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H0599aa,aaS,aaS.....................................by REVENUE AND TAXATION
PERSONAL PROPERTY TAX - Amends and adds to existing law to revise
definitions; to provide a partial exemption from taxation of personal
property; to provide for reimbursement to local governments of personal
property tax; to provide procedures; and to provide for distribution of
sales tax moneys to counties and taxing districts.
03/05 House intro - 1st rdg - to printing
03/06 Rpt prt - to Rev/Tax
03/12 Rpt out - rec d/p - to 2nd rdg
03/13 2nd rdg - to 3rd rdg
03/19 To Gen Ord
Rpt out amen - to engros
Rpt engros - 1st rdg - to 2nd rdg as amen
03/20 2nd rdg - to 3rd rdg as amen
03/21 3rd rdg as amen - PASSED - 39-31-0
AYES -- Anderson, Andrus, Barrett, Bayer, Bilbao, Black, Block,
Bowers, Brackett, Chadderdon, Clark, Collins, Crane, Hagedorn, Hart,
Harwood, Henderson, Kren, Labrador, Lake, Marriott, Mathews,
McGeachin, Mortimer, Moyle, Nielsen, Nonini, Patrick, Raybould,
Roberts, Ruchti, Schaefer, Shepherd(08), Snodgrass, Stevenson, Vander
Woude, Wills, Wood(35), Mr. Speaker
NAYS -- Bedke, Bell, Bock, Boe, Bolz, Bradford, Chavez, Chew, Durst,
Eskridge, Henbest, Jaquet, Killen, King, LeFavour, Loertscher, Luker,
Pasley-Stuart, Pence, Ringo, Rusche, Sayler, Shepherd(02), Shirley,
Shively, Smith(30), Smith(24), Thayn, Thomas, Trail, Wood(27)
Absent and excused -- None
Floor Sponsor - Clark
Title apvd - to Senate
03/24 Senate intro - 1st rdg - to Loc Gov
03/25 Rpt out - rec d/p - to 2nd rdg
03/26 2nd rdg - to 3rd rdg
To 14th Ord
03/27 Rpt out amen - to 1st rdg as amen
1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 35-0-0
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon(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 - Hill
Title apvd - to House
03/28 House Held at Desk
04/01 Ref'd to Rev/Tax
House did not concur in Senate amens
Bill Ref'd to Conference Committee
04/02 Conf. Committee Rpt. ADOPTED by House & Senate
Conf. Committee Rpt. and bill ref'd to Senate 10th Ord
Conf. Committee Rpt. filed w/Secretary of Senate
Bill ref'd to 14th Ord
Rpt out amen - to 1st rdg as amen
1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 34-0-1
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon(Gannon),
Geddes, Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough,
Langhorst, Little, Lodge, Malepeai(Sagness), McGee, McKague, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- McKenzie
Floor Sponsor - Hill
Title apvd - to House
04/02 House concurred in Senate amens - to engros
Rpt engros - 1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 65-0-5
AYES -- Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black, Block,
Bock, Boe, Bolz, Bowers, Chavez, Chew, Clark, Collins, Crane, Durst,
Eskridge, Hagedorn, Hart, Harwood, Henbest, Henderson, Jaquet,
Killen, King, Kren, Labrador, Lake, LeFavour, Loertscher, Luker,
Marriott, Mathews, McGeachin, Mortimer, Moyle, Nielsen, Nonini,
Pasley-Stuart, Patrick, Pence, Raybould, Ringo, Roberts, Ruchti,
Rusche, Sayler, Schaefer, Shepherd(02), Shepherd(08), Shirley,
Shively, Smith(30), Snodgrass, Stevenson, Thayn, Thomas, Trail,
Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- Anderson, Brackett, Bradford, Chadderdon,
Smith(24)
Floor Sponsor - Clark
Title apvd - to enrol/Rpt enrol - Sp/Pres signed
04/03 To Governor
04/11 Governor signed
Session Law Chapter 400
Effective: 01/01/09
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 599 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO TAXATION OF PERSONAL PROPERTY; AMENDING SECTION 63-201, IDAHO 3 CODE, TO REVISE DEFINITIONS; AMENDING SECTION 63-302, IDAHO CODE, TO PRO- 4 VIDE THAT A TAXPAYER'S LIST OF TAXABLE PERSONAL PROPERTY MAY BE AMENDED TO 5 PERMIT CERTAIN PROPERTY TO BE LISTED OR TO BE REMOVED FROM THE LIST AND TO 6 PROVIDE THAT THE STATEMENT MUST BE FILED ON OR BEFORE THE FOURTH MONDAY IN 7 APRIL 2008; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF A 8 NEW SECTION 63-602KK, IDAHO CODE, TO PROVIDE THAT PERSONAL PROPERTY SHALL 9 BE EXEMPT FROM TAXATION, TO PROVIDE A SCHEDULE FOR PHASE IN, TO PROVIDE 10 DUTIES OF THE STATE CONTROLLER, TO DEFINE THE TERM "TAXABLE VALUE" AND TO 11 PROVIDE DUTIES OF THE STATE TAX COMMISSION; AMENDING SECTION 63-3638, 12 IDAHO CODE, TO PROVIDE FOR DISTRIBUTION OF SALES TAX MONEYS TO COUNTIES 13 AND OTHER TAXING DISTRICTS FOR REPLACEMENT OF MONEYS FOR PERSONAL PROPERTY 14 TAX REDUCTION; AMENDING SECTIONS 63-510 AND 63-1703, IDAHO CODE, TO PRO- 15 VIDE CORRECT CODE REFERENCES; PROVIDING SEVERABILITY; DECLARING AN EMER- 16 GENCY, PROVIDING RETROACTIVE APPLICATION AND PROVIDING EFFECTIVE DATES. 17 Be It Enacted by the Legislature of the State of Idaho: 18 SECTION 1. That Section 63-201, Idaho Code, be, and the same is hereby 19 amended to read as follows: 20 63-201. DEFINITIONS. As used for property tax purposes in title 63, chap- 21 ters 1 through 23, Idaho Code, the terms defined in this section shall have 22 the following meanings, unless the context clearly indicates another meaning: 23 (1) "Appraisal" means an estimate of property value for property tax pur- 24 poses. 25 (a) For the purpose of estimated property value to place the value on any 26 assessment roll, the value estimation must be made by the assessor or a 27 certified property tax appraiser. 28 (b) For the purpose of estimating property value to present for an appeal 29 filed pursuant to sections 63-501A, 63-407 and 63-409, Idaho Code, the 30 value estimation may be made by the assessor, a certified property tax 31 appraiser, a licensed appraiser, or a certified appraiser or any party as 32 specified by law. 33 (2) "Bargeline" means those water transportation tugs, boats, barges, 34 lighters and other equipment and property used in conjunction with waterways 35 for bulk transportation of freight or ship assist. 36 (3) "Cogenerators" means facilities which produce electric energy, and 37 steam or forms of useful energy which are used for industrial, commercial, 38 heating or cooling purposes. 39 (4) "Collection costs" are amounts authorized by law to be added after 40 the date of delinquency and collected in the same manner as property tax. 41 (5) "Delinquency" means any property tax, special assessment, fee, col- 42 lection cost, or charge collected in the same manner as property tax, that has 43 not been paid in the manner and within the time limits provided by law. 2 1 (6) "Fixtures" means those articles that, although once movable chattels, 2 have become accessory to and a part of improvements to real property by having 3 been physically incorporated therein or annexed or affixed thereto in such a 4 manner that removing them would cause material injury or damage to the real 5 property, the use or purpose of such articles is integral to the use of the 6 real property to which it is affixed, and a person would reasonably be consid- 7 ered to intend to make the articles permanent additions to the real property. 8 "Fixtures" includes systems for the heating, air conditioning, ventilation, 9 sanitation, lighting and plumbing of such building. "Fixtures" does not 10 include machinery, equipment or other articles that are affixed to real prop- 11 erty to enable the proper utilization of such articles. 12 (7) "Floating home" means a floating structure that is designed and built 13 to be used, or is modified to be used, as a stationary waterborne residential 14 dwelling, has no mode of power of its own, is dependent for utilities upon a 15 continuous utility linkage to a source originating on shore, and has a perma- 16 nent continuous connection to a sewage system on shore. 17 (8) "Improvements" means all buildings, structures,fixtures and fences18 manufactured homes, as defined in section 39-4105(8), Idaho Code, mobile homes 19 as defined in section 39-4105(9), Idaho Code, and modular buildings, as 20 defined in section 39-4301(7), Idaho Code, erected upon or affixed tothe21 land,andfences, water ditches constructed for mining, manufacturing or irri- 22 gation purposes, fixtures, and floating homes, whether or not such improve- 23 ments are owned separately from the ownership of the land upon or to which the 24 same may be erected, affixed or attached. The term "improvements" also 25 includes all fruit, nut-bearing and ornamental trees or vines not of natural 26 growth, growing upon the land, except nursery stock. 27 (79) "Late charge" means a charge of two percent (2%) of the delinquency. 28 (810) "Lawful money of the United States" means currency and coin of the 29 United States at par value and checks and drafts which are payable in dollars 30 of the United States at par value, payable upon demand or presentment. 31(9) "Manufactured home" means a structure defined as a manufactured home32in section 39-4105, Idaho Code.33 (101) "Market value" means the amount of United States dollars or equiva- 34 lent for which, in all probability, a property would exchange hands between a 35 willing seller, under no compulsion to sell, and an informed, capable buyer, 36 with a reasonable time allowed to consummate the sale, substantiated by a rea- 37 sonable down or full cash payment. 38 (112) "Operating property" means real and personal property operated in 39 connection with any public utility, railroad or private railcar fleet, wholly 40 or partly within this state, and which property is necessary to the mainte- 41 nance and operation of the public utility, railroad or private railcar fleet, 42 and the roads or lines thereof, and includes all rights-of-way accompanied by 43 title; roadbeds; tracks; pipelines; bargelines; equipment and docks; termi- 44 nals; rolling stock; equipment; power stations; power sites; lands; reser- 45 voirs, generating plants, transmission lines, distribution lines and substa- 46 tions;and all immovable or movable property operated in connection with any47public utility, railroad or private railcar fleet, wholly or partly within48this state, and necessary to the maintenance and operation of such road or49line, or in conducting its business,andshall includeall title and interest 50 in such property, as owner, lessee or otherwise. The term includes electrical 51 generation plants under construction, whether or not owned by or operated in 52 connection with any public utility.The term does not include personal prop-53erty exempt from taxation pursuant to section 63-602LFor the purpose of the 54 appraisal, assessment and taxation of operating property, pursuant to chapter 55 4, title 63, Idaho Code, the value of intangible personal property shall be 56 excluded from the taxable value of operating property in accordance with the 3 1 provisions of section 63-602L, Idaho Code, and the value of personal property, 2 other than intangible personal property, shall be excluded from the taxable 3 value of operating property in accordance with the provisions of section 4 63-602KK, Idaho Code. 5 (123) "Party in interest" means a person who holds a properly recorded 6 mortgage, deed of trust or security interest. 7 (134) "Person" means any entity, individual, corporation, partnership, 8 firm, association, limited liability company, limited liability partnership or 9 other such entities as recognized by the state of Idaho. 10 (145) "Personal property"includes all goods, chattels, stocks and bonds,11equities in state lands, easements, reservations, leasehold real properties12and all other property which the law defines, or the courts may interpret,13declare and hold to be personal property under the letter, spirit, intent and14meaning of the law, for the purposes of property taxation. For the purposes of15payment and collection of property taxes pursuant to chapter 9, title 63,16Idaho Code, collection of delinquency pursuant to chapter 10, title 63, Idaho17Code, and seizure and sale of personal property for taxes pursuant to chapter1811, title 63, Idaho Code, personal property includes manufactured homes not19declared as real property pursuant to section 63-304, Idaho Code.means every- 20 thing that is the subject of ownership and that is not included within the 21 term "real property." 22 (156) "Private railcar fleet" means railroad cars or locomotives owned by, 23 leased to, occupied by or franchised to any person other than a railroad com- 24 pany operating a line of railroad in Idaho or any company classified as a 25 railroad by the interstate commerce commission and entitled to possess such 26 railroad cars and locomotives except those possessed solely for the purpose of 27 repair, rehabilitation or remanufacturing of such locomotives or railroad 28 cars. 29 (167) "Public utility" means electrical companies, pipeline companies, 30 natural gas distribution companies, or power producers included within federal 31 law, bargelines, and water companies which are under the jurisdiction of the 32 Idaho public utilities commission. The term also includes telephone corpora- 33 tions, as that term is defined in section 62-603, Idaho Code, except as here- 34 inafter provided, whether or not such telephone corporation has been issued a 35 certificate of convenience and necessity by the Idaho public utilities commis- 36 sion. 37 This term does not include cogenerators, mobile telephone service or com- 38 panies, nor does it include pager service or companies, except when such ser- 39 vices are an integral part of services provided by a certificated utility com- 40 pany nor does the term "public utility" include companies or persons engaged 41 in the business of providing solely on a resale basis, any telephone or tele- 42 communication service which is purchased from a telephone corporation or com- 43 pany. 44 (178) "Railroad" means every kind of railway, whether its line of rails or 45 tracks be at, above or below the surface of the earth, and without regard to 46 the kind of power used in moving its rolling stock, and shall be considered to 47 include every kind of street railway, suburban railway or interurban railway 48 excepting facilities established solely for maintenance and rebuilding of 49 railroad cars or locomotives. 50 (189) "Real property" means land, improvements and all standing timber 51 thereon, including standing timber owned separately from the ownership of the 52 land upon which the same may stand, except as modified in chapter 17, title 53 63, Idaho Code, andall buildings, structures and improvements, or other fix-54tures of whatsoever kind on land, including water ditches constructed for min-55ing, manufacturing or irrigation purposes, water and gas mains, wagon and56turnpike toll roads, and toll bridges, and all rights and privileges thereto4 1belonging, or any way appertaining,all quarries and fossils in and under the 2 land, and all other property which the law defines, or the courts may inter-3pret, declare and hold to be real property under the letter, spirit, intent4and meaning of the law, for the purposes of property taxation. Manufactured5homes constitute real property when located on taxable land, and after a6statement of intent to declare as real property has been recorded, provided7said statement has not been revoked. Timber, forest, forest land, and forest 8 products shall be defined as provided in chapter 17, title 63, Idaho Code. 9 (1920) "Record owner" means the person or persons in whose name or names 10 the property stands upon the records of the county recorder's office. Where 11 the record owners are husband and wife at the time of notice of pending issue 12 of tax deed, notice to one (1) shall be deemed and imputed as notice to the 13 other spouse. 14 (201) "Special assessment" means a charge imposed upon property for a spe- 15 cific purpose, collected and enforced in the same manner as property taxes. 16 (212) "System value" means the market value for assessment purposes of the 17 operating property when considered as a unit. 18 (223) "Tax code area" means a geographical area made up of one (1) or more 19 taxing districts with one (1) total levy within the geographic area, except as 20 otherwise provided by law. 21 (234) "Taxing district" means any entity or unit with the statutory 22 authority to levy a property tax. 23 (245) "Taxable value" means market value for assessment purposes, less 24 applicable exemptions or other statutory provisions. 25 (256) "Transient personal property" is personal property, specifically 26 such construction, logging or mining machinery and equipment which is kept, 27 moved, transported, shipped, hauled into or remaining for periods of not less 28 than thirty (30) days, in more than one (1) county in the state during the 29 same year. 30 (267) "Warrant of distraint" means a warrant ordering the seizure of per- 31 sonal property to enforce payment of property tax, special assessment, 32 expense, fee, collection cost or charge collected in the same manner as per- 33 sonal property tax. 34 SECTION 2. That Section 63-302, Idaho Code, be, and the same is hereby 35 amended to read as follows: 36 63-302. LIST OF TAXABLE PERSONAL PROPERTY. (1) The assessor shall leave 37 at the office, place of business or residence of each personal property owner, 38 or mail to such personal property owner at his last known post office address, 39 a form with notice requiring such personal property owner to make a correct 40 list of taxable personal property. Every personal property owner so required 41 shall enter a true and correct statement of such personal property and the 42 ownership thereof, which statement shall be signed and verified by the oath of 43 the personal property owner or his agent listing such personal property, and 44 shall be delivered to the assessor, not later than March 15. Provided however, 45 the statement required to be filed not later than March 15, 2008, pursuant to 46 this section, may be amended to permit property affected by the definitions 47 set forth in section 63-201, Idaho Code, to be listed or removed from the list 48 of personal property by the taxpayer. The amended statement shall be delivered 49 to the assessor on or before the fourth Monday in April 2008. The assessor 50 shall thereupon determine the market value for assessment purposes of such 51 personal property and enter the same on the property roll. However, if for any 52 reason the assessor shall fail to contact such personal property owner, the 53 failure shall not impair or invalidate any assessment, nor will such failure 54 relieve the personal property owner or his agent of the responsibility to 5 1 obtain such declaration and to comply with the requirements of this title. Any 2 willful failure to personally contact each personal property owner, shall be 3 deemed malfeasance in office and grounds for the removal of the assessor from 4 office. 5 (2) If such person fails to make and deliver the list as required, the 6 assessor may list and assess such personal property according to his best 7 judgment and information. 8 (3) Whenever a taxpayer's list of taxable personal property discloses 9 personal property having a situs for purposes of taxation in another county in 10 this state, the assessor must immediately make a copy of that portion of such 11 list for each county in which such personal property is situated, and transmit 12 the same by mail to the assessor of the proper county, who must, upon receipt 13 of such copy, enter such personal property upon the property roll therein, 14 unless such personal property has already been entered. The assessor shall 15 strike from the original list all personal property so disclosed as having a 16 situs in another county, and shall assess and enter only the balance of the 17 personal property in his county. 18 SECTION 3. That Chapter 6, Title 63, Idaho Code, be, and the same is 19 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 20 ignated as Section 63-602KK, Idaho Code, and to read as follows: 21 63-602KK. PROPERTY EXEMPT FROM TAXATION -- PERSONAL PROPERTY. (1) Com- 22 mencing January 1, 2008, personal property that was first acquired by a person 23 after 12:01 a.m., January 1, 2008, shall be exempt from property taxation by 24 any taxing district. 25 (2) (a) On January 1, 2009, the taxable value of personal property held 26 by the taxpayer at 12:01 a.m., January 1, 2008, shall be reduced by twenty 27 percent (20%), and on January 1 of each taxable year thereafter the 28 remaining taxable value shall be reduced by an additional twenty percent 29 (20%), unless reduction in taxable value is withheld as provided in para- 30 graph (c) of this subsection. 31 (b) The state controller shall, on or before September 1 of each year, 32 certify to the state tax commission whether receipts to the general fund 33 for the fiscal year just ended have or have not exceeded the receipts of 34 the previous year by more than four percent (4%). The state tax commission 35 shall notify county auditors of the certification by the state controller 36 and the effect thereof. 37 (c) If the state controller certifies that the receipts to the general 38 fund for the fiscal year ending June 30, 2008, or for fiscal years ending 39 June 30 of any year thereafter through June 30, 2012, have not exceeded 40 the receipts to the general fund during the previous fiscal year by more 41 than four percent (4%), the reduction in taxable value of personal prop- 42 erty set forth in paragraph (a) of this subsection scheduled to occur on 43 January 1 of the year following such certification shall be withheld. Not- 44 withstanding the provisions of this paragraph, the taxable value of per- 45 sonal property shall be reduced to zero (0) for tax year 2014, and for 46 each tax year thereafter. 47 (d) In the event that the state controller certifies that the receipts to 48 the general fund for the fiscal year ending immediately preceding such 49 certification have exceeded the receipts of the previous fiscal year by 50 more than four percent (4%), the then taxable value of personal property, 51 if any, shall be reduced by twenty percent (20%) on the following January 52 1, and such scheduled reductions in taxable value shall occur in subse- 53 quent tax years, as scheduled, unless withheld as provided in paragraph 54 (c) of this subsection. 6 1 (3) As used in this section, the term "taxable value" shall mean: 2 (a) The taxable value of personal property not included in the term 3 "operating property," held by the taxpayer at 12:01 a.m., January 1, 2008, 4 and with reference to which personal property an assessment is made and 5 taxes levied for tax year 2008, pursuant to section 63-205, Idaho Code; 6 and 7 (b) The taxable value of that portion of operating property held by the 8 taxpayer at 12:01 a.m., January 1, 2008, that qualifies for exclusion from 9 the taxable value of operating property pursuant to subsection (4) of this 10 section and which personal property is included in the certification of 11 taxable value of operating property by the state tax commission to the 12 county auditors of the several counties pursuant to section 63-410, Idaho 13 Code, for tax year 2008 and, on which taxable value taxes are levied by 14 the several counties for tax year 2008. 