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H0530...............................................by REVENUE AND TAXATION
PROPERTY TAXES - Amends existing law relating to circuit breaker property
tax relief to provide how income is determined for certain married
individuals living apart.
02/13 House intro - 1st rdg - to printing
02/14 Rpt prt - to Rev/Tax
02/21 Rpt out - rec d/p - to 2nd rdg
02/22 2nd rdg - to 3rd rdg
02/25 3rd rdg - PASSED - 62-3-5
AYES -- Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black, Block,
Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark,
Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Harwood, Henbest,
Henderson, Jaquet, Killen, King, Labrador, Lake, LeFavour,
Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ringo,
Roberts, Rusche, Sayler, Schaefer, Shepherd(08), Shirley, Shively,
Smith(30)(Stanek), Snodgrass, Stevenson, Thayn, Thomas, Trail, Wills,
Wood(27), Wood(35), Mr. Speaker
NAYS -- Bock, Boe, Vander Woude
Absent and excused -- Anderson, Kren, Ruchti, Shepherd(02), Smith(24)
Floor Sponsor - Harwood
Title apvd - to Senate
02/26 Senate intro - 1st rdg - to Loc Gov
03/05 Rpt out - rec d/p - to 2nd rdg
03/06 2nd rdg - to 3rd rdg
03/07 3rd rdg - PASSED - 32-0-3
AYES -- Andreason, Bair, Bastian, Bilyeu, Burkett, Cameron, Coiner,
Corder, Darrington, Davis, Fulcher, Geddes, Goedde, Hammond,
Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
Malepeai(Sagness), McGee, McKague, McKenzie, Pearce, Richardson,
Schroeder, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- Broadsword, Gannon, Siddoway
Floor Sponsor - Heinrich
Title apvd - to House
03/10 To enrol
03/11 Rpt enrol - Sp signed
03/12 Pres signed - To Governor
03/14 Governor signed
Session Law Chapter 117
Effective: 07/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 530 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO CIRCUIT BREAKER PROPERTY TAX RELIEF; AMENDING SECTION 63-701, 3 IDAHO CODE, TO PROVIDE FOR HOW INCOME IS DETERMINED FOR CERTAIN MARRIED 4 INDIVIDUALS LIVING APART. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 63-701, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 63-701. DEFINITIONS. As used in this chapter: 9 (1) "Claimant" means a person who has filed an application under section 10 63-602G, Idaho Code, and has filed a claim under the provisions of sections 11 63-701 through 63-710, Idaho Code. Except as provided in section 63-702(2), 12 Idaho Code, on January 1, or before April 15, of the year in which the claim- 13 ant first filed a claim on the homestead in question, a claimant must be an 14 owner of the homestead and on January 1 of said year a claimant must be: 15 (a) Not less than sixty-five (65) years old; or 16 (b) A child under the age of eighteen (18) years who is fatherless or 17 motherless or who has been abandoned by any surviving parent or parents; 18 or 19 (c) A widow or widower; or 20 (d) A disabled person who is recognized as disabled by the social secu- 21 rity administration pursuant to title 42 of the United States Code, or by 22 the railroad retirement board pursuant to title 45 of the United States 23 Code, or by the office of management and budget pursuant to title 5 of the 24 United States Code; or 25 (e) A disabled veteran of any war engaged in by the United States, whose 26 disability is recognized as a service-connected disability of a degree of 27 ten percent (10%) or more, or who has a pension for nonservice-connected 28 disabilities, in accordance with laws and regulations administered by the 29 United States department of veterans affairs; or 30 (f) A person, as specified in 42 U.S.C. 1701, who was or is entitled to 31 receive benefits because he is known to have been taken by a hostile force 32 as a prisoner, hostage or otherwise; or 33 (g) Blind. 34 (2) "Homestead" means the dwelling, owner-occupied by the claimant as 35 described in this chapter and used as the primary dwelling place of the claim- 36 ant and may be occupied by any members of the household as their home, and so 37 much of the land surrounding it, not exceeding one (1) acre, as is reasonably 38 necessary for the use of the dwelling as a home. It may consist of a part of a 39 multidwelling or multipurpose building and part of the land upon which it is 40 built. "Homestead" does not include personal property such as furniture, fur- 41 nishings or appliances, but a manufactured home may be a homestead. 42 (3) "Household" means the claimant and the claimant's spouse. The term 43 does not include bona fide lessees, tenants, or roomers and boarders on con- 2 1 tract. "Household" includes persons described in subsection (8)(b) of this 2 section. 