REVENUE AND TAXATION
ASSESSMENT OF REAL AND PERSONAL PROPERTY
63-317. Occupancy tax — Procedures. (1) All real property subject to property taxation shall be valued and taxed based upon its status as of January 1 of each tax year. Improvements, other than additions to existing improvements, constructed upon real property shall not be subject to property taxation during the year of construction other than that portion actually in place as of January 1 of each calendar year. New manufactured housing shall not be subject to property taxation during the first year of occupancy if occupied after January 1. For the purposes of this section, "new manufactured housing" means manufactured housing, whether real or personal, never previously occupied.
(2) There is hereby levied an occupancy tax upon all newly constructed and occupied residential, commercial and industrial structures, including new manufactured housing, except additions to existing improvements or manufactured housing, prorated for the portion of the year for which the structure was occupied. The occupancy tax shall be upon those improvements or new manufactured housing for that portion of the calendar year in which first occupancy occurs. The occupancy tax does not apply to operating property. Improvements that were exempt as of January 1 of the tax year, but that may be subject to occupancy tax during that tax year, shall not be subject to property tax as otherwise provided in section 63-602Y, Idaho Code. For the purposes of this section, the term "occupied" means:
(a) Use of the property by any person as a residence including occupancy of improvements or use in storage of vehicles, boats or household goods, provided such use is not solely related to construction or sale of the property; or
(b) Use of the property for any business or commercial purpose unrelated to the construction and sale of the property; or
(c) Any possessory use of the property for which the owner received any compensation or consideration.
(3) The owner of any newly constructed improvement or new manufactured housing, as described in this section, upon which no occupancy tax has been charged shall report to the county assessor that the improvement or new manufactured housing has been occupied. As soon as practical after receiving such a report, the county assessor shall appraise and determine the market value for assessment purposes.
(a) At the time the county assessor determines the market value for assessment purposes of any improvement, he shall allow as an offset against the market value of the improvement the market value of any portion of that improvement which was existing on January 1 and placed upon the property roll.
(b) Upon completion of the appraisal and entry of the appraised value on the occupancy tax roll, which roll shall be prepared for property subject to the occupancy tax, the county assessor shall:
(i) Notify the owner of the appraised value and the right to appeal the value provided in the appraisal within twenty-eight (28) days of such notification in the manner provided in section 63-501A, Idaho Code, notwithstanding date limitations found in that section, and further shall notify the owner of the right to apply for the exemption provided in sections 63-602G and 63-602X, Idaho Code. If the owner applies for and meets the requirements for such exemption within thirty (30) days of the notification by the county assessor, the exemption shall be extended to the newly constructed and occupied residential structures in compliance with section 63-602G, Idaho Code, notwithstanding limitations requiring occupancy as of April 15 of the tax year; and
(ii) Notify the owner of the right to apply for a reduction of property taxes or occupancy taxes pursuant to chapter 7, title 63, Idaho Code. If the owner applies for and meets the requirements for a tax reduction within thirty (30) days of the notification by the county assessor, the tax reduction roll shall be amended by the county assessor by adding claims submitted pursuant to this section, provided such claims are submitted to the assessor no later than September 1. For claims submitted after that date, the county assessor shall prepare a supplemental tax reduction roll. The supplemental tax reduction roll shall be submitted to the state tax commission along with the claims no later than the first Monday in March of the following tax year. The county assessor and the state tax commission shall calculate a reduction of occupancy taxes and reimbursement to taxing districts in the same manner as if a claim had been submitted on or before April 15 of the tax year.
(c) In the event that the owner fails to report to the county assessor that the property is ready for occupancy, the assessor shall notify the county board of equalization, which may impose as penalty an additional amount equal to five percent (5%) of the tax for each month following the date of first occupancy during which the report is not made, to a maximum of twenty-five percent (25%) of the tax.
(4) Appeals of the market value for assessment purposes shall be resolved in the same manner as all other appeals of valuation by the board of equalization.
(5) The occupancy tax calculated upon the values set by the county assessor and any penalty imposed by the board of equalization shall be collected in the same manner as all other property taxes.
(6) An occupancy tax lien shall be imposed in the manner provided in section 63-206, Idaho Code.
(7) Occupancy taxes shall be billed, collected and distributed in the same manner as all other property taxes.
[63-317, added 1996, ch. 98, sec. 4, p. 335; am. 1997, ch. 117, sec. 15, p. 315; am. 2003, ch. 364, sec. 1, p. 972; am. 2004, ch. 260, sec. 1, p. 735; am. 2006, ch. 302, sec. 1, p. 931; am. 2013, ch. 21, sec. 2, p. 35; am. 2014, ch. 77, sec. 2, p. 202; am. 2019, ch. 31, sec. 1, p. 85.]