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HOUSE BILL NO. 692

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Bill Status

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H0692.....................................................by WAYS AND MEANS
PROPERTY TAX - RIGHTS-OF-WAY - HIGHWAYS - Adds to existing law to provide
that all lands located within the boundary of any public right-of-way or
highway are exempt from assessment and taxation while used by the public
for such purposes; to provide procedures; and to provide duties of the
county board of equalization.

03/28    House intro - 1st rdg - to printing
03/31    Rpt prt - to W/M

Bill Text

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

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 692

                                BY WAYS AND MEANS COMMITTEE

  1                                        AN ACT
  2    RELATING TO EXEMPTIONS FROM PROPERTY TAXATION; AMENDING CHAPTER 6,  TITLE  63,
  3        IDAHO CODE, BY THE ADDITION OF A NEW SECTION 63-602MM, IDAHO CODE, TO PRO-
  4        VIDE THAT ALL LANDS LOCATED WITHIN THE BOUNDARY OF ANY PUBLIC RIGHT-OF-WAY
  5        OR  HIGHWAY ARE EXEMPT FROM ASSESSMENT AND TAXATION WHILE USED BY THE PUB-
  6        LIC FOR SUCH PURPOSES, TO PROVIDE PROCEDURES AND TO PROVIDE DUTIES OF  THE
  7        COUNTY  BOARD OF EQUALIZATION; DECLARING AN EMERGENCY AND PROVIDING RETRO-
  8        ACTIVE APPLICATION.

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

 10        SECTION 1.  That Chapter 6, Title 63, Idaho Code,  be,  and  the  same  is
 11    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 12    ignated as Section 63-602MM, Idaho Code, and to read as follows:

 13        63-602MM.  PROPERTY EXEMPT FROM TAXATION -- LANDS WITHIN ANY PUBLIC RIGHT-
 14    OF-WAY OR HIGHWAY. All lands located within the boundary of any public  right-
 15    of-way or highway as defined in sections 40-109 and 40-117, Idaho Code, within
 16    this  state,  and  created  in accordance with section 40-201 or 40-202, Idaho
 17    Code, are exempt from assessment and taxation while used  by  the  public  for
 18    such  purposes.  Property owners seeking exemption of lands under this section
 19    must apply to the county board of equalization. The  application  must  be  in
 20    writing  on  a  form provided by the county. In deciding whether to grant such
 21    claim for exemption, the county board  of  equalization  shall  determine  the
 22    existence  and  boundaries  of any public right-of-way or highway by following
 23    the official map of the respective highway  system  as  required  in  sections
 24    40-202  and  40-203,  Idaho  Code. If an exemption is granted to certain lands
 25    under this section in whole or in part, the county board of equalization shall
 26    declare as exempt from taxation all such lands and shall order  all  necessary
 27    adjustments  made  in the property tax rolls. An owner need only make applica-
 28    tion for the exemption described in this section once, as long as the  subject
 29    land remains eligible for the exemption.

 30        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 31    declared to exist, this act shall be in full force and effect on and after its
 32    passage and approval, and retroactively to January 1, 2008.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                             RS 18142

The purpose of this legislation is to exempt from property
assessment and taxation, private property that is subject to a
public right-of-way or is a public highway, while used by the
public for such purposes.  The legislation directs that the
property owner must make application for the exemption.  For
administrative simplification, the legislation directs the county
board of equalization to follow the official map of the
respective highway system in determining the existence and
boundaries of any public right-of-way and highway.  The
legislation also provides that the property owner must make
application for the exemption once, as long as the land remains
eligible for the exemption.

The applicable Property Tax Administrative Rules of the Idaho
State Tax Commission, adopted pursuant to Idaho Code, Section 63-
208, (IDAPA 35.01.03.509 and 510.19) instruct the county
assessors to note land that is subject to public rights-of-way as
"waste" and to deduct it from the total acreage of parcels when
determining the net acreage that is to be taxed.  However, in the
absence of a statutory exemption, compliance with IDAPA
35.01.03.509 and 510.19 appears to be inconsistent.


                           FISCAL NOTE

There is no cost to the state.  There is variable cost to local
government.





Contact
Name: Representative Mike Moyle 
Phone: (208) 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                         H 692