2006 Legislation
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HOUSE BILL NO. 658 – Property tax exmptn/rural dvlp plat

HOUSE BILL NO. 658

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Bill Status



H0658...................................................by LOCAL GOVERNMENT
PROPERTY TAX - RURAL HOMESITE DEVELOPMENT PLAT - Repeals and adds to
existing law to provide a partial exemption from property taxation for the
speculative portion of the value of each parcel of land in a rural homesite
development plat until such time as improvements are being built upon the
parcel, or any interest in the ownership of the parcel is sold or
transferred to an unrelated entity; and to define terms.
                                                                        
02/13    House intro - 1st rdg - to printing
02/14    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 658
                                                                        
                               BY LOCAL GOVERNMENT COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PARTIAL EXEMPTION FOR PARCELS OF LAND IN A RURAL HOMESITE DEVELOP-
  3        MENT PLAT; REPEALING SECTION 63-602FF, IDAHO  CODE,  RELATING  TO  PARTIAL
  4        EXEMPTION  FROM  TAXATION FOR PARCELS OF LAND IN A RURAL HOMESITE DEVELOP-
  5        MENT PLAT; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF  A
  6        NEW  SECTION  63-602FF, IDAHO CODE, TO PROVIDE EXEMPTION FROM TAXATION FOR
  7        THE SPECULATIVE PORTION OF THE VALUE OF EACH PARCEL OF  LAND  IN  A  RURAL
  8        HOMESITE  DEVELOPMENT PLAT UNTIL SUCH TIME AS IMPROVEMENTS ARE BEING BUILT
  9        UPON THE PARCEL, OR ANY INTEREST IN THE OWNERSHIP OF THE PARCEL IS SOLD OR
 10        TRANSFERRED TO AN UNRELATED ENTITY AND TO PROVIDE  DEFINITIONS;  DECLARING
 11        AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
                                                                        
 12    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 13        SECTION  1.  That Section 63-602FF, Idaho Code, be, and the same is hereby
 14    repealed.
                                                                        
 15        SECTION 2.  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 63-602FF, Idaho Code, and to read as follows:
                                                                        
 18        63-602FF.  PARTIAL EXEMPTION FOR PARCELS  OF  LAND  IN  A  RURAL  HOMESITE
 19    DEVELOPMENT  PLAT.  (1) The speculative portion of the value of each parcel of
 20    land in a rural homesite development plat shall be exempt from taxation  until
 21    such  time as improvements are being built upon the parcel, or any interest in
 22    the ownership of the parcel is sold or transferred to an unrelated entity.
 23        (2)  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  homesite  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)  "Speculative  portion" means that portion of the value of each parcel
 31        created by a rural homesite development plat  in  excess  of  one  hundred
 32        fifty  percent  (150%)  of the pro rata value of the parcel as declared by
 33        the county assessor in 2005, or thereafter the year immediately  preceding
 34        the  year the plat was recorded. Speculative portion shall not include the
 35        value of infrastructure improvements constructed on the platted property.
 36        (d)  "Unrelated entity" means any business entity or trust that  is  owned
 37        fifty  percent  (50%) or less by the seller/transferor of the property, or
 38        an individual not related to the seller/transferor as a spouse  or  lineal
 39        descendant.
                                                                        
 40        SECTION  3.  An  emergency  existing  therefor,  which emergency is hereby
 41    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 / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 16015

The purpose of this legislation is to provide exemption from
taxation for the speculative portion of the value of each parcel of
land in a rural homesite development plat until such time as
improvements are being built upon the parcel, or any interest in
the ownership of the parcel is sold or transferred to an unrelated
entity and to provide definitions.


                           FISCAL NOTE

There is no fiscal impact to the general fund.  Enactment of this
statute would preserve the growth in taxable value in rural
counties.





Contact
Name: Russell Westerberg 
Phone: 336-0305
Rep Lenore Hardy Barrett
       332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                         H 658