Chapter 1 DEPARTMENT OF REVENUE AND TAXATION

Sec.

§ 63-100. Declaration of legislative intent. [Repealed.]

STATUTORY NOTES

Compiler’s Notes.

This section, which comprised I.C.,§ 63-100, as added by 1965, ch. 312, § 1, p. 849, was repealed by S.L. 1969, ch. 455, § 83.

§ 63-101. Department of revenue and taxation — State tax commission — Board of tax appeals.

  1. There is hereby created the department of revenue and taxation, which shall consist of a state tax commission and a board of tax appeals. The department of revenue and taxation shall, for the purposes of section 20, article IV, of the constitution of the state of Idaho, be an executive department of state government.
  2. The state tax commission shall be the constitutional tax commission prescribed in section 12, article VII, of the constitution of the state of Idaho.
  3. The board of tax appeals shall be as provided in chapter 38, title 63, Idaho Code.
  4. The state tax commission may organize itself, or may organize such administrative units under the direction and control of the state tax commission, as deemed necessary for proper and efficient operation in order to exercise the constitutional and statutory authority and functions assigned to the state tax commission by the provisions of this title, or by other laws.
  5. The state tax commission shall consist of four (4) members, not more than two (2) of whom shall belong to the same political party. The members of the state tax commission shall be appointed by the governor, by and with the consent of the senate; and shall be subject to removal by impeachment as provided in chapter 40, title 19, Idaho Code.
  6. Appointments, except appointments to fill vacancies, shall be for a term of six (6) years. Appointments to fill a vacancy shall be made by the governor, and the name of the appointee shall be submitted to the senate for confirmation at the next regular or extraordinary session, and upon confirmation of the appointment, the appointee shall hold office for the unexpired term.
  7. Each member of the state tax commission shall take, subscribe and file with the secretary of state an oath of office in the form, time and manner prescribed in chapter 4, title 59, Idaho Code. Each state tax commissioner shall be bonded to the state of Idaho in the form, time and manner prescribed in chapter 8, title 59, Idaho Code.
  8. The state tax commission shall have an office in Ada county and may establish temporary offices at any place within the state whenever necessary for the discharge of the state tax commission’s duties.
  9. The state tax commission shall have an official seal, of which an impression and description shall be filed with the secretary of state. Judicial notice shall be taken of the seal of the state tax commission. Copies of papers, records, proceedings and documents in the possession of the state tax commission may be authenticated by affixation of the seal of the commission and the attestation of the chairman of the commission, and when so sealed and attested shall be received in evidence in all courts with the same effect as the originals.
History.

I.C.,§ 63-101, as added by 1996, ch. 98, § 2, p. 308; am. 2001, ch. 183, § 28, p. 613.

STATUTORY NOTES

Cross References.

Duties with reference to equalization of assessment of net profits of mines,§ 63-2810.

Impersonation of officer, deputy or employee of state tax commission, felony,§ 18-6309.

Oath of office,§ 59-401 et seq.

CASE NOTES

Decisions Under Prior Law
Character of Board.

State board of equalization was not a court, but exercised quasi-judicial functions. It was entirely a creature of law and had no power except that given by law. Orr v. State Bd. of Equalization, 3 Idaho 190, 28 P. 416 (1891); Northwest Light & Water Co. v. Alexander, 29 Idaho 557, 160 P. 1106 (1916); Kootenai County v. State Bd. of Equalization, 31 Idaho 155, 169 P. 935 (1917).

Good Faith Presumed.

Good faith of members of state board of equalization and validity of their acts were presumed. Oregon Short Line R.R. v. Ross, 52 F.2d 695 (D. Idaho 1931).

Review.

State board of equalization had the right to exercise a fair discretion in the valuation of property, and when it had once acted, and there was no fraud shown in its judgment, its action was not subject to review. Northwest Light & Water Co. v. Alexander, 29 Idaho 557, 160 P. 1106 (1916).

RESEARCH REFERENCES

Idaho Law Review.

Idaho Law Review. — Idaho Administrative Law: A Primer for Students and Practitioners, Richard Henry Seamon. 51 Idaho L. Rev. 421 (2015).

§ 63-101A. Classes of property. [Repealed.]

STATUTORY NOTES

Compiler’s Notes.

This section, which comprised I.C.,§ 63-101A, as added by 1965, ch. 312, § 3, p. 849, was repealed by S.L. 1996, ch. 98, § 1, effective January 1, 1997.

§ 63-101B. Assessed valuation defined. [Repealed.]

STATUTORY NOTES

Compiler’s Notes.

This section, which comprised I.C.,§ 63-101B, as added by 1965, ch. 312, § 4, p. 849; am. 1967, ch. 343, § 2, p. 984; am. 1969, ch. 315, § 1, p. 972, was repealed by S.L. 1979, ch. 18, § 6 effective January 1, 1980.

§ 63-102. Organization — Chairman — Compensation — Quorum — Hearings.

  1. A member of the state tax commission shall be appointed by the governor, to serve at his pleasure, as chairman. Each member of the state tax commission shall devote full time to the performance of duties. Commencing on July 1, 2020, the annual salary for members of the state tax commission shall be one hundred four thousand ninety dollars ($104,090).
  2. A majority of the state tax commission shall constitute a quorum for the transaction of business. The state tax commission may delegate to any member of the commission or to its employees, the power to make investigations and hold hearings at any place it may deem proper, and such other matters as will facilitate the operations of the commission.
  3. The chairman of the state tax commission shall delegate to each commissioner the responsibility for policy management and oversight of one (1) or more of the taxes collected and/or activities supervised or administered by the commission. The state tax commission shall perform the duties imposed upon it by law and shall adopt all rules by majority decision.
  4. The chairman shall be the chief executive officer and administrative head of the state tax commission and shall be responsible for, or may assign responsibility for, all personnel, budgetary and/or fiscal matters of the state tax commission.

In any case in which the state tax commission sits as an appellate body upon an appeal from a tax decision from one (1) of the various administrative units subject to its supervision, the state tax commissioner charged with responsibility for policy management and oversight of the tax in controversy shall not vote upon the appeal but may advise the remaining members of the commission on the technical aspects of the problems before them.

History.

I.C.,§ 63-102, as added by 1996, ch. 98, § 2, p. 308; am. 1997, ch. 169, § 1, p. 483; am. 1998, ch. 358, § 3, p. 350; am. 2000, ch. 359, § 2, p. 1195; am. 2001, ch. 279, § 1, p. 1008; am. 2004, ch. 281, § 2, p. 774; am. 2006, ch. 368, § 2, p. 1106; am. 2007, ch. 121, § 2, p. 370; am. 2008, ch. 285, § 2, p. 807; am. 2012, ch. 224, § 2, p. 610; am. 2014, ch. 316, § 2, p. 780; am. 2015, ch. 120, § 2, p. 305; am. 2016, ch. 247, § 2, p. 661; am. 2017, ch. 316, § 2, p. 831; am. 2018, ch. 336, § 3, p. 765; am. 2019, ch. 309, § 3, p. 929; am. 2020, ch. 339, § 3, p. 992.

STATUTORY NOTES

Amendments.

The 2006 amendment, by ch. 368, substituted the current second sentence in subsection (1) for “Commencing on July 1, 2004, the annual salary for members of the state tax commission shall be seventy-one thousand seven hundred eight dollars ($71,708).”

The 2007 amendment, by ch. 121, substituted “eighty-two thousand nine hundred fifty-nine dollars ($82,959)” for “seventy-nine thousand nine dollars ($79,009)” in subsection (1).

The 2008 amendment, by ch. 285, substituted “eighty-five thousand four hundred forty-seven dollars ($85,447)” for “eighty-two thousand nine hundred fifty-nine dollars ($82,959)” in subsection (1). The 2012 amendment, by ch. 224, substituted “Commencing on July 1, 2012, the annual salary for members of the state tax commission shall be eighty-seven thousand one hundred fifty-six dollars ($87,156)” for “Commencing on July 1, 2008, the annual salary for members of the state tax commission shall be eighty-five thousand four hundred forty-seven dollars ($85,447).”

The 2014 amendment, by ch. 316, substituted “July 1, 2014” for “July 1, 2012” and substituted “eighty-eight thousand twenty-eight dollars ($88,028)” for “eighty-seven thousand one hundred fifty-six dollars ($87,156)” in the last sentence in subsection (1).

The 2015 amendment, by ch. 120, in the second sentence of subsection (1), substituted “July 1, 2015” for “July 1, 2014” and “ninety-thousand six hundred sixty-nine dollars ($90,669)” for “eighty-eight thousand twenty-eight dollars ($88,028)”.

The 2016 amendment, by ch. 247, in the last sentence of subsection (1), substituted “July 1, 2016” for “July 1, 2015” near the beginning and “ninety-three thousand three hundred eighty-nine dollars ($93,389)” for “ninety thousand six hundred sixty-nine dollars ($90,669)” near the end.

The 2017 amendment, by ch. 316, in subsection (1), rewrote the last sentence, which formerly read: “Commencing on July 1, 2016, the annual salary for members of the state tax commission shall be ninety-three thousand three hundred eighty-nine dollars ($93,389)”.

The 2018 amendment, by ch. 336, in the last sentence of subsection (1), substituted “July 1, 2018” for “July 1, 2017” near the beginning and substituted “ninety-nine thousand seventy-seven dollars ($99,077)” for “ninety-six thousand one hundred ninety-one dollars ($96,191)” at the end.

The 2019 amendment, by ch. 309, rewrote the last sentence in subsection (1), which formerly read: “Commencing on July 1, 2018, the annual salary for members of the state tax commission shall be ninety-nine thousand seventy-seven dollars ($99,077)”.

The 2020 amendment, by ch. 339, substituted “commencing on July 1, 2020, the annual salary for members of the state tax commission shall be one hundred four thousand ninety dollars ($104,090)” for “July 1, 2019, the annual salary for members of the state tax commission shall be one hundred two thousand forty-nine dollars ($102,049)” at the end of subsection (1).

Compiler’s Notes.

Section 7 of S.L. 2014, ch. 316 provided: “Notwithstanding any other provision of law to the contrary, commissioner salaries referenced in Sections 1, 2 [this section] and 3 of this act shall be increased by the equivalent of 1% for the period July 1, 2014, through June 30, 2015.”

Section 4 of S.L. 2020, ch. 339 provided: “Management Review. In accordance with Section 67-702(1)(c), Idaho Code, the Audit Division of the Legislative Services Office shall perform a management review of the Idaho State Tax Commission for the period July 1, 2019, through June 30, 2020. The review will evaluate compliance with Section 63-809, Idaho Code, to determine whether the Idaho State Tax Commission has carefully examined the statements furnished to it, as provided in Section 63-808, Idaho Code, and if it has notified the county commissioners of each county of the approval of all previously certified levies on or before the fourth Monday in October. Additionally, the review will include determining whether the Idaho State Tax Commission properly notified the county commissioners of each county and the governing authorities of any city, school district, or any other taxing district or municipality no later than the fourth Monday of October if it appeared that the county commissioners or governing authorities had fixed a levy or certified a property tax budget increase that exceeded any limitation provided by law; and, if it appeared that the county commissioners of any county have fixed a levy for any purpose or purposes not authorized by law, or in excess of the maximum permitted by law for any purpose or purposes, whether the Idaho State Tax Commission properly notified the Attorney General.”

§ 63-103. Employees — Compensation — Expenses.

  1. The state tax commission may employ an officer who shall serve as secretary of the commission and shall also employ such other persons as may be necessary for the performance of its duties. Certain of its employees may be designated as deputies who shall perform such duties as prescribed by the state tax commission. The state tax commission may delegate to any of its employees the duty of assisting in the collection, audit, inspection and enforcement of any tax or license and may authorize any of its employees to act in its place and stead. The state tax commission may delegate any other function, responsibility or duty imposed upon the commission to one (1) or more commissioners or deputy commissioners; provided however, where the amount in issue relating to the tax liability of any taxpayer is equal to or exceeds fifty thousand dollars ($50,000), and the commission has delegated the authority to compromise such liability to an individual commissioner, the settlement or closing agreement procedure shall be governed by the provisions of section 63-3048, Idaho Code.
  2. The compensation of all state tax commission employees shall be paid upon the same basis and in the same manner as the compensation of other state employees is paid.
  3. The traveling expenses of the members of the state tax commission and its employees when traveling in performance of official duty, and other necessary expenses incurred in performance of its duties, shall be paid upon the same basis and in the same manner as the expenses of other state employees are paid.
History.

I.C.,§ 63-103, as added by 1996, ch. 98, § 2, p. 308; am. 1997, ch. 173, § 1, p. 491; am. 2009, ch. 120, § 1, p. 384.

STATUTORY NOTES

Amendments.

The 2009 amendment, by ch. 120, in subsection (1), substituted “the settlement or closing agreement procedure shall be governed by the provisions of section 63-3048, Idaho Code” for “the compromise agreement shall be executed by at least one (1) commissioner in addition to the delegated commissioner” in the present last sentence and deleted the former last two sentences, which read: “The commission shall adopt guidelines to govern review of compromise agreements. The state tax commission may employ counsel, or may retain counsel.”

§ 63-103A. Determining the suitability of employees, applicants and prospective contractors for employment and access to federal tax information.

  1. To determine the suitability of prospective employees and contractors for the Idaho state tax commission, the human resources office of the commission shall require an applicant to provide information and fingerprints necessary to obtain criminal conviction history information from the Idaho state police and the federal bureau of investigation. Pursuant to section 67-3008, Idaho Code, and Public Law 92-544, the commission’s human resources officer shall submit a set of fingerprints obtained from the employee, prospective contractor, subcontractor or applicant for employment who will have access to federal tax information as defined in internal revenue service publication 1075 (2016) and the required fees to the Idaho state police, bureau of criminal identification, for a criminal records check of state and national databases. The submission of fingerprints and information required by this section shall be on forms prescribed by the Idaho state police.
  2. The human resources office of the Idaho state tax commission is authorized to receive criminal history information from the Idaho state police and from the federal bureau of investigation for the purpose of evaluating the fitness of applicants to the Idaho state tax commission. As provided by state and federal law, further dissemination or other use of the criminal history information is prohibited. Criminal background reports received from the Idaho state police and the federal bureau of investigation shall be handled and disposed of in a manner consistent with requirements imposed by the Idaho state police and the federal bureau of investigation.
  3. The human resources office of the Idaho state tax commission shall review the information received from the criminal history and background check and determine whether the applicant or employee has a criminal or other relevant record that would disqualify the individual from employment. The applicant or employee shall be provided an opportunity for a formal review of a denial. In the case of a contractor or subcontractor, the human resources officer shall communicate clearance or denial to the applicant and the applicant’s employer.
  4. Clearance through the criminal history and background check process is not the only determination of suitability for employment.
  5. The Idaho state tax commission shall promulgate such rules as are necessary to carry out the provisions of this section.
History.

I.C.,§ 63-103A, as added by 2018, ch. 68, § 1, p. 163.

STATUTORY NOTES

Cross References.

Idaho state police,§ 67-2901 et seq.

State tax commission,§ 63-101 et seq.

Federal References.

For internal revenue service publication 1075 (2016), referred to in subsection (1), see https://www.irs.gov/pub/irs-pdf/p1075.pdf .

Compiler’s Notes.

For more information on the Idaho bureau of criminal investigation, see https://isp.idaho.gov/BCI/ .

§ 63-104. Holding other offices.

The members and employees of the state tax commission shall hold no other office under the laws of this state, the United States, or any other state, except as provided in this section, so long as they shall remain members or employees of the commission. Any member or employee of the tax commission may serve in the national guard or armed forces of the United States. Further, any member or employee of the tax commission may be appointed or elected to other office, when that office is without compensation beyond reimbursement for actual expenses, so long as service in the office does not conflict with the duties of the tax commission.

History.

I.C.,§ 63-104, as added by 1996, ch. 98, § 2, p. 308.

§ 63-105. Powers and duties — General.

In addition to all other powers and duties vested in it, the state tax commission shall have the power and duty:

  1. To assess and collect all taxes and administer all programs relating to taxes which are the responsibility of the state tax commission.
  2. To make, adopt and publish such rules as it may deem necessary and desirable to carry out the powers and duties imposed upon it by law, provided however, that all rules adopted by the state tax commission prior to the effective date of this 1996 amendatory act shall remain in full force and effect until such time as they may be rescinded or revised by the commission.
  3. To maintain a tax research section to observe and investigate the effectiveness and adequacy of the revenue laws of this state and to assist the executive and legislative departments in estimation of revenue, analysis of tax measures and determination of the administrative feasibility of proposed tax legislation.
  4. To prescribe forms and to specify and require information with relation to any duty or power of the state tax commission except as provided in section 63-219, Idaho Code.
  5. To ensure that statutory penalties are enforced, and proper complaint is made against persons derelict in duty under any law relating to assessment or equalization of taxes.
  6. To sue and be sued in the name of the state tax commission.
  7. To summon witnesses to appear before it or its agents to testify and/or produce for examination such books, papers, records or other data relating to any matter within its jurisdiction. However, no person shall be required to testify outside the county wherein he resides or the principal place of his business is located. Such summons to testify shall be issued and served in like manner as a subpoena to witnesses issued from the district court and shall be served without fee or mileage charge by the sheriff of the county, and return of service shall be made by the sheriff to the commission. Persons appearing before the commission or its agents in obedience to such a summons, shall, in the discretion of the commission, receive the same compensation as witnesses in the district court, to be paid upon claims presented against the state from any appropriation made for the administration of the provisions of this title, in the same manner as other claims against the state are presented and paid.
  8. To administer oaths and take affirmations of witnesses appearing before it. The power to administer oaths and take affirmations is vested in each member of the state tax commission, and its duly constituted agents. In case any witness shall fail or refuse to appear and testify before the state tax commission or its agents upon being summoned to appear as herein provided, the clerk of the district court of the county shall, upon demand of the state tax commission, any member thereof, or agent, issue a subpoena reciting the demand therefor and summoning the witness to appear and testify at a time and place fixed; and violation of such subpoena or disobedience thereto shall be deemed and punished as a violation of any other subpoena issued from the district court.
  9. To report to the governor from time to time, and to furnish to the governor such assistance and information as may be required.
History.