15 (4) The state tax commission shall promulgate rules which shall provide 16 for the exclusion of the taxable value of personal property from the taxable 17 value of operating property. Such rules shall allow each taxpayer the right to 18 elect one (1) of the following three (3) methods for exclusion of personal 19 property from its taxable value: 20 (a) Separate exclusion of the taxable value of personal property at the 21 system level value; 22 (b) Separate exclusion of the taxable value of personal property at the 23 state allocated level value; or 24 (c) Exclusion of the taxable value of personal property by valuation of 25 only nonexempt property using valuation models which do not impound or 26 include values of the personal property. 27 (5) (a) The county commissioners in each county shall certify to the 28 state tax commission on or before the fourth Monday in November 2008, the 29 year 2008 total tax charge applicable to the taxable value of personal 30 property for the portion of each taxing district or unit within the county 31 which has been entered onto the property roll for tax year 2008 by the 32 county assessor. The state tax commission shall calculate the amount that 33 each county assessed in taxes in tax year 2008 on the taxable value of 34 personal property held by the taxpayer at 12:01 a.m., January 1, 2008, 35 with reference to which personal property taxes are levied for tax year 36 2008 pursuant to section 63-205, Idaho Code. Further, the state tax com- 37 mission shall calculate the amount that each county levied in taxes in tax 38 year 2008 on the taxable value of that portion of operating property con- 39 stituting personal property and held by the taxpayer at 12:01 a.m., Janu- 40 ary 1, 2008, and certified by the commission to the county auditors of the 41 several counties pursuant to section 63-410, Idaho Code, for tax year 42 2008. 43 (b) The state tax commission shall compute the percentage the amount of 44 taxes levied on personal property for each county for tax year 2008 bears 45 to the total amount of taxes levied on personal property by all counties 46 in the state for the year 2008. The percentage so determined for each 47 county shall be applied to the amount distributed by the commission pursu- 48 ant to section 63-3638, Idaho Code, and the resulting sum shall be paid to 49 the county treasurer of each county for distribution to each taxing dis- 50 trict in the county as follows: 51 (i) The board of county commissioners in each county shall compute 52 the percentage the amount of taxes levied on the taxable value of 53 personal property for the year 2008 for each taxing district in the 54 county bears to the total amount of taxes levied on the taxable value 55 of personal property for all taxing districts in the county for the 56 year 2008. The percentage so determined for each taxing district in 7 1 the county shall be applied to the sum paid to the county treasurer 2 by the state tax commission pursuant to this section and the result- 3 ing amount shall be distributed to each taxing district in the county 4 by the county auditor within thirty (30) calendar days from receipt 5 of moneys from the state tax commission. The amount which would 6 otherwise be attributable to tax revenues derived from tax levies on 7 taxable personal property within an existing revenue allocation area, 8 as defined in section 50-2903(15), Idaho Code, and for which revenue 9 allocation area a legal description of the boundaries of such area 10 was filed in accordance with the provisions of section 50-2907, Idaho 11 Code, on or before January 1, 2008, shall be paid directly by the 12 county treasurer to such public body or agency entitled thereto in 13 accordance with the formula for such distribution set forth in sec- 14 tion 50-2908, Idaho Code. 15 (ii) The moneys remitted to the county treasurer for replacement of 16 taxes on property exempt from taxation pursuant to this section may 17 be considered by the counties and other taxing districts and budgeted 18 at the same time, in the same manner and in the same year as revenues 19 from taxation on personal property that these moneys replace. 20 (iii) If taxing districts are consolidated, the resulting district is 21 entitled to an amount equal to the sum of the amounts which were 22 received in the last calendar quarter by each district pursuant to 23 this section prior to consolidation. If a taxing district is dis- 24 solved or disincorporated, the state tax commission shall continu- 25 ously distribute to the board of county commissioners an amount equal 26 to the last quarter's distribution prior to dissolution or 27 disincorporation. The board of county commissioners shall determine 28 any redistribution of moneys so received. If a taxing district 29 annexes territory, the distribution of moneys received pursuant to 30 this section shall be unaffected. Taxing districts formed after Janu- 31 ary 1, 2008, are not entitled to payments under the provisions of 32 this section. 33 (iv) For purposes of the limitation provided by section 63-802, 34 Idaho Code, moneys received from distributions pursuant to section 35 63-3638, Idaho Code, as property tax replacement for the taxable 36 value of property exempt from taxation pursuant to this section shall 37 be treated as property tax revenues. 38 (6) Nothing contained in this section shall affect the taxation of forest 39 lands or forest products pursuant to chapter 17, title 63, Idaho Code, or the 40 taxation of the net profits of mines pursuant to chapter 28, title 63, Idaho 41 Code. 42 SECTION 4. That Section 63-3638, Idaho Code, be, and the same is hereby 43 amended to read as follows: 44 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap- 45 ter, except as may otherwise be required in sections 63-3203 and 63-3709, 46 Idaho Code, shall be distributed by the tax commission as follows: 47 (1) An amount of money shall be distributed to the state refund account 48 sufficient to pay current refund claims. All refunds authorized under this 49 chapter by the commission shall be paid through the state refund account, and 50 those moneys are continuously appropriated. 51 (2) Five million dollars ($5,000,000) per year is continuously appropri- 52 ated and shall be distributed to the permanent building fund, provided by sec- 53 tion 57-1108, Idaho Code. 54 (3) Four million eight hundred thousand dollars ($4,800,000) per year is 8 1 continuously appropriated and shall be distributed to the water pollution con- 2 trol account established by section 39-3605, Idaho Code. 3 (4) An amount equal to the sum required to be certified by the chairman 4 of the Idaho housing and finance association to the state tax commission pur- 5 suant to section 67-6211, Idaho Code, in each year is continuously appropri- 6 ated and shall be paid to any capital reserve fund, established by the Idaho 7 housing and finance association pursuant to section 67-6211, Idaho Code. Such 8 amounts, if any, as may be appropriated hereunder to the capital reserve fund 9 of the Idaho housing and finance association shall be repaid for distribution 10 under the provisions of this section, subject to the provisions of section 11 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as 12 possible, from any moneys available therefor and in excess of the amounts 13 which the association determines will keep it self-supporting. 14 (5) An amount equal to the sum required by the provisions of sections 15 63-709 and 63-717, Idaho Code, after allowance for the amount appropriated by 16 section 63-718(3), Idaho Code, is continuously appropriated and shall be paid 17 as provided by sections 63-709 and 63-717, Idaho Code. 18 (6) An amount required by the provisions of chapter 53, title 33, Idaho 19 Code. 20 (7) An amount required by the provisions of chapter 87, title 67, Idaho 21 Code. 22 (8) One dollar ($1.00) on each application for certificate of title or 23 initial application for registration of a motor vehicle, snowmobile, all- 24 terrain vehicle or other vehicle processed by the county assessor or the Idaho 25 transportation department excepting those applications in which any sales or 26 use taxes due have been previously collected by a retailer, shall be a fee for 27 the services of the assessor of the county or the Idaho transportation depart- 28 ment in collecting such taxes, and shall be paid into the current expense fund 29 of the county or state highway account established in section 40-702, Idaho 30 Code. 31 (9) Eleven and five-tenths percent (11.5%) is continuously appropriated 32 and shall be distributed to the revenue sharing account which is created in 33 the state treasury, and the moneys in the revenue sharing account will be paid 34 in installments each calendar quarter by the tax commission as follows: 35 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var- 36 ious cities as follows: 37 (i) Fifty percent (50%) of such amount shall be paid to the various 38 cities, and each city shall be entitled to an amount in the propor- 39 tion that the population of that city bears to the population of all 40 cities within the state; and 41 (ii) Fifty percent (50%) of such amount shall be paid to the various 42 cities, and each city shall be entitled to an amount in the propor- 43 tion that the preceding year's market value for assessment purposes 44 for that city bears to the preceding year's market value for assess- 45 ment purposes for all cities within the state. 46 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var- 47 ious counties as follows: 48 (i) One million three hundred twenty thousand dollars ($1,320,000) 49 annually shall be distributed one forty-fourth (1/44) to each of the 50 various counties; and 51 (ii) The balance of such amount shall be paid to the various coun- 52 ties, and each county shall be entitled to an amount in the propor- 53 tion that the population of that county bears to the population of 54 the state; 55 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri- 56 ated in this subsection (9) shall be paid to the several counties for 9 1 distribution to the cities and counties as follows: 2 (i) Each city and county which received a payment under the provi- 3 sions of section 63-3638(e), Idaho Code, during the fourth quarter of 4 calendar year 1999, shall be entitled to a like amount during suc- 5 ceeding calendar quarters. 6 (ii) If the dollar amount of money available under this subsection 7 (9)(c) in any quarter does not equal the amount paid in the fourth 8 quarter of calendar year 1999, each city's and county's payment shall 9 be reduced proportionately. 10 (iii) If the dollar amount of money available under this subsection 11 (9)(c) in any quarter exceeds the amount paid in the fourth quarter 12 of calendar year 1999, each city and county shall be entitled to a 13 proportionately increased payment, but such increase shall not exceed 14 one hundred five percent (105%) of the total payment made in the 15 fourth quarter of calendar year 1999. 16 (iv) If the dollar amount of money available under this subsection 17 (9)(c) in any quarter exceeds one hundred five percent (105%) of the 18 total payment made in the fourth quarter of calendar year 1999, any 19 amount over and above such one hundred five percent (105%) shall be 20 paid fifty percent (50%) to the various cities in the proportion that 21 the population of the city bears to the population of all cities 22 within the state, and fifty percent (50%) to the various counties in 23 the proportion that the population of a county bears to the popula- 24 tion of the state; and 25 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in 26 this subsection (9) shall be paid to the several counties for distribution 27 to special purpose taxing districts as follows: 28 (i) Each such district which received a payment under the provi- 29 sions of section 63-3638(e), Idaho Code, during the fourth quarter of 30 calendar year 1999, shall be entitled to a like amount during suc- 31 ceeding calendar quarters. 32 (ii) If the dollar amount of money available under this subsection 33 (9)(d) in any quarter does not equal the amount paid in the fourth 34 quarter of calendar year 1999, each special purpose taxing district's 35 payment shall be reduced proportionately. 36 (iii) If the dollar amount of money available under this subsection 37 (9)(d) in any quarter exceeds the amount distributed under paragraph 38 (i) of this subsection (9)(d), each special purpose taxing district 39 shall be entitled to a share of the excess based on the proportion 40 each such district's current property tax budget bears to the sum of 41 the current property tax budgets of all such districts in the state. 42 The state tax commission shall calculate district current property 43 tax budgets to include any unrecovered foregone amounts as determined 44 under section 63-802(1)(e), Idaho Code. When a special purpose taxing 45 district is situated in more than one (1) county, the tax commission 46 shall determine the portion attributable to the special purpose tax- 47 ing district from each county in which it is situated. 48 (iv) If special purpose taxing districts are consolidated, the 49 resulting district is entitled to a base amount equal to the sum of 50 the base amounts which were received in the last calendar quarter by 51 each district prior to the consolidation. 52 (v) If a special purpose taxing district is dissolved or 53 disincorporated, the state tax commission shall continuously distrib- 54 ute to the board of county commissioners an amount equal to the last 55 quarter's distribution prior to dissolution or disincorporation. The 56 board of county commissioners shall determine any redistribution of 10 1 moneys so received. 2 (vi) Taxing districts formed after January 1, 2001, are not entitled 3 to a payment under the provisions of this subsection (9)(d). 4 (vii) For purposes of this subsection (9)(d), a special purpose tax- 5 ing district is any taxing district which is not a city, a county or 6 a school district. 7 (10) Amounts calculated in accordance with section 2, chapter 356, laws of 8 2001, for annual distribution to counties and other taxing districts beginning 9 in October 2001 for replacement of property tax on farm machinery and equip- 10 ment exempted pursuant to section 63-602EE, Idaho Code. For nonschool dis- 11 tricts, the state tax commission shall distribute one-fourth (1/4) of this 12 amount certified quarterly to each county. For school districts, the state tax 13 commission shall distribute one-fourth (1/4) of the amount certified quarterly 14 to each school district. For nonschool districts, the county auditor shall 15 distribute to each district within thirty (30) calendar days from receipt of 16 moneys from the tax commission. Moneys received by each taxing district for 17 replacement shall be utilized in the same manner and in the same proportions 18 as revenues from property taxation. The moneys remitted to the county trea- 19 surer for replacement of property exempt from taxation pursuant to section 20 63-602EE, Idaho Code, may be considered by the counties and other taxing dis- 21 tricts and budgeted at the same time, in the same manner and in the same year 22 as revenues from taxation on personal property which these moneys replace. If 23 taxing districts are consolidated, the resulting district is entitled to an 24 amount equal to the sum of the amounts which were received in the last calen- 25 dar quarter by each district pursuant to this subsection prior to the consoli- 26 dation. If a taxing district is dissolved or disincorporated, the state tax 27 commission shall continuously distribute to the board of county commissioners 28 an amount equal to the last quarter's distribution prior to dissolution or 29 disincorporation. The board of county commissioners shall determine any redis- 30 tribution of moneys so received. If a taxing district annexes territory, the 31 distribution of moneys received pursuant to this subsection shall be unaf- 32 fected. Taxing districts formed after January 1, 2001, are not entitled to a 33 payment under the provisions of this subsection. School districts shall 34 receive an amount determined by multiplying the sum of the year 2000 school 35 district levy minus .004 times the market value on December 31, 2000, in the 36 district of the property exempt from taxation pursuant to section 63-602EE, 37 Idaho Code, provided that the result of these calculations shall not be less 38 than zero (0). The result of these school district calculations shall be fur- 39 ther increased by six percent (6%). For purposes of the limitation provided by 40 section 63-802, Idaho Code, moneys received pursuant to this section as prop- 41 erty tax replacement for property exempt from taxation pursuant to section 42 63-602EE, Idaho Code, shall be treated as property tax revenues. 43 (11) Amounts necessary to pay refunds as provided in subsection (3) of 44 section 63-3641, Idaho Code, to a developer of a retail commercial complex 45 whose stores sell tangible personal property or taxable services subject to 46 the sales and use tax up to an aggregate total of thirty-five million dollars 47 ($35,000,000) per project shall be remitted to the demonstration pilot project 48 fund created in subsection (3) of section 63-3641, Idaho Code, and shall be 49 specific to and accounted for by each project. 50 (12) (a) Amounts calculated in accordance with section 63-602KK(5)(a), 51 Idaho Code, for distribution to counties and other taxing districts for 52 replacement of property tax revenues from personal property exempted from 53 taxation pursuant to section 63-602KK, Idaho Code. For state fiscal year 54 2010 through fiscal year 2014, and each fiscal year thereafter, distribu- 55 tions shall be subject to the provisions of paragraph (b) of this subsec- 56 tion but shall not exceed the following amounts: 11 1 Fiscal year 2010--twenty percent (20%) of the amount calculated in 2 accordance with section 63-602KK(5)(a), Idaho Code; 3 Fiscal year 2011--forty percent (40%) of the amount calculated in 4 accordance with section 63-602KK(5)(a), Idaho Code; 5 Fiscal year 2012--sixty percent (60%) of the amount calculated in 6 accordance with section 63-602KK(5)(a), Idaho Code; 7 Fiscal year 2013--eighty percent (80%) of the amount calculated in 8 accordance with section 63-602KK(5)(a), Idaho Code; 9 Fiscal year 2014 and for each fiscal year thereafter, one hundred 10 percent (100%) of the amount calculated in accordance with section 11 63-602KK(5)(a), Idaho Code. 12 The state tax commission shall distribute one-fourth (1/4) of the distrib- 13 utable amounts quarterly to each county. 14 (b) In any taxable year in which the reduction in taxable value of per- 15 sonal property is withheld pursuant to section 63-602KK(2), Idaho Code, 16 distributions in excess of distributions previously authorized to be made 17 during the last fiscal year in which distributions occurred, shall not be 18 made during the immediately succeeding state fiscal year. At the beginning 19 of each state fiscal year following an allowed reduction in taxable value 20 of personal property as of the first day of January preceding the com- 21 mencement of the state's succeeding fiscal year, distributions shall be 22 equal to the amount distributed in previous years, together with an addi- 23 tional amount equal to twenty percent (20%) of the amount calculated in 24 accordance with section 63-602KK(5)(a), Idaho Code. Notwithstanding with- 25 held distributions in prior fiscal years, commencing not later than fiscal 26 year 2015, and for each fiscal year thereafter, one hundred percent (100%) 27 of the amount calculated in accordance with section 63-602KK(5)(a), Idaho 28 Code, shall be made to counties and other taxing districts for replacement 29 of property tax revenues from personal property exempted pursuant to sec- 30 tion 63-602KK, Idaho Code. 31 (13) Any moneys remaining over and above those necessary to meet and 32 reserve for payments under other subsections of this section shall be distrib- 33 uted to the general fund. 34 SECTION 5. That Section 63-510, Idaho Code, be, and the same is hereby 35 amended to read as follows: 36 63-510. NOTIFICATION OF VALUATION DUE TO STATE TAX COMMISSION. (1) Prior 37 to the first Monday of August the auditor of each county in the state shall 38 notify the state tax commission of the net taxable value of all property situ- 39 ated within each taxing unit or district in the county from the property roll 40 for the current year and shall provide an estimate of the net taxable value 41 for each taxing unit or district from the current year's estimated subsequent 42 and missed property rolls. Such notification shall also include an estimate of 43 the net taxable value within any area annexed during the immediate prior year 44 to any taxing unit or district. 45 (2) Prior to the first Monday of March the auditor of each county in the 46 state shall notify the state tax commission of the net taxable value of all 47 property situated within each taxing unit or district in the county from the 48 subsequent and missed property rolls. Such notification shall also include an 49 estimate of the net taxable value within any area annexed during the immediate 50 prior year, and listed on the subsequent or missed property roll, to any tax- 51 ing unit or district. 52 (3) The notification required in subsections (1) and (2) of this section 53 shall be on forms prescribed and provided by the state tax commission and 54 shall list separately the value exempt from property taxation in accordance 12 1 with section 63-602G, Idaho Code, and the value in excess of the equalized 2 assessment valuation as shown on the base assessment roll in any revenue allo- 3 cation area, pursuant to chapters 20 and 29, title 50, Idaho Code. 4 (4) For the purposes of this section, "taxing district," as defined in 5 section 63-201(224), Idaho Code, shall include each incorporated city in each 6 county, regardless of whether said city certifies a property tax budget. 7 SECTION 6. That Section 63-1703, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 63-1703. CERTAIN FOREST LANDS TO BE DESIGNATED FOR TAXATION BY OWNER -- 10 LIMITATIONS. For the purposes of appraisal, assessment and taxation under the 11 provisions of this chapter, all forest lands in parcels of five (5) or more 12 acres but less than five thousand (5,000), whether contiguous or not, as long 13 as such parcels are held in common ownership, must be designated by the forest 14 landowner to be subject to the provisions of either subsection (a) or (b) of 15 this section. A forest landowner cannot have parcels designated under the pro- 16 visions of both subsections (a) and (b) of this section at one (1) time. If 17 the forest landowner fails to make a designation, his forest lands shall be 18 subject to appraisal, assessment and taxation under the provisions of section 19 63-1702, Idaho Code. Once a designation is made by the forest landowner, such 20 designation must remain in effect until the designation period expires, unless 21 the forest lands are transferred to another owner using a different taxing 22 category; in such case, the taxing category of the transferred forest lands 23 shall be the same as that maintained by the new owner. 