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S1196......................................................by STATE AFFAIRS REAL PROPERTY - TRANSFER - Amends and adds to existing law relating to the transfer of real property to provide a statement of intent; to provide definitions; to provide for reporting of a transfer and change in ownership records; to provide for a property transfer certificate whereby the purchaser discloses the sales price or declares that the information is exempt from disclosure; to provide confidentiality; to provide civil and criminal penalties; and to provide that property transfer certificates are exempt from disclosure. 03/06 Senate intro - 1st rdg - to printing 03/07 Rpt prt - to Loc Gov
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007IN THE SENATE SENATE BILL NO. 1196 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO TRANSFER OF REAL PROPERTY; AMENDING CHAPTER 3, TITLE 63, IDAHO 3 CODE, BY THE ADDITION OF A NEW SECTION 63-307A, IDAHO CODE, TO PROVIDE A 4 STATEMENT OF INTENT, TO PROVIDE DEFINITIONS, TO PROVIDE FOR A REPORT OF 5 TRANSFERS AND CHANGE IN OWNERSHIP RECORDS, TO PROVIDE FOR A PROPERTY 6 TRANSFER CERTIFICATE, TO PROVIDE FOR EXEMPTIONS FROM DISCLOSURE OF VALUE, 7 TO PROHIBIT DISCLOSURE OF INFORMATION AND TO PROVIDE PENALTIES; AND AMEND- 8 ING SECTION 9-340D, IDAHO CODE, TO EXEMPT FROM DISCLOSURE PROPERTY TRANS- 9 FER CERTIFICATES FILED PURSUANT TO SECTION 63-307A, IDAHO CODE. 10 Be It Enacted by the Legislature of the State of Idaho: 11 SECTION 1. That Chapter 3, Title 63, Idaho Code, be, and the same is 12 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 13 ignated as Section 63-307A, Idaho Code, and to read as follows: 14 63-307A. CHANGE OF OWNERSHIP -- TRANSFER OF REAL PROPERTY -- DISCLOSURE. 15 (1) The purpose of this act is to obtain residential real estate sales price 16 data which may be utilized to assist in real property valuation assessments 17 for the purpose of uniformity of assessment as provided in the constitution of 18 the state of Idaho. It is the intent of the legislature that the demand of 19 individual privacy be respected and protected in the valuation process. Appro- 20 priate penalties for violations shall be provided in this section. Further, it 21 is the intent of the legislature to not impose any form of a real estate 22 transfer tax or excise tax and, provided further, that no such sales price 23 data collected in accordance with this section shall be utilized for the pur- 24 pose of establishing or collecting an excise tax or a real estate transfer tax 25 by the state or any political subdivision thereof. 26 (2) As used in this section: 27 (a) "Property transfer certificate" means a form designed by the state 28 tax commission required for statewide use by all county assessors, and 29 which requires the person making the certification to declare the sales 30 price. 31 (b) "Purchaser" means one who has become an owner of real property 32 through taking title by deed, grant or contract of sale of real property 33 for an agreed upon sales price. 34 (c) "Real property" means single family residences, residential 35 townhouses or residential condominium units up to a fourplex. 36 (d) "Sales price" means the amount of the sales price attributable to 37 real and personal property therefor paid or to be paid, including the 38 amount of any lien or liens thereon. 39 (e) "Transfer" means an act of the parties or of the law in which title 40 to real property or ownership in real property is conveyed from one (1) 41 person to another and that a change in ownership on the assessor's records 42 is required. 43 (3) All transfers of real property, including the transfer of a partial 2 1 interest, executed by the purchaser after January 1, 2008, shall be reported 2 and delivered to the office of the county assessor in the county in which the 3 real property is located on a property transfer certificate as defined in this 4 section. All property transfer certificates shall be delivered to the office 5 of the county assessor within thirty (30) days from the closing of the trans- 6 fer of real property. 7 (4) The purchaser, who is a party to the real property transfer, shall 8 cause to be delivered to the county assessor within thirty (30) days from the 9 closing of the transfer of real property, a property transfer certificate 10 declaring the consideration paid for the real property transferred or claim- 11 ing an exemption from disclosure. 12 (5) The property transfer certificate required by this section shall not 13 apply to: 14 (a) An instrument executed by the purchaser prior to January 1, 2008. 