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H0210aa,aa..........................................by REVENUE AND TAXATION
SCHOOL BONDS - Amends existing law relating to school bonds to provide that
all property exempt from taxation be included within the definition of
"market value for assessment purposes."
02/20 House intro - 1st rdg - to printing
02/21 Rpt prt - to Rev/Tax
03/09 Rpt out - rec d/p - to 2nd rdg
03/12 2nd rdg - to 3rd rdg
To Gen Ord
03/20 Rpt out amen - to engros
Rpt engros - 1st rdg - to 2nd rdg as amen
03/21 2nd rdg - to 3rd rdg as amen
03/22 To Gen Ord
Rpt out amen - to engros
03/23 Rpt engros - 1st rdg - to 2nd rdg as amen
03/26 2nd rdg - to 3rd rdg as amen
Rls susp - PASSED - 61-7-2
AYES -- Andrus, Bayer, Bedke, Bell, Bilbao, Black, Block, Bock, Boe,
Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Collins, Crane,
Durst, Edmunson, Hagedorn, Hart, Harwood, Henbest, Jaquet, Killen,
King, Kren, Labrador, Lake, LeFavour, Loertscher, Luker, Mathews,
McGeachin, Mortimer, Moyle, Nielsen, Pasley-Stuart, Patrick, Pence,
Raybould, Ring, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer,
Shepherd(8), Shirley, Shively, Smith(30), Snodgrass, Stevenson,
Thayn, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
NAYS -- Barrett, Clark, Eskridge, Marriott, Nonini, Shepherd(2),
Smith(24)
Absent and excused -- Anderson, Henderson
Floor Sponsor - Bedke
Title apvd - to Senate
03/26 Senate intro - 1st rdg - to Loc Gov
03/29 Rpt out - rec d/p - to 2nd rdg
Rls susp - PASSED - 32-1-2
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Hammond,
Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
Malepeai, McGee, McKenzie, Pearce, Richardson, Schroeder, Siddoway,
Stegner, Stennett, Werk(Douglas)
NAYS -- McKague
Absent and excused -- Coiner, Goedde
Floor Sponsor - Little
Title apvd - to House
03/29 To enrol - Rpt enrol - Sp signed
03/30 Pres signed - To Governor
04/04 Governor signed
Session Law Chapter 358
Effective: 04/04/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 210
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO SCHOOL BONDS; AMENDING SECTION 33-1103, IDAHO CODE, TO PROVIDE
3 THAT ALL PROPERTY EXEMPT FROM TAXATION PURSUANT TO SECTION 63-602G, IDAHO
4 CODE, BE INCLUDED WITHIN THE DEFINITION OF "MARKET VALUE FOR ASSESSMENT
5 PURPOSES"; AND DECLARING AN EMERGENCY.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 33-1103, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 33-1103. DEFINITIONS -- BONDS -- LIMITATION ON AMOUNT -- ELECTIONS TO AU-
10 THORIZE ISSUANCE. For the purposes of this chapter the following definitions
11 shall have the meanings specified: "Market value for assessment purposes"
12 means the amount of the last preceding equalized assessment of all taxable
13 property and all property exempt from taxation pursuant to section 63-602G,
14 Idaho Code, within the school district on the tax rolls completed and avail-
15 able as of the date of approval by the electorate in the school bond election.
16 "Aggregate outstanding indebtedness" means the total sum of unredeemed out-
17 standing bonds, minus all moneys in the bond interest and redemption fund or
18 funds accumulated for the redemption of such outstanding bonds, and minus the
19 sum of all taxes levied for the redemption of such bonds, with the exception
20 of that portion of such tax levies required for the payment of interest on
21 bonds, which taxes remain uncollected. "Issue," "issued," or "issuance" means
22 a formal delivery of bonds to any purchaser thereof and payment therefor to
23 the school district.
24 The board of trustees of any school district, upon approval of a majority
25 thereof, may submit to the qualified school district electors of the district
26 the question as to whether the board shall be empowered to issue negotiable
27 coupon bonds of the district in an amount and for a period of time to be named
28 in the notice of election.
29 An elementary school district which employs not less than six (6) teach-
30 ers, or a school district operating an elementary school or schools, and a
31 secondary school or schools, or issuing bonds for the acquisition of a second-
32 ary school or schools, may issue bonds in an amount not to exceed five percent
33 (5%) of the market value for assessment purposes thereof, less the aggregate
34 outstanding indebtedness; and no other school district shall issue bonds in an
35 amount to exceed at any time two percent (2%) of the market value for assess-
36 ment purposes thereof less the aggregate outstanding indebtedness. The market
37 value for assessment purposes, the aggregate outstanding indebtedness and the
38 unexhausted debt-incurring power of the district shall each be determined as
39 of the date of approval by the electors in the school bond election.
40 Notice of the bond election shall be given, the election shall be con-
41 ducted and the returns thereof canvassed, and the qualifications of electors
42 voting or offering to vote shall be, as provided in sections 33-401 through
43 33-406, Idaho Code.
2
1 The question shall be approved only if the percentage of votes cast at
2 such election were cast in favor thereof is that which now, or may hereafter
3 be, set by the constitution of the state of Idaho. Upon such approval of the
4 issuance of bonds, the same may be issued at any time after the date of such
5 election.
