2008 Legislation
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HOUSE BILL NO. 530<br /> – Property tax relief, income


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Bill Status

H0530...............................................by REVENUE AND TAXATION
PROPERTY TAXES - Amends existing law relating to circuit breaker property
tax relief to provide how income is determined for certain married
individuals living apart.

02/13    House intro - 1st rdg - to printing
02/14    Rpt prt - to Rev/Tax
02/21    Rpt out - rec d/p - to 2nd rdg
02/22    2nd rdg - to 3rd rdg
02/25    3rd rdg - PASSED - 62-3-5
      AYES -- Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black, Block,
      Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark,
      Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Harwood, Henbest,
      Henderson, Jaquet, Killen, King, Labrador, Lake, LeFavour,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
      Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ringo,
      Roberts, Rusche, Sayler, Schaefer, Shepherd(08), Shirley, Shively,
      Smith(30)(Stanek), Snodgrass, Stevenson, Thayn, Thomas, Trail, Wills,
      Wood(27), Wood(35), Mr. Speaker
      NAYS -- Bock, Boe, Vander Woude
      Absent and excused -- Anderson, Kren, Ruchti, Shepherd(02), Smith(24)
    Floor Sponsor - Harwood
    Title apvd - to Senate
02/26    Senate intro - 1st rdg - to Loc Gov
03/05    Rpt out - rec d/p - to 2nd rdg
03/06    2nd rdg - to 3rd rdg
03/07    3rd rdg - PASSED - 32-0-3
      AYES -- Andreason, Bair, Bastian, Bilyeu, Burkett, Cameron, Coiner,
      Corder, Darrington, Davis, Fulcher, Geddes, Goedde, Hammond,
      Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
      Malepeai(Sagness), McGee, McKague, McKenzie, Pearce, Richardson,
      Schroeder, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- Broadsword, Gannon, Siddoway
    Floor Sponsor - Heinrich
    Title apvd - to House
03/10    To enrol
03/11    Rpt enrol - Sp signed
03/12    Pres signed - To Governor
03/14    Governor signed
         Session Law Chapter 117
         Effective: 07/01/08

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008


                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 530

                             BY REVENUE AND TAXATION COMMITTEE

  1                                        AN ACT

  5    Be It Enacted by the Legislature of the State of Idaho:

  6        SECTION 1.  That Section 63-701, Idaho Code, be, and the  same  is  hereby
  7    amended to read as follows:

  8        63-701.  DEFINITIONS. As used in this chapter:
  9        (1)  "Claimant"  means a person who has filed an application under section
 10    63-602G, Idaho Code, and has filed a claim under the  provisions  of  sections
 11    63-701  through  63-710,  Idaho Code. Except as provided in section 63-702(2),
 12    Idaho Code, on January 1, or before April 15, of the year in which the  claim-
 13    ant  first  filed  a claim on the homestead in question, a claimant must be an
 14    owner of the homestead and on January 1 of said year a claimant must be:
 15        (a)  Not less than sixty-five (65) years old; or
 16        (b)  A child under the age of eighteen (18) years  who  is  fatherless  or
 17        motherless  or  who has been abandoned by any surviving parent or parents;
 18        or
 19        (c)  A widow or widower; or
 20        (d)  A disabled person who is recognized as disabled by the  social  secu-
 21        rity  administration pursuant to title 42 of the United States Code, or by
 22        the railroad retirement board pursuant to title 45 of  the  United  States
 23        Code, or by the office of management and budget pursuant to title 5 of the
 24        United States Code; or
 25        (e)  A  disabled veteran of any war engaged in by the United States, whose
 26        disability is recognized as a service-connected disability of a degree  of
 27        ten  percent  (10%) or more, or who has a pension for nonservice-connected
 28        disabilities, in accordance with laws and regulations administered by  the
 29        United States department of veterans affairs; or
 30        (f)  A  person,  as specified in 42 U.S.C. 1701, who was or is entitled to
 31        receive benefits because he is known to have been taken by a hostile force
 32        as a prisoner, hostage or otherwise; or
 33        (g)  Blind.
 34        (2)  "Homestead" means the dwelling, owner-occupied  by  the  claimant  as
 35    described in this chapter and used as the primary dwelling place of the claim-
 36    ant  and may be occupied by any members of the household as their home, and so
 37    much of the land surrounding it, not exceeding one (1) acre, as is  reasonably
 38    necessary for the use of the dwelling as a home. It may consist of a part of a
 39    multidwelling  or  multipurpose building and part of the land upon which it is
 40    built. "Homestead" does not include personal property such as furniture,  fur-
 41    nishings or appliances, but a manufactured home may be a homestead.
 42        (3)  "Household"  means  the  claimant and the claimant's spouse. The term
 43    does not include bona fide lessees, tenants, or roomers and boarders  on  con-


