63, chap-
36 ters 1 through 23, Idaho Code, the terms defined in this section shall have
37 the following meanings, unless the context clearly indicates another meaning:
38 (1) "Appraisal" means an estimate of property value for property tax pur-
39 poses.
40 (a) For the purpose of estimated property value to place the value on any
41 assessment roll, the value estimation must be made by the assessor or a
42 certified property tax appraiser.
43 (b) For the purpose of estimating property value to present for an appeal
44 filed pursuant to sections 63-501A, 63-407 and 63-409, Idaho Code, the
45 value estimation may be made by the assessor, a certified property tax
46 appraiser, a licensed appraiser, or a certified appraiser or any party as
47 specified by law.
48 (2) "Bargeline" means those water transportation tugs, boats, barges,
49 lighters and other equipment and property used in conjunction with waterways
50 for bulk transportation of freight or ship assist.
51 (3) "Cogenerators" means facilities which produce electric energy, and
52 steam or forms of useful energy which are used for industrial, commercial,
53 heating or cooling purposes.
3
1 (4) "Collection costs" are amounts authorized by law to be added after
2 the date of delinquency and collected in the same manner as property tax.
3 (5) "Delinquency" means any property tax, special assessment, fee, col-
4 lection cost, or charge collected in the same manner as property tax, that has
5 not been paid in the manner and within the time limits provided by law.
6 (6) "Improvements" means all buildings, structures, fixtures and fences
7 erected upon or affixed to the land, and all fruit, nut-bearing and ornamental
8 trees or vines not of natural growth, growing upon the land, except nursery
9 stock.
10 (7) "Late charge" means a charge of two percent (2%) of the delinquency.
11 (8) "Lawful money of the United States" means currency and coin of the
12 United States at par value and checks and drafts which are payable in dollars
13 of the United States at par value, payable upon demand or presentment.
14 (9) "Manufactured home" means a structure defined as a manufactured home
15 in section 39-4105, Idaho Code.
16 (10) "Market value" means the amount of United States dollars or equiva-
17 lent for which, in all probability, a property would exchange hands between a
18 willing seller, under no compulsion to sell, and an informed, capable buyer,
19 with a reasonable time allowed to consummate the sale, substantiated by a rea-
20 sonable down or full cash payment.
21 (11) "Operating property" means all rights-of-way accompanied by title;
22 roadbeds; tracks; pipelines; bargelines; equipment and docks; terminals;
23 rolling stock; equipment; power stations; power sites; lands; reservoirs, gen-
24 erating plants, transmission lines, distribution lines and substations; and
25 all immovable or movable property operated in connection with any public util-
26 ity, railroad or private railcar fleet, wholly or partly within this state,
27 and necessary to the maintenance and operation of such road or line, or in
28 conducting its business, and shall include all title and interest in such
29 property, as owner, lessee or otherwise. The term includes electrical genera-
30 tion plants under construction, whether or not owned by or operated in connec-
31 tion with any public utility. The term does not include personal property
32 exempt from taxation pursuant to section 63-602L, Idaho Code.
33 (12) "Party in interest" means a person who holds a properly recorded
34 mortgage, deed of trust or security interest.
35 (13) "Person" means any entity, individual, corporation, partnership,
36 firm, association, limited liability company, limited liability partnership or
37 other such entities as recognized by the state of Idaho.
38 (14) "Personal property" includes all goods, chattels, stocks and bonds,
39 equities in state lands, easements, reservations, leasehold real properties
40 and all other property which the law defines, or the courts may interpret,
41 declare and hold to be personal property under the letter, spirit, intent and
42 meaning of the law, for the purposes of property taxation. For the purposes of
43 payment and collection of property taxes pursuant to chapter 9, title 63,
44 Idaho Code, collection of delinquency pursuant to chapter 10, title 63, Idaho
45 Code, and seizure and sale of personal property for taxes pursuant to chapter
46 11, title 63, Idaho Code, personal property includes manufactured homes not
47 declared as real property pursuant to section 63-304, Idaho Code.