6 SECTION 2. An emergency existing therefor, which emergency is hereby
7 declared to exist, this act shall be in full force and effect on and after its
8 passage and approval.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
Moved by Moyle
Seconded by Roberts
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 210, As Amended
1 AMENDMENT TO SECTION 1
2 On page 1 of the engrossed bill, delete lines 27 and 28, and insert:
3 "63-602G, Idaho Code, within the".
4 AMENDMENT TO THE BILL
5 On page 2, delete lines 20 through 53; and delete pages 3, 4 and 5 and
6 insert:
7 "SECTION 2. An emergency existing therefor, which emergency is hereby
8 declared to exist, this act shall be in full force and effect on and after its
9 passage and approval.".
10 CORRECTION TO TITLE
11 On page 1, delete lines 5 through 18, and insert: "FOR ASSESSMENT PUR-
12 POSES" AND TO MAKE TECHNICAL CORRECTIONS; AND DECLARING AN EMERGENCY.".
2
Moved by Roberts
Seconded by Bedke
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENTS TO H.B. NO. 210
1 AMENDMENT TO SECTION 1
2 On page 1 of the printed bill, delete lines 9 through 43; and on page 2,
3 delete lines 1 through 5, and insert:
4 "33-1103. DEFINITIONS -- BONDS -- LIMITATION ON AMOUNT -- ELECTIONS TO
5 AUTHORIZE ISSUANCE. (1) For the purposes of this chapter the following defini-
6 tions shall have the meanings specified: "Market value for assessment pur-
7 poses" means the amount of the last preceding equalized assessment of all tax-
8 able property and all property exempt from taxation pursuant to section
9 63-602G, Idaho Code, which property has been voted by the qualified electors
10 to be fully subject to taxation for purposes of the school bond within the
11 school district on the tax rolls completed and available as of the date of
12 approval by the electorate in the school bond election. "Aggregate outstanding
13 indebtedness" means the total sum of unredeemed outstanding bonds, minus all
14 moneys in the bond interest and redemption fund or funds accumulated for the
15 redemption of such outstanding bonds, and minus the sum of all taxes levied
16 for the redemption of such bonds, with the exception of that portion of such
17 tax levies required for the payment of interest on bonds, which taxes remain
18 uncollected. "Issue," "issued," or "issuance" means a formal delivery of bonds
19 to any purchaser thereof and payment therefor to the school district.
20 (2) The board of trustees of any school district, upon approval of a
21 majority thereof, may submit to the qualified school district electors of the
22 district the question as to whether the board shall be empowered to issue
23 negotiable coupon bonds of the district in an amount and for a period of time
24 to be named in the notice of election.
25 (3) An elementary school district which employs not less than six (6)
26 teachers, or a school district operating an elementary school or schools, and
27 a secondary school or schools, or issuing bonds for the acquisition of a sec-
28 ondary school or schools, may issue bonds in an amount not to exceed five per-
29 cent (5%) of the market value for assessment purposes thereof, less the aggre-
30 gate outstanding indebtedness; and no other school district shall issue bonds
31 in an amount to exceed at any time two percent (2%) of the market value for
32 assessment purposes thereof less the aggregate outstanding indebtedness. The
33 market value for assessment purposes, the aggregate outstanding indebtedness
34 and the unexhausted debt-incurring power of the district shall each be deter-
35 mined as of the date of approval by the electors in the school bond election.
36 (4) Notice of the bond election shall be given, the election shall be
37 conducted and the returns thereof canvassed, and the qualifications of elec-
38 tors voting or offering to vote shall be, as provided in sections 33-401
39 through 33-406, Idaho Code.
40 (5) The question shall be approved only if the percentage of votes cast
41 at such election were cast in favor thereof is that which now, or may hereaf-
42 ter be, set by the constitution of the state of Idaho. Upon such approval of
43 the issuance of bonds, the same may be issued at any time after the date of
44 such election.".
3
1 AMENDMENT TO THE BILL
2 On page 2, delete lines 6 through 8, and insert:
3 "SECTION 2. That Section 63-602G, Idaho Code, be, and the same is hereby
4 amended to read as follows:
5 63-602G. PROPERTY EXEMPT FROM TAXATION -- HOMESTEAD. (1) During the tax
6 year 2006 and each year thereafter, subject to annual adjustment as provided
7 herein, the first seventy-five thousand dollars ($75,000) of the market value
8 for assessment purposes of the homestead as that term is defined in section
9 63-701, Idaho Code, or fifty percent (50%) of the market value for assessment
10 purposes of the homestead as that term is defined in section 63-701, Idaho
11 Code, whichever is the lesser, shall be exempt from property taxation. Begin-
12 ning for tax year 2007, the state tax commission shall publish adjustments to
13 the maximum amount subject to property tax exemption to reflect cost-of-living
14 fluctuations. The adjustments shall effect changes in the amount subject to
15 tax exemption by a percentage equal as near as practicable to the annual
16 increase in the Idaho housing price index as determined by the United States
17 office of federal housing enterprise oversight. The state tax commission shall
18 publish the adjustments required by this subsection each and every year the
19 office of federal housing enterprise oversight announces a change in the Idaho
20 housing price index. The adjustments shall be published no later than October
21 1 of each year and shall be effective for claims filed in and for the follow-
22 ing property tax year. The publication of adjustments under this subsection
23 shall be exempt from the provisions of chapter 52, title 67, Idaho Code, but
24 shall be provided to each county and to members of the public upon request and
25 without charge.
