Struck = removed from the bill ยท
added = the amendment's new text.
LEGISLATURE OF THE STATE OF IDAHO Sixty-sixth Legislature Second Regular Session - 2022 Moved by Harris Seconded by Rice IN THE HOUSESENATE OFSENATE REPRESENTATIVESAMENDMENT HOUSETO BILLH.B. NO.
565,NO. As Amended in the Senate BY REVENUE AND TAXATION COMMITTEE AN ACT RELATING TO PROPERTY TAXES;
AMENDING565 AMENDMENT TO SECTION 63-313,2 IDAHOOn CODE,page TO3 REVISEof PROVISIONSthe REGARDINGprinted TRANSIENTbill, PERSONALdelete PROPERTY;lines 3 and 4, and insert:
AMENDING"(ii) SECTIONPrimarily 63-602KK,employed IDAHOfor CODE,the TOuse REVISEof PROVISIONSconstruction, REGARDINGlogging, THEor EXEMPTIONmining OFof CERTAINsalable PERSONALminerals PROPERTYas FROMdefined PROPERTYin TAX;section 47-701A, Idaho Code;
AMENDINGand SECTION". 63-904, IDAHO CODE, TO REMOVE A PROVISION REGARDING THE TAXATION OF TRANSIENT PERSONAL PROPERTY;
ANDAMENDMENT DECLARINGTO ANTHE EMERGENCYBILL ANDOn PROVIDINGpage RETROAC-6, TIVEfollowing APPLICATION.line 29, insert:
Be"SECTION It3. Enacted by the Legislature of the State of Idaho:
SECTION 1.
That Section 63-313, Idaho Code, be, and the same is hereby amended to read as follows:
63-313.
SPECIAL PROVISIONS EXEMPTION FOR TRANSIENT PERSONAL PROP- ERTY.
(1) All transient personal property shall be listed by the owner and shall show the quantity, name, model, serial number, if any, year of manu - facture, date of purchase, cost, whether new or used and other identifying information required by the county assessor.
The list of transient personal property shall identify the owner of the property and shall be filed with the home county assessor on or before the first day of November of each year.
The owner of transient personal property may elect to treat as his home county that county in which he maintains his residence or usual place of business or in which the transient personal property is usually kept.
The report shall be made on forms prescribed by the state tax commission and shall identify periods of thirty (30) days or more during which the personal property is located in a county, specifying the location of the transient personal prop - erty for each month of the current calendar year with a projection of the location for the remaining months of November and December.
(2) The county assessor of the home county or the receiving county of the listing shall file within ten (10) days with the county assessor of all counties identified on the report a copy of the report.
Each county so iden - tified shall then place a prorated assessment on such personal property on the subsequent or missed property roll only for the length of time that the personal property was located in their county.
(3) In the event that any transient personal property has been or will be taxed for the current year in another state, the property shall be taxed for only that portion of the year that the transient personal property is kept and does remain in the state of Idaho.
(4) The provisions of this section shall not apply to transient per- sonal property in transit through this state, or to transient personal prop - erty sold by the owner thereof in the home county upon which the taxes for the full year have been paid or secured, which said transient personal prop - erty is kept, moved, transported, shipped or hauled into and remaining in another county, and there kept or remaining either for the purpose of use or sale within the current year.
(5) For transient personal property valued at more than one hundred thousand dollars ($100,000), any exemption in section 63-602KK, Idaho Code, available to the taxpayer shall be allocated among counties based on the prorated value provided in subsection (2) of this section.
(6) Beginning January 1, 2022, all transient personal property is ex- empt from taxation.
No replacement moneys shall be provided as a result of this sub section.
SECTION 2.
That Section 63-602KK, Idaho Code, be, and the same is hereby amended to read as follows:
63-602KK.
PROPERTY EXEMPT FROM TAXATION -- CERTAIN PERSONAL PROPERTY.
(1)(a) An item of taxable personal property purchased on or after Jan- uary 1, 2013, shall be exempt from property taxation if the item of tax- able personal property has an acquisition price of three thousand dol- lars ($3,000) or less.
(b) For purposes of this section, the term "acquisition cost" means all costs required to put an item of taxable personal property into service and includes:
(i) The purchase price of a new or used item;
(ii) The cost of freight and shipping;
(iii) The cost of installation, engineering, erection or assem- bly;
and (iv) Sales and use taxes.
(c) For purposes of this subsection, an "item of taxable personal prop- erty" means equipment, machinery, furniture or other personal property that is functioning at its highest and best use for the purpose it was designed and constructed and is generally capable of performing that function without being combined with other items of personal property.
An item of taxable personal property is not an individual component part of a piece of equipment, machinery, furniture or other personal prop- erty as a whole.
An item of taxable personal property does not include an improvement to real property, a part that will become an improvement, or anything defined as a fixture.
(2)(a) On and after January 1, 2015, except as provided in subsection (8) of this section, each person's personal property, located in the county, which is and not otherwise exempt, shall be exempt to the extent of one hundred thousand dollars ($100,000).