48 (15) "Private railcar fleet" means railroad cars or locomotives owned by,
49 leased to, occupied by or franchised to any person other than a railroad com-
50 pany operating a line of railroad in Idaho or any company classified as a
51 railroad by the interstate commerce commission and entitled to possess such
52 railroad cars and locomotives except those possessed solely for the purpose of
53 repair, rehabilitation or remanufacturing of such locomotives or railroad
54 cars.
55 (16) "Public utility" means electrical companies, pipeline companies, nat-
4
1 ural gas distribution companies, or power producers included within federal
2 law, bargelines, and water companies which are under the jurisdiction of the
3 Idaho public utilities commission. The term also includes telephone corpora-
4 tions, as that term is defined in section 62-603, Idaho Code, except as here-
5 inafter provided, whether or not such telephone corporation has been issued a
6 certificate of convenience and necessity by the Idaho public utilities commis-
7 sion.
8 This term does not include cogenerators, mobile telephone service or com-
9 panies, nor does it include pager service or companies, except when such ser-
10 vices are an integral part of services provided by a certificated utility com-
11 pany nor does the term "public utility" include companies or persons engaged
12 in the business of providing solely on a resale basis, any telephone or tele-
13 communication service which is purchased from a telephone corporation or com-
14 pany.
15 (17) "Railroad" means every kind of railway, whether its line of rails or
16 tracks be at, above or below the surface of the earth, and without regard to
17 the kind of power used in moving its rolling stock, and shall be considered to
18 include every kind of street railway, suburban railway or interurban railway
19 excepting facilities established solely for maintenance and rebuilding of
20 railroad cars or locomotives.
21 (18) "Real property" means land, and all standing timber thereon, includ-
22 ing standing timber owned separately from the ownership of the land upon
23 which the same may stand, except as modified in chapter 17, title 63, Idaho
24 Code, and all buildings, structures and improvements, or other fixtures of
25 whatsoever kind on land, including water ditches constructed for mining, manu-
26 facturing or irrigation purposes, water and gas mains, wagon and turnpike toll
27 roads, and toll bridges, and all rights and privileges thereto belonging, or
28 any way appertaining, all quarries and fossils in and under the land, and all
29 other property which the law defines, or the courts may interpret, declare and
30 hold to be real property under the letter, spirit, intent and meaning of the
31 law, for the purposes of property taxation. Manufactured homes constitute real
32 property when located on taxable land, and after a statement of intent to
33 declare as real property has been recorded, provided said statement has not
34 been revoked. Timber, forest, forest land, and forest products shall be
35 defined as provided in chapter 17, title 63, Idaho Code.
36 (19) "Record owner" means the person or persons in whose name or names the
37 property stands upon the records of the county recorder's office. Where the
38 record owners are husband and wife at the time of notice of pending issue of
39 tax deed, notice to one (1) shall be deemed and imputed as notice to the other
40 spouse.
41 (20) "Special assessment" means a charge imposed upon property for a spe-
42 cific purpose, collected and enforced in the same manner as property taxes.
43 (21) "System value" means the market value for assessment purposes of the
44 operating property when considered as a unit.
45 (22) "Tax code area" means a geographical area made up of one (1) or more
46 taxing districts with one (1) total levy within the geographic area, except as
47 otherwise provided by law.
48 (23) "Taxing district" means any entity or unit with the statutory author-
49 ity to levy a property tax.
50 (24) "Taxable value" means market value for assessment purposes, less
51 applicable exemptions or other statutory provisions.
52 (25) "Transient personal property" is personal property, specifically such
53 construction, logging or mining machinery and equipment which is kept, moved,
54 transported, shipped, hauled into or remaining for periods of not less than
55 thirty (30) days, in more than one (1) county in the state during the same
5
1 year.
2 (26) "Warrant of distraint" means a warrant ordering the seizure of per-
3 sonal property to enforce payment of property tax, special assessment,
4 expense, fee, collection cost or charge collected in the same manner as per-
5 sonal property tax.