26 (2) The exemption allowed by this section may be granted only if:
27 (a) The homestead is owner-occupied and used as the primary dwelling
28 place of the owner as of January 1, provided that in the event the home-
29 stead is owner-occupied after January 1 but before April 15, the owner of
30 the property is entitled to the exemption. The homestead may consist of
31 part of a multidwelling or multipurpose building and shall include all of
32 such dwelling or building except any portion used exclusively for anything
33 other than the primary dwelling of the owner. The presence of an office in
34 a homestead, which office is used for multiple purposes, including busi-
35 ness and personal use, shall not prevent the owner from claiming the
36 exemption provided in this section; and
37 (b) The tax commission has certified to the board of county commissioners
38 that all properties in the county which are subject to appraisal by the
39 county assessor have, in fact, been appraised uniformly so as to secure a
40 just valuation for all property within the county; and
41 (c) The owner has certified to the county assessor by April 15 that:
42 (i) He is making application for the exemption allowed by this sec-
43 tion;
44 (ii) That the homestead is his primary dwelling place; and
45 (iii) That he has not made application in any other county for the
46 exemption, and has not made application for the exemption on any
47 other homestead in the county.
48 (d) For the purpose of this section, the definition of "owner" shall be
49 the same definition set forth in section 63-701(7), Idaho Code.
50 When an "owner," pursuant to the provisions of section 63-701(7),
51 Idaho Code, is any person who is the beneficiary of a revocable or irrevo-
52 cable trust, or who is a partner of a limited partnership, a member of a
53 limited liability company, or shareholder of a corporation, he or she may
54 provide proof of the trust, limited partnership, limited liability com-
4
1 pany, or corporation in the manner set forth in section 63-703(4), Idaho
2 Code.
3 (e) Any owner may request in writing the return of all copies of any doc-
4 uments submitted with the affidavit set forth in section 63-703(4), Idaho
5 Code, that are held by a county assessor, and the copies shall be returned
6 by the county assessor upon submission of the affidavit in proper form.
7 (f) For the purpose of this section, the definition of "primary dwelling
8 place" shall be the same definition set forth in section 63-701(8), Idaho
9 Code.
10 (g) For the purpose of this section, the definition of "occupied" shall
11 be the same definition set forth in section 63-701(6), Idaho Code.
12 (3) An owner need only make application for the exemption described in
13 subsection (1) of this section once, as long as all of the following condi-
14 tions are met:
15 (a) The owner has received the exemption during the previous year as a
16 result of his making a valid application as defined in subsection (2)(c)
17 of this section.
18 (b) The owner or beneficiary, partner, member or shareholder, as appro-
19 priate, still occupies the same homestead for which the owner made appli-
20 cation.
21 (c) The homestead described in subsection (3)(b) of this section is
22 owner-occupied or occupied by a beneficiary, partner, member or share-
23 holder, as appropriate, and used as the primary dwelling place of the
24 owner or beneficiary, partner, member or shareholder, as appropriate, as
25 of January 1; provided however, that in the event the homestead is owner-
26 occupied after January 1, but before April 15, the owner of the property
27 is entitled to the exemption.
28 (4) The exemption allowed by this section must be taken before the reduc-
29 tion in taxes provided by sections 63-701 through 63-710, Idaho Code, is
30 applied.
31 (5) Recovery of property tax exemptions allowed by this section but
32 improperly claimed or approved:
33 (a) Upon discovery of evidence, facts or circumstances indicating any
34 exemption allowed by this section was improperly claimed or approved, the
35 county assessor shall decide whether the exemption claimed should be
36 allowed and if not, notify the taxpayer in writing, assess a recovery of
37 property tax and notify the county treasurer of this assessment.
38 (b) When information indicating that an improper claim for the exemption
39 allowed by this section is discovered by the state tax commission, the
40 state tax commission may disclose this information to the appropriate
41 county assessor, board of county commissioners and county treasurer.
42 Information disclosed to county officials by the state tax commission
43 under this subsection may be used to decide the validity of any entitle-
44 ment to the exemption provided in this section and is not otherwise sub-
45 ject to public disclosure pursuant to chapter 3, title 9, Idaho Code.
46 (c) The assessment and collection of the recovery of property tax must
47 begin within the seven (7) year period beginning the date the assessment
48 notice reflecting the improperly claimed or approved exemption was
49 required to be mailed to the taxpayer.
50 (d) The taxpayer may appeal to the board of county commissioners the
51 decision by the county assessor to assess the recovery of property tax
52 within thirty (30) days of the date the county assessor sent the notice to
53 the taxpayer pursuant to this section.
54 (e) A recovery of property tax shall be for each year the exemption
55 allowed by this section was improperly claimed or approved up to the
5
1 lesser of a maximum of seven (7) years or until the property was trans-
2 ferred to a bona fide purchaser for value. The amount of the recovery of
3 property tax shall be calculated using the product of the amount of
4 exempted value for each year multiplied by the levy for that year plus
5 costs, late charges and interest for each year at the rates equal to those
6 provided for delinquent property taxes during that year.
