2008 Legislation
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SENATE BILL NO. 1304<br /> – Property tax/homeownr exmptn/incr

SENATE BILL NO. 1304

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S1304.................by WERK, LANGHORST, STENNETT, BURKETT, SAGNESS, KELLY
PROPERTY TAX - HOMEOWNERS EXEMPTION - Amends existing law to provide that
the first $150,000 of the market value for assessment purposes of the
homestead or 50% of the market value for assessment purposes of the
homestead, whichever is the lesser, shall be exempt from property taxation.

01/18    Senate intro - 1st rdg - to printing
01/21    Rpt prt - to Loc Gov

Bill Text




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

                                                                       

                                       IN THE SENATE

                                    SENATE BILL NO. 1304

                   BY WERK, LANGHORST, STENNETT, BURKETT, SAGNESS, KELLY

  1                                        AN ACT
  2    RELATING TO PROPERTY EXEMPT FROM TAXATION; TO PROVIDE A SHORT TITLE;  AMENDING
  3        SECTION  63-602G,  IDAHO CODE, TO PROVIDE THAT THE FIRST ONE HUNDRED FIFTY
  4        THOUSAND DOLLARS OF THE MARKET VALUE FOR ASSESSMENT PURPOSES OF THE  HOME-
  5        STEAD  OR FIFTY PERCENT OF THE MARKET VALUE FOR ASSESSMENT PURPOSES OF THE
  6        HOMESTEAD, WHICHEVER IS THE LESSER, SHALL BE EXEMPT  FROM  PROPERTY  TAXA-
  7        TION,  TO  REVISE  DATES  AND TO MAKE A TECHNICAL CORRECTION; DECLARING AN
  8        EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.

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

 10        SECTION 1.  This act shall be  known  and  may  be  cited  as  the  "Idaho
 11    Homeowner's Protection Act."

 12        SECTION  2.  That  Section 63-602G, Idaho Code, be, and the same is hereby
 13    amended to read as follows:

 14        63-602G.  PROPERTY EXEMPT FROM TAXATION -- HOMESTEAD. (1) During  the  tax
 15    year  20068 and each year thereafter, subject to annual adjustment as provided
 16    herein, the first seventy-five one hundred fifty thousand dollars  ($7150,000)
 17    of  the  market value for assessment purposes of the homestead as that term is
 18    defined in section 63-701, Idaho Code, or fifty percent (50%)  of  the  market
 19    value for assessment purposes of the homestead as that term is defined in sec-
 20    tion  63-701,  Idaho Code, whichever is the lesser, shall be exempt from prop-
 21    erty taxation. Beginning for tax year 20079, the state  tax  commission  shall
 22    publish adjustments to the maximum amount subject to property tax exemption to
 23    reflect  cost-of-living  fluctuations. The adjustments shall effect changes in
 24    the amount subject to tax exemption by a percentage equal as near as practica-
 25    ble to the annual increase in the Idaho housing price index as  determined  by
 26    the  United  States  office of federal housing enterprise oversight. The state
 27    tax commission shall publish the adjustments required by this subsection  each
 28    and  every year the office of federal housing enterprise oversight announces a
 29    change in the Idaho housing price index. The adjustments shall be published no
 30    later than October 1 of each year and shall be effective for claims  filed  in
 31    and  for the following property tax year. The publication of adjustments under
 32    this subsection shall be exempt from the provisions of chapter 52,  title  67,
 33    Idaho  Code, but shall be provided to each county and to members of the public
 34    upon request and without charge.
 35        (2)  The exemption allowed by this section may be granted only if:
 36        (a)  The homestead is owner-occupied and  used  as  the  primary  dwelling
 37        place  of  the owner as of January 1, provided that in the event the home-
 38        stead is owner-occupied after January 1 but before April 15, the owner  of
 39        the  property  is  entitled to the exemption. The homestead may consist of
 40        part of a multidwelling or multipurpose building and shall include all  of
 41        such dwelling or building except any portion used exclusively for anything
 42        other than the primary dwelling of the owner. The presence of an office in