24 A forest landowner may change the designation of all forest lands in com- 25 mon ownership at the end of any designation period, subject to the recapture 26 of any deferred taxes due as a result of such change. After January 1 and by 27 December 31 of the tenth year of each designation period the forest landowner 28 must notify the county assessor of any change in forest land designation. 29 Failure to notify the county assessor will result in the continuation of the 30 landowner's present designation until the end of the next designation period. 31 Any substantial change in the use of forest lands not conforming with the 32 definition of forest land in section 63-1701, Idaho Code, during such ten (10) 33 year period under the designations made in subsection (a) or (b) shall be 34 reported by the landowner to the county assessor within thirty (30) days of 35 the change in use. Upon notification of the change in use, the assessor shall 36 appraise, assess and tax those acres as provided by applicable laws and rules. 37 Failure to notify the assessor of the change in use when forest lands have 38 been designated as subject to the provisions of subsection (a) or (b) shall 39 cause forfeiture of such designation, and cause that property to be appraised, 40 assessed and taxed as provided in section 63-1702, Idaho Code. 41 Forest lands designated for assessment pursuant to the provisions of sec- 42 tion 63-1706, Idaho Code, shall be subject to the recapture of deferred taxes 43 upon removal of such designation, a substantial change in use, or ownership 44 transfer, except that there shall be no recapture initiated upon ownership 45 transfer of forest lands designated as subject to the provisions of section 46 63-1706, Idaho Code, to a landowner with forest lands already designated as 47 subject to the provisions of section 63-1706, Idaho Code, prior to the trans- 48 fer, or who so designates his lands to be subject to the provisions of section 49 63-1706, Idaho Code. In the event payment is offered or made, it shall be 50 accepted by the county treasurer and applied in the manner of payment of other 51 property tax. 52 The dollar amount of deferred taxes subject to recapture shall be deter- 53 mined by the county assessor by applying current tax levies against the cur- 54 rent values that would have been in effect if the lands were subject to 13 1 appraisal and assessment during the current year under the provisions of sec- 2 tion 63-1705, Idaho Code, if there has been a change in ownership or a removal 3 of designation, or section 63-1702, Idaho Code, if there has been a change in 4 use with no change in ownership, which amount shall be multiplied by the num- 5 ber of years that the lands have been subject to the designation under section 6 63-1706, Idaho Code. The amount of the deferred tax shall accrue through des- 7 ignation periods, up to a maximum of ten (10) years, and shall apply to the 8 most recent ten (10) years in which the parcel has been designated under the 9 provisions of section 63-1706, Idaho Code. A credit shall be allowed for taxes 10 actually paid under the provisions of section 63-1706, Idaho Code, for an 11 identical ten (10) year period, up to the total amount of the deferred taxes. 12 All deferred amounts shall be a lien against the land. Deferred tax amounts 13 shall be calculated by the county assessor on forms prescribed by the state 14 tax commission. Deferred tax amounts shall be supplied by the county assessor 15 to the county treasurer by May 15 of the year following conveyance or within 16 thirty (30) days of removal of designation, or of learning of a change in use. 17 All deferred tax amounts shall be due and payable to the county treasurer on 18 demand and shall become delinquent if not paid by the demand due date speci- 19 fied by the county treasurer on the forms prescribed by the state tax commis- 20 sion. If the deferred tax is not paid as provided above, the payment becomes 21 delinquent and subject to late charges, and interest in the amounts provided 22 in sections 63-201(79) and 63-1001, Idaho Code, and subject to collection in 23 the manner as set forth in chapter 10, title 63, Idaho Code. Estimated 24 deferred tax amounts may be held by the county treasurer in a tax anticipation 25 account from the date of conveyance until June 1 of the year following convey- 26 ance. 27 The county treasurer shall cause the deferred taxes and any penalty and 28 interest paid pursuant to the provisions of this section to be apportioned to 29 the various taxing authorities within which the property subject to the tax is 30 located in the same manner as property taxes. 31 (a) A forest landowner may choose to have his forest land assessed, 32 appraised and taxed under the provisions of section 63-1705, Idaho Code, by 33 filing such choice with the county assessor on a form prescribed by the state 34 tax commission. Designation filed pursuant to section 63-1705, Idaho Code, 35 shall become effective the first day of January following the year of designa- 36 tion. 37 (b) A forest landowner may choose to have his forest land assessed, 38 appraised and taxed under the provisions of section 63-1706, Idaho Code, by 39 filing such choice with the county assessor on a form prescribed by the state 40 tax commission. Designation filed pursuant to section 63-1706, Idaho Code, 41 shall become effective the first day of January following the year of designa- 42 tion. 43 (c) All forest products or timber harvested from investment lands not 44 designated as subject to the provisions of section 63-1702, 63-1705 or 45 63-1706, Idaho Code, and delivered to a point of utilization as logs or 46 semiprocessed forest products (except those forest products harvested for the 47 domestic use of the landowner under the provisions of section 63-1708, Idaho 48 Code) shall be subject to the yield tax at the time of harvest in the same 49 manner provided for in section 63-1706, Idaho Code. 50 SECTION 7. SEVERABILITY. The provisions of this act are hereby declared 51 to be severable and if any provision of this act or the application of such 52 provision to any person or circumstance is declared invalid for any reason, 53 such declaration shall not affect the validity of the remaining portions of 54 this act. 14 1 SECTION 8. An emergency existing therefor, which emergency is hereby 2 declared to exist, Sections 1, 2, 3 and 7 of this act shall be in full force 3 and effect on and after passage and approval, and retroactively to January 1, 4 2008. Sections 4, 5 and 6 of this act shall be in full force and effect on and 5 after July 1, 2008.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008Moved by Hill Seconded by Stegner IN THE SENATE SENATE AMENDMENT TO THE SENATE AMENDMENT TO H.B. NO. 599, As Amended 1 AMENDMENT TO THE AMENDMENT TO SECTION 3 2 On page 1 of the printed amendment, delete lines 13 through 16, and 3 insert: "(1) On and after January 1, 2009, subject to subsection (2) of this 4 section, each taxpayer's personal property, located in the county, which is 5 not otherwise exempt and which is not operating property, shall be exempt to 6 the extent of one hundred thousand dollars ($100,000). For the purposes of 7 this section, a taxpayer includes two (2) or"; delete lines 20 through 27, and 8 insert: "as defined in section 63-3004, Idaho Code."; following line 27, 9 insert: 10 "(2) This section shall not take effect on January 1, 2009, if on Septem- 11 ber 1, 2008, the state controller certifies that the receipts to the general 12 fund for the fiscal year ending June 30, 2008, have not exceeded receipts to 13 the general fund from the previous fiscal year by five percent (5%) or more. 14 This section shall take effect on the first year when the state controller 15 certifies to the state tax commission that receipts to the general fund for 16 the fiscal year just ended have exceeded the receipts to the general fund 17 during the previous fiscal year by five percent (5%) or more."; 18 in line 28, delete "(2)" and insert: "(3)"; in line 39, delete "(3)" and 19 insert: "(4)". 20 On page 2, in line 2, delete "(2)" and insert: "(3)"; in line 4, delete 21 "(2)" and insert: "(3)"; in line 20, delete "(2)" and insert: "(3)"; and in 22 line 26, delete "(4)" and insert: "(5)". 23 AMENDMENT TO THE AMENDMENT TO SECTION 4 24 On page 2, in line 33, delete "(3)" and insert: "(4)". 25 AMENDMENT TO THE AMENDMENT TO THE BILL 26 On page 3, delete lines 33 and 34, and insert: 27 "(5) For transient personal property valued at over one hundred thousand 28 dollars ($100,000), any exemption in section 63-602KK, Idaho Code, available 29 to". 30 CORRECTION TO THE CORRECTIONS TO TITLE 31 On page 5, in line 29, following "PROPERTY," insert: "TO PROVIDE A TRIGGER 32 WHEN THE SECTION IS FIRST EFFECTIVE,"; and in line 33, delete "SEVENTY-FIVE" 33 and insert: "ONE HUNDRED". 2 Moved by Hill Seconded by Stegner IN THE SENATE SENATE AMENDMENT TO H.B. NO. 599, As Amended 1 AMENDMENT TO SECTION 1 2 On page 3 of the engrossed bill, in line 52, following "land" insert: 3 "and all rights and privileges thereto belonging or any way appertaining, all 4 quarries and fossils in and under the land, and all other property which the 5 law defines, or the courts may interpret, declare and hold to be real property 6 under the letter, spirit, intent and meaning of the law"; and on page 4, in 7 lines 3 and 4, delete "all quarries and fossils in and under the land" and 8 insert: "all quarries and fossils in and under the land". 9 AMENDMENT TO SECTION 3 10 On page 5, delete lines 23 through 54, delete page 6 and on page 7, delete 11 lines 1 through 36 and insert: 12 "63-602KK. PROPERTY EXEMPT FROM TAXATION -- CERTAIN PERSONAL PROPERTY. 13 (1) On and after January 1, 2009, each taxpayer's personal property, located 14 at a business site, which is not otherwise exempt and which is not operating 15 property, shall be exempt to the extent of seventy-five thousand dollars 16 ($75,000). For the purposes of this section, a taxpayer includes two (2) or 17 more individuals using the property in a common enterprise or a related group 18 of two (2) or more organizations when the individuals or organizations are 19 within a relationship described in section 267 of the Internal Revenue Code, 20 as defined in section 63-3004, Idaho Code. A taxpayer may have more than one 21 (1) exemption pursuant to this section if the taxpayer has more than one (1) 22 business site and personal property used in the taxpayer's business or com- 23 merce endeavor is located at the taxpayer's business site. As used in this 24 section "business site" means a place of business owned or leased by a single 25 taxpayer or in the case of mobile property other than transient personal prop- 26 erty as defined in section 63-201(26), Idaho Code, from which the business 27 operates without regard to the number of real property parcels involved. 28 (2) No later than the third Monday of November of each year, the county 29 clerk of each county shall certify to the state tax commission the amount of 30 exemption from property taxes under subsection (1) of this section, in that 31 county for that year. The certification shall identify the property receiving 32 tax reductions, the value of the property, the property's location, the amount 33 of the tax levy applicable to personal property in the location, and the tax 34 before and after the exemption allowed in subsection (1) of this section. The 35 certification shall be in the form prescribed by the state tax commission and 36 shall include such additional information as the commission may require by 37 rule as needed to implement the purpose of this section. The certification 38 shall be reviewed and if necessary, corrected by the state tax commission. 39 (3) (a) Subject to the limitations of this section, the state tax commis- 40 sion shall reimburse from the amount appropriated for personal property 41 tax replacement in section 63-3638, Idaho Code, the county treasurer of 42 each county for the reduction on the certification provided in subsection 43 (2) of this section. The county treasurer shall reimburse from the amount 44 received to each taxing district within the county an amount in proportion 3 1 to the amount of reduction shown on the certification in subsection (2) of 2 this section as corrected. The amount that would otherwise be attributable 3 to tax revenues derived from tax levies on taxable personal property 4 within an existing revenue allocation area as defined in section 5 50-2903(15), Idaho Code, on or before January 1, 2009, shall be paid 6 directly by the county treasurer to such public body or agency entitled 7 therein in accordance with the formula for such distribution set forth in 8 section 50-2908, Idaho Code. 9 (b) The state tax commission shall pay one-half (1/2) of the reimburse- 10 ment provided in this section no later than December 20 of each year, and 11 the second one-half (1/2) shall be paid by no later than June 20 of the 12 following year. The money received by the county tax collector under the 13 provisions of this section may be considered by counties and other taxing 14 districts and budgeted against at the same time, and in the same manner, 15 and in the same year as revenues from taxation. The total amount paid to 16 the county treasurers shall not exceed the amount certified to the state 17 tax commission under subsection (2) of this section. 18 (c) For purposes of the limitation provided by section 63-802, Idaho 19 Code, moneys received from distributions pursuant to section 63-3638, 20 Idaho Code, as property tax replacement for the taxable value of property 21 exempt from taxation pursuant to this section shall be treated as property 22 tax revenues. 23 (4) Nothing contained in this section shall affect the taxation of forest 24 lands or forest products pursuant to chapter 17, title 63, Idaho Code, or the 25 taxation of the net profits of mines pursuant to chapter 28, title 63, Idaho 26 Code.". 27 AMENDMENT TO SECTION 4 28 On page 10, delete lines 45 through 56, and on page 11, delete lines 1 29 through 25, and insert: 30 "(12) Amounts calculated in accordance with subsection (3) of section 31 63-602KK, Idaho Code, for annual distribution to counties and other taxing 32 districts for replacement of property tax on personal property tax exemptions 33 pursuant to subsection (1) of section 63-602KK, Idaho Code, which amounts are 34 continuously appropriated unless the legislature enacts a different appropria- 35 tion for a particular fiscal year.". 36 AMENDMENT TO SECTION 7 37 On page 13, delete lines 52 and 53, and insert: "63-602G, Idaho Code, and 38 property exempt from taxation pursuant to section 63-602KK, Idaho Code,". 39 AMENDMENT TO THE BILL 40 On page 4, delete lines 36 through 54; and on page 5, delete lines 1 41 through 19; in line 20, delete "SECTION 3" and insert: "SECTION 2"; on page 7, 42 in line 37, delete "SECTION 4" and insert: "SECTION 3"; on page 11, in line 43 29, delete "SECTION 5" and insert: "SECTION 4"; on page 12, in line 2, delete 44 "SECTION 6" and insert: "SECTION 5"; on page 13, in line 45, delete "SECTION 45 7" and insert: "SECTION 6"; and on page 14, delete lines 34 through 43 and 46 insert: 47 "SECTION 7. That Section 63-313, Idaho Code, be, and the same is hereby 48 amended to read as follows: 49 63-313. SPECIAL PROVISIONS FOR TRANSIENT PERSONAL PROPERTY. (1) All tran- 50 sient personal property shall be listed by the owner and shall show the quan- 4 1 tity, name, model, serial number, if any, year of manufacture, date of pur- 2 chase, cost, whether new or used and other identifying information required by 3 the county assessor. The list of transient personal property shall identify 4 the owner of the property and shall be filed with the home county assessor on 5 or before the first day of November of each year. The owner of transient per- 6 sonal property may elect to treat as his home county that county in which he 7 maintains his residence or usual place of business or in which the transient 8 personal property is usually kept. The report shall be made on forms pre- 9 scribed by the state tax commission and shall identify periods of thirty (30) 10 days or more during which the personal property is located in a county, speci- 11 fying the location of the transient personal property for each month of the 12 current calendar year with a projection of the location for the remaining 13 months of November and December. 14 (2) The county assessor of the home county or the receiving county of the 15 listing shall file within ten (10) days with the county assessor of all coun- 16 ties identified on the report a copy of the report. Each county so identified 17 shall then place a prorated assessment on such personal property on the subse- 18 quent or missed property roll only for the length of time that the personal 19 property was located in their county. 20 (3) In the event that any transient personal property has been or will be 21 taxed for the current year in another state, the property shall be taxed for 22 only that portion of the year that the transient personal property is kept and 23 does remain in the state of Idaho. 24 (4) The provisions of this section shall not apply to transient personal 25 property in transit through this state, or to transient personal property sold 26 by the owner thereof in the home county upon which the taxes for the full year 27 have been paid or secured, which said transient personal property is kept, 28 moved, transported, shipped or hauled into and remaining in another county, 29 and there kept or remaining either for the purpose of use or sale within the 30 current year. 31 (5) For transient personal property valued at over seventy-five thousand 32 dollars ($75,000), any exemption in section 63-602KK, Idaho Code, available to 33 the taxpayer shall be allocated among counties based on the prorated value 34 provided in subsection (2) of this section. 35 SECTION 8. That Section 63-802, Idaho Code, be, and the same is hereby 36 amended to read as follows: 37 63-802. LIMITATION ON BUDGET REQUESTS -- LIMITATION ON TAX CHARGES -- 38 EXCEPTIONS. (1) Except as provided in subsection (3) of this section for tax 39 year 1995, and each year thereafter, no taxing district shall certify a budget 40 request for an amount of property tax revenues to finance an annual budget 41 that exceeds the greater of: 42 (a) The dollar amount of property taxes certified for its annual budget 43 for any one (1) of the three (3) tax years preceding the current tax year, 44 whichever is greater, plus the dollar amount of moneys received pursuant 45 to section 63-3638(12), Idaho Code, for the past tax year, which amount 46 may be increased by a growth factor of not to exceed three percent (3%) 47 plus the amount of revenue that would have been generated by applying the 48 levy of the previous year, not including any levy described in subsection 49 (4) of this section, or any school district levy reduction resulting from 50 a distribution of state funds pursuant to section 63-3638(10), Idaho Code, 51 to any increase in market value subject to taxation resulting from new 52 construction or change of land use classification as evidenced by the 53 value shown on the new construction roll compiled pursuant to section 5 1 63-301A, Idaho Code; and by the value of annexation during the previous 2 calendar year, as certified by the state tax commission for market values 3 of operating property of public utilities and by the county assessor; or 4 (b) The dollar amount of property taxes certified for its annual budget 5 during the last year in which a levy was made; or 6 (c) The dollar amount of the actual budget request, if the taxing dis- 7 trict is newly created except as may be provided in subsection (1)(h) of 8 this section; or 9 (d) In the case of school districts, the restriction imposed in section 10 33-802, Idaho Code; or 11 (e) In the case of a nonschool district for which less than the maximum 12 allowable increase in the dollar amount of property taxes is certified 13 for annual budget purposes in any one (1) year, such a district may, in 14 any following year, recover the foregone increase by certifying, in addi- 15 tion to any increase otherwise allowed, an amount not to exceed one hun- 16 dred percent (100%) of the increase originally foregone. Said additional 17 amount shall be included in future calculations for increases as allowed; 18 or 19 (f) In the case of cities, if the immediately preceding year's levy sub- 20 ject to the limitation provided by this section, is less than 0.004, the 21 city may increase its budget by an amount not to exceed the difference 22 between 0.004 and actual prior year's levy multiplied by the prior year's 23 market value for assessment purposes. The additional amount must be 24 approved by sixty percent (60%) of the voters voting on the question at an 25 election called for that purpose and held on the date in May or November 26 provided by law, and may be included in the annual budget of the city for 27 purposes of this section; or 28 (g) A taxing district may submit to the electors within the district the 29 question of whether the budget from property tax revenues may be increased 30 beyond the amount authorized in this section, but not beyond the levy 31 authorized by statute. The additional amount must be approved by sixty-six 32 and two-thirds percent (66 2/3%) or more of the voters voting on the ques- 33 tion at an election called for that purpose and held on the May or Novem- 34 ber dates provided by section 34-106, Idaho Code. If approved by the 35 required minimum sixty-six and two-thirds percent (66 2/3%) of the voters 36 voting at the election, the new budget amount shall be the base budget for 37 the purposes of this section; or 38 (h) When a nonschool district consolidates with another nonschool dis- 39 trict or dissolves and a new district performing similar governmental 40 functions as the dissolved district forms with the same boundaries within 41 three (3) years, the maximum amount of a budget of the district from prop- 42 erty tax revenues shall not be greater than the sum of the amounts that 43 would have been authorized by this section for the district itself or for 44 the districts that were consolidated or dissolved and incorporated into a 45 new district; or 46 (i) In the instance or case of cooperative service agencies, the restric- 47 tions imposed in sections 33-315 through 33-318, Idaho Code. 48 (2) In the case of fire districts, during the year immediately following 49 the election of a public utility or public utilities to consent to be provided 50 fire protection pursuant to section 31-1425, Idaho Code, the maximum amount of 51 property tax revenues permitted in subsection (1) of this section may be 52 increased by an amount equal to the current year's taxable value of the con- 53 senting public utility or public utilities multiplied by that portion of the 54 prior year's levy subject to the limitation provided by subsection (1) of this 55 section. 