7 (f) Any recovery of property tax shall be due and payable no later than
8 the date provided for property taxes in section 63-903, Idaho Code, and
9 if not timely paid, late charges and interest, beginning the first day of
10 January in the year following the year the county assessor sent the notice
11 to the taxpayer pursuant to this section, shall be calculated at the cur-
12 rent rate provided for property taxes.
13 (g) Recovered property taxes shall be billed, collected and distributed
14 in the same manner as property taxes, except each taxing district or unit
15 shall be notified of the amount of any recovered property taxes included
16 in any distribution.
17 (h) Any unpaid recovered property taxes shall become a lien upon the real
18 property in the same manner as provided for property taxes in section
19 63-206, Idaho Code, except such lien shall attach as of the first day of
20 January in the year following the year the county assessor sent the notice
21 to the taxpayer pursuant to this section.
22 (i) For purposes of the limitation provided by section 63-802, Idaho
23 Code, moneys received pursuant to this subsection as recovery of property
24 tax shall be treated as property tax revenue.
25 (6) The legislature declares that this exemption is necessary and just.
26 (7) A homestead having previously qualified for exemption under this sec-
27 tion in the preceding year, shall not lose such qualification due to: the
28 owner's, beneficiary's, partner's, member's or shareholder's absence in the
29 current year by reason of active military service in a designated combat zone,
30 as defined in section 112 of the Internal Revenue Code, or because the home-
31 stead has been leased because the owner, beneficiary, partner, member or
32 shareholder is absent in the current year by reason of active military service
33 in a designated combat zone, as defined in section 112 of the Internal Revenue
34 Code. If an owner fails to timely apply for exemption as required in this sec-
35 tion solely by reason of active duty in a designated combat zone by the owner,
36 beneficiary, partner, member or shareholder, as appropriate, as defined in
37 section 112 of the Internal Revenue Code, and such homestead would have other-
38 wise qualified under this section, then the board of county commissioners of
39 the county in which the homestead is located shall refund property taxes, if
40 previously paid, in an amount equal to the exemption which would otherwise
41 have applied.
42 (8) The exemption provided in this section shall not apply to the levies
43 authorized in chapter 11, title 33, Idaho Code, relating to any school dis-
44 trict that incurs bonded indebtedness in excess of the amounts specified in
45 subsection (3) of section 33-1103, Idaho Code, when such bond is first autho-
46 rized after January 1, 2008, and the qualified electors of the school district
47 vote for such property to be fully subject to taxation for purposes of the
48 school bond. The question submitted to the qualified electors pursuant to this
49 subsection shall be included as a part of the question requesting approval for
50 the bonded indebtedness and shall have the same requirements for passage as
51 the bond. The school district shall notify the county clerk and the state tax
52 commission within fifteen (15) calendar days following such a successful
53 election.
54 SECTION 3. That Chapter 8, Title 63, Idaho Code, be, and the same is
6
1 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
2 ignated as Section 63-802B, Idaho Code, and to read as follows:
3 63-802B. BOND ELECTIONS -- PROPERTY TAX INCREASE ELECTIONS -- ELECTIONS
4 TO CREATE A NEW TAXING DISTRICT. In the case of an election: (1) to incur
5 bonded indebtedness, (2) to increase the property tax portion of its budget
6 pursuant to subsection (1)(f) or (1)(g) of section 63-802, Idaho Code, or (3)
7 to create a new taxing district, either the taxing district, or if the
8 election is to create a new taxing district the county clerk, shall mail a
9 notice of the election, not less than fourteen (14) calendar days prior to the
10 election, to all residences within either the taxing district or proposed
11 taxing district or to residents of the taxing district or proposed taxing dis-
12 trict who are eligible to vote in this election. The notice shall state with
13 specificity: the purpose of the election, the date of the election, polling
14 places, the time the polls will be open, the aggregate amount of taxes that
15 will be raised in the taxing district if the election is successful and the
16 increase that will occur per one hundred thousand dollars ($100,000) of tax-
17 able value of property above any exemptions, of residential property, commer-
18 cial property, industrial property, land actively devoted to agriculture and
19 operating property. Compliance with this section shall satisfy any notice or
20 publication requirement as may be provided by law.
21 SECTION 4. An emergency existing therefor, which emergency is hereby
22 declared to exist, Sections 1 and 3 of this act shall be in full force and
23 effect on and after passage and approval; and Section 2 of this act shall be
24 in full force and effect on and after January 1, 2008.".