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  1        a  homestead,  which office is used for multiple purposes, including busi-
  2        ness and personal use, shall not  prevent  the  owner  from  claiming  the
  3        exemption provided in this section; and
  4        (b)  The tax commission has certified to the board of county commissioners
  5        that  all  properties  in the county which are subject to appraisal by the
  6        county assessor have, in fact, been appraised uniformly so as to secure  a
  7        just valuation for all property within the county; and
  8        (c)  The owner has certified to the county assessor by April 15 that:
  9             (i)   He is making application for the exemption allowed by this sec-
 10             tion;
 11             (ii)  That the homestead is his primary dwelling place; and
 12             (iii) That  he  has  not made application in any other county for the
 13             exemption, and has not made application  for  the  exemption  on  any
 14             other homestead in the county.
 15        (d)  For  the  purpose of this section, the definition of "owner" shall be
 16        the same definition set forth in section 63-701(7), Idaho Code.
 17             When an "owner," pursuant to the  provisions  of  section  63-701(7),
 18        Idaho Code, is any person who is the beneficiary of a revocable or irrevo-
 19        cable  trust,  or who is a partner of a limited partnership, a member of a
 20        limited liability company, or shareholder of a corporation, he or she  may
 21        provide  proof  of  the trust, limited partnership, limited liability com-
 22        pany, or corporation in the manner set forth in section  63-703(4),  Idaho
 23        Code.
 24        (e)  Any owner may request in writing the return of all copies of any doc-
 25        uments  submitted with the affidavit set forth in section 63-703(4), Idaho
 26        Code, that are held by a county assessor, and the copies shall be returned
 27        by the county assessor upon submission of the affidavit in proper form.
 28        (f)  For the purpose of this section, the definition of "primary  dwelling
 29        place"  shall be the same definition set forth in section 63-701(8), Idaho
 30        Code.
 31        (g)  For the purpose of this section, the definition of  "occupied"  shall
 32        be the same definition set forth in section 63-701(6), Idaho Code.
 33        (3)  An  owner  need  only make application for the exemption described in
 34    subsection (1) of this section once, as long as all of  the  following  condi-
 35    tions are met:
 36        (a)  The  owner  has  received the exemption during the previous year as a
 37        result of his making a valid application as defined in  subsection  (2)(c)
 38        of this section.
 39        (b)  The  owner  or beneficiary, partner, member or shareholder, as appro-
 40        priate, still occupies the same homestead for which the owner made  appli-
 41        cation.
 42        (c)  The  homestead  described  in  subsection  (3)(b)  of this section is
 43        owner-occupied or occupied by a beneficiary,  partner,  member  or  share-
 44        holder,  as  appropriate,  and  used  as the primary dwelling place of the
 45        owner or beneficiary, partner, member or shareholder, as  appropriate,  as
 46        of  January 1; provided however, that in the event the homestead is owner-
 47        occupied after January 1, but before April 15, the owner of  the  property
 48        is entitled to the exemption.
 49        (4)  The exemption allowed by this section must be taken before the reduc-
 50    tion  in  taxes  provided  by  sections  63-701 through 63-710, Idaho Code, is
 51    applied.
 52        (5)  Recovery of property tax  exemptions  allowed  by  this  section  but
 53    improperly claimed or approved:
 54        (a)  Upon  discovery  of  evidence,  facts or circumstances indicating any
 55        exemption allowed by this section was improperly claimed or approved,  the

