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S1099......................................by LOCAL GOVERNMENT AND TAXATION
REAL PROPERTY TRANSFER ACT - Amends and adds to existing law to provide for
a report to the county assessor of any transfer or change of ownership
records.
02/08 Senate intro - 1st rdg - to printing
02/09 Rpt prt - to Loc Gov
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE SENATE
SENATE BILL NO. 1099
BY LOCAL GOVERNMENT AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO DISCLOSURE OF PROPERTY SALES; AMENDING CHAPTER 6, TITLE 55, IDAHO
3 CODE, BY THE ADDITION OF NEW SECTIONS 55-616, 55-617, 55-618, 55-619,
4 55-620, 55-621 AND 55-622, IDAHO CODE, TO PROVIDE A SHORT TITLE, TO PRO-
5 VIDE A PURPOSE, TO DEFINE TERMS, TO PROVIDE FOR A REPORT OF TRANSFERS OR
6 CHANGE OF OWNERSHIP RECORDS, TO PROVIDE FOR PROPERTY TRANSFER CERTIFI-
7 CATES, TO PROVIDE FOR EXEMPTIONS TO THE PROPERTY TRANSFER CERTIFICATE
8 REQUIREMENT AND TO PROVIDE FOR A RESTRICTION ON THE DISCLOSURE OF INFORMA-
9 TION; AMENDING SECTION 55-805, IDAHO CODE, TO REQUIRE THAT A PROPERTY
10 TRANSFER CERTIFICATE MUST BE DELIVERED TO THE OFFICE OF THE COUNTY
11 RECORDER AND TO MAKE A TECHNICAL CORRECTION; AND PROVIDING SEVERABILITY.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. That Chapter 6, Title 55, Idaho Code, be, and the same is
14 hereby amended by the addition thereto of NEW SECTIONS, to be known and desig-
15 nated as Sections 55-616, 55-617, 55-618, 55-619, 55-620, 55-621 and 55-622,
16 Idaho Code, and to read as follows:
17 55-616. SHORT TITLE. Sections 55-616 through 55-622, Idaho Code, may be
18 cited as the "Real Property Transfer Act."
19 55-617. PURPOSE. The purpose of this act is to obtain sales price data
20 necessary to the determination of statewide and local levels and uniformity of
21 real property assessment by the most efficient, economical, reliable and
22 fairest method, in order to comply with the fairness dictates of the Idaho
23 constitution. However, it is the intention of the legislature that the demands
24 of individual privacy be respected and protected in the process, and that
25 violations be prosecuted within the full extent of existing criminal law. Fur-
26 ther, it is the absolute intent of the legislature that such information shall
27 not be used for the assessment or collection of either a transfer tax or an
28 excise tax by the state tax commission or local subdivisions of government.
29 55-618. DEFINITIONS. As used in this act:
30 (1) "Partial interest" means a percentage interest in real property when
31 less than one hundred percent (100%).
32 (2) "Person" means and includes an individual, corporation, partnership
33 or other business organization, trust, fiduciary, or agent or any other party
34 presenting a conveyance document for recordation pursuant to chapter 8, title
35 55, Idaho Code.
36 (3) "Real property" includes:
37 (a) Land;
38 (b) Buildings or structures;
39 (c) Fixtures, fences and improvements affixed to land.
40 (4) "Real property transfer certificate" means a fill in the blank form
41 designated by the state tax commission for statewide use by all county asses-
2
1 sors, and which allows the person making the certification to declare the
2 value exchanged in the transfer or state that the transfer is exempt from dis-
3 closure of the value as provided for in section 55-621, Idaho Code, without
4 further explanation.
5 (5) "Transfer" means an act of the parties or of the law in which title
6 to real property or an equitable interest in real property is conveyed from
7 one (1) person to another.
8 (6) "Value" means the amount of the full actual consideration attribut-
9 able to real property therefor paid or to be paid, including the amount of
10 any lien or liens thereon.
11 55-619. REPORT OF TRANSFERS -- CHANGE OF OWNERSHIP RECORDS. (1) All
12 transfers of real property, including the transfer of a partial interest,
13 executed by the grantor after July 1, 2007, shall be reported to the office of
14 the county assessor in the county in which the real property is located on a
15 real property transfer certificate as defined in section 55-618, Idaho Code,
16 and required in section 55-620, Idaho Code, by delivering the real property
17 transfer certificate to the office of the county recorder along with the con-
18 veyance document to be recorded as described in section 55-620, Idaho Code.
19 (2) No agent of the county shall change any ownership records used for
20 the assessment or taxation of real property unless the county has received a
21 real property transfer certificate as defined in section 55-618, Idaho Code,
22 and as provided for in section 55-620, Idaho Code.
23 55-620. REAL PROPERTY TRANSFER CERTIFICATE. (1) At least one (1) person
24 who is a party to a real property transfer shall cause to be delivered to the
25 county recorder at the time of presenting a conveyance document for recording,
26 a real property transfer certificate declaring the consideration paid for the
27 real property transferred or claiming an exemption from disclosure.
