2008 Legislation
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HOUSE BILL NO. 544<br /> – Property tax relief, deferral

HOUSE BILL NO. 544

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Bill Status



H0544...............................................by REVENUE AND TAXATION
PROPERTY TAX RELIEF - Amends existing law relating to property tax relief
to revise definitions; and to provide for application of property tax
relief by a certain qualified claimant.

02/19    House intro - 1st rdg - to printing
02/20    Rpt prt - to Rev/Tax
02/28    Rpt out - rec d/p - to 2nd rdg
02/29    2nd rdg - to 3rd rdg
03/03    3rd rdg - PASSED - 66-3-1
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon,
      Chavez, Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart,
      Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador, Lake,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ringo, Roberts,
      Ruchti, Rusche, Sayler, Schaefer, Shepherd(02), Shepherd(08),
      Shirley, Shively, Smith(24), Smith(30), Snodgrass, Stevenson, Thomas,
      Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
      NAYS -- Harwood, Mortimer, Thayn
      Absent and excused -- LeFavour
    Floor Sponsor - King
    Title apvd - to Senate
03/04    Senate intro - 1st rdg - to Loc Gov
03/07    Rpt out - rec d/p - to 2nd rdg
03/10    2nd rdg - to 3rd rdg
03/13    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Langhorst
    Title apvd - to House
03/13    To enrol
03/14    Rpt enrol - Sp signed
03/17    Pres signed - To Governor
03/19    Governor signed
         Session Law Chapter 214
         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. 544

                             BY REVENUE AND TAXATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO PROPERTY TAX RELIEF;  AMENDING  SECTION  63-713,  IDAHO  CODE,  TO
  3        REVISE  DEFINITIONS;  AND  AMENDING SECTION 63-714, IDAHO CODE, TO PROVIDE
  4        FOR APPLICATION OF PROPERTY TAX DEFERRAL BY A CERTAIN QUALIFIED CLAIMANT.

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

  6        SECTION 1.  That Section 63-713, Idaho Code, be, and the  same  is  hereby
  7    amended to read as follows:

  8        63-713.  DEFINITIONS.  In  addition  to the definitions in section 63-701,
  9    Idaho Code,  the  following  definitions  apply  to  sections  63-712  through
 10    63-721, Idaho Code.
 11        (1)  "Qualified claimant" means:
 12        (a)  Aan  individual  who  is  a  claimant  who  applies  for and properly
 13        receives property tax relief  under  the  provisions  of  sections  63-701
 14        through 63-710, Idaho Code; or
 15        (b)  An  individual  who  meets the definition of "claimant" under section
 16        63-701, Idaho Code, and is otherwise eligible to file a claim  under  sec-
 17        tions 63-701 through 63-710, Idaho Code, except by reason of exceeding the
 18        income  limitations  of  section 63-705, Idaho Code, may nevertheless be a
 19        qualified claimant, provided his household income does  not  exceed  forty
 20        thousand  dollars  ($40,000)  for the tax year 2007, which amount shall be
 21        increased by the annual cost-of-living percentage modification  as  deter-
 22        mined  by the secretary of health and human services pursuant to 42 U.S.C.
 23        section 415(i) beginning in 2009.
 24        (2)  "Qualified property" means property for which: owned by
 25        (a)  A a qualified claimant, is eligible to  receive  benefits  under  the
 26        provisions of sections 63-701 through 63-710, Idaho Code, for the year for
 27        which the qualified claimant applies for a deferral of payment of property
 28        tax; and
 29        (b)  Is  provided that the property is the "homestead," as defined in sec-
 30        tion 63-701, Idaho Code, of the qualified claimant, is  owned only by  the
 31        qualified  claimant and his or her spouse and is not subject to a trust or
 32        life estate or other ownership held by a person who is not  the  qualified
 33        claimant or his or her spouse.

 34        SECTION  2.  That  Section  63-714, Idaho Code, be, and the same is hereby
 35    amended to read as follows:

 36        63-714.  APPLICATION  --  DEFERRAL  OF  PROPERTY  TAX.  (1)  A   qualified
 37    claimant, as defined in section 63-713(1)(a), Idaho Code,  may elect, upon the
 38    application for property tax relief filed under section 63-703, Idaho Code, to
 39    defer payment of any property tax due after application of all benefits avail-
 40    able  under  section  63-704,  Idaho Code. A qualified claimant, as defined in
 41    section 63-713(1)(b), Idaho Code, may apply for property  tax  deferral  under

                                       2

  1    sections  63-712  through  63-721,  Idaho Code. The state tax commission shall
  2    prescribe the form and manner by which the  election  must  be  made  and  may
  3    require  that the application include information establishing the outstanding
  4    balance of any encumbrances, proof of insurance of an amount adequate for  the
  5    amount  of  deferred tax and interest, and such other information as the state
  6    tax commission reasonably determines to be necessary. The state tax commission
  7    may require written or other proof of the encumbrances or  casualty  insurance
  8    in such form as the state tax commission may determine.
  9        (2)  No application for deferral of property taxes shall be granted if:
 10        (a)  The  application  fails  to  show  sufficient equity in that property
 11        after consideration of encumbrances that are superior  to  any  liens  for
 12        deferral  to  secure  the payment of all existing deferrals granted in the
 13        property; or
 14        (b)  The application fails to show proof of insurance of  an  amount  ade-
 15        quate for the amount of the deferred tax and interest; or
 16        (c)  The  result would be to defer property taxes which, together with the
 17        amount of property tax and interest previously deferred on the same  prop-
 18        erty, would exceed fifty percent (50%) of the qualified claimant's propor-
 19        tional share of the market value of the qualified property.

Statement of Purpose / Fiscal Impact


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                       STATEMENT OF PURPOSE

                            RS 17709C1

The Circuit Breaker is well used by qualified low income
citizens whose annual income is $28,000 or less.  However, the
property tax deferral, which is an extension of the Circuit
Breaker, has only had three (3) applicants in two (2) years.

This legislation expands the Circuit Breaker to provide
relief for the next tier of property taxpayers.  It allows a
property tax deferment for seniors 65 years of age or older and
other eligible applicants as defined by code whose annual income
is less than $40,000.

The current law sets a maximum of $500,000 total deferment
from all applicants.  A lien is attached to the home and, when
the home sells, the state is paid back the deferred property tax. 
The $40,000 is indexed to the CPI.


                           FISCAL NOTE

The current cap in the existing statute is $500,000. 





Contact
Name: Rep. Phylis King 
Phone: 208.332.1227
Rep. George Sayler
208.332.1000


STATEMENT OF PURPOSE/FISCAL NOTE                         H  544   


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