15 (b) A transfer between members of a family related within the second 16 degree of consanguinity. 17 (c) A transfer by trustee's deed of reconveyance, deed in lieu of fore- 18 closure or sheriff's deed. 19 (d) A transfer between related legal entities where the original owner 20 still has ultimate ownership and control over the residential real prop- 21 erty. 22 (e) A transfer as a result of eminent domain proceedings pursuant to 23 chapter 7, title 7, Idaho Code. 24 (6) The certificate required by this section and the information therein 25 shall be held confidential by the county assessor, not to be disclosed except 26 as follows: 27 (a) To Idaho licensed or certified appraisers; 28 (b) To Idaho real estate licensees; 29 (c) To the Idaho state tax commission; 30 (d) To a person owning at least a five percent (5%) ownership in the 31 property; 32 (e) To the board of equalization, the board of tax appeals, and the Idaho 33 system of courts having jurisdiction over property tax matters or to the 34 appellant taxpayer who has filed an appeal concerning property tax or 35 assessments at any of these appellate levels. Provided however, summaries, 36 analyses and evaluations of data drawn from the certificates are not con- 37 fidential. 38 (7) (a) If an Idaho court finds that any public official has willfully or 39 intentionally disclosed information protected from disclosure by subsec- 40 tion (6) of this section, a civil penalty may be assessed by the court 41 against that official in an amount not to exceed one thousand dollars 42 ($1,000) which shall, upon collection, be paid into the county's general 43 fund, or in the case of Idaho state level officials, as the court may 44 direct. 45 (b) A purchaser who willfully makes a false statement on the certificate 46 declaring the consideration paid for the real property transferred, or who 47 claims an exemption from disclosure knowing that the transfer is not one 48 in which an exemption applies, shall be guilty of a misdemeanor. Failure, 49 by the purchaser, to deliver the property transfer certificate to the 50 office of the county assessor within thirty (30) days from the closing of 51 the transfer, shall be subject to a civil penalty of one hundred dollars 52 ($100) plus court costs and attorney's fees and enforceable by the prose- 53 cuting attorney as a civil judgment through the district court of the 54 county wherein the property is located. 3 1 SECTION 2. That Section 9-340D, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 9-340D. RECORDS EXEMPT FROM DISCLOSURE -- TRADE SECRETS, PRODUCTION 4 RECORDS, APPRAISALS, BIDS, PROPRIETARY INFORMATION. The following records are 5 exempt from disclosure: 6 (1) Trade secrets including those contained in response to public agency 7 or independent public body corporate and politic requests for proposal, 8 requests for clarification, requests for information and similar requests. 9 "Trade secrets" as used in this section means information, including a for- 10 mula, pattern, compilation, program, computer program, device, method, tech- 11 nique, process, or unpublished or in progress research that: 12 (a) Derives independent economic value, actual or potential, from not 13 being generally known to, and not being readily ascertainable by proper 14 means by other persons who can obtain economic value from its disclosure 15 or use; and 16 (b) Is the subject of efforts that are reasonable under the circumstances 17 to maintain its secrecy. 18 (2) Production records, housing production, rental and financing records, 19 sale or purchase records, catch records, mortgage portfolio loan documents, or 20 similar business records of a private concern or enterprise required by law to 21 be submitted to or inspected by a public agency or submitted to or otherwise 22 obtained by an independent public body corporate and politic. Nothing in this 23 subsection shall limit the use which can be made of such information for regu- 24 latory purposes or its admissibility in any enforcement proceeding. 25 (3) Records relating to the appraisal of real property, timber or mineral 26 rights prior to its acquisition, sale or lease by a public agency or indepen- 27 dent public body corporate and politic. 28 (4) Any estimate prepared by a public agency or independent public body 29 corporate and politic that details the cost of a public project until such 30 time as disclosed or bids are opened, or upon award of the contract for con- 31 struction of the public project. 