(10) To recommend to the governor in a report at least sixty (60) days before and to the legislature ten (10) days prior to the meeting of any regular session of the legislature such amendments, changes and modifications of the various tax laws necessary to remedy injustice and irregularities in taxation and to facilitate assessment and collection of taxes in the most economical and efficient manner. History.

I.C.,§ 63-105, as added by 1996, ch. 98, § 2, p. 308.

STATUTORY NOTES

Compiler’s Notes.

The phrase “the effective date of this 1996 amendatory act” in subsection (2) refers to the effective date of S.L. 1996, chapter 98, which was effective January 1, 1997.

CASE NOTES

Decisions Under Prior Law
Assessments.

The state tax commission is constitutionally and statutorily empowered and authorized to equalize the assessments of property among the various counties of the state; accordingly, where the tax commission procedurally followed the proper state statutes prior to entering its directive to certain county auditors requiring that the county auditors enter upon the real property assessment rolls of their respective counties certain adjustments to accomplish equalization, the tax commission acted in accordance with the mandated procedures and those procedures did not violate the due process provisions of the United States Constitution or the state Constitution. Idaho State Tax Comm’n v. Staker, 104 Idaho 734, 663 P.2d 270 (1982).

Overriding of Counties’ Valuation.

The state tax commission has the constitutional authority to override the counties’ valuation, and, if the tax commission’s action is not fraudulent or so arbitrary as to amount to constructive fraud, the commission’s action is not subject to judicial review. Idaho State Tax Comm’n v. Staker, 104 Idaho 734, 663 P.2d 270 (1982).

Subpoenas.

Although state tax commission has the duty to investigate the ratios of assessed values to market values of realty, this does not justify issuing subpoenas requiring a bank escrow agent to produce escrow documents. State Tax Comm’n v. First Sec. Bank, 96 Idaho 261, 526 P.2d 1097 (1974).

§ 63-105A. Powers and duties — Property tax.

The state tax commission shall be the state board of equalization. In addition to other powers and duties vested in it, the state tax commission shall have the power and duty:

  1. To supervise and coordinate the work of the several county boards of equalization.
  2. To secure, tabulate and keep records of valuations of all classes of property throughout the state and, for that purpose, to have access to all records and files of state offices and departments and county and municipal offices, and to require all public officers and employees whose duties make it possible to ascertain valuations, including valuations of public utilities for ratemaking purposes, to file reports with the state tax commission, giving such information as to valuation and the source thereof. The nature and kind of the tabulations, records of valuations and requirements from public officers as stated herein shall be in such form and cover such valuations as the state tax commission may prescribe.
  3. To coordinate and direct a system of property taxation throughout the state.
  4. To require all assessments of property in this state to be made according to law; and for that purpose to correct, when it finds the same to be erroneous, any assessments made in any county and require correction of the county assessment records accordingly.
  5. To prescribe forms and to specify and require information with relation to any duty or power of the state tax commission except as provided in section 63-219, Idaho Code.
  6. To instruct, guide, direct and assist the county assessors and county boards of equalization as to the methods best calculated to secure uniformity in the assessment and equalization of property taxes, to the end that all property shall be assessed and taxed as required by law.
  7. To reconvene, whenever the state tax commission may deem necessary, any county board of equalization, notwithstanding the limitations of chapter 5, title 63, Idaho Code, for equalization purposes and for correction of errors. The county board of equalization, when so reconvened, shall have no power to transact any business except that for which it is specially reconvened, or such as may be brought before it by the state tax commission.
  8. To require prosecuting attorneys to institute and prosecute actions and proceedings in respect to penalties, forfeitures, removals and punishments for violations of law in connection with the assessment and taxation of property. It shall be the duty of such officers to comply promptly with the requirements of the state tax commission in that relation.
  9. To require individuals, partnerships, companies, associations and corporations to furnish such information as the state tax commission may require concerning their capital, funded or other debt, current assets and liabilities, value of property, earnings, operating and other expenses, taxes and all other facts that may be needed to enable the state tax commission to ascertain the value and the relative tax burden borne by all kinds of property in the state, and to require from all state and local officers such information as may be necessary to the proper discharge of the duties of the state tax commission.
  10. To visit, as a state tax commission or by individual members or agents thereof whenever the state tax commission shall deem it necessary, each county of the state, for the investigation and direction of the work and methods of assessment and equalization, and to ascertain whether or not the provisions of law requiring the assessment of all property not exempt from taxation and just equalization of the same have been or are being properly administered and enforced. (11) To carefully examine all cases where evasion or violation of the laws of assessment and taxation of property is alleged, complained of, or discovered, and to ascertain wherein existing laws are defective or are improperly or negligently administered.
  11. To carefully examine all cases where evasion or violation of the laws of assessment and taxation of property is alleged, complained of, or discovered, and to ascertain wherein existing laws are defective or are improperly or negligently administered.
  12. To correct its own errors in property assessment at any time before the third Monday in October and report such correction to the county auditor and county tax collector, who shall thereupon enter the correction upon the operating property roll.
  13. To apportion annually to the state and the respective counties any moneys received by the state from the United States or any agency thereof, as payments in lieu of property taxes; provided, that said moneys shall be apportioned in the same amounts, and to the same governmental divisions as the property taxes, in lieu of which payments are made, would be apportioned, if they were levied. The state treasurer and the state controller shall be bound, in making distribution of moneys so received, by the apportionment ordered by the state tax commission.
  14. To make administrative construction of property tax law whenever necessary or requested by any officer acting under such laws, and until judicially overruled, such administrative construction shall be binding upon the inquiring officer and all others acting under such laws.
  15. To require the attendance of any assessor in the state at such time and place as may be designated by the commission, and the actual and necessary expenses of any assessor in attending any such meeting shall be a legal claim against his county.
  16. To analyze the work of county assessors at any time and to have and possess all rights and powers of such assessors for the examination of persons and property, and for the discovery of property subject to taxation; and if it shall ascertain that any taxable property is omitted from the property rolls or is not assessed or valued according to law, it shall bring the same to the attention of the assessor of the proper county in writing, and if such assessor shall neglect or refuse to comply with the request of the state tax commission to place such property on the property rolls, or correct such incorrect assessment or valuation, the state tax commission shall have the power to prepare a supplemental roll, which supplemental roll shall include all property required by the state tax commission to be placed on the property roll and all corrections to be made. Such supplement shall be filed with the assessor’s property roll, and shall thereafter constitute an integral part thereof to the exclusion of all portions of the original property rolls inconsistent therewith, and shall be submitted therewith to the county board of equalization.
  17. To provide a program of education and an annual appraisal school for its employees, for county commissioners and for the assessors of the various counties of this state. Additionally, the state tax commission shall provide for the establishment of a property tax appraiser and cadastral certification program. Such program shall include, at a minimum, a written examination prepared, administered and graded under the supervision and control of an examination committee; such committee is to be composed as the state tax commission may provide by rule. The state tax commission’s rules shall include, but need not be limited to, the following:
    1. The composition of the examination committee, provided however, that the committee shall include a representative of the counties, an agent of the state tax commission and a representative of a professional appraisal association within this state. The representative of the counties together with the representatives of such professional appraisal association shall constitute a majority of the committee.
    2. The frequency with which the examination shall be given.
    3. A reasonable review procedure by which examinees having complaints may seek review of the examination committee.
    4. The establishment of a reasonable period of time within which a county appraiser must meet the certification requirements as a condition to continued employment by the county as a certified property tax appraiser.
  18. To report at least quarterly to the revenue and taxation committee of the house of representatives and to the joint senate finance-house appropriations committee on its program to assist the counties with the property tax assessments.
  19. To transmit to the governor and to the legislature an annual report, with the state tax commission’s recommendations as to such legislation as will correct or eliminate defects in the operations of the property tax laws and will equalize taxation within the state. Said annual report shall include a comprehensive study of the property tax laws and detailed statistical information concerning the operation of the property tax laws of this state. Said report shall be submitted prior to the meeting of any regular session of the legislature.
  20. To maintain a forest land and forest product tax section to perform the functions and duties of the state tax commission under the provisions of chapter 17, title 63, Idaho Code.
History.

I.C.,§ 63-105A, as added by 1996, ch. 98, § 2, p. 308; am. 1998, ch. 200, § 1, p. 713; am. 2008, ch. 52, § 1, p. 128; am. 2018, ch. 30, § 1, p. 54.

STATUTORY NOTES

Cross References.

State controller,§ 67-1001 et seq.

State treasurer,§ 67-1201 et seq.

Amendments.

The 2008 amendment, by ch. 52, in the introductory paragraph in subsection (17), inserted “and cadastral” in the second sentence.

The 2018 amendment, by ch. 30, substituted “third Monday in October” for “first Monday in November” near the middle of subsection (12).

Compiler’s Notes.

For property tax appraisal and cadastral specialist certification, see https://tax.idaho.gov/i-1057.cfm .

§ 63-106. Federal aid.

The state tax commission is authorized to accept, receipt, disburse and expend federal moneys, made available to accomplish in whole or in part any of the purposes of the laws enforced by the state tax commission. All moneys accepted under the provisions of this section shall be accepted and expended by the state tax commission upon such terms and conditions as prescribed by the United States. All moneys received by the state tax commission pursuant to this section shall be deposited in the state treasury and, unless otherwise prescribed by the authority in which said moneys were received, shall be kept in separate funds designated according to the purpose for which the moneys were made available, and held by the state in trust for such purposes. All such moneys are hereby appropriated for the purpose for which the same were made available, and the state tax commission is empowered to disburse or expend said moneys in accordance with the terms and conditions upon which they were made available.

History.

I.C.,§ 63-106, as added by 1996, ch. 98, § 2, p. 308.

§ 63-107. Process and procedure before state tax commission.

Process and procedure before the state tax commission shall be as summary and simple as reasonably may be, and, as far as possible, in accordance with the rules of equity. Process and procedures before the state tax commission as the state board of equalization under title 63, Idaho Code, and before the state tax commission for redetermination of taxes under section 63-3045 or 63-3631, Idaho Code, are not contested cases within the meaning of chapter 52, title 67, Idaho Code.

History.

I.C.,§ 63-107, as added by 1996, ch. 98, § 2, p. 308.

§ 63-108. Meeting of state tax commission.

  1. The state tax commission shall meet on the second Monday in August in each year, and, if all the abstracts of assessments in the several counties in the state have then been received, such abstracts shall be laid before the commission, which shall proceed to equalize the assessments throughout the state.
  2. In case all the abstracts of assessments in the several counties of the state have not been received by the state tax commission on or before the second Monday of August, then the commission shall adjourn from day to day until all of the abstracts have been received. The state tax commission may issue subpoenas for any county auditor who has failed to transmit his abstract of assessments, or whose abstract of assessments has not been received, requiring such county auditor to forthwith appear before the commission and produce said abstract. The sheriff of the county where the officer to be served resides is hereby designated as the officer by whom such subpoena shall be served and all actual and necessary expenses incurred by the sheriff in making such service shall be a legal claim against his county, and the officer served shall be liable on his official bond for said expenses in addition to any other liability imposed upon him for failure to transmit his abstract of assessments within the time prescribed in this chapter.
History.

I.C.,§ 63-108, as added by 1996, ch. 98, § 2, p. 308.

§ 63-109. Equalization by categories — Identification and reassessment.

  1. The state tax commission shall publish rules establishing and defining categories in which various properties will be placed for assessment purposes. If the state tax commission has reason to believe that a county assessor has improperly assessed a category of property, it shall provide notice to the county assessor and board of county commissioners of the alleged improper assessment no later than the first Monday of April. The notice shall include the grounds upon which the state tax commission believes the county assessor has improperly assessed a category of property, as well as any findings, reports, or other documentation supporting the position of the state tax commission. No equalization shall occur unless notice of an improper assessment pursuant to this subsection has been provided to the county assessor and board of county commissioners.
  2. The state tax commission shall equalize the assessments of property throughout the state, by categories, as shown by the abstracts transmitted by the several county auditors, county by county. In such equalization, the state tax commission shall have power to increase or decrease the total value of any category of property in any county as shown by the abstract from that county when, in the opinion of the commission, the value of that category appearing in such abstract is not just and equal as compared with the value of other categories of property in that county, or the value of similar categories of property in other counties, because of its being greater than or less than the market value. Upon receiving information from any source that any property in any county of the state has been omitted from the property roll, or has been improperly assessed, the state tax commission shall have the power to compel the assessor of such county to assess such property and place it upon the property roll forthwith, and to compel the reassessment of all property improperly assessed. The state tax commission is also empowered to identify or order and compel a proper identification of property by categories for assessment purposes in any county, and to create new categories for any taxable property, and to order and compel reassessment by the county assessor of any category or categories of property within the county.
  3. Notwithstanding the provisions of subsection (1) of this section, the state tax commission may equalize the assessment of a category of property in a county if the state tax commission becomes aware that either a county assessor has changed the assessed value of a category of property after the deadline has passed for notice provided for in subsection (1) of this section or that a county board of equalization improperly categorized a category of property. The state tax commission shall immediately provide written notice to the county assessor and board of county commissioners as soon as it becomes aware of the improper assessment or equalization. In no event shall the notice be made later than the Monday following the adjournment of the county board of equalization in July.
History.

(4) The state tax commission shall provide a copy of any equalization order to the county assessor, board of county commissioners, and board of tax appeals within two (2) weeks of the issuance of the equalization order. The board of county commissioners shall notify any property owner affected by the equalization order within two (2) weeks of receiving the equalization order from the state tax commission. The notice shall include a new assessment notice consistent with the state tax commission order. History.

I.C.,§ 63-109, as added by 1996, ch. 98, § 2, p. 308; am. 2019, ch. 200, § 1, p. 618.

STATUTORY NOTES

Cross References.

Board of tax appeals,§ 63-3801 et seq.

Amendments.

The 2019 amendment, by ch. 200, divided the existing sections into two paragraphs and added the subsection (1) and (2) designators; added the second through fourth sentences in subsection (1); and added subsections (3) and (4).

CASE NOTES

Decisions Under Prior Law
Changes in Valuations.

The state tax commission has the constitutional authority to override the counties’ valuation; and if the tax commission’s action is not fraudulent or so arbitrary as to amount to constructive fraud, the commission’s action is not subject to judicial review. Idaho State Tax Comm’n v. Staker, 104 Idaho 734, 663 P.2d 270 (1982).

Equalization of Assessments.

The state tax commission is constitutionally and statutorily empowered and authorized to equalize the assessments of property among the various counties of the state; accordingly, where the tax commission procedurally followed the proper state statutes prior to entering its directive to certain county auditors requiring that the county auditors enter upon the real property assessment rolls of their respective counties certain adjustments to accomplish equalization, the tax commission acted in accordance with the mandated procedures and those procedures did not violate the due process provisions of the United States Constitution or the state Constitution. Idaho State Tax Comm’n v. Staker, 104 Idaho 734, 663 P.2d 270 (1982).

§ 63-110. Property and special taxes.

The state tax commission must complete the equalization of assessments throughout the state during its meeting as the state board of equalization, after receipt of each county auditor’s abstract of the property roll, no later than the fourth Monday of August in the year in which such assessments are made, and, if there is to be a state property tax, shall on that day determine the amount of state property tax which each county must collect and remit to the state, by apportioning the total state property tax among the several counties in the state in the exact proportion that the total equalized valuation of each county, as shown by the property roll for the current year, and the subsequent and missed property rolls for the preceding year, bears to the total equalized valuation of the state from such rolls of all the counties in the state. The state tax commission shall also determine the amount of special state taxes, if any, which each county must collect and remit to the state, and the total amount of such state property and special state taxes found to be due from each county shall be certified to the county auditor of such county by the chairman of the state tax commission, and the county auditor shall, upon receipt of such certificate, file the same in his office; provided, that the total amount of all special state taxes levied for the current year upon property entered upon the subsequent and missed property rolls of each county for such year shall be certified to the county auditor of such county by the chairman of the state tax commission upon receipt of the county auditor’s abstract of the subsequent and missed property rolls.

History.

I.C.,§ 63-110, as added by 1996, ch. 98, § 2, p. 308; am. 2014, ch. 77, § 1, p. 202.

STATUTORY NOTES

Amendments.

The 2014 amendment, by ch. 77, substituted “during its meeting as the state board of equalization, after receipt of each county auditor’s abstract of the property roll, no later than the fourth Monday of August” for “on the fourth month of August” near the beginning of the section.

Effective Dates.

Section 4 of S.L. 2014, ch. 77 declared an emergency and made this section retroactive to January 1, 2013.

CASE NOTES

Decisions Under Prior Law
Taxes Wrongfully Collected.

Taxes wrongfully collected by a county and remitted to the state could not be refunded to the county to reimburse the county for a court ordered refund of such taxes made by the county without a legislative appropriation nor could the amount of such taxes be deducted by the county from subsequent remittances of taxes. State ex rel. Williams v. Adams, 90 Idaho 195, 409 P.2d 415 (1965).

§ 63-111. Certificate by chairman — Changes in assessment.

  1. On or before the first Monday of September in each year, the chairman of the state tax commission must transmit by certified mail or by other commercial delivery service providing proof of delivery, whichever is the most cost-efficient, to the county auditor of each county in the state, a certified statement showing all the changes in the assessment of any class or all classes of property, or in the aggregate value of all property in said county, and the total increase or decrease as a result of all changes made by the state tax commission in the assessment of property in said county, and the county auditor shall, upon receipt of such certified statement, file the same in his office.
  2. In transmitting the certified statement, as prescribed in subsection (1) of this section, the chairman shall also transmit therewith the certificate showing the total amount of state property and special state taxes, if any, found to be due from the county, and shall also transmit therewith a certified statement showing the assessment of any railroad, telegraph, telephone or electric current transmission or distribution line and all other operating property under the jurisdiction of the state tax commission situated wholly or partly within the county, specifying the number of miles, the equalized value per mile, and the total equalized value of each line in the county, and in any taxing district into or through which such line extends, and the name of such line, if any, and the name and post office address of the taxpayer or owner of such line, and the county auditor shall, upon receipt of such certified statement, file the same in his office.
History.

I.C.,§ 63-111, as added by 1996, ch. 98, § 2, p. 308.

§ 63-112. Payments for assistance with property tax assessment.

The state tax commission is hereby authorized to charge counties for assistance provided for property tax assessment if requested in writing by the county assessor. Any payments received by the state tax commission for such assistance shall be deposited in the property tax assistance account.