25 CORRECTIONS TO TITLE
26 On page 1, in line 2, delete "RELATING TO SCHOOL BONDS" and insert:
27 "RELATING TO PROPERTY TAX ELECTIONS"; and delete line 5, and insert:
28 "PURPOSES" WHICH PROPERTY HAS BEEN VOTED BY THE QUALIFIED ELECTORS TO BE
29 FULLY SUBJECT TO TAXATION FOR PURPOSES OF THE SCHOOL BOND AND TO MAKE TECHNI-
30 CAL CORRECTIONS; AMENDING SECTION 63-602G, IDAHO CODE, TO PROVIDE THAT THE
31 HOMESTEAD PROPERTY TAX EXEMPTION SHALL NOT APPLY TO THE LEVIES AUTHORIZED IN
32 CHAPTER 11, TITLE 33, IDAHO CODE, RELATING TO SCHOOL BONDS WHEN SUCH LEVIES
33 ARE FIRST AUTHORIZED AFTER JANUARY 1, 2008, AND THE QUALIFIED ELECTORS OF THE
34 SCHOOL DISTRICT VOTE FOR SUCH PROPERTY TO BE FULLY SUBJECT TO TAXATION WHEN
35 CERTAIN CONDITIONS OCCUR AND TO DEFINE A TERM; AMENDING CHAPTER 8, TITLE 63,
36 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 63-802B, IDAHO CODE, TO PROVIDE
37 FOR NOTIFICATION WHEN THERE IS TO BE AN ELECTION TO INCUR BONDED INDEBTEDNESS,
38 INCREASE PROPERTY TAXES OR CREATE A NEW TAXING DISTRICT, TO PROVIDE REQUIRE-
39 MENTS OF THE NOTICE AND TO PROVIDE THE EFFECT OF THE NOTICE; DECLARING AN
40 EMERGENCY AND PROVIDING EFFECTIVE DATES.".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 210, As Amended, As Amended
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAX ELECTIONS; AMENDING SECTION 33-1103, IDAHO CODE, TO
3 PROVIDE THAT ALL PROPERTY EXEMPT FROM TAXATION PURSUANT TO SECTION
4 63-602G, IDAHO CODE, BE INCLUDED WITHIN THE DEFINITION OF "MARKET VALUE
5 FOR ASSESSMENT PURPOSES" AND TO MAKE TECHNICAL CORRECTIONS; AND DECLARING
6 AN EMERGENCY.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 33-1103, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 33-1103. DEFINITIONS -- BONDS -- LIMITATION ON AMOUNT -- ELECTIONS TO AU-
11 THORIZE ISSUANCE. (1) For the purposes of this chapter the following defini-
12 tions shall have the meanings specified: "Market value for assessment pur-
13 poses" means the amount of the last preceding equalized assessment of all tax-
14 able property and all property exempt from taxation pursuant to section
15 63-602G, Idaho Code, within the school district on the tax rolls completed and
16 available as of the date of approval by the electorate in the school bond
17 election. "Aggregate outstanding indebtedness" means the total sum of unre-
18 deemed outstanding bonds, minus all moneys in the bond interest and redemption
19 fund or funds accumulated for the redemption of such outstanding bonds, and
20 minus the sum of all taxes levied for the redemption of such bonds, with the
21 exception of that portion of such tax levies required for the payment of
22 interest on bonds, which taxes remain uncollected. "Issue," "issued," or
23 "issuance" means a formal delivery of bonds to any purchaser thereof and pay-
24 ment therefor to the school district.
25 (2) The board of trustees of any school district, upon approval of a
26 majority thereof, may submit to the qualified school district electors of the
27 district the question as to whether the board shall be empowered to issue
28 negotiable coupon bonds of the district in an amount and for a period of time
29 to be named in the notice of election.
30 (3) An elementary school district which employs not less than six (6)
31 teachers, or a school district operating an elementary school or schools, and
32 a secondary school or schools, or issuing bonds for the acquisition of a sec-
33 ondary school or schools, may issue bonds in an amount not to exceed five per-
34 cent (5%) of the market value for assessment purposes thereof, less the aggre-
35 gate outstanding indebtedness; and no other school district shall issue bonds
36 in an amount to exceed at any time two percent (2%) of the market value for
37 assessment purposes thereof less the aggregate outstanding indebtedness. The
38 market value for assessment purposes, the aggregate outstanding indebtedness
39 and the unexhausted debt-incurring power of the district shall each be deter-
40 mined as of the date of approval by the electors in the school bond election.
41 (4) Notice of the bond election shall be given, the election shall be
42 conducted and the returns thereof canvassed, and the qualifications of elec-
43 tors voting or offering to vote shall be, as provided in sections 33-401
2
1 through 33-406, Idaho Code.
2 (5) The question shall be approved only if the percentage of votes cast
3 at such election were cast in favor thereof is that which now, or may hereaf-
4 ter be, set by the constitution of the state of Idaho. Upon such approval of
5 the issuance of bonds, the same may be issued at any time after the date of
6 such election.
7 SECTION 2. An emergency existing therefor, which emergency is hereby
8 declared to exist, this act shall be in full force and effect on and after its
9 passage and approval.