32 (5) Examination, operating or condition reports and all documents relat- 33 ing thereto, prepared by or supplied to any public agency or independent pub- 34 lic body corporate and politic responsible for the regulation or supervision 35 of financial institutions including, but not limited to, banks, savings and 36 loan associations, regulated lenders, business and industrial development cor- 37 porations, credit unions, and insurance companies, or for the regulation or 38 supervision of the issuance of securities. 39 (6) Records gathered by a local agency or the Idaho department of com- 40 merce, as described in chapter 47, title 67, Idaho Code, for the specific pur- 41 pose of assisting a person to locate, maintain, invest in, or expand business 42 operations in the state of Idaho. 43 (7) Shipping and marketing records of commodity commissions used to eval- 44 uate marketing and advertising strategies and the names and addresses of grow- 45 ers and shippers maintained by commodity commissions. 46 (8) Financial statements and business information and reports submitted 47 by a legal entity to a port district organized under title 70, Idaho Code, in 48 connection with a business agreement, or with a development proposal or with a 49 financing application for any industrial, manufacturing, or other business 50 activity within a port district. 51 (9) Names and addresses of seed companies, seed crop growers, seed crop 52 consignees, locations of seed crop fields, variety name and acreage by vari- 53 ety. Upon the request of the owner of the proprietary variety, this informa- 54 tion shall be released to the owner. Provided however, that if a seed crop has 4 1 been identified as diseased or has been otherwise identified by the Idaho 2 department of agriculture, other state departments of agriculture, or the 3 United States department of agriculture to represent a threat to that particu- 4 lar seed or commercial crop industry or to individual growers, information as 5 to test results, location, acreage involved and disease symptoms of that par- 6 ticular seed crop, for that growing season, shall be available for public 7 inspection and copying. This exemption shall not supersede the provisions of 8 section 22-436, Idaho Code. 9 (10) Information obtained from books, records and accounts required in 10 chapter 47, title 22, Idaho Code, to be maintained by the Idaho canola and 11 rapeseed commission and pertaining to the individual production records of ca- 12 nola or rapeseed growers. 13 (11) Records of any risk retention or self-insurance program prepared in 14 anticipation of litigation or for analysis of or settlement of potential or 15 actual money damage claims against a public entity and its employees or 16 against the industrial special indemnity fund except as otherwise discoverable 17 under the Idaho or federal rules of civil procedure. These records shall 18 include, but are not limited to, claims evaluations, investigatory records, 19 computerized reports of losses, case reserves, internal documents and corre- 20 spondence relating thereto. At the time any claim is concluded, only statisti- 21 cal data and actual amounts paid in settlement shall be deemed a public record 22 unless otherwise ordered to be sealed by a court of competent jurisdiction. 23 Provided however, nothing in this subsection is intended to limit the attorney 24 client privilege or attorney work product privilege otherwise available to any 25 public agency or independent public body corporate and politic. 26 (12) Records of laboratory test results provided by or retained by the 27 Idaho food quality assurance laboratory. Nothing in this subsection shall 28 limit the use which can be made, or availability of such information if used, 29 for regulatory purposes or its admissibility in any enforcement proceeding. 30 (13) Reports required to be filed under chapter 13, title 62, Idaho Code, 31 identifying electrical or natural or manufactured gas consumption data for an 32 individual customer or account. 33 (14) Voluntarily prepared environmental audits, and voluntary disclosures 34 of information submitted on or before December 31, 1997, to an environmental 35 agency as defined in section 9-803, Idaho Code, which are claimed to be confi- 36 dential business information. 37 (15) Computer programs developed or purchased by or for any public agency 38 or independent public body corporate and politic for its own use. As used in 39 this subsection, "computer program" means a series of instructions or state- 40 ments which permit the functioning of a computer system in a manner designed 41 to provide storage, retrieval and manipulation of data from the computer sys- 42 tem, and any associated documentation and source material that explain how to 43 operate the computer program. Computer program does not include: 44 (a) The original data including, but not limited to, numbers, text, 45 voice, graphics and images; 46 (b) Analysis, compilation and other manipulated forms of the original 47 data produced by use of the program; or 48 (c) The mathematical or statistical formulas that would be used if the 49 manipulated forms of the original data were to be produced manually. 