History.

I.C.,§ 63-112, as added by 1996, ch. 98, § 2, p. 308.

STATUTORY NOTES

Compiler’s Notes.

Section 20 of S.L. 1996, ch. 98 read: “Section 20. Existing Rules Remain in Effect. All rules heretofore adopted by the state tax commission and in effect on the effective date of this act shall remain in full force and effect unless and until superseded or replaced by rules duly adopted by the commission, or until the same are rejected, amended or modified by the legislature in accordance with the provisions of chapter 52, title 67, Idaho Code, or until they expire as provided in section 67-5292, Idaho Code.”

Effective Dates.

Section 21 of S.L. 1996, ch. 98 provided that the act shall be in full force and effect on January 1, 1997.

§ 63-113. Reporting whole dollar amounts.

The state tax commission may require rounding to the nearest whole dollar any amount shown or required to be shown on any return, form, statement or other document submitted to the state tax commission. Any record or other document prepared or maintained by the state tax commission may express any dollar amount rounded to the nearest whole dollar.

History.

I.C.,§ 63-113, as added by 1997, ch. 20, § 1, p. 29.

STATUTORY NOTES

Compiler’s Notes.

S.L. 1997, ch. 20, § 1, effective July 1, 1997, ch. 64, § 1, effective March 13, 1997 and ch. 117, § 10, effective January 1, 1997, all purported to enact a new section of chapter 1, Title 6, Idaho Code, designated as§ 63-113. Section 1 of ch. 20 was compiled as§ 63-113, section 1 of ch. 64 was compiled as [63-114] 63-113, and section 10 of ch. 117 was compiled as [63-115] 63-113. The redesignations were made permanent by later amendments.

§ 63-114. Filing and payment extensions as disaster relief.

  1. The state tax commission may grant an extension of time for any filing, or any payment, which is required under any tax law administered or enforced by the state tax commission, to those persons whose ability to timely comply with their filing or payment requirement was adversely affected by a disaster declared by the President of the United States or by the governor of a state or territory of the United States. The state tax commission may grant any person entitled to an extension under section 7508A of the Internal Revenue Code, or regulations promulgated thereunder, an automatic extension for similar returns and payments due to this state.
  2. The state tax commission shall provide a procedure for affected taxpayers to justify the extension and provide such other information as the commission may require to support the taxpayer’s application. A notice of denial of an extension application shall be given in the manner provided for notices of deficiencies in section 63-3629, Idaho Code, which shall be subject to review as provided in section 63-3631, Idaho Code.
  3. No extension granted under this section shall be for a period in excess of one (1) year.
  4. In all cases where the state tax commission has granted an extension under this section, payment of the tax shall not be subject to any late filing penalty or interest if payment of the tax is made on or before the extended due date. Failure to file on the extended due date will thereafter cause the imposition of penalty and interest. Section 63-3033, Idaho Code, shall not apply to taxpayers who receive extensions under this section.
  5. Any rule, activity, procedure or form adopted by the commission to facilitate the provisions of this section, are [is] exempt from the provisions of chapter 52, title 67, Idaho Code.
History.

I.C.,§ 63-113, as added by 1997, ch. 64, § 1, p. 136; am. and redesig. 2002, ch. 21, § 1, p. 25.

STATUTORY NOTES

Federal References.

Section 7508A of the Internal Revenue Code, referred to in subsection (1), is codified as 26 U.S.C.S. § 7508A.

Compiler’s Notes.

The bracketed insertion in the last paragraph was added by the compiler to supply the grammatically correct term.

This section was formerly compiled as§ 63-113.

Effective Dates.

Section 3 of S.L. 1997, ch. 64 declared an emergency. Approved March 13, 1997. Section 2 of S.L. 2002, ch. 21 declared an emergency retroactively to September 10, 2001. Approved February 12, 2002.

§ 63-115. Filing of electronic returns and documents — Electronic funds transfers.

  1. Any return or other document filed with or submitted to the state tax commission may be transmitted electronically to the commission when permitted by rules or procedures established by the commission. Payments of any amounts to the commission by electronic funds transfer shall be in accordance with sections 67-2026 and 67-2026A, Idaho Code, or section 63-117, Idaho Code.
  2. As used in this section, “transmitted electronically” means the use of a telecommunication or computer network to transfer information in an optical, electronic, magnetic or other machine sensible form. The term includes the use of facsimile machines and third party value added networks.
  3. Any return or other document transmitted electronically to the commission and accepted by the commission shall be deemed received on the earlier of:
    1. The date it arrives at the commission or, in the case of returns filed through the Internal Revenue Service, the date the return is received by the Internal Revenue Service; or
    2. The date that a third party, in accordance with procedures approved by the commission, transmits the return to the commission or makes it otherwise available to the commission.
  4. Any payment made electronically shall be deemed paid on the date the funds are available to the state treasurer.
  5. To constitute a properly filed valid tax return or report, a document transmitted electronically or submitted in a physical machine sensible form such as tape or disk must:
    1. Be filed in a format prescribed by the tax commission and be sufficiently free of errors to identify the filer and the tax type and to calculate the amounts due;
    2. Contain the taxpayer’s name, address (if required by the tax commission) and identifying number;
    3. Be signed by the taxpayer or other individual effecting the signature or verification; and
    4. Include sufficient information to permit the mathematical verification of any tax liability.
  6. The tax commission may, by rule, prescribe exclusive methods for electronically signing or verifying a return or other document transmitted electronically to the commission that shall have the same validity and consequences as manual signing by the taxpayer or other individual effecting the signature or verification.
History.

I.C.,§ 63-113, as added by 1997, ch. 117, § 10, p. 298; am. and redesig. 2000, ch. 15, § 1, p. 31; am. 2001, ch. 54, § 1, p. 96; am. 2003, ch. 30, § 1, p. 113.

STATUTORY NOTES

Cross References.

State treasurer,§ 67-1201 et seq.

Compiler’s Notes.

S.L. 1997, ch. 20, § 1, effective July 1, 1997, ch. 64, § 1, effective March 13, 1997 and ch. 117, § 10, effective January 1, 1997, all purported to enact a new section of chapter 1, Title 63, Idaho Code, designated as§ 63-113. Section 1 of ch. 20 was compiled as§ 63-113, section 1 of ch. 64 was compiled as [63-114] 63-113, and section 10 of ch. 117 was compiled as [63-115] 63-113. The redesignations were made permanent by later amendments.

The words enclosed in parentheses so appeared in the law as enacted.

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

Section 2 of S.L. 2001, ch. 54 provided: “This act shall be in full force and effect, and shall apply to tax returns filed for periods beginning on and after January 1, 2002.”

Section 2 of S.L. 2003, ch. 30 provided: “An emergency existing therefor, which emergency is hereby declared to exist, this act shall be in full force and effect on and after its passage and approval and retroactively to January 1, 2003, in the case of returns required by Section 63-3030, Idaho Code, for taxable periods beginning on and after January 1, 2003, and in the case of all other returns the effective date shall be on and after July 1, 2003.”

§ 63-116. [Reserved.]

  1. The state tax commission, in cooperation with the state treasurer, may accept payment by credit card, debit card or other commercially acceptable means, including through an electronic payment processor, from any person making any payment to the state tax commission of taxes or other amounts due under any law administered by the commission. If the payment is made by credit card, debit card, charge card, or similar method, the liability is not finally discharged and the person has not paid the tax until the department receives payment or credit from the institution responsible for making the payment or credit. Upon receipt, the amount shall be deemed paid on the date the charge was made.
  2. The commission may pay, through discount or otherwise, any fee to a financial institution, credit card company or electronic payment processor, for a payment made pursuant to this section from the proceeds of the taxes or other amounts paid prior to any other distribution of the proceeds required by law. The necessary portion of the proceeds collected under this section is hereby appropriated for the purpose of paying the fee.
History.

I.C.,§ 63-117, as added by 1999, ch. 113, § 1, p. 340; am. 2012, ch. 5, § 1, p. 8.

STATUTORY NOTES

Cross References.

State treasurer,§ 67-1201 et seq.

Amendments.

The 2012 amendment, by ch. 5, inserted “including through an electronic payment processor” near the middle of the first sentence in subsection (1) and inserted “or electronic payment processor” near the beginning of the first sentence in subsection (2).

§ 63-118. Alternative dispute resolution.

  1. The state tax commission may use alternative dispute resolution procedures to arbitrate or mediate any issue within its tax jurisdiction.
  2. The state tax commission may enter into contracts, not subject to the provisions of chapter 52, title 67, Idaho Code, with individuals and organizations including, but not limited to, the multistate tax commission, to conduct alternative dispute resolution. Costs of alternative dispute resolution procedures may be paid from resultant proceeds without regard to budgetary or appropriation restrictions.
  3. The state tax commission shall appoint one (1) of its members as alternative dispute resolution coordinator and from its staff one (1) or more assistant coordinators.
History.

I.C.,§ 63-118, as added by 1998, ch. 105, § 1, p. 362.

STATUTORY NOTES

Cross References.

Multistate tax commission,§ 63-3701 et seq.

Compiler’s Notes.

For more on the multistate tax commission, see http://www.mtc.gov .

§ 63-119. Collection of tax by commercial collector.

  1. If a person owing tax ignores all demands for payment of a tax assessment, the state tax commission is authorized to employ the services of any qualified collection agency or attorney and to pay fees for such services from moneys recovered.
  2. As used in this section, the term “qualified collection agency” means a person issued a permit under chapter 22, title 26, Idaho Code, or under a similar licensing or permitting statute of another state or jurisdiction in which the person conducts business.
History.

I.C.,§ 63-119, as added by 2005, ch. 30, § 1, p. 141.

§ 63-120 — 63-122. [Reserved.]

STATUTORY NOTES

Compiler’s Notes.

This section, which comprised I.C.,§ 63-123, as added by 1974, ch. 228, § 9, p. 1576, was repealed by S.L. 1981, ch. 306, § 1, effective January 1, 1981.

§ 63-117. Payment of taxes by credit card and other commercially acceptable means.

§ 63-123. Public welfare recipients excluded. [Repealed.]

Chapter 2 DEFINITIONS — GENERAL PROVISIONS

Sec.

§ 63-201. Definitions.

As used for property tax purposes in chapters 1 through 23, title 63, Idaho Code, the terms defined in this section shall have the following meanings, unless the context clearly indicates another meaning:

  1. “Appraisal” means an estimate of property value for property tax purposes.
    1. For the purpose of estimated property value to place the value on any assessment roll, the value estimation must be made by the assessor or a certified property tax appraiser.
    2. For the purpose of estimating property value to present for an appeal filed pursuant to sections 63-501A, 63-407 and 63-409, Idaho Code, the value estimation may be made by the assessor, a certified property tax appraiser, a licensed appraiser, or a certified appraiser or any party as specified by law.
  2. “Bargeline” means those water transportation tugs, boats, barges, lighters and other equipment and property used in conjunction with waterways for bulk transportation of freight or ship assist.
  3. “Cogenerators” means facilities that produce electric energy, and steam or forms of useful energy that are used for industrial, commercial, heating or cooling purposes.
  4. “Collection costs” are amounts authorized by law to be added after the date of delinquency and collected in the same manner as property tax.
  5. “Credit card” means a card or device, whether known as a credit card or by any other name, issued under an arrangement pursuant to which a card issuer gives to a cardholder the privilege of obtaining credit from the card issuer or other person in purchasing or leasing property or services, obtaining loans, or otherwise.
  6. “Debit card” means any instrument or device, whether known as a debit card or by any other name, issued with or without a fee by an issuer for the use of the cardholder in depositing, obtaining or transferring funds.
  7. “Delinquency” means any property tax, special assessment, fee, collection cost, or charge collected in the same manner as property tax, that has not been paid in the manner and within the time limits provided by law.
  8. “Electronic funds transfer” means any transfer of funds that is initiated by electronic means, such as an electronic terminal, telephone, computer, ATM or magnetic tape.
  9. “Fixtures” means those articles that, although once movable chattels, have become accessory to and a part of improvements to real property by having been physically incorporated therein or annexed or affixed thereto in such a manner that removing them would cause material injury or damage to the real property, the use or purpose of such articles is integral to the use of the real property to which it is affixed, and a person would reasonably be considered to intend to make the articles permanent additions to the real property. “Fixtures” includes systems for the heating, air conditioning, ventilation, sanitation, lighting and plumbing of such building.
  10. “Floating home” means a floating structure that is designed and built to be used, or is modified to be used, as a stationary waterborne residential dwelling.
  11. “Improvements” means all buildings, structures, manufactured homes, as defined in section 39-4105(8), Idaho Code, mobile homes as defined in section 39-4105(9), Idaho Code, and modular buildings, as defined in section 39-4301(10), Idaho Code, erected upon or affixed to land, fences, water ditches constructed for mining, manufacturing or irrigation purposes, fixtures, and floating homes, whether or not such improvements are owned separately from the ownership of the land upon or to which the same may be erected, affixed or attached. The term “improvements” also includes all fruit, nut-bearing and ornamental trees or vines not of natural growth, growing upon the land, except nursery stock.
  12. “Late charge” means a charge of two percent (2%) of the delinquency.
  13. “Lawful money of the United States” means currency and coin of the United States at par value and checks and drafts that are payable in dollars of the United States at par value, payable upon demand or presentment.
  14. “Legal tender” means lawful money as defined in subsection (13) of this section.
  15. “Market value” means the amount of United States dollars or equivalent for which, in all probability, a property would exchange hands between a willing seller, under no compulsion to sell, and an informed, capable buyer, with a reasonable time allowed to consummate the sale, substantiated by a reasonable down or full cash payment.
  16. “Operating property” means real and personal property operated in connection with any public utility, railroad or private railcar fleet, wholly or partly within this state, and which property is necessary to the maintenance and operation of the public utility, railroad or private railcar fleet, and the roads or lines thereof, and includes all rights-of-way accompanied by title; roadbeds; tracks; pipelines; bargelines; equipment and docks; terminals; rolling stock; equipment; power stations; power sites; lands; reservoirs, generating plants, transmission lines, distribution lines and substations; and all title and interest in such property, as owner, lessee or otherwise. The term includes electrical generation plants under construction, whether or not owned by or operated in connection with any public utility. For the purpose of the appraisal, assessment and taxation of operating property, pursuant to chapter 4, title 63, Idaho Code, the value of intangible personal property shall be excluded from the taxable value of operating property in accordance with the provisions of section 63-602L, Idaho Code, and the value of personal property, other than intangible personal property, shall be excluded from the taxable value of operating property in accordance with the provisions of section 63-602KK, Idaho Code. Operating property shall be included in taxable value for the purpose of making a levy, as required in section 63-803, Idaho Code, except when an exemption is provided or when said levy is to be made against real property only.
  17. “Party in interest” means a person who holds a recorded purchase contract, mortgage, deed of trust, security interest, lien or lease upon the property. For purposes of notice requirements in section 63-1009, Idaho Code, recording includes documents recorded in full or by memorandum providing notice thereof.
  18. “Person” means any entity, individual, corporation, partnership, firm, association, limited liability company, limited liability partnership or other such entities as recognized by the state of Idaho.
  19. “Personal property” means everything that is the subject of ownership and that is not included within the term “real property.”
  20. “Private railcar fleet” means railroad cars or locomotives owned by, leased to, occupied by or franchised to any person other than a railroad company operating a line of railroad in Idaho or any company classified as a railroad by the interstate commerce commission and entitled to possess such railroad cars and locomotives except those possessed solely for the purpose of repair, rehabilitation or remanufacturing of such locomotives or railroad cars.
  21. “Public utility” means electrical companies, pipeline companies, natural gas distribution companies, or power producers included within federal law, bargelines, and water companies which are under the jurisdiction of the Idaho public utilities commission. The term also includes telephone corporations, as that term is defined in section 62-603, Idaho Code, except as hereinafter provided, whether or not such telephone corporation has been issued a certificate of convenience and necessity by the Idaho public utilities commission. This term does not include cogenerators, mobile telephone service or companies, nor does it include pager service or companies, except when such services are an integral part of services provided by a certificated utility company, nor does the term “public utility” include companies or persons engaged in the business of providing solely on a resale basis, any telephone or telecommunication service that is purchased from a telephone corporation or company.
  22. “Railroad” means every kind of railway, whether its line of rails or tracks be at, above or below the surface of the earth, and without regard to the kind of power used in moving its rolling stock, and shall be considered to include every kind of street railway, suburban railway or interurban railway excepting facilities established solely for maintenance and rebuilding of railroad cars or locomotives.
  23. “Real property” means land and all rights and privileges thereto belonging or any way appertaining, all quarries and fossils in and under the land, and all other property that the law defines, or the courts may interpret, declare and hold to be real property under the letter, spirit, intent and meaning of the law, improvements and all standing timber thereon, including standing timber owned separately from the ownership of the land upon which the same may stand, except as modified in chapter 17, title 63, Idaho Code. Timber, forest, forest land, and forest products shall be defined as provided in chapter 17, title 63, Idaho Code.
  24. “Record owner” means the person or persons in whose name or names the property stands upon the records of the county recorder’s office. Where the record owners are husband and wife at the time of notice of pending issue of tax deed, notice to one (1) shall be deemed and imputed as notice to the other spouse.
  25. “Special assessment” means a charge imposed upon property for a specific purpose, collected and enforced in the same manner as property taxes.
  26. “System value” means the market value for assessment purposes of the operating property when considered as a unit.
  27. “Tax code area” means a geographical area made up of one (1) or more taxing districts with one (1) total levy within the geographic area, except as otherwise provided by law.
  28. “Taxing district” means any entity or unit with the statutory authority to levy a property tax.
  29. “Taxable value” means market value for assessment purposes, less applicable exemptions or other statutory provisions. When statutory provisions define taxable value as limited to real property for the purpose of making a levy, operating property shall not be included.
  30. “Transient personal property” is personal property, specifically such construction, logging or mining machinery and equipment which is kept, moved, transported, shipped, hauled into or remaining for periods of not less than thirty (30) days, in more than one (1) county in the state during the same year.
  31. “Warrant of distraint” means a warrant ordering the seizure of personal property to enforce payment of property tax, special assessment, expense, fee, collection cost or charge collected in the same manner as personal property tax.
History.