3
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 210, As Amended
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO PROPERTY TAX ELECTIONS; AMENDING SECTION 33-1103, IDAHO CODE, TO
3 PROVIDE THAT ALL PROPERTY EXEMPT FROM TAXATION PURSUANT TO SECTION
4 63-602G, IDAHO CODE, BE INCLUDED WITHIN THE DEFINITION OF "MARKET VALUE
5 FOR ASSESSMENT PURPOSES" WHICH PROPERTY HAS BEEN VOTED BY THE QUALIFIED
6 ELECTORS TO BE FULLY SUBJECT TO TAXATION FOR PURPOSES OF THE SCHOOL BOND
7 AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 63-602G, IDAHO CODE,
8 TO PROVIDE THAT THE HOMESTEAD PROPERTY TAX EXEMPTION SHALL NOT APPLY TO
9 THE LEVIES AUTHORIZED IN CHAPTER 11, TITLE 33, IDAHO CODE, RELATING TO
10 SCHOOL BONDS WHEN SUCH LEVIES ARE FIRST AUTHORIZED AFTER JANUARY 1, 2008,
11 AND THE QUALIFIED ELECTORS OF THE SCHOOL DISTRICT VOTE FOR SUCH PROPERTY
12 TO BE FULLY SUBJECT TO TAXATION WHEN CERTAIN CONDITIONS OCCUR AND TO
13 DEFINE A TERM; AMENDING CHAPTER 8, TITLE 63, IDAHO CODE, BY THE ADDITION
14 OF A NEW SECTION 63-802B, IDAHO CODE, TO PROVIDE FOR NOTIFICATION WHEN
15 THERE IS TO BE AN ELECTION TO INCUR BONDED INDEBTEDNESS, INCREASE PROPERTY
16 TAXES OR CREATE A NEW TAXING DISTRICT, TO PROVIDE REQUIREMENTS OF THE
17 NOTICE AND TO PROVIDE THE EFFECT OF THE NOTICE; DECLARING AN EMERGENCY AND
18 PROVIDING EFFECTIVE DATES.
19 Be It Enacted by the Legislature of the State of Idaho:
20 SECTION 3. That Section 33-1103, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 33-1103. DEFINITIONS -- BONDS -- LIMITATION ON AMOUNT -- ELECTIONS TO AU-
23 THORIZE ISSUANCE. (1) For the purposes of this chapter the following defini-
24 tions shall have the meanings specified: "Market value for assessment pur-
25 poses" means the amount of the last preceding equalized assessment of all tax-
26 able property and all property exempt from taxation pursuant to section
27 63-602G, Idaho Code, which property has been voted by the qualified electors
28 to be fully subject to taxation for purposes of the school bond within the
29 school district on the tax rolls completed and available as of the date of
30 approval by the electorate in the school bond election. "Aggregate outstanding
31 indebtedness" means the total sum of unredeemed outstanding bonds, minus all
32 moneys in the bond interest and redemption fund or funds accumulated for the
33 redemption of such outstanding bonds, and minus the sum of all taxes levied
34 for the redemption of such bonds, with the exception of that portion of such
35 tax levies required for the payment of interest on bonds, which taxes remain
36 uncollected. "Issue," "issued," or "issuance" means a formal delivery of bonds
37 to any purchaser thereof and payment therefor to the school district.
38 (2) The board of trustees of any school district, upon approval of a
39 majority thereof, may submit to the qualified school district electors of the
40 district the question as to whether the board shall be empowered to issue
41 negotiable coupon bonds of the district in an amount and for a period of time
42 to be named in the notice of election.
43 (3) An elementary school district which employs not less than six (6)
44 teachers, or a school district operating an elementary school or schools, and
45 a secondary school or schools, or issuing bonds for the acquisition of a sec-
46 ondary school or schools, may issue bonds in an amount not to exceed five per-
4
1 cent (5%) of the market value for assessment purposes thereof, less the aggre-
2 gate outstanding indebtedness; and no other school district shall issue bonds
3 in an amount to exceed at any time two percent (2%) of the market value for
4 assessment purposes thereof less the aggregate outstanding indebtedness. The
5 market value for assessment purposes, the aggregate outstanding indebtedness
6 and the unexhausted debt-incurring power of the district shall each be deter-
7 mined as of the date of approval by the electors in the school bond election.
8 (4) Notice of the bond election shall be given, the election shall be
9 conducted and the returns thereof canvassed, and the qualifications of elec-
10 tors voting or offering to vote shall be, as provided in sections 33-401
11 through 33-406, Idaho Code.
12 (5) The question shall be approved only if the percentage of votes cast
13 at such election were cast in favor thereof is that which now, or may hereaf-
14 ter be, set by the constitution of the state of Idaho. Upon such approval of
15 the issuance of bonds, the same may be issued at any time after the date of
16 such election.
17 SECTION 4. That Section 63-602G, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 63-602G. PROPERTY EXEMPT FROM TAXATION -- HOMESTEAD. (1) During the tax
20 year 2006 and each year thereafter, subject to annual adjustment as provided
21 herein, the first seventy-five thousand dollars ($75,000) of the market value
22 for assessment purposes of the homestead as that term is defined in section
23 63-701, Idaho Code, or fifty percent (50%) of the market value for assessment
24 purposes of the homestead as that term is defined in section 63-701, Idaho
25 Code, whichever is the lesser, shall be exempt from property taxation. Begin-
26 ning for tax year 2007, the state tax commission shall publish adjustments to
27 the maximum amount subject to property tax exemption to reflect cost-of-living
28 fluctuations. The adjustments shall effect changes in the amount subject to
29 tax exemption by a percentage equal as near as practicable to the annual
30 increase in the Idaho housing price index as determined by the United States
31 office of federal housing enterprise oversight. The state tax commission shall
32 publish the adjustments required by this subsection each and every year the
33 office of federal housing enterprise oversight announces a change in the Idaho
34 housing price index. The adjustments shall be published no later than October
35 1 of each year and shall be effective for claims filed in and for the follow-
36 ing property tax year. The publication of adjustments under this subsection
37 shall be exempt from the provisions of chapter 52, title 67, Idaho Code, but
38 shall be provided to each county and to members of the public upon request and
39 without charge.