3 (4) "Household income" means all income received by the claimant and, if 4 married, all income received by the claimant's spouse, in a calendar year. 5 (5) "Income" means the sum of federal adjusted gross income as defined in 6 the Internal Revenue Code, as defined in section 63-3004, Idaho Code, and to 7 the extent not already included in federal adjusted gross income: 8 (a) Alimony; 9 (b) Support money; 10 (c) Nontaxable strike benefits; 11 (d) The nontaxable amount of any individual retirement account, pension 12 or annuity, (including railroad retirement benefits, all payments received 13 under the federal social security act except the social security death 14 benefit as specified in this subsection, state unemployment insurance 15 laws, and veterans disability pensions and compensation, excluding any 16 return of principal paid by the recipient of an annuity and excluding 17 rollovers as provided in section 402 or 403 of the Internal Revenue Code); 18 (e) Nontaxable interest received from the federal government or any of 19 its instrumentalities or a state government or any of its instrumentali- 20 ties; 21 (f) Worker's compensation; and 22 (g) The gross amount of loss of earnings insurance. 23 It does not include gifts from nongovernmental sources or inheritances. To the 24 extent not reimbursed, the cost of medical care as defined in section 213(d) 25 of the Internal Revenue Code, incurred or paid by the claimant and, if mar- 26 ried, the claimant's spouse, may be deducted from income. To the extent not 27 reimbursed, personal funeral expenses, including prepaid funeral expenses and 28 premiums on funeral insurance, of the claimant and claimant's spouse only, may 29 be deducted from income up to an annual maximum of five thousand dollars 30 ($5,000) per claim. "Income" does not include veterans disability pensions 31 received by a person described in subsection (1)(e) who is a claimant or a 32 claimant's spouse if the disability pension is received pursuant to a service- 33 connected disability of a degree of forty percent (40%) or more. "Income" does 34 not include dependency and indemnity compensation or death benefits paid to a 35 person described in subsection (1) of this section by the United States 36 department of veterans affairs and arising from a service-connected death or 37 disability. "Income" does not include lump sum death benefits made by the 38 social security administration pursuant to 42 U.S.C. section 402(i). Documen- 39 tation of medical expenses may be required by the county assessor, board of 40 equalization and state tax commission in such form as the county assessor, 41 board of equalization or state tax commission shall determine. "Income" shall 42 be that received in the calendar year immediately preceding the year in which 43 a claim is filed. Where a claimant and/or the claimant's spouse does not file 44 a federal tax return, the claimant's and/or the claimant's spouse's federal 45 adjusted gross income, for purposes of this section, shall be an income equiv- 46 alent to federal adjusted gross income had the claimant and/or the claimant's 47 spouse filed a federal tax return, as determined by the county assessor. The 48 county assessor, board of equalization or state tax commission may require 49 documentation of income in such form as each shall determine, including, but 50 not limited to: copies of federal or state tax returns and any attachments 51 thereto; and income reporting forms such as the W-2 and 1099. 52 For determining income for certain married individuals living apart, the 53 provisions of sections 2(c) and 7703(b) of the Internal Revenue Code shall 54 apply. 55 (6) "Occupied" means actual use and possession. 3 1 (7) "Owner" means a person holding title in fee simple or holding a cer- 2 tificate of motor vehicle title (either of which may be subject to mortgage, 3 deed of trust or other lien) or who has retained or been granted a life estate 4 or who is a person entitled to file a claim under section 63-702, Idaho Code. 5 "Owner" shall also include any person who: 6 (a) Is the beneficiary of a revocable or irrevocable trust which is the 7 owner of such homestead and under which the claimant or the claimant's 8 spouse has the primary right of occupancy of the homestead; or 9 (b) Is a partner of a limited partnership, member of a limited liability 10 company or shareholder of a corporation if such entity holds title in fee 11 simple or holds a certificate of motor vehicle title and if the person 12 holds at least a five percent (5%) ownership in such entity, as determined 13 by the county assessor; or 14 (c) Has retained or been granted a life estate. 