I.C.,§ 63-201, as added by 1996, ch. 98, § 3, p. 318; am. 1997, ch. 117, § 11, p. 310; am. 1997, ch. 286, § 1, p. 871; am. 1998, ch. 400, § 1, p. 1249; am. 2006, ch. 302, § 2, p. 931; am. 2008, ch. 53, § 1, p. 131; am. 2008, ch. 400, § 1, p. 1089; am. 2009, ch. 11, § 22, p. 14; am. 2009, ch. 163, § 1, p. 488; am. 2014, ch. 357, § 2, p. 886; am. 2016, ch. 29, § 1, p. 70; am. 2016, ch. 273, § 6, p. 751; am. 2016, ch. 342, § 14, p. 968.

STATUTORY NOTES

Cross References.

Public utilities commission,§ 61-201 et seq.

Amendments.

This section was amended by two 1997 acts which appear to be compatible and have been compiled together.

The 1997 amendment, by ch. 117, § 11, in present subsection (14) in the first sentence deleted “manufactured homes not declared as real property pursuant to section 63-304, Idaho Code,” following “easements, reservations” and added the second sentence.

The 1997 amendment, by ch. 286, § 1, added a new subsection (3) and renumbered former subsections (3) — (25) as present subsections (4) — (26) and in present subsection (16) in the first paragraph deleted “cogenerators” following “gas distribution companies” and deleted “other” preceding “power producers included” and in the second paragraph added “cogenerators,” following “This term does not include”.

The 2006 amendment, by ch. 302, added the second sentence in subsection (11).

This section was amended by two 2008 acts which appear to be compatible and have been compiled together.

The 2008 amendment, by ch. 53, added the definitions for credit card, debit card, electronic funds transfer, and legal tender and redesignated the existing subsections to accommodate them.

The 2008 amendment, by ch. 400, added the definitions for fixtures and floating home, rewrote the definitions for improvements, operating property, personal property and real property, and deleted the definition for manufactured home.

This section was amended by two 2009 acts which appear to be compatible and have been compiled together.

The 2009 amendment, by ch. 11, updated subsection designations throughout the section; and, in the introductory paragraph, substituted “chapters 1 through 23, title 63, Idaho Code” for “title 63, chapters 1 through 23, Idaho Code.”

The 2009 amendment, by ch. 163, updated subsection designations throughout the section; and, in subsection (10), deleted “has no mode of power of its own, is dependent for utilities upon a continuous utility linkage to a source originating on shore, and has a permanent continuous connection to a sewage system on shore” from the end.

The 2014 amendment, by ch. 357, deleted the last sentence in subsection (9), which read: “Fixtures’ does not include machinery, equipment or other articles that are affixed to real property to enable the proper utilization of such articles.”

This section was amended by three 2016 acts which appear to be compatible and have been compiled together. The 2016 amendment, by ch. 29, added the last sentences in subsections (16) and (29).

The 2016 amendment, by ch. 273, rewrote subsection (17), which formerly read: “’Party in interest’ means a person who holds a properly recorded mortgage, deed of trust or security interest”; and made minor stylistic changes.

The 2016 amendment, by ch. 342, updated a statutory reference in subsection (11) to reflect the 2016 amendment of§ 39-4301.

Legislative Intent.

Section 1 of S.L. 2016, ch. 273 provided: “Legislative Intent. It is the intent of the Legislature to clarify the scope and effect of Idaho’s statutes governing tax deeds. In the case of Regan v. Owen , the Idaho Supreme Court addressed whether a tax deed issued pursuant to Section 63-1009, Idaho Code, has the effect of extinguishing an otherwise valid private easement across the subject property. Similar legislative language exists with respect to counties in Section 31-808, Idaho Code, with respect to irrigation entities in Section 43-720, Idaho Code, and with respect to cities in Section 50-1823, Idaho Code. The court did not decide the issue, but remanded to a lower court. The lower court subsequently ruled that, despite the harsh result, the statute has this effect. While a private access easement was at issue there, the reasoning would also result in the elimination of public utility easements, ditch rights, public highways and rights-of-way, conservation easements, and all manner of third-party rights in the land including, for example, interests of remaindermen following a life estate. By this legislation, the Idaho Legislature rejects that conclusion. It was never the intent of the Legislature to allow local governments to destroy valid property interests held by third parties in land that is subject to a sale or other conveyance based on a tax delinquency, except where notice and opportunity to cure is provided under the statute. Doing so would constitute an uncompensated taking of property under both the Idaho Constitution and the United States Constitution. The Legislature would never have intended such a result and, by this legislation, makes that clear. As its context should have made evident, the purpose of Section 63-1009, Idaho Code, and the other referenced sections, has always been to convey title absolutely free and clear of liens and mortgages of a monetary nature. It was never the intent of the Legislature to allow a local governmental entity to convey more than the delinquent taxpayer owned and thereby to destroy valid property interests held by others without notice and an opportunity to cure. This clarification brings the interpretation of Idaho’s tax deed statute into line with the interpretation of similar statutes in other jurisdictions, as had always been the Legislature’s intent.”

Compiler’s Notes.

S.L. 2014, chapter 357 became law without the signature of the governor.

Section 8 of S.L. 2016, ch. 273 provided: “An emergency existing therefor, which emergency is hereby declared to exist, this act shall be in full force and effect on and after its passage and approval. Being a clarification of existing law, the Legislature does not view the application of this amendment to prior conveyances as retroactive legislation. In any event, the Legislature expressly intends that these amendments shall be interpreted to apply to any and all conveyances by tax deed, past or future.”

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997. Section 2 of S.L. 1997, ch. 286 declared an emergency. Approved March 24, 1997.

Section 4 of S.L. 2006, ch. 302 declared an emergency retroactively to January 1, 2006 and approved March 31, 2006.

Section 10 of S.L. 2008, ch. 400 provided that the act should take effect on and after January 1, 2009.

Section 8 of S.L. 2014, ch. 357 declared an emergency and made this section retroactive to January 1, 2014.

Section 8 of S.L. 2016, ch. 273 declared an emergency. Approved March 30, 2016.

CASE NOTES

Evidence of Value.

Landowners did not prove their own property appraisal, or any of their own comparables, to substantiate their claim that their property was overvalued, to suggest that the assessor did not locate enough comparables, or to show that the ones chosen were inappropriate. Kimbrough v. Idaho Bd. of Tax Appeals & Canyon County Bd. of Equalization (In re Kimbrough), 150 Idaho 417, 247 P.3d 644 (2011).

Low-Income Housing Credits.

Tax credits allocated under the federal Low-Income Housing Tax Credit program (LIHTC), 26 USCS § 42, were not a contract right exempt from consideration in the valuation of real property. The tax credits were better characterized as rights and privileges belonging to the land under the definition of real property, as they did not exist separate from an ownership right in the low-income housing. Federal low-income housing tax credits were part of the stream of benefits that flowed from the property and could be considered equivalent to income. Brandon Bay, Ltd. P’ship v. Payette County, 142 Idaho 681, 132 P.3d 438 (2006).

Operating Property.

Where certain regulatory assets did not generate income, the Idaho tax commission did not err by failing to add them to the cost approach in valuing the property. Idaho Power Co. v. Idaho State Tax Comm’n, 141 Idaho 316, 109 P.3d 170 (2005).

Cited

Wurzburg v. Kootenai County, 155 Idaho 236, 308 P.3d 936 (Ct. App. 2013); Stender v. SSI Food Servs. Inc. (In re Bd. of Tax Appeals), 165 Idaho 433, 447 P.3d 881 (2019).

RESEARCH REFERENCES

Am. Jur. 2d.
C.J.S.

§ 63-202. Official records.

Official records of the various county offices may be replicated in any storage media which allows archiving and retrieval to meet the requirements provided by law.

History.

I.C.,§ 63-202, as added by 1996, ch. 98, § 3, p. 308.

§ 63-203. All property subject to property taxation.

All property within the jurisdiction of this state, not expressly exempted, is subject to appraisal, assessment and property taxation.

History.

I.C.,§ 63-203, as added by 1996, ch. 98, § 3, p. 308.

STATUTORY NOTES

Cross References.

Adverse possession, payment of taxes,§ 5-210.

Aircraft, fees collected in lieu of taxes,§ 21-114.

Airports, county or municipal tax levy authorized,§ 21-404.

Beer tax,§ 23-1008.

Bees, fees on,§ 22-2510.

Bond tax levies in new counties and segregated areas,§ 31-1904.

Boxing, wrestling and sparring matches, gross receipts tax,§§ 54-411, 54-413.

Building demolition expenses ordered by fire marshal, collection with taxes,§ 41-263.

Burn seeding areas, assessment of costs against land seeded,§ 38-501 et seq.

Cemetery maintenance district tax levies,§§ 27-116, 27-120, 27-121.

Cities, levy authorized, Idaho Const., Art. VII, § 8.

Condominiums, assessment or levy of taxes against,§ 55-1514.

Corporate credit unions, taxation,§ 26-2186.

County dog license tax,§ 25-2801.

County fair districts in two or more counties, tax levy for,§ 22-307.

County fair purposes, tax levy for,§ 22-206.

County fish hatchery, special levy for,§ 36-1702.

County-wide highway districts, power to levy ad valorem taxes,§ 40-801 et seq.

Drainage district assessments,§§ 42-2934 to 42-2937.

Duplicate taxation prohibited, Idaho Const., Art. VII, § 5.

Estate and transfer tax,§ 14-401 et seq.

Forest lands and products,§ 63-1701 et seq.

Health care plans, self funded, taxation,§ 41-4012.

Health maintenance organizations, taxation,§ 41-3922.

Highway districts, highway taxes, power to levy taxes,§ 40-801 et seq.

Hospital and professional service corporations, taxation of subscribers’ contracts,§ 41-3427.

Insurance companies, fees and taxes,§ 41-401 et seq.

Irrigation district assessments,§ 43-701 et seq.

Local and special laws prohibited, Idaho Const., Art. III, § 19.

Motor vehicle registration,§ 49-401 et seq.

Municipal corporations: Collection of taxes,§ 50-1007.

Disincorporation, tax levy for payment of debts,§ 50-2210.

Local improvement district assessments,§ 50-1701 et. seq.

Special assessments, collection,§ 50-1008.

Port district, tax levy,§ 70-1702.

Recreation districts, tax levy,§§ 31-4318, 31-4326A.

Revenue laws, violation,§ 18-6308.

Rodents, funds for extermination of, levy of tax against land,§ 25-2602.

School district taxes,§ 33-801 et seq.

Sheep disease control, tax levy,§ 25-131.

Special tax districts,§ 40-808.

CASE NOTES

Decisions Under Prior Law
Definition of “Property.”

The term “property” within constitutional provision, requiring all “property” to be taxed uniformly by value, must be given its commonly accepted significance. Diefendorf v. Gallet, 51 Idaho 619, 10 P.2d 307 (1932).

Delegation of Taxing Power to Local Districts.

Power of taxation is a sovereign power delegatory to local taxing districts to raise funds in behalf of sovereignty for the public good. State ex rel. Hoover v. Minidoka County, 50 Idaho 419, 298 P. 366 (1931).

Exemption.

Exemption from taxation is never presumed. Kootenai County v. Seven-Seven Co., 32 Idaho 301, 182 P. 529 (1919).

Statutes granting exemptions, which exist as a matter of legislative grace, are strictly construed against the taxpayer and in favor of the state. Sunset Mem. Gardens, Inc. v. Idaho State Tax Comm’n, 80 Idaho 206, 327 P.2d 766 (1958).

None of the property of the corporation involved, neither the lots sold for burial purposes nor the unplatted acreage, was exempt from the tax levied and assessed since such corporation was not a public cemetery within the intent and meaning of§ 63-105 so as to entitle it to exemption from taxation. Sunset Mem. Gardens, Inc. v. Idaho State Tax Comm’n, 80 Idaho 206, 327 P.2d 766 (1958). Where a Sisterhood after incorporating, purchased land and permitted taxpayers to build dwellings thereon for their residence during their lifetime, thereafter becoming available to other members of the Sisterhood for occupancy and the tax assessor levied taxes on such properties, the taxpayers could not escape liability for such taxes on the ground that the dwellings were occupied and built under a life tenure only, as an examination of the controlling statutes failed to disclose exemption from taxation of freehold estates such as those held by taxpayers. Tobias v. State Tax Comm’n, 85 Idaho 250, 378 P.2d 628 (1963).

Holders of Tax Certificate, Liability of County.

Where the county commissioner acting as a special tribunal ordered that all taxes and charges on certain described lands should be canceled, annulled, avoided and set aside, the holder of delinquent tax certificates based on such levy could recover from the county the amount paid for such certificates, with interest thereon. Wilson v. Twin Falls County, 47 Idaho 527, 277 P. 1114 (1929).

Income Tax Constitutional.

The law imposes upon those who derive gain from within the state a fair and equitable tax, levied in graduated proportion upon their ability to pay, which is, in all respects, valid and constitutional. Diefendorf v. Gallet, 51 Idaho 619, 10 P.2d 307 (1932).

Leaseholds.

Where land in Idaho owned by the United States government in trust for certain Indian allottees was leased by the United States to plaintiff for 25 years with an option to renew for an additional 25 years, and plaintiff built a potato storage warehouse on the land with a useful life of 50 to 75 years with the ownership of the warehouse, by the terms of the lease, to be in the United States, but the use thereof to belong to plaintiff for the duration of the lease; plaintiff was not obliged to pay Idaho ad valorem taxes on the warehouse since it was owned by the United States and therefore exempt from such taxation, and no Idaho statute provided for taxation of plaintiff’s possessory interest in the premises. Russet Potato Co. v. Board of Equalization, 93 Idaho 501, 465 P.2d 625 (1970).

Legislative Power Over Taxation.

In matters of taxation, the legislature possesses plenary power, except as limited or restricted by the constitution. Achenbach v. Kincaid, 25 Idaho 768, 140 P. 529 (1914); In re Kessler, 26 Idaho 764, 146 P. 113 (1915); Williams v. Baldridge, 48 Idaho 618, 284 P. 203 (1930).

Mortgaged Lands, Merger of Title.

Where ad valorem taxes were not paid on land mortgaged to the state and such land was conveyed to the state in satisfaction of said mortgage, the state then selling it to the original mortgagor, it was held such taxes, interest, penalties and costs were properly canceled. State ex rel. Langley v. Canyon County, 67 Idaho 366, 181 P.2d 196 (1947).

Taxables in General.

Statutes held to place stock in state and national banks in the same class as regards taxation and to be in conformity with terms of federal statutes authorizing assessments on national bank stock and were not illegally discriminatory. State ex rel. Bank of Eagle v. Leonardson, 51 Idaho 646, 9 P.2d 1028 (1932).

The water rights were transferred from the canal to the land when the title passed from the United States to the state, and the water right was included as appurtenance in tax on land and passed under tax deed to the land. Andrews v. North Side Canal Co., 52 Idaho 117, 12 P.2d 263 (1932).

Peas and beans in a warehouse of a corporation engaged in the business of breeding, growing and selling at wholesale peas, beans, and field seeds are subject to taxation as personal property. Washburn-Wilson Seed Co. v. Jerome County, 65 Idaho 1, 138 P.2d 978 (1943).

Unpatented Land.

The rule generally recognized by courts with reference to taxation of lands for which patent has not yet issued is that when payment in full has been made and settlement and improvement have been had, and final proof thereof has been made, and proper authorities of the interior department have accepted the proof and issued a final receipt to that effect, it operates to transfer such an equitable estate in lands to purchaser and settler as to immediately render land liable to taxation, although the legal title is still held by the United States. Cheney v. Minidoka County, 26 Idaho 471, 144 P. 343 (1914).

RESEARCH REFERENCES

Am. Jur. 2d.
ALR.

Modern status of the Massachusetts or business trusts. 88 A.L.R.3d 704.

Situs of aircraft, rolling stock, and vessels for purposes of property taxation. 4 A.L.R.4th 837.

§ 63-204. Classes of property.

For the purpose of assessment and property taxation, all property within the jurisdiction of this state is hereby classified as follows:

Class 1. Real Property,

Class 2. Personal Property, and

Class 3. Operating Property.

History.

I.C.,§ 63-204, as added by 1996, ch. 98, § 3, p. 308.

§ 63-205. Assessment — Market value for assessment purposes.

  1. All real, personal and operating property subject to property taxation must be assessed annually at market value for assessment purposes as of 12:01 a.m. of the first day of January in the year in which such property taxes are levied, except as otherwise provided. Market value for assessment purposes shall be determined according to the requirements of this title or the rules promulgated by the state tax commission.
  2. Personal property coming into the state after January 1 shall be assessed as of the date of entry into the state in accordance with sections 63-311(3) and 63-602Y, Idaho Code.
History.

I.C.,§ 63-205, as added by 1996, ch. 98, § 3, p. 308.

STATUTORY NOTES

Cross References.

Lien of personal property taxes on real estate,§ 63-206.

Personal property from without state, time of assessment,§ 63-311.

CASE NOTES

Method of Assessment.

In an appeal from a decision of the board of tax appeals, district court did not err by allowing the counties to present de novo evidence of valuation. Canyon County Bd. of Equalization v. Amalgamated Sugar Co., LLC, 143 Idaho 58, 137 P.3d 445 (2006).

Sales comparison approach to determining the market value of a vacant lakefront parcel was proper, even though the assessor did not go back in time as far as the taxpayer wanted or use only parcels on the same lake. Wurzburg v. Kootenai County, 155 Idaho 236, 308 P.3d 936 (Ct. App. 2013).

Substantial Evidence.

Landowners did not prove their own property appraisal, or any of their own comparables, to substantiate their claim that their property was overvalued, to suggest that the assessor did not locate enough comparables, or to show that the ones chosen were inappropriate. Kimbrough v. Idaho Bd. of Tax Appeals & Canyon County Bd. of Equalization (In re Kimbrough), 150 Idaho 417, 247 P.3d 644 (2011).

Decisions Under Prior Law
Migratory Livestock.

Taxes on migratory livestock, when properly extended on real property roll, become lien on real property of owner. Scottish Am. Mtg. Co. v. Minidoka County, 47 Idaho 33, 272 P. 498 (1928).

Taxpayer.

This chapter cited in connection with the proposition that throughout the statutes dealing with the taxation of real and personal property in Idaho runs the concept that the owner of the record title is the person to be considered as the taxpayer. Russet Potato Co. v. Board of Equalization, 93 Idaho 501, 465 P.2d 625 (1970).