40 (2) The exemption allowed by this section may be granted only if:
41 (a) The homestead is owner-occupied and used as the primary dwelling
42 place of the owner as of January 1, provided that in the event the home-
43 stead is owner-occupied after January 1 but before April 15, the owner of
44 the property is entitled to the exemption. The homestead may consist of
45 part of a multidwelling or multipurpose building and shall include all of
46 such dwelling or building except any portion used exclusively for anything
47 other than the primary dwelling of the owner. The presence of an office in
48 a homestead, which office is used for multiple purposes, including busi-
49 ness and personal use, shall not prevent the owner from claiming the
50 exemption provided in this section; and
51 (b) The tax commission has certified to the board of county commissioners
52 that all properties in the county which are subject to appraisal by the
53 county assessor have, in fact, been appraised uniformly so as to secure a
5
1 just valuation for all property within the county; and
2 (c) The owner has certified to the county assessor by April 15 that:
3 (i) He is making application for the exemption allowed by this sec-
4 tion;
5 (ii) That the homestead is his primary dwelling place; and
6 (iii) That he has not made application in any other county for the
7 exemption, and has not made application for the exemption on any
8 other homestead in the county.
9 (d) For the purpose of this section, the definition of "owner" shall be
10 the same definition set forth in section 63-701(7), Idaho Code.
11 When an "owner," pursuant to the provisions of section 63-701(7),
12 Idaho Code, is any person who is the beneficiary of a revocable or irrevo-
13 cable trust, or who is a partner of a limited partnership, a member of a
14 limited liability company, or shareholder of a corporation, he or she may
15 provide proof of the trust, limited partnership, limited liability com-
16 pany, or corporation in the manner set forth in section 63-703(4), Idaho
17 Code.
18 (e) Any owner may request in writing the return of all copies of any doc-
19 uments submitted with the affidavit set forth in section 63-703(4), Idaho
20 Code, that are held by a county assessor, and the copies shall be returned
21 by the county assessor upon submission of the affidavit in proper form.
22 (f) For the purpose of this section, the definition of "primary dwelling
23 place" shall be the same definition set forth in section 63-701(8), Idaho
24 Code.
25 (g) For the purpose of this section, the definition of "occupied" shall
26 be the same definition set forth in section 63-701(6), Idaho Code.
27 (3) An owner need only make application for the exemption described in
28 subsection (1) of this section once, as long as all of the following condi-
29 tions are met:
30 (a) The owner has received the exemption during the previous year as a
31 result of his making a valid application as defined in subsection (2)(c)
32 of this section.
33 (b) The owner or beneficiary, partner, member or shareholder, as appro-
34 priate, still occupies the same homestead for which the owner made appli-
35 cation.
36 (c) The homestead described in subsection (3)(b) of this section is
37 owner-occupied or occupied by a beneficiary, partner, member or share-
38 holder, as appropriate, and used as the primary dwelling place of the
39 owner or beneficiary, partner, member or shareholder, as appropriate, as
40 of January 1; provided however, that in the event the homestead is owner-
41 occupied after January 1, but before April 15, the owner of the property
42 is entitled to the exemption.
43 (4) The exemption allowed by this section must be taken before the reduc-
44 tion in taxes provided by sections 63-701 through 63-710, Idaho Code, is
45 applied.
46 (5) Recovery of property tax exemptions allowed by this section but
47 improperly claimed or approved:
48 (a) Upon discovery of evidence, facts or circumstances indicating any
49 exemption allowed by this section was improperly claimed or approved, the
50 county assessor shall decide whether the exemption claimed should be
51 allowed and if not, notify the taxpayer in writing, assess a recovery of
52 property tax and notify the county treasurer of this assessment.
53 (b) When information indicating that an improper claim for the exemption
54 allowed by this section is discovered by the state tax commission, the
55 state tax commission may disclose this information to the appropriate
6
1 county assessor, board of county commissioners and county treasurer.
2 Information disclosed to county officials by the state tax commission
3 under this subsection may be used to decide the validity of any entitle-
4 ment to the exemption provided in this section and is not otherwise sub-
5 ject to public disclosure pursuant to chapter 3, title 9, Idaho Code.
6 (c) The assessment and collection of the recovery of property tax must
7 begin within the seven (7) year period beginning the date the assessment
8 notice reflecting the improperly claimed or approved exemption was
9 required to be mailed to the taxpayer.
10 (d) The taxpayer may appeal to the board of county commissioners the
11 decision by the county assessor to assess the recovery of property tax
12 within thirty (30) days of the date the county assessor sent the notice to
13 the taxpayer pursuant to this section.
14 (e) A recovery of property tax shall be for each year the exemption
15 allowed by this section was improperly claimed or approved up to the
16 lesser of a maximum of seven (7) years or until the property was trans-
17 ferred to a bona fide purchaser for value. The amount of the recovery of
18 property tax shall be calculated using the product of the amount of
19 exempted value for each year multiplied by the levy for that year plus
20 costs, late charges and interest for each year at the rates equal to those
21 provided for delinquent property taxes during that year.