(b) On and after January 1, 2022, except as provided in subsection (8) of this section, each person's personal property, located in the county, which is and not otherwise exempt, shall be exempt to the ex- tent of an additional amount of one hundred fifty thousand dollars ($150,000).
The combined exemption under this paragraph and paragraph (a) of this subsection shall not exceed a total amount of two hundred fifty thousand dollars ($250,000).
(c) For the purposes of this section, a person includes two (2) or more people using the property in a common enterprise who are within a rela- tionship described in section 267 of the Internal Revenue Code, as de- fined in section 63-3004, Idaho Code.
(d) On and after January 1, 2022, any locally assessed personal prop- erty is exempt from taxation if it is:
(i) Self-propelled, self-powered, or pull-type equipment and ma- chinery;
(ii) Primarily employed for the use of construction, logging, or mining of salable minerals as defined in section 47-701A, Idaho Code;
and (iii) Designed to travel to various job sites.
(3)(a) No later than the third Monday of November 2013, the county clerk of each county shall certify to the state tax commission the amount of exemption from property taxes under subsection (2)(a) of this section, in that county for that year.
No later than the third Monday of Novem- ber 2022, the county clerk of each county shall certify to the state tax commission the amount of exemption from property taxes under subsection (2)(b) of this section in that county for that year.
The certification shall identify the property receiving tax reductions, the value of the property, the property's location, the amount of the tax levy applica- ble to personal property in the location, and the tax before and after the exemption allowed in subsection (2) of this section.
The certifi- cation shall be in the form prescribed by the state tax commission and shall include such additional information as the commission may require by rule as needed to implement the purpose of this section.
The certi- fication shall be reviewed and, if necessary, corrected by the state tax commission.
(b) Except as provided in subsection (7) of this section, a taxing district created prior to January 1, 2013, shall be eligible for reim- bursement for the exemptions granted under subsection (2)(a) and (b) of this section.
A taxing district created on and after January 1, 2013, and prior to January 1, 2022, shall be eligible for reimbursement of property taxes exempted only under subsection (2)(b) of this section.
A taxing district created on or after January 1, 2022, shall not be eligible for reimbursement of any property taxes exempted under this section.
The amount of annual replacement of property tax on personal property exempted pursuant to subsection (2) of this section shall be the amount approved by the state tax commission pursuant to paragraph (a) of this subsection.
(4)(a) Subject to the limitations of this section, the state tax com- mission shall reimburse from the amount appropriated for personal property tax replacement in section 63-3638, Idaho Code, the county treasurer of each county for the reduction on the certifications pro- vided in subsection (3) of this section.
The county treasurer shall reimburse from the amount received to each taxing district within the county an amount in proportion to the amount of reduction shown on the certifications in subsection (3) of this section as corrected.
The amount that would otherwise be attributable to tax revenues derived from tax levies on personal property exempted by this section within an existing revenue allocation area as defined in section 50-2903(15), Idaho Code, shall be paid directly by the county treasurer to such pub- lic body or agency entitled thereto, equal to the amounts that would have been distributed in accordance with the formula for such distribu- tion set forth in section 50-2908, Idaho Code.
(b) The state tax commission shall pay one-half (1/2) of the reimburse- ment provided in this section no later than December 20 of each year, and the second one-half (1/2) shall be paid by no later than June 20 of the following year.
The money received by the county tax collector under the provisions of this section may be considered by counties and other taxing districts and budgeted against at the same time, and in the same manner, and in the same year as revenues from taxation.
The total amount paid to the county treasurers shall not exceed the amount certified to the state tax commission under subsection (3) of this section.
(c) For purposes of the limitation provided by section 63-802, Idaho Code, moneys received from distributions pursuant to section 63-3638, Idaho Code, as property tax replacement for the taxable value of prop- erty exempt from taxation pursuant to this section shall be treated as property tax revenues.
(5)(a) Nothing contained in this section shall affect the taxation of forest lands or forest products pursuant to chapter 17, title 63, Idaho Code, or the taxation of the net profits of mines pursuant to chapter 28, title 63, Idaho Code.
(b) The exemption from personal property tax provided for in subsec- tion (2) of this section shall not apply to motor vehicles, recreational vehicles, aircraft and boats that are not registered with the state of Idaho and for which required registration fees have not been paid.
(6)(a) The application for the exemption provided for in subsection (2) of this section shall be in the form prescribed by the state tax commis- sion and shall include such information as the state tax commission may require by rule as needed to implement the purpose of this section in- cluding, but not limited to, a list of each item of personal property, the purchase date of each item of personal property, the unit cost of each item of personal property, if more than the exemption allowed in subsection (1) of this section, and the total cost of the items of per- sonal property.
(b) The application for this exemption, if the county is capable of so providing, may be transmitted by the county assessor electronically, as that term is defined in section 63-115, Idaho Code, when requested by the taxpayer, or mailed by the county assessor to the taxpayer, or his agent or representative at the taxpayer's last known post office address, no later than March 1 of each year.
The transmission or mail- ing of the application shall also include the taxpayer's application for the exemption allowed by this section for the last year in which the taxpayer filed an application.