RESEARCH REFERENCES

Am. Jur. 2d.
C.J.S.
ALR.

§ 63-205A. Assessment — Market value for assessment purposes of section 42 low-income properties.

  1. Section 42 of the Internal Revenue Code and related regulations govern the housing tax credit established under the 1986 tax reform act, as amended, and provides an incentive for developers to provide safe and sanitary housing for individuals and families earning no more than sixty percent (60%) of the area median income as determined by the U.S. department of housing and urban development (HUD), which income and rent restrictions remain in place as provided for in the tax credit regulatory agreement between the owner and the Idaho housing and finance association.
  2. The market value for assessment purposes of section 42 low-income properties shall be determined by the county assessor using the following criteria:
    1. The sales comparison approach using similar rent restricted properties, the cost approach, and the income approach, shall be considered in valuing section 42 low-income properties. The cost approach shall include an economic obsolescence factor associated with the income and rent restrictions provided with each development’s tax credit regulatory agreement with the Idaho housing and finance association. The three (3) approaches will be reconciled into a single property value.
    2. Net operating income to be capitalized in the income approach shall not include the amount of housing tax credits. However, the amount of such credits shall be added to the capitalized net operating income using one (1) of the following procedures:
      1. Except as provided in subsection (2)(b)(ii) of this section, for properties for which housing tax credits have been received prior to January 1, 2009, and for properties subject to new regulatory agreements on or after January 1, 2009, the total dollar amount of such credits shall be divided by the total number of years in the regulatory agreement;
      2. For properties for which housing tax credits originally were received, but which are no longer receiving such credits as of January 1, 2009, no amount shall be added; or
      3. For properties previously receiving housing tax credits, but subject to a new regulatory agreement on or after January 1, 2009, the total amount of housing tax credits pursuant to the new agreement shall be divided by the number of years in the new regulatory agreement. This amount shall supersede and be substituted for any amount previously calculated.
    3. The Idaho state tax commission shall gather market data to determine market derived capitalization rates for section 42 low-income properties from section 42 property sales. Determination of the market derived capitalization rates for section 42 low-income property sales shall include both actual net operating income and calculated tax credit income consistent with the formula in subsection (2)(b) of this section. The Idaho state tax commission shall then make the information available to each county assessor. If fewer than three (3) comparable sales of section 42 low-income properties are available, then a capitalization rate derived from properties with no federal project based assistance shall be used. As used in this section, “comparable” shall mean section 42 low-income properties with no federal project based assistance. A sale of a section 42 low-income property shall not be considered as a comparable sale if the buyer of that property receives a new allocation of section 42 tax credits from the Idaho housing and finance association.
    4. Beginning in 2010, the owners of properties described in this section shall provide to the Idaho state tax commission no later than April 1 of each year, such financial statements from the prior year as are customarily prepared in the ownership and operation of any section 42 property. For 2009, said financial statements shall be provided no later than May 1. In addition, no later than May 1 of 2009 or, for new developments with housing tax credits or new allocations, by April 1 of the first year of any tax credit regulatory agreement, the Idaho housing and finance association shall provide to the Idaho state tax commission statements ascertaining the dollar amounts of housing tax credits that have been allocated to each section 42 property, the year such credits were first paid, and the total number of years in the regulatory agreement. The Idaho state tax commission shall then make the financial statements and tax credit information required under this section available to each county assessor. If such information is not made available to the Idaho state tax commission and county assessors, each county shall substitute market rent apartment derived expenses and income for section 42 low-income properties.
    5. The Idaho state tax commission shall have the authority to promulgate rules dealing with the enactment and enforcement of this section.
    6. If the use of the income approach as described in subsection (2)(b) of this section results in an assessed value lower than would be obtained if the income approach in subsection (2)(b) of this section were not used, the difference will be exempt.

Net operating income shall be capitalized into value using a market derived capitalization rate. To determine the net operating income, effective gross income shall be reduced by costs customary to section 42 operations, including normalized operating expenses plus all compliance, audit, asset management and other fees, but not general partner fees, as well as those costs set forth in each development’s tax credit regulatory agreement with the Idaho housing and finance association.

History.

I.C.,§ 63-205A, as added by 2009, ch. 140, § 2, p. 422; am. 2013, ch. 7, § 1, p. 15.

STATUTORY NOTES

Cross References.

Idaho housing and finance association,§ 67-6201 et seq.

Amendments.

The 2013 amendment, by ch. 7, substituted “To determine the net operating income, effective gross income” for “The net operating income” at the beginning of the second sentence in the last paragraph of paragraph (2)(b).

Legislative Intent.

Section 1 of S.L. 2009, ch. 140 provided: “Legislative Intent. It is the intent of the Legislature to establish a uniform valuation method for Section 42 low-income properties throughout Idaho. In doing so, the following are to be considered:

“(1) To insure equitable treatment for all property owners, without creating any added favor or penalty for Section 42 low-income property owners; “(2) To recognize recent court decisions that both tax credits and actual restricted rents must be valued under current law;

“(3) To provide fair valuations using consistent and predictable appraisal methods in valuing Section 42 low-income properties throughout the economic life of the property;

“(4) To employ the use of recognized appraisal techniques;

“(5) To give consideration to all three approaches to values; and

“(6) To provide that the assessed valuation of Section 42 low-income property not exceed the assessed value of comparable rental housing of the same quality, condition and location not receiving Section 42 low-income tax credits.”

Federal References.

Section 42 of the Internal Revenue Code, referred to throughout this section, is codified as 26 U.S.C.S. § 42.

The low-income housing tax credit, referred to in subsection (1), is codified at 26 USCS § 42.

Compiler’s Notes.

The abbreviation enclosed in parentheses so appeared in the law as enacted.

Effective Dates.

Section 3 of S.L. 2009, ch. 140 declared an emergency retroactively to January 1, 2009. Approved April 8, 2009.

§ 63-205B. Assessment of operating property of rate-regulated electric utility companies.

  1. In the assessment of the operating property of rate-regulated electric utility companies, the market value shall be determined by the state tax commission by applying applicable law, statutes, property tax administrative rules and the following criteria:
    1. Depending on the weighting placed on the income approach, as described in paragraph (d) of this subsection, no more than twenty percent (20%) weight shall be placed on the cost indicator when utilizing the historic cost less depreciation (HCLD) method in the system value correlation.
    2. In the income approach, income to be capitalized will be normalized, utilizing the gross domestic product implicit price deflator from the United States department of commerce, bureau of economic analysis, by using an average of at least the previous four (4) years’ net operating incomes and by adjusting each year’s net operating income for unusual nonrecurring items.
    3. In the income approach, a market discount rate will be determined, and to that rate a flotation cost component of twenty hundredths of one percent (0.20%) will be added.
    4. A weighting between eighty percent (80%) and one hundred percent (100%) will be placed on the income approach in the system value correlation.
    5. Within the market approach, a sales comparison approach may be used if reliable data is available and appropriate comparison adjustments can be made. No weight will be placed on a stock and debt approach in the system value correlation.
    6. For rate-regulated electric utility companies, the weightings prescribed in this section shall control the weightings used in the system correlation or reconciliation.
  2. Subsection (1)(a) of this section shall be construed to mean that the use of no more than twenty percent (20%) weight placed on the cost indicator, when utilizing the HCLD method to calculate the cost approach, accounts for any and all forms of depreciation, including any and all forms of obsolescence, and the appraiser shall not consider any further obsolescence.
  3. The state tax commission is hereby authorized to promulgate rules to implement the provisions of this section.
History.

I.C.,§ 63-205B, as added by 2014, ch. 76, § 1, p. 201; am. 2017, ch. 15, § 1, p. 26.

STATUTORY NOTES

Cross References.

State tax commission,§ 63-101 et seq.

Amendments.
Compiler’s Notes.

The 2017 amendment, by ch. 15, in subsection (1), substituted “as described in paragraph (d) of this subsection” for “as described in subsection (1)(d) of this section” near the beginning of paragraph (a), and rewrote paragraph (c), which formerly read: “In the income approach, a market discount rate will be determined and will include a flotation cost component supported by nationally recognized sources.” Compiler’s Notes.

For more on the gross domestic product implicit price deflator, referred to in paragraph (1)(b), see http://www.bea.gov/iTable/iTable.cfm?reqid=9&step=3&isuri=1&903=13#reqid=9&step=3&isuri=1&903=13 .

The abbreviation enclosed in parentheses so appeared in the law as enacted.

Effective Dates.

Section 2 of S.L. 2014, ch. 357 declared an emergency and made this section retroactive to January 1, 2014.

Section 2 of S.L. 2017, ch. 15 declared an emergency and made this section retroactive to January 1, 2017. Approved February 16, 2017.

§ 63-205C. Valuation of agricultural land.

  1. The market value of land actively devoted to agriculture is its actual use value. Actual use value shall be established by capitalization of economic rent or long-term average crop rental at a capitalization rate that shall be either the rate of interest charged by lenders in the local area for agricultural property loans or by the Spokane office of the farm credit system, each averaged over the immediate past five (5) years, whichever is higher, plus the local tax rate.
  2. “Land actively devoted to agriculture” means that property defined by section 63-604, Idaho Code. For purposes of this section, the act of platting land actively devoted to agriculture does not, in and of itself, cause the land to lose its status as land being actively devoted to agriculture if the land otherwise qualifies for the exemption under this section.
  3. Land actively devoted to agriculture shall not be valued at its speculative value as development property until the use has changed and it is no longer actively devoted to agriculture.
  4. Rental rates, interest rates, commodity prices, and input prices or other landlord expenses typical to the county of the property being assessed shall be used.
  5. The state tax commission shall adopt rules implementing the provisions of this section that shall provide the procedure by which economic rent, average crop rental, and capitalization rates shall be established.
History.

I.C.,§ 63-602K, as added by 1996, ch. 98, § 7, p. 308; am. 2004, ch. 27, § 4, p. 43; am. 2006, ch. 233, § 3, p. 691; am. and redesig. 2020, ch. 313, § 1, p. 889.

STATUTORY NOTES

Cross References.

State tax commission,§ 63-101 et seq.

Amendments.

The 2006 amendment, by ch. 233, in subsections (1) and (2), inserted “actively”; and added the last sentence in subsection (2).

The 2020 amendment, by ch. 313, redesignated the section from§ 63-602K and rewrote the section to the extent that a detailed comparison is impracticable.

Compiler’s Notes.

For more on the farm credit system, see http://www.farmcreditnetwork.com .

This section was formerly compiled as§ 63-602K.

For more on the farm credit system, referred to in subsection (1), see https://farmcredit.com .

Effective Dates.

Section 4 of S.L. 2006, ch. 233 declared an emergency retroactively to January 1, 2006 and approved March 30, 2006.

CASE NOTES

Construction with Other Law.

Former Idaho Admin. Code 35.01.165(04)(d) exceeded the authority granted by the tax statutes, making the regulation unenforceable, and the district court properly awarded the taxpayer an agricultural exemption, recovery of the taxes paid under protest, together with interest accrued. Roeder Holdings, L.L.C. v. Bd. of Equalization, 136 Idaho 809, 41 P.3d 237 (2001).

Requirements.

Whether an agricultural use of undeveloped property violates a local zoning ordinance has no relevance to the requirements for a property tax exemption for agricultural land under§ 63-604 and this section. Thompson Dev., LLC v. Bd. of Appeals, 153 Idaho 646, 289 P.3d 48 (2012).

Cited

Ada County Bd. of Equalization v. Highlands, Inc., 141 Idaho 202, 108 P.3d 349 (2005).

§ 63-206. Lien of property taxes.

  1. All property taxes levied upon real property shall be a first and prior lien upon the real property assessed therefor, and shall only be discharged by the payment or cancellation of the property taxes as provided in this title.
  2. In addition, all property taxes levied upon personal property or operating property shall be a first and prior lien upon that property and the personal, operating or real property of the same owner thereof, whether the property is exempt from execution or not, and no personal property or operating property of any kind shall be exempt from such lien, except as otherwise provided by law. Such lien shall attach as of the first day of January in that year, or as of the date of entry into the state, or as of the date the property became subject to property taxation, and shall be discharged only by the payment or cancellation of the property taxes as provided in this title.
  3. Property tax liens shall be perpetual and continuous on all personal, operating and real property.
  4. It shall be unlawful for any person, corporation or other owner of real property to destroy the lien of taxes provided for in this section by removing any improvements therefrom or cutting and removing the standing timber thereon without first securing the payment of all delinquencies upon such real property, and property taxes for the year in which such improvements or timber are removed. The lien upon any such improvements or timber shall continue after such improvements have been removed or the timber cut from such real property. Such taxes shall be due and collectible immediately upon the commencement of the severance and unless paid upon the demand of the tax collector it shall be the duty of the county attorney to commence an action for the collection of such taxes in the district court of the county in which the property is situated. Such improvements or timber may be levied upon and sold in the same manner as is now provided by law for the sale of real property upon execution, and the county or any taxing unit affected may maintain an action in the proper court for injunction to restrain the removal of any improvements or the cutting or removal of standing timber from any real property against which there are any unpaid property taxes.
History.

I.C.,§ 63-206, as added by 1996, ch. 98, § 3, p. 308.

§ 63-207. Assessment of property.

  1. All real and personal property, except as otherwise provided in title 63, Idaho Code, shall be assessed by the assessor of the county in which it is situated.
  2. All operating property shall be assessed by the state tax commission.
History.

I.C.,§ 63-207, as added by 1996, ch. 98, § 3, p. 308.

STATUTORY NOTES

Cross References.

Abandonment of highways,§ 40-203.

Assessment of equities in state lands,§ 63-309.

Assessment of personal property generally,§ 63-301 et seq.

Equities in state land, assessment§§ 58-320, 63-309.

Improvements on public lands,§ 63-309.

Personal property defined,§§ 55-102, 73-114.

Property to be defined and classified by law, Idaho Const., Art. VII, § 3.

Real property defined,§§ 55-101, 73-114.

Recorded and worked highways,§ 40-202.

CASE NOTES

Operating Property.

Idaho tax commission was required to first determine if property should be classified as operating property. Then, and only then, could an assessor either petition for a writ of review to dispute the classification or assess the property, if it was non-operating property, depending upon the commission’s definition of operating property. Therefore, a district court properly granted summary judgment in favor of a taxpayer in a case where a county assessor assessed property as non-operating after the same property had already been assessed as operating by the commission. Union Pac. Land Res. Corp. v. Shoshone County Assessor, 140 Idaho 528, 96 P.3d 629 (2004).

Decisions Under Prior Law
Carey Act Entry.

States have no right to define and tax as property interest of entryman upon government land before equitable title passes to him. Leney v. Twin Falls County, 40 Idaho 600, 236 P. 531 (1925).

Construction.

This section does not change rule that interest of vendee in contract of sale of realty is subject to mortgage. Perkins v. Bundy, 42 Idaho 560, 247 P. 751 (1926).

Escape of Like Property No Defense.

That property of a like character escaped taxation would not relieve a taxpayer from paying its taxes based on a proper assessment of its property. Washburn-Wilson Seed Co. v. Jerome County, 65 Idaho 1, 138 P.2d 978 (1954).

Interest in Land Taxable.

Under a former statute, defining personalty for tax purposes as “equities in state lands, easements and reservations,” mineral reservations were assessable as personalty and not as realty, as against claim that under ejusdem generis rule reservations in state lands only were intended to be classified as personalty, since the reservations in state lands were not taxable. In re Winton Lumber Co., 57 Idaho 131, 63 P.2d 664 (1936).

Where a Sisterhood after incorporating, purchased land and permitted taxpayers to build dwellings thereon for their residence during their lifetime, thereafter becoming available to other members of the Sisterhood for occupancy, and the tax assessor levied taxes on such properties, the taxpayers could not escape liability for such taxes on the ground that the dwellings were occupied and built under a life tenure only, as an examination of the controlling statutes failed to disclose exemption from taxation of freehold estates such as those held by appellants. Tobias v. State Tax Comm’n, 85 Idaho 250, 378 P.2d 628 (1963).

Peas and Beans in Warehouse.

Peas and beans in a warehouse of a corporation engaged in a business of breeding, growing, and selling at wholesale peas, beans, and field seeds were subject to taxation as “personal property,” and hence taxes imposed upon peas and beans in warehouse were not void ab initio. Washburn-Wilson Seed Co. v. Jerome County, 65 Idaho 1, 138 P.2d 978 (1943).

Sources of Taxation.

Ad valorem property tax, poll taxes, and license tax on business are not exclusive means of raising state revenue, and the legislature could enact an income tax law. Diefendorf v. Gallet, 51 Idaho 619, 10 P.2d 307 (1932).

Standing Timber.

Written instruments conveying all merchantable timber on certain described lands and providing for severance and removal of such timber within reasonable time were taxable under federal revenue law imposing tax on instruments conveying realty. Milwaukee Land Co. v. Poe, 27 F.2d 625 (W.D. Wash. 1928), aff’d, 31 F.2d 733 (9th Cir. 1929). Though standing timber is considered and treated as real property, law recognizes that ownership of land may be in one party and ownership of standing timber in another, and provides that land and timber may be assessed separately. Winton Lumber Co. v. Shoshone County, 50 Idaho 130, 294 P. 529 (1930).

Uniform Taxation.

All taxes shall be uniform upon the same class of subjects, within the territorial limits of the authority levying the tax, and shall be levied and collected under general laws, which shall prescribe such regulations as shall secure a just valuation for taxation of all property, real and personal. Diefendorf v. Gallet, 51 Idaho 619, 10 P.2d 307 (1932).

Water Rights.

Water right is real estate, and, under a fair construction, is an appurtenance to and an integral part of the land to which said water right has been dedicated; it passes with the land when conveyed; and its assessment and taxation are included within the assessment and taxation of the land and its appurtenances. Andrews v. North Side Canal Co., 52 Idaho 117, 12 P.2d 263 (1932).

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-208. Rules pertaining to market value — Duty of assessors.