22 (f) Any recovery of property tax shall be due and payable no later than
23 the date provided for property taxes in section 63-903, Idaho Code, and
24 if not timely paid, late charges and interest, beginning the first day of
25 January in the year following the year the county assessor sent the notice
26 to the taxpayer pursuant to this section, shall be calculated at the cur-
27 rent rate provided for property taxes.
28 (g) Recovered property taxes shall be billed, collected and distributed
29 in the same manner as property taxes, except each taxing district or unit
30 shall be notified of the amount of any recovered property taxes included
31 in any distribution.
32 (h) Any unpaid recovered property taxes shall become a lien upon the real
33 property in the same manner as provided for property taxes in section
34 63-206, Idaho Code, except such lien shall attach as of the first day of
35 January in the year following the year the county assessor sent the notice
36 to the taxpayer pursuant to this section.
37 (i) For purposes of the limitation provided by section 63-802, Idaho
38 Code, moneys received pursuant to this subsection as recovery of property
39 tax shall be treated as property tax revenue.
40 (6) The legislature declares that this exemption is necessary and just.
41 (7) A homestead having previously qualified for exemption under this sec-
42 tion in the preceding year, shall not lose such qualification due to: the
43 owner's, beneficiary's, partner's, member's or shareholder's absence in the
44 current year by reason of active military service in a designated combat zone,
45 as defined in section 112 of the Internal Revenue Code, or because the home-
46 stead has been leased because the owner, beneficiary, partner, member or
47 shareholder is absent in the current year by reason of active military service
48 in a designated combat zone, as defined in section 112 of the Internal Revenue
49 Code. If an owner fails to timely apply for exemption as required in this sec-
50 tion solely by reason of active duty in a designated combat zone by the owner,
51 beneficiary, partner, member or shareholder, as appropriate, as defined in
52 section 112 of the Internal Revenue Code, and such homestead would have other-
53 wise qualified under this section, then the board of county commissioners of
54 the county in which the homestead is located shall refund property taxes, if
55 previously paid, in an amount equal to the exemption which would otherwise
7
1 have applied.
2 (8) The exemption provided in this section shall not apply to the levies
3 authorized in chapter 11, title 33, Idaho Code, relating to any school dis-
4 trict that incurs bonded indebtedness in excess of the amounts specified in
5 subsection (3) of section 33-1103, Idaho Code, when such bond is first autho-
6 rized after January 1, 2008, and the qualified electors of the school district
7 vote for such property to be fully subject to taxation for purposes of the
8 school bond. The question submitted to the qualified electors pursuant to this
9 subsection shall be included as a part of the question requesting approval for
10 the bonded indebtedness and shall have the same requirements for passage as
11 the bond. The school district shall notify the county clerk and the state tax
12 commission within fifteen (15) calendar days following such a successful
13 election.
14 SECTION 5. That Chapter 8, Title 63, Idaho Code, be, and the same is
15 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
16 ignated as Section 63-802B, Idaho Code, and to read as follows:
17 63-802B. BOND ELECTIONS -- PROPERTY TAX INCREASE ELECTIONS -- ELECTIONS
18 TO CREATE A NEW TAXING DISTRICT. In the case of an election: (1) to incur
19 bonded indebtedness, (2) to increase the property tax portion of its budget
20 pursuant to subsection (1)(f) or (1)(g) of section 63-802, Idaho Code, or (3)
21 to create a new taxing district, either the taxing district, or if the
22 election is to create a new taxing district the county clerk, shall mail a
23 notice of the election, not less than fourteen (14) calendar days prior to the
24 election, to all residences within either the taxing district or proposed
25 taxing district or to residents of the taxing district or proposed taxing dis-
26 trict who are eligible to vote in this election. The notice shall state with
27 specificity: the purpose of the election, the date of the election, polling
28 places, the time the polls will be open, the aggregate amount of taxes that
29 will be raised in the taxing district if the election is successful and the
30 increase that will occur per one hundred thousand dollars ($100,000) of tax-
31 able value of property above any exemptions, of residential property, commer-
32 cial property, industrial property, land actively devoted to agriculture and
33 operating property. Compliance with this section shall satisfy any notice or
34 publication requirement as may be provided by law.
35 SECTION 6. An emergency existing therefor, which emergency is hereby
36 declared to exist, Sections 1 and 3 of this act shall be in full force and
37 effect on and after passage and approval; and Section 2 of this act shall be
38 in full force and effect on and after January 1, 2008.
Reprint Reprint Reprint Reprint Reprint Reprint
STATEMENT OF PURPOSE
RS 16586
The purpose of this legislation is to amend Section 33-1103,
Idaho Code, to allow school districts to use market value
currently exempt under the homeowners exemption.
The districts most restrained by the existing debt limit are
those districts experiencing rapid growth in suburban areas that
have primarily property value growth in mid-priced homes, rather
than commercial and industrial property. This change also will
avoid a reduction in debt capacity in the event that the
homeowners exemption is increased by other legislation.
The legislation does not affect election requirements for
bonds, nor does it change the requirement that the district must
provide for repayment of the bonds from a dedicated property tax
levy. This legislation will not affect whether the bonds can or
cannot be issued without a levy rate increase which in practice
is the most significant limitation on the incurrence of bonded
indebtedness.
FISCAL NOTE
There is no fiscal impact on the general fund.
Contact
Name: Sen. Brad Little
Rep. M. M. "Zorro" Moyle
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 210 AA,AA