28 (2) No instrument of conveyance executed by the grantor after July 1,
29 2007, and evidencing a transfer of real property may be accepted for recorda-
30 tion pursuant to chapter 8, title 55, Idaho Code, until the real property
31 transfer certificate has been received by either the county recorder or the
32 county assessor. The validity or effectiveness of a conveyance instrument
33 shall not be affected by the failure to comply with the provisions of this
34 act.
35 55-621. REAL PROPERTY TRANSFER CERTIFICATE -- EXEMPTIONS. The disclosure
36 of value required in section 55-620, Idaho Code, shall not apply to:
37 (1) An instrument executed by the grantor prior to July 1, 2007;
38 (2) The United States of America, this state, or any instrumentality,
39 agency or subdivision thereof;
40 (3) An instrument which, without added consideration, confirms, corrects,
41 modifies or supplements a previously recorded instrument;
42 (4) A transfer pursuant to court decree;
43 (5) A transfer pursuant to mergers, consolidations or reorganizations of
44 corporations, partnerships or other business entities;
45 (6) A transfer of decedent's estate;
46 (7) A transfer by gift;
47 (8) A transfer between husband and wife or parent and child with only
48 nominal actual consideration therefor;
49 (9) An instrument, the effect of which is to transfer the real property
50 to the same party or parties;
51 (10) A sale for delinquent taxes or assessments, sheriff sale, bankruptcy
52 action or mortgage foreclosure;
3
1 (11) A transfer which creates only a leasehold estate in the grantee; or
2 (12) A deed of trust, mortgage, assignment of buyer's or seller's rights
3 under a real estate contract for security purposes, assignment of lessor's or
4 lessee's rights under leases for security purposes, assignment of rents or
5 other instruments or agreements designed to grant a lien or security interest
6 in residential real property or fixtures.
7 55-622. DISCLOSURE OF INFORMATION RESTRICTED. The certificate required in
8 this act and the information therein shall not be a public record and shall be
9 held confidential by the county recorder and county assessor, and used for
10 purposes of appraisal and property taxation pursuant to chapters 8 and 9,
11 title 63, Idaho Code. The foregoing shall not apply to compilations from such
12 certificates or to summaries, analyses and evaluations based upon such compi-
13 lations, that are nonpersonal in nature, designed to disclose raw data, and
14 necessary for property tax administration, and which may be released to Idaho
15 licensed or certified appraisers. Otherwise, the disclosure of such informa-
16 tion by a county official shall be a misdemeanor.
17 SECTION 2. That Section 55-805, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 55-805. ACKNOWLEDGMENT AND CERTIFICATION NECESSARY TO AUTHORIZE RECORD-
20 ING. Before an instrument may be recorded, unless it is otherwise expressly
21 provided, its execution must be acknowledged by the person executing it, or if
22 executed by a corporation, by its president or vice president, or secretary or
23 assistant secretary, or other person executing the same on behalf of the cor-
24 poration, or if executed in the name of the state of Idaho or any county,
25 political subdivision, municipal, quasi-municipal, or public corporation, by
26 one (1) or more of the officers of such state, county, political subdivision,
27 municipal, quasi-municipal, or public corporation executing the same, or if
28 executed in a partnership name, by one (1) or more of the partners who sub-
29 scribed the partnership name thereto, or if executed by a limited liability
30 company, by the manager, member or other person executing the same on behalf
31 of the limited liability company, or the execution must be proved and the
32 acknowledgment or proof, certified in substantially the manner prescribed by
33 chapter 7, title 55, Idaho Code; provided, that if such instrument shall have
34 been executed and acknowledged in any other state or territory of the United
35 States, or in any foreign country, according to the laws of the state, terri-
36 tory or country wherein such acknowledgment was taken, the same shall be enti-
37 tled to record, and a certificate of acknowledgment indorsed endorsed upon or
38 attached to any such instrument purporting to have been made in any such
39 state, territory or foreign country, shall be prima facie sufficient to enti-
40 tle the same to such record and the real property transfer certificate as
41 provided in chapter 6, title 55, Idaho Code, must be delivered to the office
42 of the county recorder.
43 SECTION 3. SEVERABILITY. The provisions of this act are hereby declared
44 to be severable and if any provision of this act or the application of such
45 provision to any person or circumstance is declared invalid for any reason,
46 such declaration shall not affect the validity of the remaining portions of
47 this act.
STATEMENT OF PURPOSE
RS 16853C1
The purpose of this legislation is to provide the framework
necessary to implement sales price disclosure on real estate
transactions. Idaho's property tax system is based upon "market
value" but there is limited actual sales price data that is
available to determine market value.
Recognizing that sales prices are private information, the bill
protects the data from disclosure to anyone but the county
assessor.
The bill also specifically states that this data is not to be
used for the assessment or collection of either a transfer tax or
an excise tax.*
FISCAL NOTE
There is no fiscal impact to the state general fund.*
Contact
Name: Senator Shawn Keough
Phone: 332-1000
Senator Lee Heinrich
Representative Wendy Jaquet
STATEMENT OF PURPOSE/FISCAL NOTE S 1099