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H0069...............................................by REVENUE AND TAXATION
PROPERTY TAX - Amends existing law to revise provisions relating to
property tax exemptions for property belonging to religious corporations or
societies of the state; and to provide for property of religious
corporations or societies that is leased or used for business or commercial
purposes.
01/30 House intro - 1st rdg - to printing
01/31 Rpt prt - to Rev/Tax
02/01 Rpt out - rec d/p - to 2nd rdg
02/02 2nd rdg - to 3rd rdg
02/06 3rd rdg - PASSED - 70-0-0
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
Clark, Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart,
Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
Lake, LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin,
Mortimer, Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence,
Raybould, Ring, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer,
Shepherd(2), Shepherd(8), Shirley, Shively, Smith(30), Smith(24),
Snodgrass, Stevenson, Thayn, Trail, Vander Woude, Wills, Wood(27),
Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- None
Floor Sponsor - Wood(35)
Title apvd - to Senate
02/07 Senate intro - 1st rdg - to Loc Gov
02/14 Rpt out - rec d/p - to 2nd rdg
02/15 2nd rdg - to 3rd rdg
02/20 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
Little, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- None
Floor Sponsor - McKenzie
Title apvd - to House
02/21 To enrol
02/22 Rpt enrol - Sp signed
02/23 Pres signed
02/26 To Governor
03/02 Governor signed
Session Law Chapter 38
Effective: 07/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 69
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAX; AMENDING SECTION 63-602B, IDAHO CODE, TO REVISE PRO-
3 VISIONS RELATING TO PROPERTY TAX EXEMPTIONS FOR PROPERTY BELONGING TO
4 RELIGIOUS CORPORATIONS OR SOCIETIES OF THE STATE AND TO PROVIDE FOR PROP-
5 ERTY OF RELIGIOUS CORPORATIONS OR SOCIETIES THAT IS LEASED OR USED FOR
6 BUSINESS OR COMMERCIAL PURPOSES.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 63-602B, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 63-602B. PROPERTY EXEMPT FROM TAXATION -- RELIGIOUS CORPORATIONS OR SOCI-
11 ETIES. (1) The following property is exempt from taxation: property belonging
12 to any religious corporation or society of this state, used exclusively for
13 and in connection with public worship, and any parsonage belonging to such
14 corporation or society and occupied as such, and any recreational hall belong-
15 ing to and used in connection with the activities of such corporation or soci-
16 ety; and this exemption shall extend to property owned by any religious corpo-
17 ration or society which is used for any combination of religious, worship,
18 educational, purposes and or recreational purposes or activities, not designed
19 for profit of such religious corporation or society, including any and all
20 residences used for or in furtherance of such purposes.
21 (2) If the entirety of any property belonging to any such religious cor-
22 poration or society is leased by such owner, or if such religious corporation
23 or society uses the entirety of such property for business or commercial pur-
24 poses from which a revenue is derived, then the same shall be assessed and
25 taxed as any other property. If any such property is leased in part or used in
26 part by such religious corporation or society for such business or commercial
27 purposes, the assessor shall determine the value of the entire exempt prop-
28 erty, and the value of the part used or leased for such business or commercial
29 purposes, and that part used or leased for such business or commercial pur-
30 poses shall be taxed as any other property. The Idaho state tax commission
31 shall promulgate rules establishing a method of determining the value of the
32 part used or leased for such business or commercial purposes. If the value of
33 the part used or leased for such business or commercial purposes is determined
34 to be three percent (3%) or less of the value of the entirety, the whole of
35 said property shall remain exempt. If the value of the part used or leased for
36 such business or commercial purposes is determined to be more than three per-
37 cent (3%) of the value of the entirety, the assessor shall assess such propor-
38 tionate part of such property, and shall assess the trade fixtures used in
39 connection with the sale of all merchandise for such business or commercial
40 purposes, provided however, that the use or lease of any property by any such
41 religious corporation or society for athletic or recreational facilities, res-
42 idence halls or dormitories, meeting rooms or halls, auditoriums, or club
43 rooms for and in connection with the purposes for which such religious corpo-
2
1 ration or society is organized, shall not be deemed a business or commercial
2 purpose, even though fees or charges be imposed and revenue derived therefrom.
STATEMENT OF PURPOSE
RS 16748
Idaho Code Sections 63-602A through 602II contain a multitude
of exemptions to property tax. 602B contains the property tax
exemption for "religious corporations or societies". 602C contains
the property tax exemption for "fraternal, benevolent, or
charitable corporations or societies". Although a religious entity
is a type of benevolent or charitable entity, and therefore 602B
and 602C should logically have parallel language, this is not the
case in the existing law. This has caused practical problems in
recent years in applying the statute. Therefore, a coalition of
Idaho Association of Counties, Assessors, and others have met and
resolved those problems by the language in the bill.
First, the initial language of the section, amended to be
paragraph 1, has been simplified and parallels the construction of
the existing language in 602C, referring to the purposes and
activities of the religious entity as being the test for exemption.
Second, the language about "parsonages", which has caused much
confusion, has been eliminated and replaced with "any and all
residences used for or in furtherance of such purposes", which
properly reflects the types of usages meant to be exempt.
Finally, the proration language already existing in 602C,
which provides for property which is partially being used for a
non-exempt purpose, is duplicated in paragraph 2 of the bill.
Previously, unlike other charitable properties under 602C, a minor
use of a small portion of the property for a non-exempt usage would
make the entire property taxable for the entire year. This lead to
a large number of hardship applications which used county resources
of time and expense for the hearings.
This bill makes the playing field level for all types of
charitable properties and greatly simplifies the tests to be
applied for exemption, making it easier for both the applicant and
the county to determine whether property is exempt. It also allows
proration of the property tax when there is a partial non-exempt
usage, as in other charitable properties.
FISCAL NOTE
None
CONTACT:
Name: Robert L. Aldridge
Telephone:(208) 336-9880
Idaho Association of Counties
Tony Poinelli
Telephone: (208) 345-9126
STATEMENT OF PURPOSE/FISCAL NOTE H 69