  1    tract.  "Household"  includes  persons  described in subsection (8)(b) of this
  2    section.
  3        (4)  "Household income" means all income received by the claimant and,  if
  4    married, all income received by the claimant's spouse, in a calendar year.
  5        (5)  "Income" means the sum of federal adjusted gross income as defined in
  6    the  Internal  Revenue Code, as defined in section 63-3004, Idaho Code, and to
  7    the extent  not already included in federal adjusted gross income:
  8        (a)  Alimony;
  9        (b)  Support money;
 10        (c)  Nontaxable strike benefits;
 11        (d)  The nontaxable amount of any individual retirement  account,  pension
 12        or annuity, (including railroad retirement benefits, all payments received
 13        under  the  federal  social  security act except the social security death
 14        benefit as specified in  this  subsection,  state  unemployment  insurance
 15        laws,  and  veterans  disability  pensions and compensation, excluding any
 16        return of principal paid by the recipient of  an   annuity  and  excluding
 17        rollovers as provided in section 402 or 403 of the Internal Revenue Code);
 18        (e)  Nontaxable  interest  received  from the federal government or any of
 19        its instrumentalities or a state government or any of  its  instrumentali-
 20        ties;
 21        (f)  Worker's compensation; and
 22        (g)  The gross amount of loss of earnings insurance.
 23    It does not include gifts from nongovernmental sources or inheritances. To the
 24    extent  not  reimbursed, the cost of medical care as defined in section 213(d)
 25    of the Internal Revenue Code, incurred or paid by the claimant  and,  if  mar-
 26    ried,  the  claimant's  spouse, may be deducted from income. To the extent not
 27    reimbursed, personal funeral expenses, including prepaid funeral expenses  and
 28    premiums on funeral insurance, of the claimant and claimant's spouse only, may
 29    be  deducted  from  income  up  to  an annual maximum of five thousand dollars
 30    ($5,000) per claim. "Income" does not  include  veterans  disability  pensions
 31    received  by  a  person  described in subsection (1)(e) who is a claimant or a
 32    claimant's spouse if the disability pension is received pursuant to a service-
 33    connected disability of a degree of forty percent (40%) or more. "Income" does
 34    not include dependency and indemnity compensation or death benefits paid to  a
 35    person  described  in  subsection  (1)  of  this  section by the United States
 36    department of veterans affairs and arising from a service-connected  death  or
 37    disability.  "Income"  does  not  include  lump sum death benefits made by the
 38    social security administration pursuant to 42 U.S.C. section 402(i).  Documen-
 39    tation  of  medical  expenses may be required by the county assessor, board of
 40    equalization and state tax commission in such form  as  the  county  assessor,
 41    board  of equalization or state tax commission shall determine. "Income" shall
 42    be that received in the calendar year immediately preceding the year in  which
 43    a  claim is filed. Where a claimant and/or the claimant's spouse does not file
 44    a federal tax return, the claimant's and/or the  claimant's  spouse's  federal
 45    adjusted gross income, for purposes of this section, shall be an income equiv-
 46    alent  to federal adjusted gross income had the claimant and/or the claimant's
 47    spouse filed a federal tax return, as determined by the county  assessor.  The
 48    county  assessor,  board  of  equalization or state tax commission may require
 49    documentation of income in such form as each shall determine,  including,  but
 50    not  limited  to:  copies  of federal or state tax returns and any attachments
 51    thereto; and income reporting forms such as the W-2 and 1099.
 52        For determining income for certain married individuals living  apart,  the
 53    provisions  of  sections  2(c)  and 7703(b) of the Internal Revenue Code shall
 54    apply.
 55        (6)  "Occupied" means actual use and possession.