15 "Owner" includes a vendee in possession under a land sale contract. Any par- 16 tial ownership shall be considered as ownership for determining initial quali- 17 fication for property tax reduction benefits; however, the amount of property 18 tax reduction under section 63-704, Idaho Code, and rules promulgated pursuant 19 to section 63-705, Idaho Code, shall be computed on the value of the 20 claimant's partial ownership. "Partial ownership," for the purposes of this 21 section, means any one (1) person's ownership when property is owned by more 22 than one (1) person or where the homestead is held by an entity, as set forth 23 in this subsection, but more than one (1) person has the right of occupancy of 24 such homestead. A person holding either partial title in fee simple or holding 25 a certificate of motor vehicle title together with another person but who does 26 not occupy the dwelling as his primary dwelling place, shall not be considered 27 an owner for purposes of this section, if such person is a cosignatory of a 28 note secured by the dwelling in question and at least one (1) of the other 29 cosignatories of the note occupies the dwelling as his primary dwelling place. 30 The combined community property interests of both spouses shall not be consid- 31 ered partial ownership so long as the combined community property interests 32 constitute the entire ownership of the homestead, including where the spouses 33 are occupying a homestead owned by an entity, as set forth in this subsection, 34 and the spouses have the primary right of occupancy of the homestead. The pro- 35 portional reduction required under this subsection shall not apply to commu- 36 nity property interests. Where title to property was held by a person who has 37 died without timely filing a claim for property tax reduction, the estate of 38 the deceased person shall be the "owner," provided that the time periods dur- 39 ing which the deceased person held such title shall be attributed to the 40 estate for the computation of any time periods under subsection (8)(a) or 41 (8)(b) of this section. 42 (8) (a) "Primary dwelling place" means the claimant's dwelling place on 43 January 1 or before April 15 of the year for which the claim is made. The 44 primary dwelling place is the single place where a claimant has his true, 45 fixed and permanent home and principal establishment, and to which when- 46 ever the individual is absent he has the intention of returning. A claim- 47 ant must establish the dwelling to which the claim relates to be his pri- 48 mary dwelling place by clear and convincing evidence or by establishing 49 that the dwelling is where the claimant resided on January 1 or before 50 April 15 and: 51 (i) At least six (6) months during the prior year; or 52 (ii) The majority of the time the claimant owned the dwelling if 53 owned by the claimant less than one (1) year; or 54 (iii) The majority of the time after the claimant first occupied the 55 dwelling if occupied by the claimant for less than one (1) year. The 4 1 county assessor may require written or other proof of the foregoing 2 in such form as the county assessor may determine. 3 (b) Notwithstanding the provisions of paragraph (a) of this subsection, 4 the property upon which the claimant makes application shall be deemed to 5 be the claimant's primary dwelling place if the claimant is otherwise 6 qualified and resides in a care facility and does not allow the property 7 upon which the claimant has made application to be occupied by persons 8 paying a consideration to occupy the dwelling. Payment of utilities shall 9 not be payment of a consideration to occupy the dwelling. A claimant's 10 spouse who resides in a care facility shall be deemed to reside at the 11 claimant's primary dwelling place and to be a part of the claimant's 12 household. A care facility is a hospital, nursing facility or intermediate 13 care facility for the mentally retarded as defined in section 39-1301, 14 Idaho Code, or a facility as defined in section 39-3302(14), Idaho Code, 15 or a dwelling other than the one upon which the applicant makes applica- 16 tion where a claimant who is unable to reside in the dwelling upon which 17 the application is made lives and receives help in daily living, protec- 18 tion and security.
STATEMENT OF PURPOSE
RS 17488C1
The purpose of this Legislation is to determine income for
certain married individuals living apart. This is related to
circuit breaker property tax relief.
Individuals are being denied the circuit breaker property
tax relief because they either do not know their spouse's income
and/or have no information as to where their spouse is located.
FISCAL NOTE
According to the Tax Commission, the annual fiscal impact
will be $20,000.
Contact
Name: Rep. Harwood
Phone: 332.1000
STATEMENT OF PURPOSE/FISCAL NOTE H 530