6 SECTION 3. That Section 63-405, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 63-405. ASSESSMENT OF OPERATING PROPERTY. (1) The state tax commission
9 must assess all operating property at a meeting of the commission convening on
10 the second Monday of August in each year, and must complete the assessment of
11 such property on the fourth Monday in August.
12 (2) The state tax commission shall determine the system value and calcu-
13 late the allocation and apportionment of the system value for all operating
14 property and specifically determine:
15 (a) The number of miles and the value per mile of each railroad in the
16 state and for each taxing district in which such railroad may exist.
17 (b) The number of miles and the value per mile of each telephone corpora-
18 tion in the state and for each taxing district in which such telephone
19 corporation may exist.
20 (c) The number of miles and the value per mile of each pipeline in the
21 state and for each taxing district in which such pipeline may exist.
22 (d) The number of miles and the value per mile of each water company
23 under the jurisdiction of the public utilities commission in the state,
24 and for each taxing district in which such water company may exist. The
25 value per mile of any line included in this subsection, except railroads,
26 shall be determined by dividing the total value of such line within the
27 state by the number of miles of such line within the state. The value per
28 mile of railroad line shall be determined by apportionment of the total
29 value of line within the state. The apportionment shall be based twenty
30 percent (20%) on the ratio of line miles in the state to line miles in the
31 county; forty percent (40%) on the ratio of net ton miles in the state to
32 net ton miles in the county; and forty percent (40%) on the ratio of sta-
33 tion revenues in the state to station revenues in the county. All operat-
34 ing property of railroads shall be apportioned to the counties as part of
35 the railroad line in the county. The apportionment for taxing districts
36 shall be the same as the apportionment among counties.
37 (e) The system value, the number of miles and the value per mile of each
38 electric current transmission line and each electric current distribution
39 line in each county separately, and for each taxing district within said
40 county in which such transmission and distribution lines may exist. The
41 value per mile of any line included in this subsection shall be determined
42 by dividing the apportioned value of such line within each county by the
43 number of miles of such line within said county.
44 (f) The system value of private railcar fleets entering or standing in
45 Idaho in the year preceding the constituted lien as provided in section
46 63-411(3), Idaho Code.
47 (g) The system value and calculate the allocation and apportionment of
48 the system value for all other operating property.
49 (3) On and after January 1, 2004, any newly installed or constructed
50 equipment located within a city corporate limit or within five (5) miles of a
51 city corporate limit and used for and in conjunction with the thermal genera-
52 tion of electricity shall be apportioned based on physical location. For pur-
53 poses of this subsection newly installed or constructed equipment used for
6
1 and in conjunction with the thermal generation of electricity shall not
2 include the remodeling, retrofitting, rehabilitation, refurbishing or modifi-
3 cation of an existing electrical generation facility, or integration or trans-
4 formation facilities such as substations or transmission lines. Notwithstand-
5 ing the provisions of section 63-301A, Idaho Code, property apportioned based
6 on physical location pursuant to this subsection shall be placed on the new
7 construction roll.
8 (4) If the value of property of any company assessable under this section
9 is of such a nature that it cannot reasonably be apportioned on the basis of
10 rail, wire, pipeline mileage, such as microwave and radio relay stations, the
11 tax commission may adopt such other method or basis of apportionment to the
12 county and taxing districts in which the property is situate as may be feasi-
13 ble and proper.
14 SECTION 4. An emergency existing therefor, which emergency is hereby
15 declared to exist, this act shall be in full force and effect on and after its
16 passage and approval, and retroactively to January 1, 2006.
STATEMENT OF PURPOSE
RS 15423
Section 1 amends the occupancy tax to clarify that the
occupancy tax applies to industrial property but not to operating
property.
Section 2 defines "operating property" to include an
electrical generation plant under construction regardless of its
ownership.
FISCAL NOTE
None
CONTACT
Name: Dan John
Agency: State Tax Commission
Phone: 334-7530
STATEMENT OF PURPOSE/FISCAL NOTE H 474