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  1        county  assessor  shall  decide  whether the exemption claimed should have
  2        been allowed and if not, notify the taxpayer in writing, assess a recovery
  3        of property tax and notify the county treasurer of this assessment. If the
  4        county assessor determined that an exemption was improperly approved as  a
  5        result  of  county error, the county assessor shall present the discovered
  6        evidence, facts or circumstances from the improperly approved exemption to
  7        the board of county commissioners, at which time the  board  may  waive  a
  8        recovery of the property tax and notify such taxpayer in writing.
  9        (b)  When  information indicating that an improper claim for the exemption
 10        allowed by this section is discovered by the  state  tax  commission,  the
 11        state  tax  commission  may  disclose  this information to the appropriate
 12        county assessor, board  of  county  commissioners  and  county  treasurer.
 13        Information  disclosed  to  county  officials  by the state tax commission
 14        under this subsection may be used to decide the validity of  any  entitle-
 15        ment  to  the exemption provided in this section and is not otherwise sub-
 16        ject to public disclosure pursuant to chapter 3, title 9, Idaho Code.
 17        (c)  The assessment and collection of the recovery of  property  tax  must
 18        begin  within  the seven (7) year period beginning the date the assessment
 19        notice  reflecting  the  improperly  claimed  or  approved  exemption  was
 20        required to be mailed to the taxpayer.
 21        (d)  The taxpayer may appeal to the  board  of  county  commissioners  the
 22        decision  by  the  county  assessor to assess the recovery of property tax
 23        within thirty (30) days of the date the county assessor sent the notice to
 24        the taxpayer pursuant to this section. The board may waive the  collection
 25        of all or part of any costs, late charges and interest, in order to facil-
 26        itate the collection of the recovery of the property tax.
 27        (e)  For  purposes  of  calculating  the  tax, the amount of the recovered
 28        property tax shall be for each year the exemption allowed by this  section
 29        was  improperly  claimed  or approved, up to a maximum of seven (7) years.
 30        The amount of the recovery of property tax shall be calculated  using  the
 31        product  of  the  amount of exempted value for each year multiplied by the
 32        levy for that year plus costs, late charges and interest for each year  at
 33        the  rates  equal  to  those provided for delinquent property taxes during
 34        that year.
 35        (f)  Any recovery of property tax shall be due and payable no  later  than
 36        the date provided for property taxes in section 63-903, Idaho Code, and if
 37        not  timely  paid,  late  charges and interest, beginning the first day of
 38        January in the year following the year the county assessor sent the notice
 39        to the taxpayer pursuant to this section, shall be calculated at the  cur-
 40        rent rate provided for property taxes.
 41        (g)  Recovered  property  taxes shall be billed, collected and distributed
 42        in the same manner as property taxes, except each taxing district or  unit
 43        shall  be  notified of the amount of any recovered property taxes included
 44        in any distribution.
 45        (h)  Thirty (30) days after the taxpayer is notified, as provided in  sub-
 46        section  (5)(a)  of  this  section,  the assessor shall record a notice of
 47        intent to attach a lien. Upon the payment in full of such recovered  prop-
 48        erty  taxes  prior to the attachment of the lien as provided in subsection
 49        (5)(i) of this section, or upon the successful appeal by the taxpayer, the
 50        county assessor shall record a rescission of the intent to attach  a  lien
 51        within  seven  (7) business days of receiving such payment or within seven
 52        (7) business days of  the  county  commissioners'  decision  granting  the
 53        appeal.  If  the real property is sold to a bona fide purchaser for value,
 54        prior to the recording of the notice of the intent to attach a  lien,  the
 55        county  assessor  and  treasurer  shall  cease the recovery of such unpaid

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  1        recovered property tax.
  2        (i)  Any unpaid recovered property taxes shall become a lien upon the real
  3        property in the same manner as provided  for  property  taxes  in  section
  4        63-206,  Idaho  Code, except such lien shall attach as of the first day of
  5        January in the year following the year the county assessor sent the notice
  6        to the taxpayer pursuant to this section.
  7        (j)  For purposes of the limitation  provided  by  section  63-802,  Idaho
  8        Code,  moneys received pursuant to this subsection as recovery of property
  9        tax shall be treated as property tax revenue.
 10        (6)  The legislature declares that this exemption is necessary and just.
 11        (7)  A homestead, having previously qualified  for  exemption  under  this
 12    section  in  the preceding year, shall not lose such qualification due to: the
 13    owner's, beneficiary's, partner's, member's or shareholder's  absence  in  the
 14    current year by reason of active military service in a designated combat zone,
 15    as  defined  in section 112 of the Internal Revenue Code, or because the home-
 16    stead has been leased because  the  owner,  beneficiary,  partner,  member  or
 17    shareholder is absent in the current year by reason of active military service
 18    in a designated combat zone, as defined in section 112 of the Internal Revenue
 19    Code. If an owner fails to timely apply for exemption as required in this sec-
 20    tion solely by reason of active duty in a designated combat zone by the owner,
 21    beneficiary,  partner,  member  or  shareholder, as appropriate, as defined in
 22    section 112 of the Internal Revenue Code, and such homestead would have other-
 23    wise qualified under this section, then the board of county  commissioners  of
 24    the  county  in which the homestead is located shall refund property taxes, if
 25    previously paid, in an amount equal to the  exemption  which  would  otherwise
 26    have applied.

 27        SECTION  3.  An  emergency  existing  therefor,  which emergency is hereby
 28    declared to exist, this act shall be in full force and effect on and after its
 29    passage and approval, and retroactively to January 1, 2008.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 17517

This legislation protects Idaho's homeowners from excessive
residential property value inflation by increasing the limit of
the homeowner property tax exemption to $150,000.


                          FISCAL NOTE

This legislation will result in a small positive impact on state
revenues by decreasing payments for the Circuit Breaker program.




Contact
Name: Senator Elliot Werk
      Senator David Langhorst
      Senator Clint Stennett
      Senator Mike Burkett
      Senator Dick Sagness
      Senator Kate Kelly
Phone: 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                        S 1304