  1. It shall be the duty of the state tax commission to prepare and distribute to each county assessor and the county commissioners within the state of Idaho, rules prescribing and directing the manner in which market value for assessment purposes is to be determined for the purpose of taxation. The rules promulgated by the state tax commission shall require each assessor to find market value for assessment purposes of all property, except that expressly exempt under chapter 6, title 63, Idaho Code, within his county according to recognized appraisal methods and techniques as set forth by the state tax commission; provided, that the actual and functional use shall be a major consideration when determining market value for assessment purposes.
  2. To maximize uniformity and equity in assessment of different categories of property, such rules shall, to the extent practical, require the use of reproduction or replacement cost less depreciation as opposed to historic cost less depreciation whenever cost is considered as a single or one (1) of several factors in establishing the market value of depreciable property. The state tax commission shall also prepare and distribute amendments and changes to the rules as shall be necessary in order to carry out the intent and purposes of this title. The rules shall be in the form as the commission shall direct, and shall be made available upon request to other public officers and the general public in reasonable quantities without charge. In ascertaining the market value for assessment purposes of any item of property, the assessor of each county shall, and is required to, abide by, adhere to and conform with rules promulgated by the state tax commission.
History.

I.C.,§ 63-208, as added by 1996, ch. 98, § 3, p. 308.

CASE NOTES

Validity of Assessment.

Landowners did not prove their own property appraisal, or any of their own comparables, to substantiate their claim that their property was overvalued, to suggest that the assessor did not locate enough comparables, or to show that the ones chosen were inappropriate. Kimbrough v. Idaho Bd. of Tax Appeals & Canyon County Bd. of Equalization (In re Kimbrough), 150 Idaho 417, 247 P.3d 644 (2011).

Sales comparison approach to determining the market value of a vacant lakefront parcel was proper, even though the assessor did not go back in time as far as the taxpayer wanted, or use only parcels on the same lake. Wurzburg v. Kootenai County, 155 Idaho 236, 308 P.3d 936 (Ct. App. 2013).

Decisions Under Prior Law

Actual and functional. Consideration of restrictive covenants.

Actual and Functional.

Where, in a property tax evaluation, only nine of the 56 apartment units had been sold as condominiums, the action was remanded for a determination as to whether the sole appraisal method employed by the county assessor (i.e., the market data method), resulted in an appropriate and fair assessment given the actual and functional use of the apartment complex. Fairway Dev. Co. v. Bannock County, 113 Idaho 933, 750 P.2d 954 (1988).

Consideration of Restrictive Covenants.

Since former similar law required that actual and functional use shall be a major consideration when determining market value for assessment purposes, assessor erred in refusing to consider restrictive covenants limiting use of the property to low-income housing with rent restrictions for the actual and functional use of the property was as rent-restricted, low-income housing. Greenfield Village Apts. v. Ada County, 130 Idaho 207, 938 P.2d 1245 (1997).

Validity of Assessment.

The tax assessor’s practice of using multipliers to correct the 1965 assessment and to reach the result of approaching full cash value on the average throughout the county, based on his examination of at least three to five of the 850 subdivisions in the county and in some cases as many as forty sales in approximately 300 subdivisions, and not based on tax commission’s study of sales of real estate in various subdivisions pertaining to 440 residential properties, the amount of deviation between two studies being very small, was reasonably accurate. Title & Trust Co. v. Board of Equality, 94 Idaho 270, 486 P.2d 281 (1971).

RESEARCH REFERENCES

ALR.

§ 63-209. Assessor’s plat record.

The assessor must have prepared a full, accurate and complete plat record of all parcels of real property within his county. Township, range and section lands shall be platted thereon in such manner as to correspond with the technical description of such lands as described by the government survey thereof. Subdivision, townsite, and metes and bounds lands shall be platted thereon according to the official record thereof. The plats shall be prepared pursuant to rules promulgated by the state tax commission which shall establish scales and other criteria. All parcels of real property shall be numbered pursuant to a uniform numbering system to be established by the state tax commission and such parcel numbers shall be used as one (1) means of identifying such parcels. Such numbers shall be used on all records in county offices and shall appear on valuation assessment and tax notices. All necessary and reasonable expense incurred by the assessor in complying with the provisions of this section shall be a legal claim against the county.

History.

I.C.,§ 63-209, as added by 1996, ch. 98, § 3, p. 308.

STATUTORY NOTES

Cross References.

County treasurer ex officio tax assessor,§ 31-2102.

Forest lands and products, taxation,§ 63-1701 et seq.

Soil conservation districts, property tax exempt,§ 22-2722.

CASE NOTES

Decisions Under Prior Law
Owner of Record Title.

Throughout the statutes dealing with the taxation of real and personal property in Idaho runs the concept that the owner of the record title is the person to be considered as the taxpayer. Russet Potato Co. v. Board of Equalization, 93 Idaho 501, 465 P.2d 625 (1970).

Railroad Right of Way.

An assessment of a portion of a railroad right of way by county assessor was invalid for indefiniteness where assessor did not separately assess right of way on the rolls according to number, or enter accurate description of land designated by number. Ada County v. Bottolfsen, 61 Idaho 363, 102 P.2d 287 (1940).

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-210. Tax numbers for metes and bounds descriptions.

  1. The assessor shall give to each tract of land described by metes and bounds a tax number which shall be recorded with the county recorder without fee. This number shall be placed on the property roll to indicate the certain piece of land bearing such number, and entered on the plat record to indicate what tract is designated by such tax number, and no further description of such land shall be necessary upon the property roll. Whenever a tract of land which has been given a tax number is subdivided, the assessor shall give each subdivision a new tax number, which number, with an accurate description of the tract of land designated by such new number, shall be included in his list of tax numbers.
  2. In all cases where the description of any tract of land, or any lot or subdivision of land, or where the description of one (1) or more of the different parts or parcels thereof, cannot, in the judgment of the assessor, be made sufficiently certain and accurate for the purposes of assessment, the assessor shall notify the county recorder thereof, and the county recorder shall thereupon proceed to have such land platted in the same manner as provided for in section 50-1314, Idaho Code.
History.

I.C.,§ 63-210, as added by 1996, ch. 98, § 3, p. 308.

CASE NOTES

Decisions Under Prior Law
Railroad Right of Way.

An assessment of a portion of a railroad right of way by county assessor was invalid for indefiniteness where assessor did not separately assess right of way on the rolls according to number, or enter accurate description of land designated by number. Ada County v. Bottolfsen, 61 Idaho 363, 102 P.2d 287 (1940).

§ 63-211. Abstract of state lands.

  1. It shall be the duty of the director of the state department of lands to furnish to each assessor of each county in the state without fee a copy of each land sale certificate whenever a sale has been held and a certificate has been issued showing the land description, date of sale, purchase price, amount paid in cash, and schedule of annual payments, and a copy of each timber sale contract whenever a sale of timber has been made and contract issued showing date of sale, description of land involved, purchase price, and estimated volume of timber.
  2. It shall also be the duty of the director of the state department of lands to notify the assessor of each county when a cancellation, assignment or reinstatement of a state land sale certificate or a cancellation or assignment of a state timber sale contract has been made.
  3. It shall be the duty of the county tax collector to notify the director of the state department of lands of any property tax delinquency on a state land sale certificate or on a state timber sale contract within thirty (30) days of the date of such delinquency.
History.

I.C.,§ 63-211, as added by 1996, ch. 98, § 3, p. 308.

STATUTORY NOTES

Cross References.

Department of lands,§ 58-101 et seq.

Director of department of lands,§ 58-105.

§ 63-212. Estates — Claimants — Agents — Undivided interest.

  1. When the property assessed is the unpartitioned property of a deceased person, the name of the heirs, guardian, executor or administrator may be inserted on the property roll, and the payment of property taxes on such property by any such person binds the estate for the repayment of the amount of such property taxes to such person, and binds all parties in interest for the repayment of their just proportions of the amount of such property taxes to such person.
  2. Whenever a person claiming property and desiring to pay the property taxes thereon is not named as the owner he may have his name inserted on the property roll with that of the person named, if so documented with a recordable document.
  3. Whenever a person has an agent for the payment of property taxes, the name of such agent may be inserted upon request, and in the taxpayers index.
  4. An undivided interest in real property may be appraised, assessed and taxed as such. The payment of all property taxes on an undivided interest in any real property assessed as such discharges all liens attached to such undivided interest on account of such property taxes.
History.

I.C.,§ 63-212, as added by 1996, ch. 98, § 3, p. 308.

CASE NOTES

Decisions Under Prior Law
Tenancies in Common.

Interests of tenants in common in mining property may be separately assessed and sold for delinquent taxes. Hanley v. Federal Mining & Smelting Co., 235 F. 769 (D. Idaho 1916).

RESEARCH REFERENCES

ALR.

§ 63-213. Double assessing prohibited.

  1. Property which has been assessed for taxation in any county in this state shall not be assessed again for taxation for the same purposes or period of time in any other county in this state for the same year.
  2. In all questions which may arise as to the proper place to assess property for taxation purposes, if between two (2) or more places in the same county, the place for assessing the same shall be determined and fixed by the county commissioners, and if between two (2) or more counties, or different places in two (2) or more counties, the place for assessing the same shall be determined and fixed by the state tax commission, and when fixed shall be binding.
History.

I.C.,§ 63-213, as added by 1996, ch. 98, § 3, p. 308.

STATUTORY NOTES

Cross References.

Duplicate taxation prohibited, Idaho Const., Art. VII, § 5.

§ 63-214. Description of property.

In all proceedings relating to the assessment of property for taxation, or the levy and collection of property taxes, it shall be sufficient to designate the amount of property taxes and the amount, value and description of property by tax number, initial letters, abbreviations, figures, fractions and exponents. Such designations must be sufficiently plain to clearly set forth the amount of property taxes and the amount, value and description of the property. All property which has been sold for property taxes and all foreclosure proceedings on property under this title must be fully and accurately described.

History.

I.C.,§ 63-214, as added by 1996, ch. 98, § 3, p. 308.

§ 63-215. Legal description and map of boundaries to be recorded and filed.

  1. Any taxing district which shall be formed or organized hereafter, or which shall change any existing boundaries hereafter, shall cause one (1) copy of the legal description and map prepared in a draftsmanlike manner which shall plainly and clearly designate the boundaries of such district or municipality as formed or organized, or as altered, to be recorded with the county recorder and filed with the county assessor in the counties within which the unit is located and with the state tax commission within thirty (30) days following the effective date of such formation, organization or alteration but no later than the tenth day of January of the year following such formation, organization or alteration. In the case of fire protection districts, the board of county commissioners approving the boundaries shall be responsible for delivering to the assessor and recorder the map and legal description of the amended district boundaries. Formation, organization or alteration documents that are filed pursuant to this section shall include contact information that is current at the time of filing and that identifies an individual associated with the taxing district.
  2. Urban renewal agencies shall comply with the requirements of subsection (1) of this section when a revenue allocation area within the jurisdiction of the urban renewal agency is formed or when the boundaries of such an area are altered.
  3. The state tax commission shall review filings required by subsections (1) and (2) of this section and if the commission finds that the formation of a district or a change in a district’s boundaries fails to provide a proper legal description or fails to correctly identify the boundaries, the state tax commission shall notify the affected taxing authority within twenty-eight (28) days after receiving the original request. The notification shall list any errors or omissions in the submitted map and legal description along with any possible remedies to correct said errors or omissions. The taxing authority shall be provided an additional twenty-eight (28) days after receiving the requested change from the state tax commission to provide a corrected map and legal description. If the corrected map and legal description fail to correctly identify the boundaries or change of boundaries of the taxing district, as was listed in the state tax commission’s notification, then the state tax commission may direct that the formation or change not be recognized for property tax purposes. The state tax commission’s review shall not include matters relating to notice, open meetings law requirements, or compliance with provisions in Idaho law not relating to boundaries.
  4. The county assessor, county auditor and state tax commission shall retain on file in their respective offices all copies of legal descriptions of taxing district boundaries and maps filed by the various taxing jurisdictions authorized to impose a levy on property.
  5. The state tax commission shall be responsible for providing copies of uniform tax code area numbers and maps to the county assessor, county auditor and county treasurer and various companies having operating property subject to assessment in the state of Idaho and under the jurisdiction of the state tax commission for assessment and taxation purposes. (6) Unless otherwise specifically authorized to form with noncontiguous boundaries, or to annex or deannex properties so as to make noncontiguous boundaries, all taxing districts shall form with and maintain contiguous boundaries.
History.

I.C.,§ 63-215, as added by 1996, ch. 98, § 3, p. 308; am. 1997, ch. 117, § 12, p. 298; am. 2000, ch. 114, § 2, p. 252; am. 2008, ch. 7, § 1, p. 8; am. 2013, ch. 21, § 1, p. 36; am. 2019, ch. 271, § 1, p. 789.

STATUTORY NOTES

Cross References.

Open meetings law,§ 74-201 et seq.

State tax commission, Idaho Const., Art. VII, § 12 and§ 63-101.

Amendments.

The 2008 amendment, by ch. 7, added subsection (3) and redesignated the subsequent subsections accordingly.

The 2013 amendment, by ch. 21, added the last sentence in subsection (1).

The 2019 amendment, by ch. 271, rewrote subsection (3), which formerly read: “The state tax commission shall review filings required by subsections (1) and (2) of this section and if the commission finds that the formation of a district or a change in a district’s boundaries fails to provide a proper legal description or fails to correctly identify the boundaries or does not comply with Idaho law relating to boundaries, the state tax commission may direct that the formation or change not be recognized. The state tax commission’s review shall not include matters relating to notice, open meeting law requirements or compliance with provisions in Idaho law not relating to boundaries.”

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

§ 63-216. No state property tax when sales tax is in force.

In any period during which a sales tax is in force in this state, there shall be no levy of the general state property tax permitted in section 9, article VII, of the constitution of the state of Idaho.

History.

I.C.,§ 63-216, as added by 1996, ch. 98, § 3, p. 308.

§ 63-217. Filing of material by mail or private delivery services.

  1. Any report, claim, return, statement or other document or payment dealing in any way or in any manner whatsoever with taxation which is required or authorized to be filed or made to the state of Idaho, or to any political subdivision thereof, which is:
    1. Transmitted through the United States mail, shall be deemed filed or made and received by the state or political subdivision on the date shown by the post office cancellation mark stamped upon the envelope or other appropriate wrapper containing it. For purposes of this title, a postage meter cancellation shall not be deemed a post office cancellation mark.
    2. Mailed but not received by the state or political subdivision or where received and the cancellation mark is illegible, erroneous or omitted, shall be deemed filed or made and received on the date it was mailed if the sender establishes by competent evidence that the report, claim, tax return, statement or other document or payment was deposited in the United States mail on or before the date for filing or paying; and in cases of such nonreceipt of any such report, claim, tax return, statement or other document or payment required by law to be filed or made, the sender files with the state or political subdivision a duplicate within fifteen (15) days after written notification is given to the sender by the state or political subdivision of its nonreceipt of such report, claim, tax return, statement, or other document or payment.
  2. If any such report, claim, tax return, statement or other document or payment is sent by United States mail and either registered or certified, a record authenticated by the United States post office of such registration or certification shall be considered competent evidence that the report, claim, tax return, statement or other document or payment was delivered to the state officer or state agency or officer or agency of the political subdivision to which addressed, and the date of registration or certification shall be deemed the postmarked date.
  3. Any reference in this section to the United States mail shall be treated as including a reference to any delivery service designated by the secretary of the United States department of treasury under section 7502 of the Internal Revenue Code. Any reference in this section to a postmark by the United States postal service shall be treated as including a reference to any date recorded or marked as described in section 7502 of the Internal Revenue Code by any designated delivery service.
  4. If the date for filing any such report, claim, tax return, statement or other document or making any such payment falls upon a Saturday, a Sunday, a legal holiday or, in matters arising under chapter 30, title 63, Idaho Code, a holiday recognized by the internal revenue service, such acts shall be considered timely if performed on the next business day.
History.

I.C.,§ 63-217, as added by 1996, ch. 98, § 3, p. 308; am. 2004, ch. 28, § 1, p. 45; am. 2012, ch. 227, § 1, p. 628.

STATUTORY NOTES

Amendments.

The 2012 amendment by ch. 227, inserted “in matters arising under chapter 30, title 63, Idaho Code, a holiday recognized by the internal revenue service” in subsection (4).

Federal References.

Section 7502 of the Internal Revenue Code, referred to in subsection (3), appears as 26 U.S.C.S. § 7502.

Effective Dates.

Section 2 of S.L. 2012, ch. 227 declared an emergency. Approved April 3, 2012.

§ 63-218. Reproduction of records — Destruction of originals authorized — Admissibility in evidence.

  1. The state tax commission or any political subdivision of the state of Idaho may retain any document in a different form or medium from that in which it is received, provided that the form or medium in which the document is retained results in a permanent record which may be accurately reproduced during the period for which the document must be retained under any tax law administered or enforced by the state tax commission. The original document, once reproduced, may be disposed of or destroyed.
  2. A document retained in any form or medium permitted under this section shall be deemed to be an original public record for all purposes. A reproduction or copy of such a document, certified by a state officer, shall be deemed to be a transcript or certified copy of the original, and shall be admissible in any court or administrative hearing.
History.

I.C.,§ 63-218, as added by 1996, ch. 98, § 3, p. 308; am. 2008, ch. 5, § 1, p. 6.

STATUTORY NOTES

Cross References.

Photographed or digital retention of records generally,§ 9-328.

Amendments.

The 2008 amendment, by ch. 5, deleted “prevalence over previous law” from the end of the section catchline and rewrote the section to allow the retention of tax documents in a form or medium different from that in which they were received under certain conditions.

§ 63-219. Uniform property rolls and related documents.

  1. The state tax commission shall develop, maintain and enforce statewide systems for the preparation of property rolls and related documents and procedures and for uniform parcel numbering. Said systems shall provide related information specified by the state tax commission.
  2. The state tax commission shall prescribe forms and documents to be used to comply with the requirements of subsection (1) of this section when the information contained in said forms and documents is needed by the tax commission. The appropriate county official may request that the state tax commission consider an alternate, but equivalent, system for the preparation of property rolls and related documents. If the county official demonstrates equivalence to the satisfaction of the state tax commission, the state tax commission may, at its discretion, permit the alternate system to be used. Alternate forms or documents to be provided at county expense may be used if submitted to the state tax commission prior to use and if, in the opinion of the state tax commission, the alternate forms or documents are equivalent to the forms or documents provided by the state tax commission.
  3. Forms or documents required to comply with the provisions of subsection (1) of this section may be prescribed by the appropriate county official, provided that the information on said forms or documents is not needed by the state tax commission. Said forms or documents must be provided at county expense and a copy of each separate form or document must be filed with the state tax commission prior to use.
  4. The state tax commission shall, at its expense, provide aid to the counties on numbering, mapping and software for implementation of this program, and shall, at its expense, provide uniform valuation assessment notices to the county assessor and property tax notices to the county tax collector.
History.