6 1 (3) No board of county commissioners shall set a levy, nor shall the 2 state tax commission approve a levy for annual budget purposes which exceeds 3 the limitation imposed in subsection (1) of this section, unless authority to 4 exceed such limitation has been approved by a majority of the taxing 5 district's electors voting on the question at an election called for that pur- 6 pose and held pursuant to section 34-106, Idaho Code, provided however, that 7 such voter approval shall be for a period of not to exceed two (2) years. 8 (4) The amount of property tax revenues to finance an annual budget does 9 not include revenues from nonproperty tax sources, and does not include reve- 10 nue from levies that are voter approved for bonds, override levies or supple- 11 mental levies, plant facilities reserve fund levies, school emergency fund 12 levies or for levies applicable to newly annexed property or for levies appli- 13 cable to new construction as evidenced by the value of property subject to the 14 occupancy tax pursuant to section 63-317, Idaho Code, for the preceding tax 15 year. 16 SECTION 9. SEVERABILITY. The provisions of this act are hereby declared 17 to be severable and if any provision of this act or the application of such 18 provision to any person or circumstance is declared invalid for any reason, 19 such declaration shall not affect the validity of the remaining portions of 20 this act. 21 SECTION 10. This act shall be in full force and effect on and after Janu- 22 ary 1, 2009.". 23 CORRECTIONS TO TITLE 24 On page 1, delete lines 3 through 11, and insert: "CODE, TO REVISE DEFINI- 25 TIONS; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SEC- 26 TION 63-602KK, IDAHO CODE, TO PROVIDE A PARTIAL EXEMPTION FROM TAXATION OF 27 PERSONAL PROPERTY, TO PROVIDE TAXES THAT ARE NOT AFFECTED BY PERSONAL PROPERTY 28 EXEMPTIONS, TO PROVIDE FOR REIMBURSEMENT TO LOCAL GOVERNMENTS OF PERSONAL 29 PROPERTY TAX AND TO PROVIDE PROCEDURES; AMEND-"; delete lines 17 and 18, and 30 insert: "POSES"; AMENDING SECTION 63-313, IDAHO CODE, TO PROVIDE THAT FOR 31 TRANSIENT PERSONAL PROPERTY VALUED AT OVER SEVENTY-FIVE THOUSAND DOLLARS, ANY 32 EXEMPTION TO THE TAXPAYER SHALL BE ALLOCATED AMONG COUNTIES BASED ON THE PRO- 33 RATED VALUE; AMENDING SECTION 63-802, IDAHO CODE, TO PROVIDE THE EFFECT OF 34 CERTAIN SALES TAX DOLLARS ON THE BUDGET BASE; PROVIDING SEVERABILITY; AND PRO- 35 VIDING AN EFFECTIVE DATE.". 7 Moved by Clark Seconded by Roberts IN THE HOUSE OF REPRESENTATIVES HOUSE AMENDMENT TO H.B. NO. 599 1 AMENDMENT TO SECTION 3 2 On page 5 of the printed bill, delete lines 22 through 24 and insert: 3 "mencing January 1, 2008, personal property, whether or not included in oper- 4 ating property, which was first acquired by the owner of such property after 5 12:01 a.m., January 1, 2008, from a person or entity other than an affiliated 6 person or business entity, shall be exempt from property taxation by any tax- 7 ing district."; in line 26, delete "at 12:01 a.m., January 1, 2008,"; in line 8 28, delete "remaining"; and also in line 28, following "value" insert: "of 9 personal property held by the taxpayer on such date"; in line 34, delete "four 10 percent (4%)" and insert: "five percent (5%)"; in line 41, delete "four per- 11 cent (4%)" and insert: "five percent (5%)"; in line 50, delete "four percent 12 (4%)" and insert: "five percent (5%)". 13 On page 6, delete lines 1 through 14 and insert: 14 "(3) As used in this section, the term "affiliated person or business 15 entity" shall mean a person or business entity that directly or indirectly 16 owns or controls, is owned or controlled by, is under ownership or control 17 with, another person related to such other person by marriage or by consan- 18 guinity in the first or second degree.". 19 AMENDMENT TO THE BILL 20 On page 13, delete lines 50 through 54 and delete page 14 and insert: 21 "SECTION 7. That Section 33-1103, Idaho Code, be, and the same is hereby 22 amended to read as follows: 23 33-1103. DEFINITIONS -- BONDS -- LIMITATION ON AMOUNT -- ELECTIONS TO AU- 24 THORIZE ISSUANCE. (1) For the purposes of this chapter the following defini- 25 tions shall have the meanings specified: "Market value for assessment pur- 26 poses" means the amount of the last preceding equalized assessment of all tax- 27 able property and all property exempt from taxation pursuant to section 28 63-602G, Idaho Code, and property exempted from taxation commencing January 1, 29 2009, through January 1, 2014, pursuant to section 63-602KK(2)(a), Idaho Code, 30 within the school district on the tax rolls completed and available as of the 31 date of approval by the electorate in the school bond election. "Aggregate 32 outstanding indebtedness" means the total sum of unredeemed outstanding bonds, 33 minus all moneys in the bond interest and redemption fund or funds accumulated 34 for the redemption of such outstanding bonds, and minus the sum of all taxes 35 levied for the redemption of such bonds, with the exception of that portion of 36 such tax levies required for the payment of interest on bonds, which taxes 37 remain uncollected. "Issue," "issued," or "issuance" means a formal delivery 38 of bonds to any purchaser thereof and payment therefor to the school district. 39 (2) The board of trustees of any school district, upon approval of a 40 majority thereof, may submit to the qualified school district electors of the 41 district the question as to whether the board shall be empowered to issue 42 negotiable coupon bonds of the district in an amount and for a period of time 8 1 to be named in the notice of election. 2 (3) An elementary school district which employs not less than six (6) 3 teachers, or a school district operating an elementary school or schools, and 4 a secondary school or schools, or issuing bonds for the acquisition of a sec- 5 ondary school or schools, may issue bonds in an amount not to exceed five per- 6 cent (5%) of the market value for assessment purposes thereof, less the aggre- 7 gate outstanding indebtedness; and no other school district shall issue bonds 8 in an amount to exceed at any time two percent (2%) of the market value for 9 assessment purposes thereof less the aggregate outstanding indebtedness. The 10 market value for assessment purposes, the aggregate outstanding indebtedness 11 and the unexhausted debt-incurring power of the district shall each be deter- 12 mined as of the date of approval by the electors in the school bond election. 13 (4) Notice of the bond election shall be given, the election shall be 14 conducted and the returns thereof canvassed, and the qualifications of elec- 15 tors voting or offering to vote shall be, as provided in sections 33-401 16 through 33-406, Idaho Code. 17 (5) The question shall be approved only if the percentage of votes cast 18 at such election were cast in favor thereof is that which now, or may hereaf- 19 ter be, set by the constitution of the state of Idaho. Upon such approval of 20 the issuance of bonds, the same may be issued at any time after the date of 21 such election. 22 SECTION 8. SEVERABILITY. The provisions of this act are hereby declared 23 to be severable and if any provision of this act or the application of such 24 provision to any person or circumstance is declared invalid for any reason, 25 such declaration shall not affect the validity of the remaining portions of 26 this act. 27 SECTION 9. An emergency existing therefor, which emergency is hereby 28 declared to exist, Sections 1, 2, 3 and 8 of this act shall be in full force 29 and effect on and after passage and approval, and retroactively to January 1, 30 2008. Sections 4, 5, 6 and 7 of this act shall be in full force and effect on 31 and after July 1, 2008.". 32 CORRECTION TO TITLE 33 On page 1, in line 10, delete "TAXABLE VALUE" and insert: "AFFILIATED PER- 34 SON OR BUSINESS ENTITY"; and in line 15, following "REFERENCES;" insert: 35 "AMENDING SECTION 33-1103, IDAHO CODE, TO REVISE THE DEFINITION OF "MARKET 36 VALUE FOR ASSESSMENT PURPOSES";".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 599, As Amended, As Amended in the Senate, As Amended in the Senate BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO TAXATION OF PERSONAL PROPERTY; AMENDING SECTION 63-201, IDAHO 3 CODE, TO REVISE DEFINITIONS; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY 4 THE ADDITION OF A NEW SECTION 63-602KK, IDAHO CODE, TO PROVIDE A PARTIAL 5 EXEMPTION FROM TAXATION OF PERSONAL PROPERTY, TO PROVIDE A TRIGGER WHEN 6 THE SECTION IS FIRST EFFECTIVE, TO PROVIDE TAXES THAT ARE NOT AFFECTED BY 7 PERSONAL PROPERTY EXEMPTIONS, TO PROVIDE FOR REIMBURSEMENT TO LOCAL GOV- 8 ERNMENTS OF PERSONAL PROPERTY TAX AND TO PROVIDE PROCEDURES; AMENDING SEC- 9 TION 63-3638, IDAHO CODE, TO PROVIDE FOR DISTRIBUTION OF SALES TAX MONEYS 10 TO COUNTIES AND OTHER TAXING DISTRICTS FOR REPLACEMENT OF MONEYS FOR PER- 11 SONAL PROPERTY TAX REDUCTION; AMENDING SECTIONS 63-510 AND 63-1703, IDAHO 12 CODE, TO PROVIDE CORRECT CODE REFERENCES; AMENDING SECTION 33-1103, IDAHO 13 CODE, TO REVISE THE DEFINITION OF "MARKET VALUE FOR ASSESSMENT PURPOSES"; 14 AMENDING SECTION 63-313, IDAHO CODE, TO PROVIDE THAT FOR TRANSIENT PER- 15 SONAL PROPERTY VALUED AT OVER ONE HUNDRED THOUSAND DOLLARS, ANY EXEMPTION 16 TO THE TAXPAYER SHALL BE ALLOCATED AMONG COUNTIES BASED ON THE PRORATED 17 VALUE; AMENDING SECTION 63-802, IDAHO CODE, TO PROVIDE THE EFFECT OF CER- 18 TAIN SALES TAX DOLLARS ON THE BUDGET BASE; PROVIDING SEVERABILITY; AND 19 PROVIDING AN EFFECTIVE DATE. 20 Be It Enacted by the Legislature of the State of Idaho: 21 SECTION 1. That Section 63-201, Idaho Code, be, and the same is hereby 22 amended to read as follows: 23 63-201. DEFINITIONS. As used for property tax purposes in title 63, chap- 24 ters 1 through 23, Idaho Code, the terms defined in this section shall have 25 the following meanings, unless the context clearly indicates another meaning: 26 (1) "Appraisal" means an estimate of property value for property tax pur- 27 poses. 28 (a) For the purpose of estimated property value to place the value on any 29 assessment roll, the value estimation must be made by the assessor or a 30 certified property tax appraiser. 31 (b) For the purpose of estimating property value to present for an appeal 32 filed pursuant to sections 63-501A, 63-407 and 63-409, Idaho Code, the 33 value estimation may be made by the assessor, a certified property tax 34 appraiser, a licensed appraiser, or a certified appraiser or any party as 35 specified by law. 36 (2) "Bargeline" means those water transportation tugs, boats, barges, 37 lighters and other equipment and property used in conjunction with waterways 38 for bulk transportation of freight or ship assist. 39 (3) "Cogenerators" means facilities which produce electric energy, and 40 steam or forms of useful energy which are used for industrial, commercial, 41 heating or cooling purposes. 42 (4) "Collection costs" are amounts authorized by law to be added after 2 1 the date of delinquency and collected in the same manner as property tax. 2 (5) "Delinquency" means any property tax, special assessment, fee, col- 3 lection cost, or charge collected in the same manner as property tax, that has 4 not been paid in the manner and within the time limits provided by law. 5 (6) "Fixtures" means those articles that, although once movable chattels, 6 have become accessory to and a part of improvements to real property by having 7 been physically incorporated therein or annexed or affixed thereto in such a 8 manner that removing them would cause material injury or damage to the real 9 property, the use or purpose of such articles is integral to the use of the 10 real property to which it is affixed, and a person would reasonably be consid- 11 ered to intend to make the articles permanent additions to the real property. 12 "Fixtures" includes systems for the heating, air conditioning, ventilation, 13 sanitation, lighting and plumbing of such building. "Fixtures" does not 14 include machinery, equipment or other articles that are affixed to real prop- 15 erty to enable the proper utilization of such articles. 16 (7) "Floating home" means a floating structure that is designed and built 17 to be used, or is modified to be used, as a stationary waterborne residential 18 dwelling, has no mode of power of its own, is dependent for utilities upon a 19 continuous utility linkage to a source originating on shore, and has a perma- 20 nent continuous connection to a sewage system on shore. 21 (8) "Improvements" means all buildings, structures,fixtures and fences22 manufactured homes, as defined in section 39-4105(8), Idaho Code, mobile homes 23 as defined in section 39-4105(9), Idaho Code, and modular buildings, as 24 defined in section 39-4301(7), Idaho Code, erected upon or affixed tothe25 land,andfences, water ditches constructed for mining, manufacturing or irri- 26 gation purposes, fixtures, and floating homes, whether or not such improve- 27 ments are owned separately from the ownership of the land upon or to which the 28 same may be erected, affixed or attached. The term "improvements" also 29 includes all fruit, nut-bearing and ornamental trees or vines not of natural 30 growth, growing upon the land, except nursery stock. 31 (79) "Late charge" means a charge of two percent (2%) of the delinquency. 32 (810) "Lawful money of the United States" means currency and coin of the 33 United States at par value and checks and drafts which are payable in dollars 34 of the United States at par value, payable upon demand or presentment. 35(9) "Manufactured home" means a structure defined as a manufactured home36in section 39-4105, Idaho Code.37 (101) "Market value" means the amount of United States dollars or equiva- 38 lent for which, in all probability, a property would exchange hands between a 39 willing seller, under no compulsion to sell, and an informed, capable buyer, 40 with a reasonable time allowed to consummate the sale, substantiated by a rea- 41 sonable down or full cash payment. 42 (112) "Operating property" means real and personal property operated in 43 connection with any public utility, railroad or private railcar fleet, wholly 44 or partly within this state, and which property is necessary to the mainte- 45 nance and operation of the public utility, railroad or private railcar fleet, 46 and the roads or lines thereof, and includes all rights-of-way accompanied by 47 title; roadbeds; tracks; pipelines; bargelines; equipment and docks; termi- 48 nals; rolling stock; equipment; power stations; power sites; lands; reser- 49 voirs, generating plants, transmission lines, distribution lines and substa- 50 tions;and all immovable or movable property operated in connection with any51public utility, railroad or private railcar fleet, wholly or partly within52this state, and necessary to the maintenance and operation of such road or53line, or in conducting its business,andshall includeall title and interest 54 in such property, as owner, lessee or otherwise. The term includes electrical 55 generation plants under construction, whether or not owned by or operated in 56 connection with any public utility.The term does not include personal prop-3 1erty exempt from taxation pursuant to section 63-602LFor the purpose of the 2 appraisal, assessment and taxation of operating property, pursuant to chapter 3 4, title 63, Idaho Code, the value of intangible personal property shall be 4 excluded from the taxable value of operating property in accordance with the 5 provisions of section 63-602L, Idaho Code, and the value of personal property, 6 other than intangible personal property, shall be excluded from the taxable 7 value of operating property in accordance with the provisions of section 8 63-602KK, Idaho Code. 9 (123) "Party in interest" means a person who holds a properly recorded 10 mortgage, deed of trust or security interest. 11 (134) "Person" means any entity, individual, corporation, partnership, 12 firm, association, limited liability company, limited liability partnership or 13 other such entities as recognized by the state of Idaho. 14 (145) "Personal property"includes all goods, chattels, stocks and bonds,15equities in state lands, easements, reservations, leasehold real properties16and all other property which the law defines, or the courts may interpret,17declare and hold to be personal property under the letter, spirit, intent and18meaning of the law, for the purposes of property taxation. For the purposes of19payment and collection of property taxes pursuant to chapter 9, title 63,20Idaho Code, collection of delinquency pursuant to chapter 10, title 63, Idaho21Code, and seizure and sale of personal property for taxes pursuant to chapter2211, title 63, Idaho Code, personal property includes manufactured homes not23declared as real property pursuant to section 63-304, Idaho Code.means every- 24 thing that is the subject of ownership and that is not included within the 25 term "real property." 26 (156) "Private railcar fleet" means railroad cars or locomotives owned by, 27 leased to, occupied by or franchised to any person other than a railroad com- 28 pany operating a line of railroad in Idaho or any company classified as a 29 railroad by the interstate commerce commission and entitled to possess such 30 railroad cars and locomotives except those possessed solely for the purpose of 31 repair, rehabilitation or remanufacturing of such locomotives or railroad 32 cars. 33 (167) "Public utility" means electrical companies, pipeline companies, 34 natural gas distribution companies, or power producers included within federal 35 law, bargelines, and water companies which are under the jurisdiction of the 36 Idaho public utilities commission. The term also includes telephone corpora- 37 tions, as that term is defined in section 62-603, Idaho Code, except as here- 38 inafter provided, whether or not such telephone corporation has been issued a 39 certificate of convenience and necessity by the Idaho public utilities commis- 40 sion. 41 This term does not include cogenerators, mobile telephone service or com- 42 panies, nor does it include pager service or companies, except when such ser- 43 vices are an integral part of services provided by a certificated utility com- 44 pany nor does the term "public utility" include companies or persons engaged 45 in the business of providing solely on a resale basis, any telephone or tele- 46 communication service which is purchased from a telephone corporation or com- 47 pany. 48 (178) "Railroad" means every kind of railway, whether its line of rails or 49 tracks be at, above or below the surface of the earth, and without regard to 50 the kind of power used in moving its rolling stock, and shall be considered to 51 include every kind of street railway, suburban railway or interurban railway 52 excepting facilities established solely for maintenance and rebuilding of 53 railroad cars or locomotives. 54 (189) "Real property" means land and all rights and privileges thereto 55 belonging or any way appertaining, all quarries and fossils in and under the 56 land, and all other property which the law defines, or the courts may inter- 4 1 pret, declare and hold to be real property under the letter, spirit, intent 2 and meaning of the law, improvements and all standing timber thereon, includ- 3 ing standing timber owned separately from the ownership of the land upon 4 which the same may stand, except as modified in chapter 17, title 63, Idaho 5 Code, andall buildings, structures and improvements, or other fixtures of6whatsoever kind on land, including water ditches constructed for mining, manu-7facturing or irrigation purposes, water and gas mains, wagon and turnpike toll8roads, and toll bridges, and all rights and privileges thereto belonging, or9any way appertaining, all quarries and fossils in and under the land, and all10other property which the law defines, or the courts may interpret, declare and11hold to be real property under the letter, spirit, intent and meaning of the12law, for the purposes of property taxation. Manufactured homes constitute real13property when located on taxable land, and after a statement of intent to14declare as real property has been recorded, provided said statement has not15been revoked. Timber, forest, forest land, and forest products shall be 16 defined as provided in chapter 17, title 63, Idaho Code. 17 (1920) "Record owner" means the person or persons in whose name or names 18 the property stands upon the records of the county recorder's office. Where 19 the record owners are husband and wife at the time of notice of pending issue 20 of tax deed, notice to one (1) shall be deemed and imputed as notice to the 21 other spouse. 22 (201) "Special assessment" means a charge imposed upon property for a spe- 23 cific purpose, collected and enforced in the same manner as property taxes. 24 (212) "System value" means the market value for assessment purposes of the 25 operating property when considered as a unit. 26 (223) "Tax code area" means a geographical area made up of one (1) or more 27 taxing districts with one (1) total levy within the geographic area, except as 28 otherwise provided by law. 29 (234) "Taxing district" means any entity or unit with the statutory 30 authority to levy a property tax. 31 (245) "Taxable value" means market value for assessment purposes, less 32 applicable exemptions or other statutory provisions. 33 (256) "Transient personal property" is personal property, specifically 34 such construction, logging or mining machinery and equipment which is kept, 35 moved, transported, shipped, hauled into or remaining for periods of not less 36 than thirty (30) days, in more than one (1) county in the state during the 37 same year. 38 (267) "Warrant of distraint" means a warrant ordering the seizure of per- 39 sonal property to enforce payment of property tax, special assessment, 40 expense, fee, collection cost or charge collected in the same manner as per- 41 sonal property tax. 42 SECTION 2. That Chapter 6, Title 63, Idaho Code, be, and the same is 43 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 44 ignated as Section 63-602KK, Idaho Code, and to read as follows: 45 63-602KK. PROPERTY EXEMPT FROM TAXATION -- CERTAIN PERSONAL PROPERTY. (1) 46 On and after January 1, 2009, subject to subsection (2) of this section, each 47 taxpayer's personal property, located in the county, which is not otherwise 48 exempt and which is not operating property, shall be exempt to the extent of 49 one hundred thousand dollars ($100,000). For the purposes of this section, a 50 taxpayer includes two (2) or more individuals using the property in a common 51 enterprise or a related group of two (2) or more organizations when the indi- 52 viduals or organizations are within a relationship described in section 267 of 53 the Internal Revenue Code, as defined in section 63-3004, Idaho Code. 54 (2) This section shall not take effect on January 1, 2009, if on Septem- 5 1 ber 1, 2008, the state controller certifies that the receipts to the general 2 fund for the fiscal year ending June 30, 2008, have not exceeded receipts to 3 the general fund from the previous fiscal year by five percent (5%) or more. 4 This section shall take effect on the first year when the state controller 5 certifies to the state tax commission that receipts to the general fund for 6 the fiscal year just ended have exceeded the receipts to the general fund 7 during the previous fiscal year by five percent (5%) or more. 8 (3) No later than the third Monday of November of each year, the county 9 clerk of each county shall certify to the state tax commission the amount of 10 exemption from property taxes under subsection (1) of this section, in that 11 county for that year. The certification shall identify the property receiving 12 tax reductions, the value of the property, the property's location, the amount 13 of the tax levy applicable to personal property in the location, and the tax 14 before and after the exemption allowed in subsection (1) of this section. The 15 certification shall be in the form prescribed by the state tax commission and 16 shall include such additional information as the commission may require by 17 rule as needed to implement the purpose of this section. The certification 18 shall be reviewed and if necessary, corrected by the state tax commission. 