(c) A taxpayer need only make application for the exemption in this sec- tion once as long as all of the following conditions are met:
(i) The taxpayer has received the exemption during the previous year as a result of him making a valid application as defined in this section.
(ii) The amount of the exemption allowed by this section is more than the taxable value of personal property owned by the taxpayer.
(iii) The taxpayer has not made purchases of personal property, excluding items of taxable personal property exempted pursuant to subsection (1) of this section, that would cause the taxable value of the personal property owned by the taxpayer to exceed the maxi- mum amount allowed as an exemption by this section.
(d) Knowingly failing to report changes in the taxable value of per- sonal property that exceed the amount of the exemption allowed pursuant to this section shall subject the taxpayer to a fine not in excess of ten thousand dollars ($10,000) in addition to other penalties set forth in this chapter.
(7) Recovery of property tax exemptions allowed by this section but im- properly claimed:
(a) Upon discovery of evidence, facts or circumstances indicating any exemption allowed by this section was improperly claimed, the county assessor shall decide whether the exemption claimed should have been allowed, and, if not, notify the board of county commissioners, at which time the board may waive a recovery of the property tax and notify such taxpayer in writing.
(b) The assessment and collection of the recovery of property tax must begin within the seven (7) year period beginning on the date the assess- ment notice reflecting the improperly claimed exemption was required to be mailed to the taxpayer.
(c) The taxpayer may appeal to the board of tax appeals the decision by the board of county commissioners to assess the recovery of property tax within thirty (30) days of the date the county assessor sent the notice to the taxpayer pursuant to this section.
(d) For purposes of calculating the tax, the amount of the recovered property tax shall be for each year the exemption allowed by this sec- tion was improperly claimed or approved, up to a maximum of seven (7) years.
The amount of the recovery of property tax shall be calculated using the product of the amount of exempted value for each year multi- plied by the levy for that year plus costs, late charges and interest for each year at the rates equal to those provided for delinquent property taxes during that year.
In cases of fraud, the fine set forth in subsec- tion (6)(d) of this section shall be assessed for each tax year.
(e) Any recovery of property tax shall be due and payable no later than the date provided for property taxes in section 63-903, Idaho Code, and if not timely paid, late charges and interest, beginning the first day of January in the year following the year the county assessor sent the notice to the taxpayer pursuant to this section, shall be calculated at the current rate provided for property taxes.
(f) Recovered property taxes shall be billed, collected and dis- tributed in the same manner as property taxes.
If the recovery is for property tax for which the state provided replacement money, the amounts recovered shall be reported and remitted to the state tax commission, which shall reimburse the general fund.
The state tax com- mission will then notify each affected taxing district or unit of its proportionate share of the recovered property tax, which amount shall be deducted from future payments to be made pursuant to subsection (3) of this section.
(g) Thirty (30) days after the taxpayer is notified, as provided in paragraph (a) of this subsection, the assessor shall record a notice of intent to attach a lien.
Upon the payment in full of such recov- ered property taxes prior to the attachment of the lien as provided in paragraph (h) of this subsection, or upon the successful appeal by the taxpayer, the county assessor shall record a rescission of the intent to attach a lien within seven (7) business days of receiving such payment or within seven (7) business days of the county commissioners' decision granting the appeal.
(h) Any unpaid recovered property taxes shall become a lien upon the taxpayer's personal property in the same manner as provided for prop- erty taxes in section 63-206, Idaho Code, except such lien shall attach as of the first day of January in the year following the year the county treasurer sent the notice to the taxpayer pursuant to this section.
(i) For purposes of the limitation provided by section 63-802, Idaho Code, moneys received pursuant to this subsection as recovery of prop- erty tax shall be treated as property tax revenue.
(8) For operating property with values apportioned to more than one (1) county, the personal property exemption shall be subtracted from the Idaho allocated value prior to apportionment and, for private railcar companies, prior to determining whether their values are to be apportioned.
Notwith- standing amounts calculated as provided in subsection (1) of this section, the amount of the exemption otherwise provided in subsection (2) of this sec- tion shall be calculated as follows:
(a) Take the lesser amount of:
(i) The number of counties in which a company has operating prop- erty multiplied by two hundred fifty thousand dollars ($250,000);
or (ii) The total statewide value of eligible personal property re- ported by the company.
(b) Reduce the amount calculated in paragraph (a) of this subsection by the value of any nonoperating personal property granted the exemption otherwise found in subsection (2) of this section, as reported by county assessors.
SECTION 3.
No extensions shall be granted on the second one-half (1/2) of the property tax.tax.";
SECTIONand 4.renumber the subsequent section accordingly.
AnCORRECTION emergencyTO existingTITLE therefor,On whichpage emergency1, is hereby declared to exist, this act shall be in fullline force5, andfollowing effect"TAX;", oninsert: and after its passage and approval, and retroactively to January 1, 2022.
"AMENDING SECTION 63-904, IDAHO CODE, TO REMOVE A PROVISION REGARDING THE TAXATION OF TRAN- SIENT PERSONAL PROPERTY;".