50 (16) Active investigative records and trademark usage audits of the Idaho 51 potato commission specifically relating to the enforcement of chapter 12, 52 title 22, Idaho Code, until the commencement of formal proceedings as provided 53 by rules of the commission; purchase and sales information submitted to the 54 Idaho potato commission during a trademark usage audit, and investigation or 55 enforcement proceedings. Inactive investigatory records shall be disclosed 5 1 unless the disclosure would violate the standards set forth in subsections 2 (1)(a) through (f) of section 9-335, Idaho Code. Nothing in this subsection 3 shall limit the use which can be made, or availability of such information if 4 used, for regulatory purposes or its admissibility in any enforcement proceed- 5 ing. 6 (17) All records copied or obtained by the director of the department of 7 agriculture or his designee as a result of an inspection pursuant to section 8 25-3806, Idaho Code, except: 9 (a) Records otherwise deemed to be public records not exempt from disclo- 10 sure pursuant to this chapter; and 11 (b) Inspection reports, determinations of compliance or noncompliance and 12 all other records created by the director or his designee pursuant to sec- 13 tion 25-3806, Idaho Code. 14 (18) All data and information collected by the division of animal indus- 15 tries or the state brand board pursuant to the provisions of section 25-207B, 16 Idaho Code, or rules promulgated thereunder. 17 (19) Records disclosed to a county official by the state tax commission 18 pursuant to subsection (4)(c) of section 63-3029B, Idaho Code. 19 (20) Records, data, information and materials collected, developed, gener- 20 ated, ascertained or discovered during the course of academic research at pub- 21 lic institutions of higher education if the disclosure of such could reason- 22 ably affect the conduct or outcome of the research, or the ability of the pub- 23 lic institution of higher education to patent or copyright the research or 24 protect intellectual property. 25 (21) Records, data, information and materials collected or utilized during 26 the course of academic research at public institutions of higher education 27 provided by any person or entity other than the public institution of higher 28 education or a public agency. 29 (22) The exemptions from disclosure provided in subsections (20) and (21) 30 of this section shall apply only until the academic research is publicly 31 released, copyrighted or patented, or until the academic research is completed 32 or terminated. At such time, the records, data, information, and materials 33 shall be subject to public disclosure unless: (a) another exemption in this 34 chapter applies; (b) such information was provided to the institution subject 35 to a written agreement of confidentiality; or (c) public disclosure would pose 36 a danger to persons or property. 37 (23) The exemptions from disclosure provided in subsections (20) and (21) 38 of this section do not include basic information about a particular research 39 project that is otherwise subject to public disclosure, such as the nature of 40 the academic research, the name of the researcher, and the amount and source 41 of the funding provided for the project. 42 (24) Records of a county assessor containing information showing the 43 income and expenses of a taxpayer, which information was provided to the 44 assessor by the taxpayer to permit the assessor to determine the value of 45 property of the taxpayer. 46 (25) Property transfer certificates filed with the county assessor pursu- 47 ant to section 63-307A, Idaho Code.
STATEMENT OF PURPOSE RS17132 The purpose of this legislation is to provide the framework necessary to implement sales price disclosure on real estate transactions of single family residences, residential townhouses or residential condominium units up to a fourplex. 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 and sets out penalties for inappropriate release of information. It further sets out the process for the sales prices to be disclosed to 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 IMPACT There is no fiscal impact to the state general fund.* Contact Name: Sen. Shawn Keough Sen. Lee Heinrich Rep. Wendy Jaquet Phone: 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE S 1196