19 (4) (a) Subject to the limitations of this section, the state tax commis- 20 sion shall reimburse from the amount appropriated for personal property 21 tax replacement in section 63-3638, Idaho Code, the county treasurer of 22 each county for the reduction on the certification provided in subsection 23 (3) of this section. The county treasurer shall reimburse from the amount 24 received to each taxing district within the county an amount in proportion 25 to the amount of reduction shown on the certification in subsection (3) of 26 this section as corrected. The amount that would otherwise be attributable 27 to tax revenues derived from tax levies on taxable personal property 28 within an existing revenue allocation area as defined in section 29 50-2903(15), Idaho Code, on or before January 1, 2009, shall be paid 30 directly by the county treasurer to such public body or agency entitled 31 therein in accordance with the formula for such distribution set forth in 32 section 50-2908, Idaho Code. 33 (b) The state tax commission shall pay one-half (1/2) of the reimburse- 34 ment provided in this section no later than December 20 of each year, and 35 the second one-half (1/2) shall be paid by no later than June 20 of the 36 following year. The money received by the county tax collector under the 37 provisions of this section may be considered by counties and other taxing 38 districts and budgeted against at the same time, and in the same manner, 39 and in the same year as revenues from taxation. The total amount paid to 40 the county treasurers shall not exceed the amount certified to the state 41 tax commission under subsection (3) of this section. 42 (c) For purposes of the limitation provided by section 63-802, Idaho 43 Code, moneys received from distributions pursuant to section 63-3638, 44 Idaho Code, as property tax replacement for the taxable value of property 45 exempt from taxation pursuant to this section shall be treated as property 46 tax revenues. 47 (5) Nothing contained in this section shall affect the taxation of forest 48 lands or forest products pursuant to chapter 17, title 63, Idaho Code, or the 49 taxation of the net profits of mines pursuant to chapter 28, title 63, Idaho 50 Code. 51 SECTION 3. That Section 63-3638, Idaho Code, be, and the same is hereby 52 amended to read as follows: 53 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap- 54 ter, except as may otherwise be required in sections 63-3203 and 63-3709, 6 1 Idaho Code, shall be distributed by the tax commission as follows: 2 (1) An amount of money shall be distributed to the state refund account 3 sufficient to pay current refund claims. All refunds authorized under this 4 chapter by the commission shall be paid through the state refund account, and 5 those moneys are continuously appropriated. 6 (2) Five million dollars ($5,000,000) per year is continuously appropri- 7 ated and shall be distributed to the permanent building fund, provided by sec- 8 tion 57-1108, Idaho Code. 9 (3) Four million eight hundred thousand dollars ($4,800,000) per year is 10 continuously appropriated and shall be distributed to the water pollution con- 11 trol account established by section 39-3605, Idaho Code. 12 (4) An amount equal to the sum required to be certified by the chairman 13 of the Idaho housing and finance association to the state tax commission pur- 14 suant to section 67-6211, Idaho Code, in each year is continuously appropri- 15 ated and shall be paid to any capital reserve fund, established by the Idaho 16 housing and finance association pursuant to section 67-6211, Idaho Code. Such 17 amounts, if any, as may be appropriated hereunder to the capital reserve fund 18 of the Idaho housing and finance association shall be repaid for distribution 19 under the provisions of this section, subject to the provisions of section 20 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as 21 possible, from any moneys available therefor and in excess of the amounts 22 which the association determines will keep it self-supporting. 23 (5) An amount equal to the sum required by the provisions of sections 24 63-709 and 63-717, Idaho Code, after allowance for the amount appropriated by 25 section 63-718(3), Idaho Code, is continuously appropriated and shall be paid 26 as provided by sections 63-709 and 63-717, Idaho Code. 27 (6) An amount required by the provisions of chapter 53, title 33, Idaho 28 Code. 29 (7) An amount required by the provisions of chapter 87, title 67, Idaho 30 Code. 31 (8) One dollar ($1.00) on each application for certificate of title or 32 initial application for registration of a motor vehicle, snowmobile, all- 33 terrain vehicle or other vehicle processed by the county assessor or the Idaho 34 transportation department excepting those applications in which any sales or 35 use taxes due have been previously collected by a retailer, shall be a fee for 36 the services of the assessor of the county or the Idaho transportation depart- 37 ment in collecting such taxes, and shall be paid into the current expense fund 38 of the county or state highway account established in section 40-702, Idaho 39 Code. 40 (9) Eleven and five-tenths percent (11.5%) is continuously appropriated 41 and shall be distributed to the revenue sharing account which is created in 42 the state treasury, and the moneys in the revenue sharing account will be paid 43 in installments each calendar quarter by the tax commission as follows: 44 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var- 45 ious cities as follows: 46 (i) Fifty percent (50%) of such amount shall be paid to the various 47 cities, and each city shall be entitled to an amount in the propor- 48 tion that the population of that city bears to the population of all 49 cities within the state; and 50 (ii) Fifty percent (50%) of such amount shall be paid to the various 51 cities, and each city shall be entitled to an amount in the propor- 52 tion that the preceding year's market value for assessment purposes 53 for that city bears to the preceding year's market value for assess- 54 ment purposes for all cities within the state. 55 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var- 56 ious counties as follows: 7 1 (i) One million three hundred twenty thousand dollars ($1,320,000) 2 annually shall be distributed one forty-fourth (1/44) to each of the 3 various counties; and 4 (ii) The balance of such amount shall be paid to the various coun- 5 ties, and each county shall be entitled to an amount in the propor- 6 tion that the population of that county bears to the population of 7 the state; 8 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri- 9 ated in this subsection (9) shall be paid to the several counties for 10 distribution to the cities and counties as follows: 11 (i) Each city and county which received a payment under the provi- 12 sions of section 63-3638(e), Idaho Code, during the fourth quarter of 13 calendar year 1999, shall be entitled to a like amount during suc- 14 ceeding calendar quarters. 15 (ii) If the dollar amount of money available under this subsection 16 (9)(c) in any quarter does not equal the amount paid in the fourth 17 quarter of calendar year 1999, each city's and county's payment shall 18 be reduced proportionately. 19 (iii) If the dollar amount of money available under this subsection 20 (9)(c) in any quarter exceeds the amount paid in the fourth quarter 21 of calendar year 1999, each city and county shall be entitled to a 22 proportionately increased payment, but such increase shall not exceed 23 one hundred five percent (105%) of the total payment made in the 24 fourth quarter of calendar year 1999. 25 (iv) If the dollar amount of money available under this subsection 26 (9)(c) in any quarter exceeds one hundred five percent (105%) of the 27 total payment made in the fourth quarter of calendar year 1999, any 28 amount over and above such one hundred five percent (105%) shall be 29 paid fifty percent (50%) to the various cities in the proportion that 30 the population of the city bears to the population of all cities 31 within the state, and fifty percent (50%) to the various counties in 32 the proportion that the population of a county bears to the popula- 33 tion of the state; and 34 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in 35 this subsection (9) shall be paid to the several counties for distribution 36 to special purpose taxing districts as follows: 37 (i) Each such district which received a payment under the provi- 38 sions of section 63-3638(e), Idaho Code, during the fourth quarter of 39 calendar year 1999, shall be entitled to a like amount during suc- 40 ceeding calendar quarters. 41 (ii) If the dollar amount of money available under this subsection 42 (9)(d) in any quarter does not equal the amount paid in the fourth 43 quarter of calendar year 1999, each special purpose taxing district's 44 payment shall be reduced proportionately. 45 (iii) If the dollar amount of money available under this subsection 46 (9)(d) in any quarter exceeds the amount distributed under paragraph 47 (i) of this subsection (9)(d), each special purpose taxing district 48 shall be entitled to a share of the excess based on the proportion 49 each such district's current property tax budget bears to the sum of 50 the current property tax budgets of all such districts in the state. 51 The state tax commission shall calculate district current property 52 tax budgets to include any unrecovered foregone amounts as determined 53 under section 63-802(1)(e), Idaho Code. When a special purpose taxing 54 district is situated in more than one (1) county, the tax commission 55 shall determine the portion attributable to the special purpose tax- 56 ing district from each county in which it is situated. 8 1 (iv) If special purpose taxing districts are consolidated, the 2 resulting district is entitled to a base amount equal to the sum of 3 the base amounts which were received in the last calendar quarter by 4 each district prior to the consolidation. 5 (v) If a special purpose taxing district is dissolved or 6 disincorporated, the state tax commission shall continuously distrib- 7 ute to the board of county commissioners an amount equal to the last 8 quarter's distribution prior to dissolution or disincorporation. The 9 board of county commissioners shall determine any redistribution of 10 moneys so received. 11 (vi) Taxing districts formed after January 1, 2001, are not entitled 12 to a payment under the provisions of this subsection (9)(d). 13 (vii) For purposes of this subsection (9)(d), a special purpose tax- 14 ing district is any taxing district which is not a city, a county or 15 a school district. 16 (10) Amounts calculated in accordance with section 2, chapter 356, laws of 17 2001, for annual distribution to counties and other taxing districts beginning 18 in October 2001 for replacement of property tax on farm machinery and equip- 19 ment exempted pursuant to section 63-602EE, Idaho Code. For nonschool dis- 20 tricts, the state tax commission shall distribute one-fourth (1/4) of this 21 amount certified quarterly to each county. For school districts, the state tax 22 commission shall distribute one-fourth (1/4) of the amount certified quarterly 23 to each school district. For nonschool districts, the county auditor shall 24 distribute to each district within thirty (30) calendar days from receipt of 25 moneys from the tax commission. Moneys received by each taxing district for 26 replacement shall be utilized in the same manner and in the same proportions 27 as revenues from property taxation. The moneys remitted to the county trea- 28 surer for replacement of property exempt from taxation pursuant to section 29 63-602EE, Idaho Code, may be considered by the counties and other taxing dis- 30 tricts and budgeted at the same time, in the same manner and in the same year 31 as revenues from taxation on personal property which these moneys replace. If 32 taxing districts are consolidated, the resulting district is entitled to an 33 amount equal to the sum of the amounts which were received in the last calen- 34 dar quarter by each district pursuant to this subsection prior to the consoli- 35 dation. If a taxing district is dissolved or disincorporated, the state tax 36 commission shall continuously distribute to the board of county commissioners 37 an amount equal to the last quarter's distribution prior to dissolution or 38 disincorporation. The board of county commissioners shall determine any redis- 39 tribution of moneys so received. If a taxing district annexes territory, the 40 distribution of moneys received pursuant to this subsection shall be unaf- 41 fected. Taxing districts formed after January 1, 2001, are not entitled to a 42 payment under the provisions of this subsection. School districts shall 43 receive an amount determined by multiplying the sum of the year 2000 school 44 district levy minus .004 times the market value on December 31, 2000, in the 45 district of the property exempt from taxation pursuant to section 63-602EE, 46 Idaho Code, provided that the result of these calculations shall not be less 47 than zero (0). The result of these school district calculations shall be fur- 48 ther increased by six percent (6%). For purposes of the limitation provided by 49 section 63-802, Idaho Code, moneys received pursuant to this section as prop- 50 erty tax replacement for property exempt from taxation pursuant to section 51 63-602EE, Idaho Code, shall be treated as property tax revenues. 52 (11) Amounts necessary to pay refunds as provided in subsection (3) of 53 section 63-3641, Idaho Code, to a developer of a retail commercial complex 54 whose stores sell tangible personal property or taxable services subject to 55 the sales and use tax up to an aggregate total of thirty-five million dollars 56 ($35,000,000) per project shall be remitted to the demonstration pilot project 9 1 fund created in subsection (3) of section 63-3641, Idaho Code, and shall be 2 specific to and accounted for by each project. 3 (12) Amounts calculated in accordance with subsection (4) of section 4 63-602KK, Idaho Code, for annual distribution to counties and other taxing 5 districts for replacement of property tax on personal property tax exemptions 6 pursuant to subsection (1) of section 63-602KK, Idaho Code, which amounts are 7 continuously appropriated unless the legislature enacts a different appropria- 8 tion for a particular fiscal year. 9 (13) Any moneys remaining over and above those necessary to meet and 10 reserve for payments under other subsections of this section shall be distrib- 11 uted to the general fund. 12 SECTION 4. That Section 63-510, Idaho Code, be, and the same is hereby 13 amended to read as follows: 14 63-510. NOTIFICATION OF VALUATION DUE TO STATE TAX COMMISSION. (1) Prior 15 to the first Monday of August the auditor of each county in the state shall 16 notify the state tax commission of the net taxable value of all property situ- 17 ated within each taxing unit or district in the county from the property roll 18 for the current year and shall provide an estimate of the net taxable value 19 for each taxing unit or district from the current year's estimated subsequent 20 and missed property rolls. Such notification shall also include an estimate of 21 the net taxable value within any area annexed during the immediate prior year 22 to any taxing unit or district. 23 (2) Prior to the first Monday of March the auditor of each county in the 24 state shall notify the state tax commission of the net taxable value of all 25 property situated within each taxing unit or district in the county from the 26 subsequent and missed property rolls. Such notification shall also include an 27 estimate of the net taxable value within any area annexed during the immediate 28 prior year, and listed on the subsequent or missed property roll, to any tax- 29 ing unit or district. 30 (3) The notification required in subsections (1) and (2) of this section 31 shall be on forms prescribed and provided by the state tax commission and 32 shall list separately the value exempt from property taxation in accordance 33 with section 63-602G, Idaho Code, and the value in excess of the equalized 34 assessment valuation as shown on the base assessment roll in any revenue allo- 35 cation area, pursuant to chapters 20 and 29, title 50, Idaho Code. 36 (4) For the purposes of this section, "taxing district," as defined in 37 section 63-201(224), Idaho Code, shall include each incorporated city in each 38 county, regardless of whether said city certifies a property tax budget. 39 SECTION 5. That Section 63-1703, Idaho Code, be, and the same is hereby 40 amended to read as follows: 41 63-1703. CERTAIN FOREST LANDS TO BE DESIGNATED FOR TAXATION BY OWNER -- 42 LIMITATIONS. For the purposes of appraisal, assessment and taxation under the 43 provisions of this chapter, all forest lands in parcels of five (5) or more 44 acres but less than five thousand (5,000), whether contiguous or not, as long 45 as such parcels are held in common ownership, must be designated by the forest 46 landowner to be subject to the provisions of either subsection (a) or (b) of 47 this section. A forest landowner cannot have parcels designated under the pro- 48 visions of both subsections (a) and (b) of this section at one (1) time. If 49 the forest landowner fails to make a designation, his forest lands shall be 50 subject to appraisal, assessment and taxation under the provisions of section 51 63-1702, Idaho Code. Once a designation is made by the forest landowner, such 52 designation must remain in effect until the designation period expires, unless 10 1 the forest lands are transferred to another owner using a different taxing 2 category; in such case, the taxing category of the transferred forest lands 3 shall be the same as that maintained by the new owner. 4 A forest landowner may change the designation of all forest lands in com- 5 mon ownership at the end of any designation period, subject to the recapture 6 of any deferred taxes due as a result of such change. After January 1 and by 7 December 31 of the tenth year of each designation period the forest landowner 8 must notify the county assessor of any change in forest land designation. 9 Failure to notify the county assessor will result in the continuation of the 10 landowner's present designation until the end of the next designation period. 11 Any substantial change in the use of forest lands not conforming with the 12 definition of forest land in section 63-1701, Idaho Code, during such ten (10) 13 year period under the designations made in subsection (a) or (b) shall be 14 reported by the landowner to the county assessor within thirty (30) days of 15 the change in use. Upon notification of the change in use, the assessor shall 16 appraise, assess and tax those acres as provided by applicable laws and rules. 17 Failure to notify the assessor of the change in use when forest lands have 18 been designated as subject to the provisions of subsection (a) or (b) shall 19 cause forfeiture of such designation, and cause that property to be appraised, 20 assessed and taxed as provided in section 63-1702, Idaho Code. 21 Forest lands designated for assessment pursuant to the provisions of sec- 22 tion 63-1706, Idaho Code, shall be subject to the recapture of deferred taxes 23 upon removal of such designation, a substantial change in use, or ownership 24 transfer, except that there shall be no recapture initiated upon ownership 25 transfer of forest lands designated as subject to the provisions of section 26 63-1706, Idaho Code, to a landowner with forest lands already designated as 27 subject to the provisions of section 63-1706, Idaho Code, prior to the trans- 28 fer, or who so designates his lands to be subject to the provisions of section 29 63-1706, Idaho Code. In the event payment is offered or made, it shall be 30 accepted by the county treasurer and applied in the manner of payment of other 31 property tax. 32 The dollar amount of deferred taxes subject to recapture shall be deter- 33 mined by the county assessor by applying current tax levies against the cur- 34 rent values that would have been in effect if the lands were subject to 35 appraisal and assessment during the current year under the provisions of sec- 36 tion 63-1705, Idaho Code, if there has been a change in ownership or a removal 37 of designation, or section 63-1702, Idaho Code, if there has been a change in 38 use with no change in ownership, which amount shall be multiplied by the num- 39 ber of years that the lands have been subject to the designation under section 40 63-1706, Idaho Code. The amount of the deferred tax shall accrue through des- 41 ignation periods, up to a maximum of ten (10) years, and shall apply to the 42 most recent ten (10) years in which the parcel has been designated under the 43 provisions of section 63-1706, Idaho Code. A credit shall be allowed for taxes 44 actually paid under the provisions of section 63-1706, Idaho Code, for an 45 identical ten (10) year period, up to the total amount of the deferred taxes. 46 All deferred amounts shall be a lien against the land. Deferred tax amounts 47 shall be calculated by the county assessor on forms prescribed by the state 48 tax commission. Deferred tax amounts shall be supplied by the county assessor 49 to the county treasurer by May 15 of the year following conveyance or within 50 thirty (30) days of removal of designation, or of learning of a change in use. 51 All deferred tax amounts shall be due and payable to the county treasurer on 52 demand and shall become delinquent if not paid by the demand due date speci- 53 fied by the county treasurer on the forms prescribed by the state tax commis- 54 sion. If the deferred tax is not paid as provided above, the payment becomes 55 delinquent and subject to late charges, and interest in the amounts provided 56 in sections 63-201(79) and 63-1001, Idaho Code, and subject to collection in 11 1 the manner as set forth in chapter 10, title 63, Idaho Code. Estimated 2 deferred tax amounts may be held by the county treasurer in a tax anticipation 3 account from the date of conveyance until June 1 of the year following convey- 4 ance. 5 The county treasurer shall cause the deferred taxes and any penalty and 6 interest paid pursuant to the provisions of this section to be apportioned to 7 the various taxing authorities within which the property subject to the tax is 8 located in the same manner as property taxes. 