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H0550...............................................by REVENUE AND TAXATION
PROPERTY TAX EXEMPTIONS - Adds to existing law to provide that during tax
year 2008 and each year thereafter, a board of county commissioners may
declare that all or a portion of the market value of investment in new
plant and building facilities meeting certain tax incentives criteria shall
be exempt from taxation.
02/21 House intro - 1st rdg - to printing
02/22 Rpt prt - to Rev/Tax
03/03 Rpt out - rec d/p - to 2nd rdg
03/04 2nd rdg - to 3rd rdg
03/06 3rd rdg - PASSED - 66-4-0
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chew,
Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Harwood,
Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador, Lake,
Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Roberts,
Ruchti, Rusche, Schaefer, Shepherd(02), Shepherd(08), Shirley,
Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thayn, Thomas,
Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
NAYS -- Chavez, LeFavour, Ringo, Sayler
Absent and excused -- None
Floor Sponsor - Bayer
Title apvd - to Senate
03/07 Senate intro - 1st rdg - to Loc Gov
03/14 Rpt out - rec d/p - to 2nd rdg
03/17 2nd rdg - to 3rd rdg
03/24 3rd rdg - PASSED - 28-7-0
AYES -- Andreason, Bair, Bastian, Broadsword, Cameron, Coiner,
Corder, Darrington, Davis, Fulcher, Geddes, Goedde, Hammond,
Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Lodge,
Malepeai(Sagness), McGee, McKague, McKenzie, Pearce, Richardson,
Siddoway, Stennett
NAYS -- Bilyeu, Burkett, Gannon(Gannon), Little, Schroeder, Stegner,
Werk
Absent and excused -- None
Floor Sponsor - Heinrich
Title apvd - to House
03/25 To enrol - Rpt enrol - Sp/Pres signed
03/26 To Governor
03/31 Governor signed
Session Law Chapter 327
Effective: 01/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 550 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO PROPERTY EXEMPT FROM TAXATION; AMENDING CHAPTER 6, TITLE 63, IDAHO 3 CODE, BY THE ADDITION OF A NEW SECTION 63-602NN, IDAHO CODE, TO PROVIDE 4 THAT DURING TAX YEAR 2008 AND EACH YEAR THEREAFTER A BOARD OF COUNTY COM- 5 MISSIONERS MAY DECLARE THAT ALL OR A PORTION OF THE MARKET VALUE OF 6 INVESTMENT IN NEW PLANT AND BUILDING FACILITIES MEETING CERTAIN TAX INCEN- 7 TIVE CRITERIA SHALL BE EXEMPT FROM TAXATION, TO DEFINE TERMS, TO PROVIDE 8 PROCEDURES, AND TO PROVIDE THAT THE LEGISLATURE DECLARES THE EXEMPTION 9 NECESSARY AND JUST; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE 10 APPLICATION. 11 Be It Enacted by the Legislature of the State of Idaho: 12 SECTION 1. That Chapter 6, Title 63, Idaho Code, be, and the same is 13 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 14 ignated as Section 63-602NN, Idaho Code, and to read as follows: 15 63-602NN. PROPERTY EXEMPT FROM TAXATION -- CERTAIN BUSINESS PROPERTY. (1) 16 During tax year 2008, and each year thereafter, a board of county commission- 17 ers may declare that all or a portion of the market value of investment in new 18 plant and building facilities meeting tax incentive criteria as defined in 19 subsection (2) of this section shall be exempt from property taxation. 20 (2) As used in this section: 21 (a) "Investment in new plant" means investment in new plant and building 22 facilities that are: 23 (i) Qualified investments; or 24 (ii) Buildings or structural components of buildings. 25 (b) "New plant and building facilities" means a manufacturing facility or 26 facilities producing tangible personal property or intellectual property 27 intended for ultimate sale at retail, including related parking facili- 28 ties, food service facilities, business office facilities and other build- 29 ing facilities directly related to the manufacturing business. 30 (c) "Project period" means the period of time beginning at the earlier of 31 a physical change to the project site or the first employment of new 32 employees or contractors located in Idaho who are related to the activi- 33 ties at the project site, but no earlier than January 1, 2008. 34 (d) "Project site" means an area or areas at which new plant and building 35 facilities are located and at which the tax incentive criteria have been 36 or will be met and which are either: 37 (i) A single geographic area located in this state at which the new 38 plant and building facilities owned or leased by the taxpayer are 39 located; or 40 (ii) One (1) or more geographic areas located in this state if 41 eighty percent (80%) or more of the investment required in subsection 42 (2)(f) of this section is made at one (1) of the areas. 43 The project site must be identified and described to the county commis- 2 1 sioners by a taxpayer subject to tax under chapter 30, title 63, Idaho 2 Code, in the form and manner prescribed by the commission. 3 (e) "Qualified investment" shall be as defined in section 63-3029B, Idaho 4 Code. 5 (f) "Tax incentive criteria" means a taxpayer at a project site meeting 6 the requirements of subparagraphs (i), (ii) and (iii) of this paragraph: 7 (i) During the project period, making capital investments in new 8 plant of at least three million dollars ($3,000,000) at the project 9 site; 10 (ii) During a period of time beginning on January 1, 2008, and end- 11 ing at the conclusion of the project period, the project is located 12 in a rural development zone as defined by the United States depart- 13 ment of agriculture rural development's, business and industry loan 14 program; 15 (iii) The taxpayer can demonstrate to the county that significant 16 economic benefits will accrue to the county. 17 (3) The board of county commissioners may grant the property tax exemp- 18 tion for all or a portion of the market value of the defined project for a 19 period of up to five (5) years. The agreement shall be considered a contract 20 arrangement between the county and the taxpayer for the exemption time period 21 granted by the board of county commissioners. 22 (4) Property exempted under this section shall not be included on any new 23 construction roll prepared by the county assessor in accordance with section 24 63-301A, Idaho Code, until the exemption ceases. 25 (5) The legislature declares this exemption necessary and just. 26 SECTION 2. An emergency existing therefor, which emergency is hereby 27 declared to exist, this act shall be in full force and effect on and after its 28 passage and approval, and retroactively to January 1, 2008.
STATEMENT OF PURPOSE
RS 17939
The purpose of this legislation is to provide an economic development
incentive for new manufacturing facilities construction and
development in designated rural development areas in the state of
Idaho.
The legislation will grant the board of county commissioners
authority to offer property tax exemptions for a maximum of five (5)
years to a taxpayer who spends a minimum of $3,000,000 for new
manufacturing facilities in rural areas as defined by the United
States Department of Agriculture, Rural Development Business and
Industry Loan program. The taxpayer must demonstrate significant
economic benefits that will accrue to the county from such property
development.
The legislation prohibits counties from increasing assessed
valuation of the property until such time as property taxes are
actually collected on the project.
This proposal will allow board of county commissioners an
incentive to help compete more effectively and on a more timely basis
with neighboring states to attract new development to the state and
their county.
FISCAL IMPACT
There is no fiscal impact to the general fund.
Contact: Ken Burgess, Veritas Advisors, LLP, 208.385.7070
Representative Cliff Bayer; Representative Mike Moyle; Senator Leland
Heinrich.
STATEMENT OF PURPOSE/FISCAL NOTE H 550