I.C.,§ 63-219, as added by 1996, ch. 98, § 3, p. 308.

STATUTORY NOTES

Compiler’s Notes.

Section 20 of S.L. 1996, ch. 98 read: “Section 20. Existing Rules Remain in Effect. All rules heretofore adopted by the state tax commission and in effect on the effective date of this act shall remain in full force and effect unless and until superseded or replaced by rules duly adopted by the commission, or until the same are rejected, amended or modified by the legislature in accordance with the provisions of chapter 52, title 67, Idaho Code, or until they expire as provided in section 67-5292, Idaho Code.”

Effective Dates.

Section 21 of S.L. 1996, ch. 98 provided that the act shall be in full force and effect on January 1, 1997.

§ 63-220. Tax extensions as disaster relief.

  1. The board of county commissioners of any Idaho county declared by the governor of the state of Idaho as a natural disaster area may grant an extension of time for any filings or payments required under section 63-302(1), 63-602G, 63-706 or 63-903, Idaho Code, to those persons whose ability to timely comply with their filing or payment requirement is adversely affected by a natural disaster set forth in the declaration.
  2. Before granting any extension the board of county commissioners shall provide a procedure for affected taxpayers to justify the extension and provide such other information as the board may require to support the taxpayer’s application.
  3. No extension granted under this section shall be for a period in excess of sixty (60) days.
  4. In all cases where the board has granted an extension under this section, payment of the tax shall not be subject to any late filing penalty or interest if payment of the tax is made on or before the extended due date. Failure to make payments on or before the extended due date will thereafter cause the imposition of penalty and interest.
  5. When, as a result of relief granted under this section, a county official or state agency is unable to comply with a provision in this title requiring an action by a specified date, the action may be delayed only for such reasonably necessary time as the state tax commission approves, but not to exceed sixty (60) days.
History.

I.C.,§ 63-220, as added by 1997, ch. 64, § 2, p. 135.

STATUTORY NOTES

Effective Dates.

Section 3 of S.L. 1997, ch. 64 declared an emergency. Approved March 13, 1997.

Chapter 3 ASSESSMENT OF REAL AND PERSONAL PROPERTY

Sec.

§ 63-301. Time of assessment — Property roll, subsequent property roll and missed property roll.

  1. The assessor shall complete an assessment of all real and personal property in his county which is subject to assessment by him on or before the fourth Monday of June. In making such assessment, the assessor shall determine, according to recognized appraisal methods and techniques, the market value for assessment purposes of real and personal property. Said assessments shall be entered on the property roll. After the aforesaid date, any property which has been omitted from the property roll shall be entered on the subsequent property roll and submitted to the county commissioners meeting as a board of equalization, from the fourth Monday of November through the first Monday of December of the current year, or entered on the missed property roll and submitted during the county board of equalization’s monthly meeting in January of the following year.
  2. The market value for assessment purposes of each parcel of property subject to assessment shall be listed on the appropriate roll, as defined in subsection (1) of this section, by category of property established and defined pursuant to section 63-109, Idaho Code.
History.

I.C.,§ 63-301, as added by 1996, ch. 98, § 4, p. 308.

STATUTORY NOTES

Cross References.

Manufactured homes, assessment,§ 63-303.

County commissioners as board of equalization,§ 63-501.

CASE NOTES

Decisions Under Prior Law

Omitted property. Quarterly reporting system.

Adjustments During Tax Year.

Where a county undertakes to update its initial declarations during the course of the tax year, it cannot increase a taxpayer’s tax burden to reflect the taxpayer’s acquisition of nonexempt property without decreasing that tax burden to reflect the fact that property reported by the taxpayer in an earlier declaration was no longer subject to the county’s ad valorem tax. Xerox Corp. v. Ada County Assessor, 101 Idaho 138, 609 P.2d 1129 (1980).

Application.

This section, as amended in 1927, did not apply to additions to merchant’s stock of goods made after second Monday in January. Preston A. Blair Co. v. Jensen, 49 Idaho 118, 286 P. 366 (1930).

Assessor’s Duty.

The duty of the assessor is to assess all the taxable property of his county at its “full cash value” and he has no legal right or authority to assess property in any other manner or at any other valuation. First Nat’l Bank v. Washington County, 17 Idaho 306, 105 P. 1053 (1909).

Determination of True Cash Value.

Officers are to do the best they can with the means at their disposal to approximate as nearly as may be the unattainable ideal, which is an entirely just or correct valuation of all the property in the county. Dexter Horton Trust & Sav. Bank v. Clearwater County, 235 F. 743 (D. Idaho 1916), aff’d, 248 F. 401 (9th Cir. 1918).

Determination of Value.

A proper determination of the market value of taxable property should involve an analysis of multiple factors including the actual cost of the property and its actual sale value. Merris v. Ada County, 100 Idaho 59, 593 P.2d 394 (1979).

Although different types of property are by their nature more amenable to valuation by one method of appraisal than another, the touchstone in the appraisal of property for ad valorem tax purposes is the fair market value of that property; and fair market value must result from application of the chosen appraisal method. Merris v. Ada County, 100 Idaho 59, 593 P.2d 394 (1979).

Difficulty in Obtaining Proof of Record.

Difficulty or delay in obtaining the proof of a fact does not preclude its existence and operation, and the record of many occurrences and transactions is evidence of what existed at the time of the happening of the event, though the record is not available for many days or months afterwards. Twin Falls ex rel. Cannon v. Koehler, 63 Idaho 562, 123 P.2d 715 (1942).

Logs.

Where appellant had possession and an equitable and beneficial ownership in logs, he had sufficient interest in such logs for taxation although title was in United States government, where logs were in possession of appellant and appellant was at all times operating under a valid contract with the government under which appellant would receive complete ownership and legal title upon compliance with the specific terms of the contract as to scaling and payment. Tree Farmers, Inc. v. Goeckner, 86 Idaho 290, 385 P.2d 649 (1963).

Method of Assessment.

Assessment of merchandise of retail store by measuring square feet of floor space occupied by stock of merchandise and comparing the same to floor space occupied by similar mercantile establishments was arbitrary and capricious, hence assessment based on such method was erroneous and excessive. Appeal of Sears, Roebuck & Co., 74 Idaho 39, 256 P.2d 526 (1953).

Migratory Livestock.

Taxes on migratory livestock, when properly extended on real property assessment roll, become lien on real property of owner. Scottish Am. Mtg. Co. v. Minidoka County, 47 Idaho 33, 272 P. 498 (1928).

Omitted Property.

When a landowner builds a new residence and fails to notify the assessor of the date of occupancy pursuant to§ 63-3905 (now repealed), the new residence can constitute “inadvertently omitted property” within the meaning of this section. Hermann v. Blaine County Bd. of Comm’rs, 126 Idaho 970, 895 P.2d 571 (1995).

Quarterly Reporting System.

The district court erred in requiring the taxable status of business machines to be determined on a monthly basis rather than on a quarterly basis, since in the interests of efficient recordkeeping and reporting a quarterly reporting system, and not a monthly reporting system, is required, and because property is to be assessed on a quarterly basis. Xerox Corp. v. Ada County Assessor, 101 Idaho 138, 609 P.2d 1129 (1980).

Procedure.

The procedure prescribed by the legislature in respect to levying, assessing and collecting taxes must be strictly observed. Tobias v. State Tax Comm’n, 85 Idaho 250, 378 P.2d 628 (1963).

Supplemental Declarations.

The Ada County assessor’s decision to require supplemental declarations only of certain types of taxpayers who actually did acquire or who were likely to have acquired nonexempt personal property during the 1973 tax year did not result in a violation of the Idaho constitutional requirement of uniformity of taxation. Xerox Corp. v. Ada County Assessor, 101 Idaho 138, 609 P.2d 1129 (1980).

Time.
Validity of Assessment.

Where the county board of equalization reviewed the assessment of a real property interest at its December meeting, at which it was empowered to review assessments of personal property only, and not at the June and July meetings at which it was empowered to equalize assessments of real property or hear complaints in regard thereto, the assessment was improper since the owners of an interest in the real property were not afforded an opportunity to register their complaints that the property was improperly included upon the personal property roll. Tobias v. State Tax Comm’n, 85 Idaho 250, 378 P.2d 628 (1963). Validity of Assessment.

The tax assessor’s practice of using multipliers to correct the 1965 assessment and to reach the result of approaching full cash value on the average throughout the county, based on his examination of at least three to five of the 850 subdivisions in the county and in some cases as many as forty sales in approximately 300 subdivisions, and not based on tax commission’s study of sales of real estate in various subdivisions pertaining to 440 residential properties, the amount of deviation between two studies, being very small, was reasonably accurate. Title & Trust Co. v. Board of Equality, 94 Idaho 270, 486 P.2d 281 (1971).

RESEARCH REFERENCES

Am. Jur. 2d.
C.J.S.

§ 63-301A. New construction roll.

  1. The county assessor shall prepare a new construction roll, which shall be in addition to the property roll, which new construction roll shall show:
    1. The name of the taxpayer;
    2. The description of the new construction, suitably detailed to meet the requirements of the individual county;
    3. A description of the land and its change in use, suitably detailed to meet the needs of the individual county;
    4. The amount of taxable market value added to the property on the current year’s property roll that is directly the result of new construction or a change in use of the land or both;
    5. The amount of taxable market value added as provided in subsection (3)(g) of this section as a result of dissolution of any revenue allocation area;
    6. The amount of taxable market value to be deducted to reflect the adjustments required in paragraphs (f)(i), (f)(ii), (f)(iii) and (f)(iv) of this subsection:
      1. Any board of tax appeals or court-ordered value change, if property has a taxable value lower than that shown on any new construction roll in any one (1) of the immediate five (5) tax years preceding the current tax year;
      2. Any reduction in value resulting from correction of value improperly included on any previous new construction roll as a result of double or otherwise erroneous assessment;
      3. Any reduction in value, in any one (1) of the immediate five (5) tax years preceding the current tax year, resulting from a change of land use classification;
      4. Any reduction in value resulting from the exemption provided in section 63-602W(4), Idaho Code, in any one (1) of the immediate five (5) tax years preceding the current tax year.
  2. As soon as possible, but in any event by no later than the first Monday in June, the new construction roll shall be certified to the county auditor and a listing showing the amount of value on the new construction roll in each taxing district or unit be forwarded to the state tax commission on or before the fourth Monday in July. Provided however, the value shown in subsection (3)(f) of this section shall be reported to the appropriate county auditor by the state tax commission by the third Monday in July and the value sent by the county auditor to each taxing district. The value established pursuant to subsection (3)(f) of this section is subject to correction by the state tax commission until the first Monday in September and any such corrections shall be sent to the appropriate county auditor, who shall notify any affected taxing districts.
  3. The value shown on the new construction roll shall include the taxable market value increase from:
    1. Construction of any new structure that previously did not exist; or
    2. Additions or alterations to existing nonresidential structures; or
    3. Installation of new or used manufactured housing that did not previously exist within the county; or
    4. Change of land use classification; or
    5. Property newly taxable as a result of loss of the exemption provided by section 63-602W(3) or (4), Idaho Code; or
    6. The construction of any improvement or installation of any equipment used for or in conjunction with the generation of electricity and the addition of any improvement or equipment intended to be so used, except property that has a value allocated or apportioned pursuant to section 63-405, Idaho Code, or that is owned by a cooperative or municipality as those terms are defined in section 61-332A, Idaho Code, or that is owned by a public utility as that term is defined in section 61-332A, Idaho Code, owning any other property that is allocated or apportioned. No replacement equipment or improvements may be included; or
    7. Provided such increases do not include increases already reported on the new construction roll as permitted in paragraphs (j) and (k) of this subsection, increases in value over the base value of property on the base assessment roll within an urban renewal revenue allocation area that has been terminated pursuant to section 50-2909(4), Idaho Code, to the extent that this increment exceeds the incremental value as of December 31, 2006, or, for revenue allocation areas formed after December 31, 2006, the entire increment value. Notwithstanding other provisions of this section, the new construction roll shall not include new construction located within an urban renewal district’s revenue allocation area, except as provided in this paragraph; or
    8. New construction, in any one (1) of the immediate five (5) tax years preceding the current tax year, allowable but never included on a new construction roll, provided however, that, for such property, the value on the new construction roll shall reflect the taxable value that would have been included on the new construction roll for the first year in which the property should have been included.
    9. Formerly exempt improvements on state college or state university-owned land for student dining, housing, or other education-related purposes approved by the state board of education and board of regents of the university of Idaho as proper for the operation of such state college or university provided however, such improvements were never included on any previous new construction roll.
    10. Increases in base value when due to previously determined increment value added to the base value as required in sections 50-2903 and 50-2903A, Idaho Code, due to a modification of the urban renewal plan. In this case, the amount added to the new construction roll will equal the amount by which the increment value in the year immediately preceding the year in which the base value adjustment described in this subsection occurs exceeds the incremental value as of December 31, 2006, or, for revenue allocation areas formed after December 31, 2006, the entire increment value.
    11. Increases in base value when due to previously determined increment value added to the base value as a result of a de-annexation within a revenue allocation area as defined in section 50-2903, Idaho Code. In this case, the amount added to the new construction roll will equal the amount by which the increment value in the year immediately preceding the year in which the de-annexation described in this subsection occurs exceeds the incremental value as of December 31, 2006, or, for revenue allocation areas formed after December 31, 2006, the entire increment value within the area subject to the de-annexation.
  4. The amount of taxable market value of new construction shall be the change in net taxable market value that is attributable directly to new construction or a change in use of the land or loss of the exemption provided by section 63-602W(3) or (4), Idaho Code. It shall not include any change in value of existing property that is due to external market forces such as general or localized inflation, except as provided in subsection (3)(g) of this section.
  5. The amount of taxable market value of new construction shall not include any new construction of property that has been granted a provisional property tax exemption, pursuant to section 63-1305C, Idaho Code. A property owner may apply to the board of county commissioners, if an application is required pursuant to section 63-602, Idaho Code, for an exemption from property tax at the time the initial building permits are applied for or at the time construction of the property has begun, whichever is earlier, or at any time thereafter. (6) The amount of taxable market value of new construction shall not include any new construction of property for which an exemption from sales and use tax has been granted pursuant to section 63-3622VV, Idaho Code.
History.

I.C.,§ 63-301A, as added by 1997, ch. 117, § 13, p. 298; am. 1998, ch. 95, § 2, p. 341; am. 2002, ch. 143, § 6, p. 394; am. 2002, ch. 344, § 1, p. 962; am. 2003, ch. 8, § 1, p. 14; am. 2003, ch. 16, § 15, p. 48; am. 2007, ch. 135, § 1, p. 395; am. 2010, ch. 254, § 1, p. 644; am. 2010, ch. 283, § 1, p. 760; am. 2011, ch. 151, § 28, p. 414; am. 2011, ch. 175, § 1, p. 496; am. 2012, ch. 192, § 2, p. 517; am. 2016, ch. 349, § 8, p. 1014; am. 2018, ch. 194, § 2, p. 430; am. 2020, ch. 335, § 2, p. 973.

STATUTORY NOTES

Cross References.

State tax commission,§ 63-101 et seq.

Amendments.

This section was amended by two 2002 acts which appear to be compatible and have been compiled together.

The 2002 amendment, by ch. 143, added subsection (3)(f) (now (3)(g)).

The 2002 amendment, by ch. 344, added the second sentence in subsection (2) and also added a subsection designated (3)(f).

This section was amended by two 2003 acts which appear to be compatible and have been compiled together.

The 2003 amendment, by ch. 8, § 1, inserted “on or before the fourth Monday in July” in the first sentence in subsection (2), added “or” at the end of subsection (3)(f), and redesignated the former duplicate subsection (3)(f) as subsection (3)(g).

The 2003 amendment, by ch. 16, § 15, added “or” at the end of subsection (3)(f) and redesignated the former duplicate subsection (3)(f) as subsection (3)(g).

The 2007 amendment, by ch. 135, added subsection (1)(e); in the introductory language in subsection (3), inserted “taxable market”; in subsection (3)(g), substituted “this increment exceeds the incremental value as of December 31, 2006, or, for revenue allocation areas formed after December 31, 2006, the entire increment value” for “this increment has not been previously included on any new construction rolls, provided however, the increased value during the existence of the revenue allocation area is due to changes identified in subsections (a) through (e) of this subsection,” and added the last sentence; and added the exception in subsection (4).

This section was amended by two 2010 acts which appear to be compatible and have been compiled together.

The 2010 amendment, by ch. 254, added paragraph (3)[(i)](h). The 2010 amendment, by ch. 283, added paragraph (1)(f); in the introductory language in subsection (3), substituted “shall include” for “may include”; and added paragraph (3)(h).

This section was amended by two 2011 acts which appear to be compatible and have been compiled together.

The 2011 amendment, by ch. 151, redesignated the last paragraph in subsection (3) as paragraph (3)(i).

The 2011 amendment, by ch. 175, in paragraph (1)(f)(i), deleted “previous” preceding “new construction roll” and added “in any one (1) of the immediate five (5) tax years preceding the current tax year”; in paragraph (1)(f)(ii), inserted “in any one (1) of the immediate five (5) tax years preceding the current tax year”; and in paragraph (3)(h), deleted “previously” following “New construction” and inserted “in any one (1) of the immediate five (5) tax years preceding the current tax year.”

The 2012 amendment, by ch. 192, inserted “(f)(iv)” in the introductory paragraph in subsection (1)(f); added paragraph (1)(f)(iv); inserted “(3) or (4)” in paragraph (3)(e); and inserted “or (4)” in the first sentence in subsection (4).

The 2016 amendment, by ch. 349, in subsection (3), added “Provided such increases do not include increases already reported on the new construction roll, as permitted in paragraphs (j) and (k) of this subsection” at the beginning of paragraph (g) and added paragraphs (j) and (k).

The 2018 amendment, by ch. 194, added subsection (5).