9 (a) A forest landowner may choose to have his forest land assessed, 10 appraised and taxed under the provisions of section 63-1705, Idaho Code, by 11 filing such choice with the county assessor on a form prescribed by the state 12 tax commission. Designation filed pursuant to section 63-1705, Idaho Code, 13 shall become effective the first day of January following the year of designa- 14 tion. 15 (b) A forest landowner may choose to have his forest land assessed, 16 appraised and taxed under the provisions of section 63-1706, Idaho Code, by 17 filing such choice with the county assessor on a form prescribed by the state 18 tax commission. Designation filed pursuant to section 63-1706, Idaho Code, 19 shall become effective the first day of January following the year of designa- 20 tion. 21 (c) All forest products or timber harvested from investment lands not 22 designated as subject to the provisions of section 63-1702, 63-1705 or 23 63-1706, Idaho Code, and delivered to a point of utilization as logs or 24 semiprocessed forest products (except those forest products harvested for the 25 domestic use of the landowner under the provisions of section 63-1708, Idaho 26 Code) shall be subject to the yield tax at the time of harvest in the same 27 manner provided for in section 63-1706, Idaho Code. 28 SECTION 6. That Section 33-1103, Idaho Code, be, and the same is hereby 29 amended to read as follows: 30 33-1103. DEFINITIONS -- BONDS -- LIMITATION ON AMOUNT -- ELECTIONS TO AU- 31 THORIZE ISSUANCE. (1) For the purposes of this chapter the following defini- 32 tions shall have the meanings specified: "Market value for assessment pur- 33 poses" means the amount of the last preceding equalized assessment of all tax- 34 able property and all property exempt from taxation pursuant to section 35 63-602G, Idaho Code, and property exempt from taxation pursuant to section 36 63-602KK, Idaho Code, within the school district on the tax rolls completed 37 and available as of the date of approval by the electorate in the school bond 38 election. "Aggregate outstanding indebtedness" means the total sum of unre- 39 deemed outstanding bonds, minus all moneys in the bond interest and redemption 40 fund or funds accumulated for the redemption of such outstanding bonds, and 41 minus the sum of all taxes levied for the redemption of such bonds, with the 42 exception of that portion of such tax levies required for the payment of 43 interest on bonds, which taxes remain uncollected. "Issue," "issued," or 44 "issuance" means a formal delivery of bonds to any purchaser thereof and pay- 45 ment therefor to the school district. 46 (2) The board of trustees of any school district, upon approval of a 47 majority thereof, may submit to the qualified school district electors of the 48 district the question as to whether the board shall be empowered to issue 49 negotiable coupon bonds of the district in an amount and for a period of time 50 to be named in the notice of election. 51 (3) An elementary school district which employs not less than six (6) 52 teachers, or a school district operating an elementary school or schools, and 53 a secondary school or schools, or issuing bonds for the acquisition of a sec- 54 ondary school or schools, may issue bonds in an amount not to exceed five per- 12 1 cent (5%) of the market value for assessment purposes thereof, less the aggre- 2 gate outstanding indebtedness; and no other school district shall issue bonds 3 in an amount to exceed at any time two percent (2%) of the market value for 4 assessment purposes thereof less the aggregate outstanding indebtedness. The 5 market value for assessment purposes, the aggregate outstanding indebtedness 6 and the unexhausted debt-incurring power of the district shall each be deter- 7 mined as of the date of approval by the electors in the school bond election. 8 (4) Notice of the bond election shall be given, the election shall be 9 conducted and the returns thereof canvassed, and the qualifications of elec- 10 tors voting or offering to vote shall be, as provided in sections 33-401 11 through 33-406, Idaho Code. 12 (5) The question shall be approved only if the percentage of votes cast 13 at such election were cast in favor thereof is that which now, or may hereaf- 14 ter be, set by the constitution of the state of Idaho. Upon such approval of 15 the issuance of bonds, the same may be issued at any time after the date of 16 such election. 17 SECTION 7. That Section 63-313, Idaho Code, be, and the same is hereby 18 amended to read as follows: 19 63-313. SPECIAL PROVISIONS FOR TRANSIENT PERSONAL PROPERTY. (1) All tran- 20 sient personal property shall be listed by the owner and shall show the quan- 21 tity, name, model, serial number, if any, year of manufacture, date of pur- 22 chase, cost, whether new or used and other identifying information required by 23 the county assessor. The list of transient personal property shall identify 24 the owner of the property and shall be filed with the home county assessor on 25 or before the first day of November of each year. The owner of transient per- 26 sonal property may elect to treat as his home county that county in which he 27 maintains his residence or usual place of business or in which the transient 28 personal property is usually kept. The report shall be made on forms pre- 29 scribed by the state tax commission and shall identify periods of thirty (30) 30 days or more during which the personal property is located in a county, speci- 31 fying the location of the transient personal property for each month of the 32 current calendar year with a projection of the location for the remaining 33 months of November and December. 34 (2) The county assessor of the home county or the receiving county of the 35 listing shall file within ten (10) days with the county assessor of all coun- 36 ties identified on the report a copy of the report. Each county so identified 37 shall then place a prorated assessment on such personal property on the subse- 38 quent or missed property roll only for the length of time that the personal 39 property was located in their county. 40 (3) In the event that any transient personal property has been or will be 41 taxed for the current year in another state, the property shall be taxed for 42 only that portion of the year that the transient personal property is kept and 43 does remain in the state of Idaho. 44 (4) The provisions of this section shall not apply to transient personal 45 property in transit through this state, or to transient personal property sold 46 by the owner thereof in the home county upon which the taxes for the full year 47 have been paid or secured, which said transient personal property is kept, 48 moved, transported, shipped or hauled into and remaining in another county, 49 and there kept or remaining either for the purpose of use or sale within the 50 current year. 51 (5) For transient personal property valued at over one hundred thousand 52 dollars ($100,000), any exemption in section 63-602KK, Idaho Code, available 53 to the taxpayer shall be allocated among counties based on the prorated value 54 provided in subsection (2) of this section. 13 1 SECTION 8. That Section 63-802, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 63-802. LIMITATION ON BUDGET REQUESTS -- LIMITATION ON TAX CHARGES -- 4 EXCEPTIONS. (1) Except as provided in subsection (3) of this section for tax 5 year 1995, and each year thereafter, no taxing district shall certify a budget 6 request for an amount of property tax revenues to finance an annual budget 7 that exceeds the greater of: 8 (a) The dollar amount of property taxes certified for its annual budget 9 for any one (1) of the three (3) tax years preceding the current tax year, 10 whichever is greater, plus the dollar amount of moneys received pursuant 11 to section 63-3638(12), Idaho Code, for the past tax year, which amount 12 may be increased by a growth factor of not to exceed three percent (3%) 13 plus the amount of revenue that would have been generated by applying the 14 levy of the previous year, not including any levy described in subsection 15 (4) of this section, or any school district levy reduction resulting from 16 a distribution of state funds pursuant to section 63-3638(10), Idaho Code, 17 to any increase in market value subject to taxation resulting from new 18 construction or change of land use classification as evidenced by the 19 value shown on the new construction roll compiled pursuant to section 20 63-301A, Idaho Code; and by the value of annexation during the previous 21 calendar year, as certified by the state tax commission for market values 22 of operating property of public utilities and by the county assessor; or 23 (b) The dollar amount of property taxes certified for its annual budget 24 during the last year in which a levy was made; or 25 (c) The dollar amount of the actual budget request, if the taxing dis- 26 trict is newly created except as may be provided in subsection (1)(h) of 27 this section; or 28 (d) In the case of school districts, the restriction imposed in section 29 33-802, Idaho Code; or 30 (e) In the case of a nonschool district for which less than the maximum 31 allowable increase in the dollar amount of property taxes is certified 32 for annual budget purposes in any one (1) year, such a district may, in 33 any following year, recover the foregone increase by certifying, in addi- 34 tion to any increase otherwise allowed, an amount not to exceed one hun- 35 dred percent (100%) of the increase originally foregone. Said additional 36 amount shall be included in future calculations for increases as allowed; 37 or 38 (f) In the case of cities, if the immediately preceding year's levy sub- 39 ject to the limitation provided by this section, is less than 0.004, the 40 city may increase its budget by an amount not to exceed the difference 41 between 0.004 and actual prior year's levy multiplied by the prior year's 42 market value for assessment purposes. The additional amount must be 43 approved by sixty percent (60%) of the voters voting on the question at an 44 election called for that purpose and held on the date in May or November 45 provided by law, and may be included in the annual budget of the city for 46 purposes of this section; or 47 (g) A taxing district may submit to the electors within the district the 48 question of whether the budget from property tax revenues may be increased 49 beyond the amount authorized in this section, but not beyond the levy 50 authorized by statute. The additional amount must be approved by sixty-six 51 and two-thirds percent (66 2/3%) or more of the voters voting on the ques- 52 tion at an election called for that purpose and held on the May or Novem- 53 ber dates provided by section 34-106, Idaho Code. If approved by the 54 required minimum sixty-six and two-thirds percent (66 2/3%) of the voters 55 voting at the election, the new budget amount shall be the base budget for 14 1 the purposes of this section; or 2 (h) When a nonschool district consolidates with another nonschool dis- 3 trict or dissolves and a new district performing similar governmental 4 functions as the dissolved district forms with the same boundaries within 5 three (3) years, the maximum amount of a budget of the district from prop- 6 erty tax revenues shall not be greater than the sum of the amounts that 7 would have been authorized by this section for the district itself or for 8 the districts that were consolidated or dissolved and incorporated into a 9 new district; or 10 (i) In the instance or case of cooperative service agencies, the restric- 11 tions imposed in sections 33-315 through 33-318, Idaho Code. 12 (2) In the case of fire districts, during the year immediately following 13 the election of a public utility or public utilities to consent to be provided 14 fire protection pursuant to section 31-1425, Idaho Code, the maximum amount of 15 property tax revenues permitted in subsection (1) of this section may be 16 increased by an amount equal to the current year's taxable value of the con- 17 senting public utility or public utilities multiplied by that portion of the 18 prior year's levy subject to the limitation provided by subsection (1) of this 19 section. 20 (3) No board of county commissioners shall set a levy, nor shall the 21 state tax commission approve a levy for annual budget purposes which exceeds 22 the limitation imposed in subsection (1) of this section, unless authority to 23 exceed such limitation has been approved by a majority of the taxing 24 district's electors voting on the question at an election called for that pur- 25 pose and held pursuant to section 34-106, Idaho Code, provided however, that 26 such voter approval shall be for a period of not to exceed two (2) years. 27 (4) The amount of property tax revenues to finance an annual budget does 28 not include revenues from nonproperty tax sources, and does not include reve- 29 nue from levies that are voter approved for bonds, override levies or supple- 30 mental levies, plant facilities reserve fund levies, school emergency fund 31 levies or for levies applicable to newly annexed property or for levies appli- 32 cable to new construction as evidenced by the value of property subject to the 33 occupancy tax pursuant to section 63-317, Idaho Code, for the preceding tax 34 year. 35 SECTION 9. SEVERABILITY. The provisions of this act are hereby declared 36 to be severable and if any provision of this act or the application of such 37 provision to any person or circumstance is declared invalid for any reason, 38 such declaration shall not affect the validity of the remaining portions of 39 this act. 40 SECTION 10. This act shall be in full force and effect on and after Janu- 41 ary 1, 2009. 15 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 599, As Amended BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO TAXATION OF PERSONAL PROPERTY; AMENDING SECTION 63-201, IDAHO 3 CODE, TO REVISE DEFINITIONS; AMENDING SECTION 63-302, IDAHO CODE, TO PRO- 4 VIDE THAT A TAXPAYER'S LIST OF TAXABLE PERSONAL PROPERTY MAY BE AMENDED TO 5 PERMIT CERTAIN PROPERTY TO BE LISTED OR TO BE REMOVED FROM THE LIST AND TO 6 PROVIDE THAT THE STATEMENT MUST BE FILED ON OR BEFORE THE FOURTH MONDAY IN 7 APRIL 2008; AMENDING CHAPTER 6, TITLE 63, IDAHO CODE, BY THE ADDITION OF A 8 NEW SECTION 63-602KK, IDAHO CODE, TO PROVIDE THAT PERSONAL PROPERTY SHALL 9 BE EXEMPT FROM TAXATION, TO PROVIDE A SCHEDULE FOR PHASE IN, TO PROVIDE 10 DUTIES OF THE STATE CONTROLLER, TO DEFINE THE TERM "AFFILIATED PERSON OR 11 BUSINESS ENTITY" AND TO PROVIDE DUTIES OF THE STATE TAX COMMISSION; AMEND- 12 ING SECTION 63-3638, IDAHO CODE, TO PROVIDE FOR DISTRIBUTION OF SALES TAX 13 MONEYS TO COUNTIES AND OTHER TAXING DISTRICTS FOR REPLACEMENT OF MONEYS 14 FOR PERSONAL PROPERTY TAX REDUCTION; AMENDING SECTIONS 63-510 AND 63-1703, 15 IDAHO CODE, TO PROVIDE CORRECT CODE REFERENCES; AMENDING SECTION 33-1103, 16 IDAHO CODE, TO REVISE THE DEFINITION OF "MARKET VALUE FOR ASSESSMENT PUR- 17 POSES"; PROVIDING SEVERABILITY; DECLARING AN EMERGENCY, PROVIDING RETROAC- 18 TIVE APPLICATION AND PROVIDING EFFECTIVE DATES. 19 Be It Enacted by the Legislature of the State of Idaho: 20 SECTION 11. That Section 63-201, Idaho Code, be, and the same is hereby 21 amended to read as follows: 22 63-201. DEFINITIONS. As used for property tax purposes in title 63, chap- 23 ters 1 through 23, Idaho Code, the terms defined in this section shall have 24 the following meanings, unless the context clearly indicates another meaning: 25 (1) "Appraisal" means an estimate of property value for property tax pur- 26 poses. 27 (a) For the purpose of estimated property value to place the value on any 28 assessment roll, the value estimation must be made by the assessor or a 29 certified property tax appraiser. 30 (b) For the purpose of estimating property value to present for an appeal 31 filed pursuant to sections 63-501A, 63-407 and 63-409, Idaho Code, the 32 value estimation may be made by the assessor, a certified property tax 33 appraiser, a licensed appraiser, or a certified appraiser or any party as 34 specified by law. 35 (2) "Bargeline" means those water transportation tugs, boats, barges, 36 lighters and other equipment and property used in conjunction with waterways 37 for bulk transportation of freight or ship assist. 38 (3) "Cogenerators" means facilities which produce electric energy, and 39 steam or forms of useful energy which are used for industrial, commercial, 40 heating or cooling purposes. 41 (4) "Collection costs" are amounts authorized by law to be added after 42 the date of delinquency and collected in the same manner as property tax. 43 (5) "Delinquency" means any property tax, special assessment, fee, col- 44 lection cost, or charge collected in the same manner as property tax, that has 45 not been paid in the manner and within the time limits provided by law. 46 (6) "Fixtures" means those articles that, although once movable chattels, 47 have become accessory to and a part of improvements to real property by having 16 1 been physically incorporated therein or annexed or affixed thereto in such a 2 manner that removing them would cause material injury or damage to the real 3 property, the use or purpose of such articles is integral to the use of the 4 real property to which it is affixed, and a person would reasonably be consid- 5 ered to intend to make the articles permanent additions to the real property. 6 "Fixtures" includes systems for the heating, air conditioning, ventilation, 7 sanitation, lighting and plumbing of such building. "Fixtures" does not 8 include machinery, equipment or other articles that are affixed to real prop- 9 erty to enable the proper utilization of such articles. 10 (7) "Floating home" means a floating structure that is designed and built 11 to be used, or is modified to be used, as a stationary waterborne residential 12 dwelling, has no mode of power of its own, is dependent for utilities upon a 13 continuous utility linkage to a source originating on shore, and has a perma- 14 nent continuous connection to a sewage system on shore. 15 (8) "Improvements" means all buildings, structures,fixtures and fences16 manufactured homes, as defined in section 39-4105(8), Idaho Code, mobile homes 17 as defined in section 39-4105(9), Idaho Code, and modular buildings, as 18 defined in section 39-4301(7), Idaho Code, erected upon or affixed tothe19 land,andfences, water ditches constructed for mining, manufacturing or irri- 20 gation purposes, fixtures, and floating homes, whether or not such improve- 21 ments are owned separately from the ownership of the land upon or to which the 22 same may be erected, affixed or attached. The term "improvements" also 23 includes all fruit, nut-bearing and ornamental trees or vines not of natural 24 growth, growing upon the land, except nursery stock. 25 (79) "Late charge" means a charge of two percent (2%) of the delinquency. 26 (810) "Lawful money of the United States" means currency and coin of the 27 United States at par value and checks and drafts which are payable in dollars 28 of the United States at par value, payable upon demand or presentment. 29(9) "Manufactured home" means a structure defined as a manufactured home30in section 39-4105, Idaho Code.31 (101) "Market value" means the amount of United States dollars or equiva- 32 lent for which, in all probability, a property would exchange hands between a 33 willing seller, under no compulsion to sell, and an informed, capable buyer, 34 with a reasonable time allowed to consummate the sale, substantiated by a rea- 35 sonable down or full cash payment. 36 (112) "Operating property" means real and personal property operated in 37 connection with any public utility, railroad or private railcar fleet, wholly 38 or partly within this state, and which property is necessary to the mainte- 39 nance and operation of the public utility, railroad or private railcar fleet, 40 and the roads or lines thereof, and includes all rights-of-way accompanied by 41 title; roadbeds; tracks; pipelines; bargelines; equipment and docks; termi- 42 nals; rolling stock; equipment; power stations; power sites; lands; reser- 43 voirs, generating plants, transmission lines, distribution lines and substa- 44 tions;and all immovable or movable property operated in connection with any45public utility, railroad or private railcar fleet, wholly or partly within46this state, and necessary to the maintenance and operation of such road or47line, or in conducting its business,andshall includeall title and interest 48 in such property, as owner, lessee or otherwise. The term includes electrical 49 generation plants under construction, whether or not owned by or operated in 50 connection with any public utility.The term does not include personal prop-51erty exempt from taxation pursuant to section 63-602LFor the purpose of the 52 appraisal, assessment and taxation of operating property, pursuant to chapter 53 4, title 63, Idaho Code, the value of intangible personal property shall be 54 excluded from the taxable value of operating property in accordance with the 55 provisions of section 63-602L, Idaho Code, and the value of personal property, 56 other than intangible personal property, shall be excluded from the taxable 17 1 value of operating property in accordance with the provisions of section 2 63-602KK, Idaho Code. 3 (123) "Party in interest" means a person who holds a properly recorded 4 mortgage, deed of trust or security interest. 5 (134) "Person" means any entity, individual, corporation, partnership, 6 firm, association, limited liability company, limited liability partnership or 7 other such entities as recognized by the state of Idaho. 8 (145) "Personal property"includes all goods, chattels, stocks and bonds,9equities in state lands, easements, reservations, leasehold real properties10and all other property which the law defines, or the courts may interpret,11declare and hold to be personal property under the letter, spirit, intent and12meaning of the law, for the purposes of property taxation. For the purposes of13payment and collection of property taxes pursuant to chapter 9, title 63,14Idaho Code, collection of delinquency pursuant to chapter 10, title 63, Idaho15Code, and seizure and sale of personal property for taxes pursuant to chapter1611, title 63, Idaho Code, personal property includes manufactured homes not17declared as real property pursuant to section 63-304, Idaho Code.means every- 18 thing that is the subject of ownership and that is not included within the 19 term "real property." 