  1        (7)  "Owner" means a person holding title in fee simple or holding a  cer-
  2    tificate  of  motor vehicle title (either of which may be subject to mortgage,
  3    deed of trust or other lien) or who has retained or been granted a life estate
  4    or who is a person entitled to file a claim under section 63-702, Idaho  Code.
  5    "Owner" shall also include any person who:
  6        (a)  Is  the  beneficiary of a revocable or irrevocable trust which is the
  7        owner of such homestead and under which the  claimant  or  the  claimant's
  8        spouse has the primary right of occupancy of the homestead; or
  9        (b)  Is  a partner of a limited partnership, member of a limited liability
 10        company or shareholder of a corporation if such entity holds title in  fee
 11        simple  or  holds  a  certificate of motor vehicle title and if the person
 12        holds at least a five percent (5%) ownership in such entity, as determined
 13        by the county assessor; or
 14        (c)  Has retained or been granted a life estate.
 15    "Owner" includes a vendee in possession under a land sale contract.  Any  par-
 16    tial ownership shall be considered as ownership for determining initial quali-
 17    fication  for property tax reduction benefits; however, the amount of property
 18    tax reduction under section 63-704, Idaho Code, and rules promulgated pursuant
 19    to section 63-705,  Idaho  Code,  shall  be  computed  on  the  value  of  the
 20    claimant's  partial  ownership.  "Partial ownership," for the purposes of this
 21    section, means any one (1) person's ownership when property is owned  by  more
 22    than  one (1) person or where the homestead is held by an entity, as set forth
 23    in this subsection, but more than one (1) person has the right of occupancy of
 24    such homestead. A person holding either partial title in fee simple or holding
 25    a certificate of motor vehicle title together with another person but who does
 26    not occupy the dwelling as his primary dwelling place, shall not be considered
 27    an owner for purposes of this section, if such person is a  cosignatory  of  a
 28    note  secured  by  the  dwelling in question and at least one (1) of the other
 29    cosignatories of the note occupies the dwelling as his primary dwelling place.
 30    The combined community property interests of both spouses shall not be consid-
 31    ered partial ownership so long as the combined  community  property  interests
 32    constitute  the entire ownership of the homestead, including where the spouses
 33    are occupying a homestead owned by an entity, as set forth in this subsection,
 34    and the spouses have the primary right of occupancy of the homestead. The pro-
 35    portional reduction required under this subsection shall not apply  to  commu-
 36    nity  property interests. Where title to property was held by a person who has
 37    died without timely filing a claim for property tax reduction, the  estate  of
 38    the  deceased person shall be the "owner," provided that the time periods dur-
 39    ing which the deceased person held such  title  shall  be  attributed  to  the
 40    estate  for  the  computation  of  any time periods under subsection (8)(a) or
 41    (8)(b) of this section.
 42        (8)  (a) "Primary dwelling place" means the claimant's dwelling  place  on
 43        January  1 or before April 15 of the year for which the claim is made. The
 44        primary  dwelling place is the single place where a claimant has his true,
 45        fixed and permanent home and principal establishment, and to  which  when-
 46        ever  the individual is absent he has the intention of returning. A claim-
 47        ant must establish the dwelling to which the claim relates to be his  pri-
 48        mary  dwelling  place  by clear and convincing evidence or by establishing
 49        that the dwelling is where the claimant resided on  January  1  or  before
 50        April 15 and:
 51             (i)   At least six (6) months during the prior year; or
 52             (ii)  The  majority  of  the  time the claimant owned the dwelling if
 53             owned by the claimant less than one (1) year; or
 54             (iii) The majority of the time after the claimant first occupied  the
 55             dwelling  if occupied by the claimant for less than one (1) year. The


  1             county assessor may require written or other proof of  the  foregoing
  2             in such form as the county assessor may determine.
  3        (b)  Notwithstanding  the  provisions of paragraph (a) of this subsection,
  4        the property upon which the claimant makes application shall be deemed  to
  5        be  the  claimant's  primary  dwelling  place if the claimant is otherwise
  6        qualified and resides in a care facility and does not allow  the  property
  7        upon  which  the  claimant has made application to be occupied  by persons
  8        paying a consideration to occupy the dwelling. Payment of utilities  shall
  9        not  be  payment  of  a consideration to occupy the dwelling. A claimant's
 10        spouse who resides in a care facility shall be deemed  to  reside  at  the
 11        claimant's  primary  dwelling  place  and  to  be a part of the claimant's
 12        household. A care facility is a hospital, nursing facility or intermediate
 13        care facility for the mentally retarded as  defined  in  section  39-1301,
 14        Idaho  Code,  or a facility as defined in section 39-3302(14), Idaho Code,
 15        or a dwelling other than the one upon which the applicant  makes  applica-
 16        tion  where  a claimant who is unable to reside in the dwelling upon which
 17        the application is made lives and receives help in daily  living,  protec-
 18        tion and security.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                            RS 17488C1

     The purpose of this Legislation is to determine income for
certain married individuals living apart.  This is related to
circuit breaker property tax relief.
     Individuals are being denied the circuit breaker property
tax relief because they either do not know their spouse's income
and/or have no information as to where their spouse is located.

                           FISCAL NOTE

     According to the Tax Commission, the annual fiscal impact
will be $20,000.

Name: Rep. Harwood 
Phone: 332.1000

STATEMENT OF PURPOSE/FISCAL NOTE                         H 530