20 (156) "Private railcar fleet" means railroad cars or locomotives owned by, 21 leased to, occupied by or franchised to any person other than a railroad com- 22 pany operating a line of railroad in Idaho or any company classified as a 23 railroad by the interstate commerce commission and entitled to possess such 24 railroad cars and locomotives except those possessed solely for the purpose of 25 repair, rehabilitation or remanufacturing of such locomotives or railroad 26 cars. 27 (167) "Public utility" means electrical companies, pipeline companies, 28 natural gas distribution companies, or power producers included within federal 29 law, bargelines, and water companies which are under the jurisdiction of the 30 Idaho public utilities commission. The term also includes telephone corpora- 31 tions, as that term is defined in section 62-603, Idaho Code, except as here- 32 inafter provided, whether or not such telephone corporation has been issued a 33 certificate of convenience and necessity by the Idaho public utilities commis- 34 sion. 35 This term does not include cogenerators, mobile telephone service or com- 36 panies, nor does it include pager service or companies, except when such ser- 37 vices are an integral part of services provided by a certificated utility com- 38 pany nor does the term "public utility" include companies or persons engaged 39 in the business of providing solely on a resale basis, any telephone or tele- 40 communication service which is purchased from a telephone corporation or com- 41 pany. 42 (178) "Railroad" means every kind of railway, whether its line of rails or 43 tracks be at, above or below the surface of the earth, and without regard to 44 the kind of power used in moving its rolling stock, and shall be considered to 45 include every kind of street railway, suburban railway or interurban railway 46 excepting facilities established solely for maintenance and rebuilding of 47 railroad cars or locomotives. 48 (189) "Real property" means land, improvements and all standing timber 49 thereon, including standing timber owned separately from the ownership of the 50 land upon which the same may stand, except as modified in chapter 17, title 51 63, Idaho Code, andall buildings, structures and improvements, or other fix-52tures of whatsoever kind on land, including water ditches constructed for min-53ing, manufacturing or irrigation purposes, water and gas mains, wagon and54turnpike toll roads, and toll bridges, and all rights and privileges thereto55belonging, or any way appertaining,all quarries and fossils in and under the 56 land, and all other property which the law defines, or the courts may inter-18 1pret, declare and hold to be real property under the letter, spirit, intent2and meaning of the law, for the purposes of property taxation. Manufactured3homes constitute real property when located on taxable land, and after a4statement of intent to declare as real property has been recorded, provided5said statement has not been revoked. Timber, forest, forest land, and forest 6 products shall be defined as provided in chapter 17, title 63, Idaho Code. 7 (1920) "Record owner" means the person or persons in whose name or names 8 the property stands upon the records of the county recorder's office. Where 9 the record owners are husband and wife at the time of notice of pending issue 10 of tax deed, notice to one (1) shall be deemed and imputed as notice to the 11 other spouse. 12 (201) "Special assessment" means a charge imposed upon property for a spe- 13 cific purpose, collected and enforced in the same manner as property taxes. 14 (212) "System value" means the market value for assessment purposes of the 15 operating property when considered as a unit. 16 (223) "Tax code area" means a geographical area made up of one (1) or more 17 taxing districts with one (1) total levy within the geographic area, except as 18 otherwise provided by law. 19 (234) "Taxing district" means any entity or unit with the statutory 20 authority to levy a property tax. 21 (245) "Taxable value" means market value for assessment purposes, less 22 applicable exemptions or other statutory provisions. 23 (256) "Transient personal property" is personal property, specifically 24 such construction, logging or mining machinery and equipment which is kept, 25 moved, transported, shipped, hauled into or remaining for periods of not less 26 than thirty (30) days, in more than one (1) county in the state during the 27 same year. 28 (267) "Warrant of distraint" means a warrant ordering the seizure of per- 29 sonal property to enforce payment of property tax, special assessment, 30 expense, fee, collection cost or charge collected in the same manner as per- 31 sonal property tax. 32 SECTION 12. That Section 63-302, Idaho Code, be, and the same is hereby 33 amended to read as follows: 34 63-302. LIST OF TAXABLE PERSONAL PROPERTY. (1) The assessor shall leave 35 at the office, place of business or residence of each personal property owner, 36 or mail to such personal property owner at his last known post office address, 37 a form with notice requiring such personal property owner to make a correct 38 list of taxable personal property. Every personal property owner so required 39 shall enter a true and correct statement of such personal property and the 40 ownership thereof, which statement shall be signed and verified by the oath of 41 the personal property owner or his agent listing such personal property, and 42 shall be delivered to the assessor, not later than March 15. Provided however, 43 the statement required to be filed not later than March 15, 2008, pursuant to 44 this section, may be amended to permit property affected by the definitions 45 set forth in section 63-201, Idaho Code, to be listed or removed from the list 46 of personal property by the taxpayer. The amended statement shall be delivered 47 to the assessor on or before the fourth Monday in April 2008. The assessor 48 shall thereupon determine the market value for assessment purposes of such 49 personal property and enter the same on the property roll. However, if for any 50 reason the assessor shall fail to contact such personal property owner, the 51 failure shall not impair or invalidate any assessment, nor will such failure 52 relieve the personal property owner or his agent of the responsibility to 53 obtain such declaration and to comply with the requirements of this title. Any 54 willful failure to personally contact each personal property owner, shall be 19 1 deemed malfeasance in office and grounds for the removal of the assessor from 2 office. 3 (2) If such person fails to make and deliver the list as required, the 4 assessor may list and assess such personal property according to his best 5 judgment and information. 6 (3) Whenever a taxpayer's list of taxable personal property discloses 7 personal property having a situs for purposes of taxation in another county in 8 this state, the assessor must immediately make a copy of that portion of such 9 list for each county in which such personal property is situated, and transmit 10 the same by mail to the assessor of the proper county, who must, upon receipt 11 of such copy, enter such personal property upon the property roll therein, 12 unless such personal property has already been entered. The assessor shall 13 strike from the original list all personal property so disclosed as having a 14 situs in another county, and shall assess and enter only the balance of the 15 personal property in his county. 16 SECTION 13. That Chapter 6, Title 63, Idaho Code, be, and the same is 17 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 18 ignated as Section 63-602KK, Idaho Code, and to read as follows: 19 63-602KK. PROPERTY EXEMPT FROM TAXATION -- PERSONAL PROPERTY. (1) Com- 20 mencing January 1, 2008, personal property, whether or not included in operat- 21 ing property, which was first acquired by the owner of such property after 22 12:01 a.m., January 1, 2008, from a person or entity other than an affiliated 23 person or business entity, shall be exempt from property taxation by any tax- 24 ing district. 25 (2) (a) On January 1, 2009, the taxable value of personal property held 26 by the taxpayer shall be reduced by twenty percent (20%), and on January 1 27 of each taxable year thereafter the taxable value of personal property 28 held by the taxpayer on such date shall be reduced by an additional twenty 29 percent (20%), unless reduction in taxable value is withheld as provided 30 in paragraph (c) of this subsection. 31 (b) The state controller shall, on or before September 1 of each year, 32 certify to the state tax commission whether receipts to the general fund 33 for the fiscal year just ended have or have not exceeded the receipts of 34 the previous year by more than five percent (5%). The state tax commission 35 shall notify county auditors of the certification by the state controller 36 and the effect thereof. 37 (c) If the state controller certifies that the receipts to the general 38 fund for the fiscal year ending June 30, 2008, or for fiscal years ending 39 June 30 of any year thereafter through June 30, 2012, have not exceeded 40 the receipts to the general fund during the previous fiscal year by more 41 than five percent (5%), the reduction in taxable value of personal prop- 42 erty set forth in paragraph (a) of this subsection scheduled to occur on 43 January 1 of the year following such certification shall be withheld. Not- 44 withstanding the provisions of this paragraph, the taxable value of per- 45 sonal property shall be reduced to zero (0) for tax year 2014, and for 46 each tax year thereafter. 47 (d) In the event that the state controller certifies that the receipts to 48 the general fund for the fiscal year ending immediately preceding such 49 certification have exceeded the receipts of the previous fiscal year by 50 more than five percent (5%), the then taxable value of personal property, 51 if any, shall be reduced by twenty percent (20%) on the following January 52 1, and such scheduled reductions in taxable value shall occur in subse- 53 quent tax years, as scheduled, unless withheld as provided in paragraph 54 (c) of this subsection. 20 1 (3) As used in this section, the term "affiliated person or business 2 entity" shall mean a person or business entity that directly or indirectly 3 owns or controls, is owned or controlled by, is under ownership or control 4 with, another person related to such other person by marriage or by consan- 5 guinity in the first or second degree. 6 (4) The state tax commission shall promulgate rules which shall provide 7 for the exclusion of the taxable value of personal property from the taxable 8 value of operating property. Such rules shall allow each taxpayer the right to 9 elect one (1) of the following three (3) methods for exclusion of personal 10 property from its taxable value: 11 (a) Separate exclusion of the taxable value of personal property at the 12 system level value; 13 (b) Separate exclusion of the taxable value of personal property at the 14 state allocated level value; or 15 (c) Exclusion of the taxable value of personal property by valuation of 16 only nonexempt property using valuation models which do not impound or 17 include values of the personal property. 18 (5) (a) The county commissioners in each county shall certify to the 19 state tax commission on or before the fourth Monday in November 2008, the 20 year 2008 total tax charge applicable to the taxable value of personal 21 property for the portion of each taxing district or unit within the county 22 which has been entered onto the property roll for tax year 2008 by the 23 county assessor. The state tax commission shall calculate the amount that 24 each county assessed in taxes in tax year 2008 on the taxable value of 25 personal property held by the taxpayer at 12:01 a.m., January 1, 2008, 26 with reference to which personal property taxes are levied for tax year 27 2008 pursuant to section 63-205, Idaho Code. Further, the state tax com- 28 mission shall calculate the amount that each county levied in taxes in tax 29 year 2008 on the taxable value of that portion of operating property con- 30 stituting personal property and held by the taxpayer at 12:01 a.m., Janu- 31 ary 1, 2008, and certified by the commission to the county auditors of the 32 several counties pursuant to section 63-410, Idaho Code, for tax year 33 2008. 34 (b) The state tax commission shall compute the percentage the amount of 35 taxes levied on personal property for each county for tax year 2008 bears 36 to the total amount of taxes levied on personal property by all counties 37 in the state for the year 2008. The percentage so determined for each 38 county shall be applied to the amount distributed by the commission pursu- 39 ant to section 63-3638, Idaho Code, and the resulting sum shall be paid to 40 the county treasurer of each county for distribution to each taxing dis- 41 trict in the county as follows: 42 (i) The board of county commissioners in each county shall compute 43 the percentage the amount of taxes levied on the taxable value of 44 personal property for the year 2008 for each taxing district in the 45 county bears to the total amount of taxes levied on the taxable value 46 of personal property for all taxing districts in the county for the 47 year 2008. The percentage so determined for each taxing district in 48 the county shall be applied to the sum paid to the county treasurer 49 by the state tax commission pursuant to this section and the result- 50 ing amount shall be distributed to each taxing district in the county 51 by the county auditor within thirty (30) calendar days from receipt 52 of moneys from the state tax commission. The amount which would 53 otherwise be attributable to tax revenues derived from tax levies on 54 taxable personal property within an existing revenue allocation area, 55 as defined in section 50-2903(15), Idaho Code, and for which revenue 56 allocation area a legal description of the boundaries of such area 21 1 was filed in accordance with the provisions of section 50-2907, Idaho 2 Code, on or before January 1, 2008, shall be paid directly by the 3 county treasurer to such public body or agency entitled thereto in 4 accordance with the formula for such distribution set forth in sec- 5 tion 50-2908, Idaho Code. 6 (ii) The moneys remitted to the county treasurer for replacement of 7 taxes on property exempt from taxation pursuant to this section may 8 be considered by the counties and other taxing districts and budgeted 9 at the same time, in the same manner and in the same year as revenues 10 from taxation on personal property that these moneys replace. 11 (iii) If taxing districts are consolidated, the resulting district is 12 entitled to an amount equal to the sum of the amounts which were 13 received in the last calendar quarter by each district pursuant to 14 this section prior to consolidation. If a taxing district is dis- 15 solved or disincorporated, the state tax commission shall continu- 16 ously distribute to the board of county commissioners an amount equal 17 to the last quarter's distribution prior to dissolution or 18 disincorporation. The board of county commissioners shall determine 19 any redistribution of moneys so received. If a taxing district 20 annexes territory, the distribution of moneys received pursuant to 21 this section shall be unaffected. Taxing districts formed after Janu- 22 ary 1, 2008, are not entitled to payments under the provisions of 23 this section. 24 (iv) For purposes of the limitation provided by section 63-802, 25 Idaho Code, moneys received from distributions pursuant to section 26 63-3638, Idaho Code, as property tax replacement for the taxable 27 value of property exempt from taxation pursuant to this section shall 28 be treated as property tax revenues. 29 (6) Nothing contained in this section shall affect the taxation of forest 30 lands or forest products pursuant to chapter 17, title 63, Idaho Code, or the 31 taxation of the net profits of mines pursuant to chapter 28, title 63, Idaho 32 Code. 33 SECTION 14. That Section 63-3638, Idaho Code, be, and the same is hereby 34 amended to read as follows: 35 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap- 36 ter, except as may otherwise be required in sections 63-3203 and 63-3709, 37 Idaho Code, shall be distributed by the tax commission as follows: 38 (1) An amount of money shall be distributed to the state refund account 39 sufficient to pay current refund claims. All refunds authorized under this 40 chapter by the commission shall be paid through the state refund account, and 41 those moneys are continuously appropriated. 42 (2) Five million dollars ($5,000,000) per year is continuously appropri- 43 ated and shall be distributed to the permanent building fund, provided by sec- 44 tion 57-1108, Idaho Code. 45 (3) Four million eight hundred thousand dollars ($4,800,000) per year is 46 continuously appropriated and shall be distributed to the water pollution con- 47 trol account established by section 39-3605, Idaho Code. 48 (4) An amount equal to the sum required to be certified by the chairman 49 of the Idaho housing and finance association to the state tax commission pur- 50 suant to section 67-6211, Idaho Code, in each year is continuously appropri- 51 ated and shall be paid to any capital reserve fund, established by the Idaho 52 housing and finance association pursuant to section 67-6211, Idaho Code. Such 53 amounts, if any, as may be appropriated hereunder to the capital reserve fund 54 of the Idaho housing and finance association shall be repaid for distribution 22 1 under the provisions of this section, subject to the provisions of section 2 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as 3 possible, from any moneys available therefor and in excess of the amounts 4 which the association determines will keep it self-supporting. 5 (5) An amount equal to the sum required by the provisions of sections 6 63-709 and 63-717, Idaho Code, after allowance for the amount appropriated by 7 section 63-718(3), Idaho Code, is continuously appropriated and shall be paid 8 as provided by sections 63-709 and 63-717, Idaho Code. 9 (6) An amount required by the provisions of chapter 53, title 33, Idaho 10 Code. 11 (7) An amount required by the provisions of chapter 87, title 67, Idaho 12 Code. 13 (8) One dollar ($1.00) on each application for certificate of title or 14 initial application for registration of a motor vehicle, snowmobile, all- 15 terrain vehicle or other vehicle processed by the county assessor or the Idaho 16 transportation department excepting those applications in which any sales or 17 use taxes due have been previously collected by a retailer, shall be a fee for 18 the services of the assessor of the county or the Idaho transportation depart- 19 ment in collecting such taxes, and shall be paid into the current expense fund 20 of the county or state highway account established in section 40-702, Idaho 21 Code. 22 (9) Eleven and five-tenths percent (11.5%) is continuously appropriated 23 and shall be distributed to the revenue sharing account which is created in 24 the state treasury, and the moneys in the revenue sharing account will be paid 25 in installments each calendar quarter by the tax commission as follows: 26 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var- 27 ious cities as follows: 28 (i) Fifty percent (50%) of such amount shall be paid to the various 29 cities, and each city shall be entitled to an amount in the propor- 30 tion that the population of that city bears to the population of all 31 cities within the state; and 32 (ii) Fifty percent (50%) of such amount shall be paid to the various 33 cities, and each city shall be entitled to an amount in the propor- 34 tion that the preceding year's market value for assessment purposes 35 for that city bears to the preceding year's market value for assess- 36 ment purposes for all cities within the state. 37 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var- 38 ious counties as follows: 39 (i) One million three hundred twenty thousand dollars ($1,320,000) 40 annually shall be distributed one forty-fourth (1/44) to each of the 41 various counties; and 42 (ii) The balance of such amount shall be paid to the various coun- 43 ties, and each county shall be entitled to an amount in the propor- 44 tion that the population of that county bears to the population of 45 the state; 46 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri- 47 ated in this subsection (9) shall be paid to the several counties for 48 distribution to the cities and counties as follows: 49 (i) Each city and county which received a payment under the provi- 50 sions of section 63-3638(e), Idaho Code, during the fourth quarter of 51 calendar year 1999, shall be entitled to a like amount during suc- 52 ceeding calendar quarters. 53 (ii) If the dollar amount of money available under this subsection 54 (9)(c) in any quarter does not equal the amount paid in the fourth 55 quarter of calendar year 1999, each city's and county's payment shall 56 be reduced proportionately. 23 1 (iii) If the dollar amount of money available under this subsection 2 (9)(c) in any quarter exceeds the amount paid in the fourth quarter 3 of calendar year 1999, each city and county shall be entitled to a 4 proportionately increased payment, but such increase shall not exceed 5 one hundred five percent (105%) of the total payment made in the 6 fourth quarter of calendar year 1999. 7 (iv) If the dollar amount of money available under this subsection 8 (9)(c) in any quarter exceeds one hundred five percent (105%) of the 9 total payment made in the fourth quarter of calendar year 1999, any 10 amount over and above such one hundred five percent (105%) shall be 11 paid fifty percent (50%) to the various cities in the proportion that 12 the population of the city bears to the population of all cities 13 within the state, and fifty percent (50%) to the various counties in 14 the proportion that the population of a county bears to the popula- 15 tion of the state; and 16 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in 17 this subsection (9) shall be paid to the several counties for distribution 18 to special purpose taxing districts as follows: 19 (i) Each such district which received a payment under the provi- 20 sions of section 63-3638(e), Idaho Code, during the fourth quarter of 21 calendar year 1999, shall be entitled to a like amount during suc- 22 ceeding calendar quarters. 23 (ii) If the dollar amount of money available under this subsection 24 (9)(d) in any quarter does not equal the amount paid in the fourth 25 quarter of calendar year 1999, each special purpose taxing district's 26 payment shall be reduced proportionately. 27 (iii) If the dollar amount of money available under this subsection 28 (9)(d) in any quarter exceeds the amount distributed under paragraph 29 (i) of this subsection (9)(d), each special purpose taxing district 30 shall be entitled to a share of the excess based on the proportion 31 each such district's current property tax budget bears to the sum of 32 the current property tax budgets of all such districts in the state. 33 The state tax commission shall calculate district current property 34 tax budgets to include any unrecovered foregone amounts as determined 35 under section 63-802(1)(e), Idaho Code. When a special purpose taxing 36 district is situated in more than one (1) county, the tax commission 37 shall determine the portion attributable to the special purpose tax- 38 ing district from each county in which it is situated. 39 (iv) If special purpose taxing districts are consolidated, the 40 resulting district is entitled to a base amount equal to the sum of 41 the base amounts which were received in the last calendar quarter by 42 each district prior to the consolidation. 43 (v) If a special purpose taxing district is dissolved or 44 disincorporated, the state tax commission shall continuously distrib- 45 ute to the board of county commissioners an amount equal to the last 46 quarter's distribution prior to dissolution or disincorporation. The 47 board of county commissioners shall determine any redistribution of 48 moneys so received. 49 (vi) Taxing districts formed after January 1, 2001, are not entitled 50 to a payment under the provisions of this subsection (9)(d). 51 (vii) For purposes of this subsection (9)(d), a special purpose tax- 52 ing district is any taxing district which is not a city, a county or 53 a school district. 54 (10) Amounts calculated in accordance with section 2, chapter 356, laws of 55 2001, for annual distribution to counties and other taxing districts beginning 56 in October 2001 for replacement of property tax on farm machinery and equip- 24 1 ment exempted pursuant to section 63-602EE, Idaho Code. For nonschool dis- 2 tricts, the state tax commission shall distribute one-fourth (1/4) of this 3 amount certified quarterly to each county. For school districts, the state tax 4 commission shall distribute one-fourth (1/4) of the amount certified quarterly 5 to each school district. For nonschool districts, the county auditor shall 6 distribute to each district within thirty (30) calendar days from receipt of 7 moneys from the tax commission. Moneys received by each taxing district for 8 replacement shall be utilized in the same manner and in the same proportions 9 as revenues from property taxation. The moneys remitted to the county trea- 10 surer for replacement of property exempt from taxation pursuant to section 11 63-602EE, Idaho Code, may be considered by the counties and other taxing dis- 12 tricts and budgeted at the same time, in the same manner and in the same year 13 as revenues from taxation on personal property which these moneys replace. If 14 taxing districts are consolidated, the resulting district is entitled to an 15 amount equal to the sum of the amounts which were received in the last calen- 16 dar quarter by each district pursuant to this subsection prior to the consoli- 17 dation. If a taxing district is dissolved or disincorporated, the state tax 18 commission shall continuously distribute to the board of county commissioners 19 an amount equal to the last quarter's distribution prior to dissolution or 20 disincorporation. The board of county commissioners shall determine any redis- 21 tribution of moneys so received. If a taxing district annexes territory, the 22 distribution of moneys received pursuant to this subsection shall be unaf- 23 fected. Taxing districts formed after January 1, 2001, are not entitled to a 24 payment under the provisions of this subsection. School districts shall 25 receive an amount determined by multiplying the sum of the year 2000 school 26 district levy minus .004 times the market value on December 31, 2000, in the 27 district of the property exempt from taxation pursuant to section 63-602EE, 28 Idaho Code, provided that the result of these calculations shall not be less 29 than zero (0). The result of these school district calculations shall be fur- 30 ther increased by six percent (6%). For purposes of the limitation provided by 31 section 63-802, Idaho Code, moneys received pursuant to this section as prop- 32 erty tax replacement for property exempt from taxation pursuant to section 33 63-602EE, Idaho Code, shall be treated as property tax revenues. 34 (11) Amounts necessary to pay refunds as provided in subsection (3) of 35 section 63-3641, Idaho Code, to a developer of a retail commercial complex 36 whose stores sell tangible personal property or taxable services subject to 37 the sales and use tax up to an aggregate total of thirty-five million dollars 38 ($35,000,000) per project shall be remitted to the demonstration pilot project 39 fund created in subsection (3) of section 63-3641, Idaho Code, and shall be 40 specific to and accounted for by each project. 41 (12) (a) Amounts calculated in accordance with section 63-602KK(5)(a), 42 Idaho Code, for distribution to counties and other taxing districts for 43 replacement of property tax revenues from personal property exempted from 44 taxation pursuant to section 63-602KK, Idaho Code. For state fiscal year 45 2010 through fiscal year 2014, and each fiscal year thereafter, distribu- 46 tions shall be subject to the provisions of paragraph (b) of this subsec- 47 tion but shall not exceed the following amounts: 48 Fiscal year 2010--twenty percent (20%) of the amount calculated in 49 accordance with section 63-602KK(5)(a), Idaho Code; 50 Fiscal year 2011--forty percent (40%) of the amount calculated in 51 accordance with section 63-602KK(5)(a), Idaho Code; 52 Fiscal year 2012--sixty percent (60%) of the amount calculated in 53 accordance with section 63-602KK(5)(a), Idaho Code; 54 Fiscal year 2013--eighty percent (80%) of the amount calculated in 55 accordance with section 63-602KK(5)(a), Idaho Code; 56 Fiscal year 2014 and for each fiscal year thereafter, one hundred 25 1 percent (100%) of the amount calculated in accordance with section 2 63-602KK(5)(a), Idaho Code. 3 The state tax commission shall distribute one-fourth (1/4) of the distrib- 4 utable amounts quarterly to each county. 5 (b) In any taxable year in which the reduction in taxable value of per- 6 sonal property is withheld pursuant to section 63-602KK(2), Idaho Code, 7 distributions in excess of distributions previously authorized to be made 8 during the last fiscal year in which distributions occurred, shall not be 9 made during the immediately succeeding state fiscal year. At the beginning 10 of each state fiscal year following an allowed reduction in taxable value 11 of personal property as of the first day of January preceding the com- 12 mencement of the state's succeeding fiscal year, distributions shall be 13 equal to the amount distributed in previous years, together with an addi- 14 tional amount equal to twenty percent (20%) of the amount calculated in 15 accordance with section 63-602KK(5)(a), Idaho Code. Notwithstanding with- 16 held distributions in prior fiscal years, commencing not later than fiscal 17 year 2015, and for each fiscal year thereafter, one hundred percent (100%) 18 of the amount calculated in accordance with section 63-602KK(5)(a), Idaho 19 Code, shall be made to counties and other taxing districts for replacement 20 of property tax revenues from personal property exempted pursuant to sec- 21 tion 63-602KK, Idaho Code. 22 (13) Any moneys remaining over and above those necessary to meet and 23 reserve for payments under other subsections of this section shall be distrib- 24 uted to the general fund. 25 SECTION 15. That Section 63-510, Idaho Code, be, and the same is hereby 26 amended to read as follows: 27 63-510. NOTIFICATION OF VALUATION DUE TO STATE TAX COMMISSION. (1) Prior 28 to the first Monday of August the auditor of each county in the state shall 29 notify the state tax commission of the net taxable value of all property situ- 30 ated within each taxing unit or district in the county from the property roll 31 for the current year and shall provide an estimate of the net taxable value 32 for each taxing unit or district from the current year's estimated subsequent 33 and missed property rolls. Such notification shall also include an estimate of 34 the net taxable value within any area annexed during the immediate prior year 35 to any taxing unit or district. 36 (2) Prior to the first Monday of March the auditor of each county in the 37 state shall notify the state tax commission of the net taxable value of all 38 property situated within each taxing unit or district in the county from the 39 subsequent and missed property rolls. Such notification shall also include an 40 estimate of the net taxable value within any area annexed during the immediate 41 prior year, and listed on the subsequent or missed property roll, to any tax- 42 ing unit or district. 43 (3) The notification required in subsections (1) and (2) of this section 44 shall be on forms prescribed and provided by the state tax commission and 45 shall list separately the value exempt from property taxation in accordance 46 with section 63-602G, Idaho Code, and the value in excess of the equalized 47 assessment valuation as shown on the base assessment roll in any revenue allo- 48 cation area, pursuant to chapters 20 and 29, title 50, Idaho Code. 49 (4) For the purposes of this section, "taxing district," as defined in 50 section 63-201(224), Idaho Code, shall include each incorporated city in each 51 county, regardless of whether said city certifies a property tax budget. 52 SECTION 16. That Section 63-1703, Idaho Code, be, and the same is hereby 53 amended to read as follows: 26 1 63-1703. CERTAIN FOREST LANDS TO BE DESIGNATED FOR TAXATION BY OWNER -- 2 LIMITATIONS. For the purposes of appraisal, assessment and taxation under the 3 provisions of this chapter, all forest lands in parcels of five (5) or more 4 acres but less than five thousand (5,000), whether contiguous or not, as long 5 as such parcels are held in common ownership, must be designated by the forest 6 landowner to be subject to the provisions of either subsection (a) or (b) of 7 this section. A forest landowner cannot have parcels designated under the pro- 8 visions of both subsections (a) and (b) of this section at one (1) time. If 9 the forest landowner fails to make a designation, his forest lands shall be 10 subject to appraisal, assessment and taxation under the provisions of section 11 63-1702, Idaho Code. Once a designation is made by the forest landowner, such 12 designation must remain in effect until the designation period expires, unless 13 the forest lands are transferred to another owner using a different taxing 14 category; in such case, the taxing category of the transferred forest lands 15 shall be the same as that maintained by the new owner. 16 A forest landowner may change the designation of all forest lands in com- 17 mon ownership at the end of any designation period, subject to the recapture 18 of any deferred taxes due as a result of such change. After January 1 and by 19 December 31 of the tenth year of each designation period the forest landowner 20 must notify the county assessor of any change in forest land designation. 21 Failure to notify the county assessor will result in the continuation of the 22 landowner's present designation until the end of the next designation period. 23 Any substantial change in the use of forest lands not conforming with the 24 definition of forest land in section 63-1701, Idaho Code, during such ten (10) 25 year period under the designations made in subsection (a) or (b) shall be 26 reported by the landowner to the county assessor within thirty (30) days of 27 the change in use. Upon notification of the change in use, the assessor shall 28 appraise, assess and tax those acres as provided by applicable laws and rules. 29 Failure to notify the assessor of the change in use when forest lands have 30 been designated as subject to the provisions of subsection (a) or (b) shall 31 cause forfeiture of such designation, and cause that property to be appraised, 32 assessed and taxed as provided in section 63-1702, Idaho Code. 33 Forest lands designated for assessment pursuant to the provisions of sec- 34 tion 63-1706, Idaho Code, shall be subject to the recapture of deferred taxes 35 upon removal of such designation, a substantial change in use, or ownership 36 transfer, except that there shall be no recapture initiated upon ownership 37 transfer of forest lands designated as subject to the provisions of section 38 63-1706, Idaho Code, to a landowner with forest lands already designated as 39 subject to the provisions of section 63-1706, Idaho Code, prior to the trans- 40 fer, or who so designates his lands to be subject to the provisions of section 41 63-1706, Idaho Code. In the event payment is offered or made, it shall be 42 accepted by the county treasurer and applied in the manner of payment of other 43 property tax. 44 The dollar amount of deferred taxes subject to recapture shall be deter- 45 mined by the county assessor by applying current tax levies against the cur- 46 rent values that would have been in effect if the lands were subject to 47 appraisal and assessment during the current year under the provisions of sec- 48 tion 63-1705, Idaho Code, if there has been a change in ownership or a removal 49 of designation, or section 63-1702, Idaho Code, if there has been a change in 50 use with no change in ownership, which amount shall be multiplied by the num- 51 ber of years that the lands have been subject to the designation under section 52 63-1706, Idaho Code. The amount of the deferred tax shall accrue through des- 53 ignation periods, up to a maximum of ten (10) years, and shall apply to the 54 most recent ten (10) years in which the parcel has been designated under the 55 provisions of section 63-1706, Idaho Code. A credit shall be allowed for taxes 56 actually paid under the provisions of section 63-1706, Idaho Code, for an 27 1 identical ten (10) year period, up to the total amount of the deferred taxes. 2 All deferred amounts shall be a lien against the land. Deferred tax amounts 3 shall be calculated by the county assessor on forms prescribed by the state 4 tax commission. Deferred tax amounts shall be supplied by the county assessor 5 to the county treasurer by May 15 of the year following conveyance or within 6 thirty (30) days of removal of designation, or of learning of a change in use. 7 All deferred tax amounts shall be due and payable to the county treasurer on 8 demand and shall become delinquent if not paid by the demand due date speci- 9 fied by the county treasurer on the forms prescribed by the state tax commis- 10 sion. If the deferred tax is not paid as provided above, the payment becomes 11 delinquent and subject to late charges, and interest in the amounts provided 12 in sections 63-201(79) and 63-1001, Idaho Code, and subject to collection in 13 the manner as set forth in chapter 10, title 63, Idaho Code. Estimated 14 deferred tax amounts may be held by the county treasurer in a tax anticipation 15 account from the date of conveyance until June 1 of the year following convey- 16 ance. 17 The county treasurer shall cause the deferred taxes and any penalty and 18 interest paid pursuant to the provisions of this section to be apportioned to 19 the various taxing authorities within which the property subject to the tax is 20 located in the same manner as property taxes. 21 (a) A forest landowner may choose to have his forest land assessed, 22 appraised and taxed under the provisions of section 63-1705, Idaho Code, by 23 filing such choice with the county assessor on a form prescribed by the state 24 tax commission. Designation filed pursuant to section 63-1705, Idaho Code, 25 shall become effective the first day of January following the year of designa- 26 tion. 27 (b) A forest landowner may choose to have his forest land assessed, 28 appraised and taxed under the provisions of section 63-1706, Idaho Code, by 29 filing such choice with the county assessor on a form prescribed by the state 30 tax commission. Designation filed pursuant to section 63-1706, Idaho Code, 31 shall become effective the first day of January following the year of designa- 32 tion. 33 (c) All forest products or timber harvested from investment lands not 34 designated as subject to the provisions of section 63-1702, 63-1705 or 35 63-1706, Idaho Code, and delivered to a point of utilization as logs or 36 semiprocessed forest products (except those forest products harvested for the 37 domestic use of the landowner under the provisions of section 63-1708, Idaho 38 Code) shall be subject to the yield tax at the time of harvest in the same 39 manner provided for in section 63-1706, Idaho Code. 40 SECTION 17. That Section 33-1103, Idaho Code, be, and the same is hereby 41 amended to read as follows: 42 33-1103. DEFINITIONS -- BONDS -- LIMITATION ON AMOUNT -- ELECTIONS TO AU- 43 THORIZE ISSUANCE. (1) For the purposes of this chapter the following defini- 44 tions shall have the meanings specified: "Market value for assessment pur- 45 poses" means the amount of the last preceding equalized assessment of all tax- 46 able property and all property exempt from taxation pursuant to section 47 63-602G, Idaho Code, and property exempted from taxation commencing January 1, 48 2009, through January 1, 2014, pursuant to section 63-602KK(2)(a), Idaho Code, 49 within the school district on the tax rolls completed and available as of the 50 date of approval by the electorate in the school bond election. "Aggregate 51 outstanding indebtedness" means the total sum of unredeemed outstanding bonds, 52 minus all moneys in the bond interest and redemption fund or funds accumulated 53 for the redemption of such outstanding bonds, and minus the sum of all taxes 54 levied for the redemption of such bonds, with the exception of that portion of 28 1 such tax levies required for the payment of interest on bonds, which taxes 2 remain uncollected. "Issue," "issued," or "issuance" means a formal delivery 3 of bonds to any purchaser thereof and payment therefor to the school district. 4 (2) The board of trustees of any school district, upon approval of a 5 majority thereof, may submit to the qualified school district electors of the 6 district the question as to whether the board shall be empowered to issue 7 negotiable coupon bonds of the district in an amount and for a period of time 8 to be named in the notice of election. 9 (3) An elementary school district which employs not less than six (6) 10 teachers, or a school district operating an elementary school or schools, and 11 a secondary school or schools, or issuing bonds for the acquisition of a sec- 12 ondary school or schools, may issue bonds in an amount not to exceed five per- 13 cent (5%) of the market value for assessment purposes thereof, less the aggre- 14 gate outstanding indebtedness; and no other school district shall issue bonds 15 in an amount to exceed at any time two percent (2%) of the market value for 16 assessment purposes thereof less the aggregate outstanding indebtedness. The 17 market value for assessment purposes, the aggregate outstanding indebtedness 18 and the unexhausted debt-incurring power of the district shall each be deter- 19 mined as of the date of approval by the electors in the school bond election. 20 (4) Notice of the bond election shall be given, the election shall be 21 conducted and the returns thereof canvassed, and the qualifications of elec- 22 tors voting or offering to vote shall be, as provided in sections 33-401 23 through 33-406, Idaho Code. 24 (5) The question shall be approved only if the percentage of votes cast 25 at such election were cast in favor thereof is that which now, or may hereaf- 26 ter be, set by the constitution of the state of Idaho. Upon such approval of 27 the issuance of bonds, the same may be issued at any time after the date of 28 such election. 29 SECTION 18. SEVERABILITY. The provisions of this act are hereby declared 30 to be severable and if any provision of this act or the application of such 31 provision to any person or circumstance is declared invalid for any reason, 32 such declaration shall not affect the validity of the remaining portions of 33 this act. 34 SECTION 19. An emergency existing therefor, which emergency is hereby 35 declared to exist, Sections 1, 2, 3 and 8 of this act shall be in full force 36 and effect on and after passage and approval, and retroactively to January 1, 37 2008. Sections 4, 5, 6 and 7 of this act shall be in full force and effect on 38 and after July 1, 2008.
STATEMENT OF PURPOSE
RS 17950C2
The personal property tax applies to business machinery, tools,
furnishings, equipment and some fixtures. It is one of the most
difficult to administer and comply with for government and business
alike. It is a barrier to economic development and studies indicate
that the elimination of the tax results in significant economic
stimulus for both business and the personal income of Idaho citizens.
The purpose of this legislation is to phase out the tax over
five years. Elements of the legislation include an immediate and
retroactive to January 1, 2008, exemption of all new personal
property purchased since that date.
The remaining personal property on the books prior to that date
will be assessed for 2008. This process will establish the actual
gross dollar amount that will be repaid by the state to local
government throughout the phase out and into perpetuity.
The five-year phase out starting in 2009 or FY-2010 will be in
twenty percent (20%) increments until all of the personal property
tax paid by business is eliminated and the state is fully reimbursing
local governments. Each year the state revenue will need to exceed
four percent (4%) for each increment to be phased in.
The legislation eliminates a current ongoing shift of tax
liability from personal property to real property and gives
assurances to state budget writers using the trigger mechanism that
is the same as the one used for the budget stabilization account.
FISCAL NOTE
There should be an immediate savings to counties that will no
longer have to track and assess many of these depreciating assets of
the businesses in the state starting in 2009.
The remaining amount of personal property tax to be reimbursed
to local government will be phased in. The fiscal notes are a "worst
case scenario." Studies indicate that the state will see as much as
half of the fiscal notes indicated returning to the state coffers in
the form of economic expansion of both business and personal income
as a result of the change in Idaho policy to eliminate the tax.
The eventual total gross cost is estimated to be between $110
and $120 million that will be phased out over the five-year period
starting FY-2010 provided the revenues meet the requirements outlined
in the legislation. The net long-term cost is estimated to be
between $68 and $62 million based on dynamic forecasting models.
Co-Sponsors:
Representatives: Jim Clark, Mike Moyle, Dennis Lake, Gary Collins,
Ken Roberts, Dell Raybould, Lenore Barrett, Eric Anderson, Carlos
Bilbao, James Ruchti, Bert Brackett, Brent Crane, Marv Hagedorn,
Steve Kren, Mark Snodgrass, John Vander Woude, Max Black, Robert
Schaefer, Curtis Bowers
Senators: Mel Richardson, John McGee, Dean Cameron, Steven Bair, Curt
McKenzie, Leland Heinrich, Shirley McKague, Jeff Siddoway,
John Andreason, Patti Anne Lodge, Mike Jorgenson, Stan Bastian
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 599
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