The 2020 amendment, by ch. 335, added subsection (6).

Compiler’s Notes.

S.L. 2012, Chapter 192 became law without the signature of the governor.

Section 9 of S.L. 2016, ch. 349 provided: “Severability. The provisions of this act are hereby declared to be severable and if any provision of this act or the application of such provision to any person or circumstance is declared invalid for any reason, such declaration shall not affect the validity of the remaining portions of this act.”

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

Section 3 of S.L. 1998, ch. 95 declared an emergency and provided this act shall be in full force and effect on and after its passage and approval, and retroactively to January 1, 1998. Approved March 19, 1998.

Section 2 of S.L. 2007, ch. 135 declared an emergency retroactively to January 1, 2007 and approved March 21, 2007.

Section 3 of S.L. 2010, ch. 254 declared an emergency retroactively to January 1, 2010 and approved April 8, 2010.

Section 4 of S.L. 2010, ch. 283 declared an emergency retroactively to January 1, 2010 and approved April 8, 2010.

Section 3 of S.L. 2012, ch. 192 declared an emergency and made this section retroactive to January 1, 2012.

Section 5 of S.L. 2018, ch. 194 declared an emergency and made this section retroactive to January 1, 2016. Approved March 20, 2018.

§ 63-302. List of taxable personal property.

  1. The assessor shall leave at the office, place of business or residence of each personal property owner, or mail to such personal property owner at his last known post office address, a form with notice requiring such personal property owner to make a correct list of taxable personal property. Every personal property owner so required shall enter a true and correct statement of such personal property and the ownership thereof, which statement shall be signed and verified by the oath of the personal property owner or his agent listing such personal property, and shall be delivered to the assessor, not later than March 15. The assessor shall thereupon determine the market value for assessment purposes of such personal property and enter the same on the property roll. However, if for any reason the assessor shall fail to contact such personal property owner, the failure shall not impair or invalidate any assessment, nor will such failure relieve the personal property owner or his agent of the responsibility to obtain such declaration and to comply with the requirements of this title. Any willful failure to personally contact each personal property owner, shall be deemed malfeasance in office and grounds for the removal of the assessor from office.
  2. If such person fails to make and deliver the list as required, the assessor may list and assess such personal property according to his best judgment and information.
  3. Whenever a taxpayer’s list of taxable personal property discloses personal property having a situs for purposes of taxation in another county in this state, the assessor must immediately make a copy of that portion of such list for each county in which such personal property is situated, and transmit the same by mail to the assessor of the proper county, who must, upon receipt of such copy, enter such personal property upon the property roll therein, unless such personal property has already been entered. The assessor shall strike from the original list all personal property so disclosed as having a situs in another county, and shall assess and enter only the balance of the personal property in his county.
History.

I.C.,§ 63-302, as added by 1996, ch. 98, § 4, p. 308.

STATUTORY NOTES

Cross References.

Refusal to list property a misdemeanor,§ 18-6301.

CASE NOTES

Assessment.

It was the duty of the taxpayer to furnish the assessor, on demand, the statement on oath and, if he neglected or failed to do so, it was the duty of the assessor to assess such taxable property within his jurisdiction. Erwin v. Hubbard, 4 Idaho 170, 37 P. 274 (1894).

Purpose of Statement.

Since the purpose of the taxpayer’s declaration form was to provide the assessor with adequate information about taxpayer, taxpayer could not challenge the sufficiency of the form on the grounds that it did not state when meetings of board of equalization were scheduled and it failed to inform taxpayer of the full market value and the assessed value of his property. V-1 Oil Co. v. County of Bannock, 97 Idaho 807, 554 P.2d 1304 (1976).

§ 63-303. Assessment of manufactured homes.

Manufactured homes shall be assessed as other residential housing and such assessments shall be entered on the property roll.

History.

I.C.,§ 63-303, as added by 1996, ch. 98, § 4, p. 308; am. 2004, ch. 27, § 2, p. 43.

§ 63-304. Manufactured homes to constitute real property.

  1. A manufactured home may constitute real property if the running gear is removed and:
    1. If the manufactured home becomes permanently affixed to a foundation:
      1. On land which is owned or being purchased by the owner or purchaser of said manufactured home; or
      2. On land which is being leased by the owner or purchaser of the manufactured home if such home is being financed in accordance with the guidelines of the federal home loan mortgage corporation, the federal national mortgage association, the United States department of agriculture or any other entity or agency that requires, as part of its financing program, similar restrictions on ownership and actions affecting title and possession, provided that if a county takes a tax deed to the manufactured home the county shall not be liable for any delinquent or ongoing leases, rents or any other liabilities owed due to the placement of such property; and
    2. If the owner or purchaser of a manufactured home records with the county recorder in the county in which the manufactured home will be situated a statement of intent to declare the manufactured home as real property.
  2. The exercise of said option shall require all county assessors to treat those manufactured homes whose owners or purchasers have exercised said option as any other site-built residence and shall permit lending institutions to treat said manufactured homes as real property or as any other residence.
  3. The form of the declaration shall be prescribed by the state tax commission. Any form used shall have attached to it the certificate of origin or the original title to the manufactured home to allow a reversal of the declaration as provided in section 63-305, Idaho Code.
History.

I.C.,§ 63-304, as added by 1996, ch. 98, § 4, p. 308; am. 2002, ch. 61, § 1, p. 130.

STATUTORY NOTES

Compiler’s Notes.

For more on the federal home loan mortgage corporation (Freddie Mac), see http://www.freddiemac.com .

For more on the federal national mortgage association (Fannie Mae), see http://www.fanniemae.com/portal/index.html .

CASE NOTES

Decisions Under Prior Law
Application.

Where parties entered into a deed of trust which encumbered a parcel of land, and the lender, in approving the loan, relied upon an appraisal which valued both the land and the mobile home, the court concluded that the parties intended to include both the land and the mobile home within the encumbrance of the deed of trust. In re Sasinouski, 52 Bankr. 67 (Bankr. D. Idaho 1985).

Legislative Intent.

This section was intended to benefit buyers of mobile homes, not burden their financiers; it provides a method for a mobile home purchaser to legally bind himself to treat his mobile home as real property. Such a filing is to protect a lender by forcing a borrower to commit himself, rather than to protect the mobile home purchaser from a lender who would otherwise provide long-term financing. In re Sasinouski, 52 Bankr. 67 (Bankr. D. Idaho 1985).

§ 63-305. Reversal of declaration which treats a manufactured home as real property.

  1. Once a manufactured home has been converted to real property under the provisions of section 63-304, Idaho Code, it shall be deemed a fixture and an improvement to the real property to which it is affixed. Physical removal shall be prohibited without the consent of all persons or entities who, at the time of removal have an interest in the real property or title to any estate in the real property to which the manufactured home has been affixed. The homeowner shall obtain a title report from a title insurance company which shall establish the identity of those individuals or entities whose consent must be obtained. Consent to removal of the manufactured home shall not be required from the owners of rights-of-way, easements or owners of subsurface rights.
  2. Physical removal shall include, without limitation, the separation of the manufactured home from the foundation system, except for the temporary purposes of repair or improvement thereto.
  3. At least thirty (30) days before the manufactured home is to be removed, the homeowner shall give written notice of the intended removal to the county assessor in the county in which the real property is located. The county assessor shall require written evidence that the necessary consents have been obtained from those persons or entities identified in the title report as required in the provisions of subsection (1) of this section. In addition, removal shall be prohibited until the county tax collector has given written approval for the removal of the manufactured home by certifying that all property taxes, due and payable, have been paid.
  4. The homeowner shall, within five (5) days of removal, make application for the issuance of a certificate of title for the manufactured home. Prior to the issuance of a certificate of title, the declaration of reversal shall be recorded. Immediately upon issuance of a certificate of title, the manufactured home shall again become personal property for the purpose of financing and for the purpose of taxation shall be assessed pursuant to section 63-302, Idaho Code.
  5. The state tax commission shall prescribe the forms to be used by the county assessor to reverse the option exercised under the provisions of section 63-304, Idaho Code, which created the real property designation.
  6. A homeowner who physically removes a manufactured home in violation of the provisions of this section shall be liable for all legal costs and fees, together with actual expenses incurred to restore the real property to its former condition. Any judgment obtained pursuant to this section may be recorded as a lien upon the manufactured home removed from the property.
History.

I.C.,§ 63-305, as added by 1996, ch. 98, § 4, p. 308; am. 2002, ch. 61, § 2, p. 130.

§ 63-306. Listing of property by owner, agent or fiduciary.

  1. All property required to be listed and assessed under the provisions of this title shall be listed by the owner or his agent, except as hereinafter provided:
    1. The property of a minor shall be listed by his guardian, or by the person having such property in charge.
    2. The property of a person determined by a court to be legally incompetent, by the person having charge of such property.
    3. The property of a person for whose benefit it is held in trust, by the trustee.
    4. The property of a deceased person, by the executor or administrator.
    5. The property of a person or corporation whose assets are in the hands of a receiver, by the receiver or his agent.
    6. The property of a corporation, by the president, secretary, treasurer or other proper agent or officer.
    7. The property of a firm, partnership, limited liability company, association or company, or other such entities as recognized by the state of Idaho, by a partner, member or agent.
    8. Property in litigation in possession of a receiver, or of any county officer, or officer of a court, by the custodian thereof.
  2. Whenever property is listed to any person in a representative capacity, his representative designation must be added to his name, and such property must be entered upon the property roll separate and apart from any individual property of such person.
History.

I.C.,§ 63-306, as added by 1996, ch. 98, § 4, p. 308.

CASE NOTES

Decisions Under Prior Law
Ownership of Property.

Throughout the statutes dealing with the taxation of real and personal property in Idaho runs the concept that the owner of the record title is the person to be considered as the taxpayer. Russet Potato Co. v. Board of Equalization, 93 Idaho 501, 465 P.2d 625 (1970).

§ 63-307. Ownership identification.

  1. The assessor shall ascertain the current ownership of land from documents recorded in the county recorder’s office and/or from evidence of ownership furnished to the assessor which is admissible at trial in a civil action pursuant to section 54-103, Idaho Code.
  2. Whenever any person is the owner of, or has contracted to purchase, either an undivided or defined portion of any real property assessed as a whole, such owner or purchaser, upon producing his deed, contract or other muniment of title, to the assessor at any time before the assessor has completed the assessment for that year, may have such assessment changed and corrected accordingly.
  3. No mistake in the name of the owner or failure to designate such owner shall in any manner affect the validity of the assessment or tax lien.
  4. If the ownership of any property is not known, such property must be assessed in the name of “unknown owner.”
History.

I.C.,§ 63-307, as added by 1996, ch. 98, § 4, p. 308; am. 1997, ch. 215, § 1, p. 635.

§ 63-308. Valuation assessment notice to be furnished taxpayer.

  1. At the taxpayer’s request, on a form provided by the assessor, the valuation assessment notice may be transmitted electronically to the taxpayer.
  2. The valuation assessment notice required under the provisions of this chapter shall be delivered or may be transmitted electronically, as that term is defined in section 63-115, Idaho Code, if electronic transmission is requested by the taxpayer, to the taxpayer, or to his agent or representative, or mailed to the taxpayer, or to his agent or representative at his last known post office address no later than the first Monday in June. The original valuation assessment notice so mailed or transmitted electronically must contain notices of all meetings of the board of equalization prescribed by this title for the purposes of equalizing assessments of property, and for granting exemptions from taxation. The notice shall, in clear terms, inform the taxpayer of the assessed market value for assessment purposes of his property for the current year, and his right to appeal to the county board of equalization. The state tax commission may require that other data or information be shown on the form.
  3. In case any changes or corrections are made by the assessor from the original valuation assessment notice, the assessor shall immediately transmit electronically or mail a corrected valuation assessment notice to the taxpayer, or his agent or representative.
  4. If the taxpayer is one other than the equitable titleholder, such as an escrowee, trustee of trust deed or other third party, the taxpayer shall transmit electronically or mail to the equitable titleholder a true copy of the valuation assessment notice on or before the second Monday in June.
  5. For property entered and assessed on the subsequent property roll pursuant to section 63-311, Idaho Code, the valuation assessment notice shall be transmitted electronically to the taxpayer, his agent or representative, or mailed to the taxpayer, or to his agent or representative at his last known post office address as soon as possible after it is prepared, but not later than the fourth Monday in November.
  6. For property entered and assessed on the missed property roll pursuant to section 63-311, Idaho Code, the valuation assessment notice shall be transmitted electronically to the taxpayer, his agent or representative, or mailed to the taxpayer, or to his agent or representative at his last known post office address as soon as possible after it is prepared, but not later than the first Monday of January of the following year.
History.

I.C.,§ 63-308, as added by 1996, ch. 98, § 4, p. 308; am. 2013, ch. 191, § 1, p. 472.

STATUTORY NOTES

Cross References.

County commissioners as a board of equalization, dates of meetings,§ 63-501.

Taxpayer’s property declaration,§ 63-302.

Amendments.

The 2013 amendment, by ch. 191, substituted “transmitted electronically” for “delivered” in subsections (2), (5), and (6); inserted present subsection (1) and redesignated former subsections (1) through (5) as subsections (2) through (6); inserted “or may be transmitted electronically, as that term is defined in section 63-115, Idaho Code, if electronic transmission is requested by the taxpayer” in the first sentence of subsection (2); and substituted “transmit electronically or mail” for “deliver” in subsections (3) and (4).

§ 63-309. Improvements on exempt and railroad rights-of-way lands — Equity in state property.

  1. All taxable improvements on government, Indian, state, county, municipal or other lands exempt from taxation, and all improvements on all railroad rights-of-way owned separately from the ownership of the rights-of-way upon which the same stands, or in which nonexempt persons have possessory interests, shall be assessed and taxed as personal property, provided that such improvements shall not be eligible for the exemption provided in section 63-602KK, Idaho Code.
  2. Property of the state of Idaho or any department, agency or subdivision thereof, or any other property not subject to property taxation to the owner thereof by reason of the legal status of the owner, held under contract of sale or lease with option to purchase, with lease moneys applicable to the purchase price, by any person, corporation or other association for his or its exclusive use, shall be subject to the purchaser or lessee for property taxation. When such property is held under a contract of sale or other agreement whereby on certain payment or payments the legal title is or may be acquired by such person, firm, corporation or association, such property shall be assessed to such person, firm, corporation or association and taxed without deduction on account of the whole or any part of the purchase price or other sum due on such property remaining unpaid. The lien for any such property tax shall neither attach to, impair or be enforced against any interest of the state of Idaho or any department, agency or subdivision thereof.
  3. Refusal to pay the property tax levied upon any equity in state property by the owner upon demand by the tax collector shall operate as forfeiture of such equity.
History.

I.C.,§ 63-309, as added by 1996, ch. 98, § 4, p. 308; am. 2014, ch. 357, § 3, p. 886.

STATUTORY NOTES

Cross References.

Equities in state lands subject to assessments,§ 58-320.

Amendments.

The 2014 amendment, by ch. 357, added “provided that such improvements shall not be eligible for the exemption provided in section 63-602KK, Idaho Code” at the end of subsection (1).

Compiler’s Notes.

S.L. 2014, chapter 357 became law without the signature of the governor.

Effective Dates.

Section 8 of S.L. 2014, ch. 357 declared an emergency and made this section retroactive to January 1, 2014.

CASE NOTES

Decisions Under Prior Law
Application.

This section applies to ad valorem taxation of personal property and does not apply to a sales tax determination. Richardson v. State Tax Comm’n, 100 Idaho 705, 604 P.2d 719 (1979).

Assessment Value.

In determining value at which land purchased from state should be assessed, the trial court properly directed that the contract purchase price be employed for the sole purpose of determining purchaser’s equity in the land. Stewart v. Common Sch. Dist. No. 17, 66 Idaho 118, 156 P.2d 194 (1945).

Improvements on Leaseholds.

Where land in Idaho owned by the United States government in trust for certain Indian allottees was leased by the United States to plaintiff for 25 years with an option to renew for an additional 25 years, and plaintiff built a potato storage warehouse on the land with a useful life of 50 to 75 years with the ownership of the warehouse, by the terms of the lease, to be in the United States, but the use thereof to belong to plaintiff for the duration of the lease; plaintiff was not obliged to pay Idaho ad valorem taxes on the warehouse since it was owned by the United States and therefore exempt from such taxation, and no Idaho statute provided for taxation of plaintiff’s possessory interest in the premises. (In 1969 this section was amended to provide for taxation of such possessory interests.) Russet Potato Co. v. Board of Equalization, 93 Idaho 501, 465 P.2d 625 (1970).

Listing Fatal to Assessment.

Improvements on lands of the United States are not real estate and listing thereof as such is fatal to assessment. People v. Owyhee Lumber Co., 1 Idaho 420 (1871).

Reason for Enactment.

At the time of enactment of this section the legislature was aware of the fact that normally improvements on real estate become a part of the realty, but in the case of improvements on government or state lands, an exception to this general law was made because of the fact that the real estate on which improvements were situate could not be assessed or taxed, by reason of the government or state ownership. Russet Potato Co. v. Board of Equalization, 93 Idaho 501, 465 P.2d 625 (1970).

OPINIONS OF ATTORNEY GENERAL
Indian Lands.

Former§ 63-1223 which was repealed effective January 1, 1997, and is similar to this section, addressed the taxation of improvements on “Indian lands . . . exempt from taxation,” and where nothing in the section implied what land may or may not be taxable or exempt, absent a statute specifically broadening the tax exemption of Indian lands beyond that required by federal law, it must be assumed that the legislature intended to recognize the tax-exempt status of Indian lands only to the extent required by federal treaties and statutes.OAG 96-2.

§ 63-310. Completion and delivery of property roll.

The assessor must certify the completion of the property roll on or before the fourth Monday of June in each year, and must, on or before that date, deliver the completed property roll, together with all claims for exemptions from assessment or taxation to the clerk of the board. The property roll and claims for exemptions must remain in the office of the clerk until the second Monday of July for the inspection of all persons interested.

History.

I.C.,§ 63-310, as added by 1996, ch. 98, § 4, p. 308.

CASE NOTES

Decisions Under Prior Law
Appeal to District Court.

On appeal from the county board of equalization, the district court was required to explicitly find on what basis other property in the county was generally assessed, and the general rate of assessment made by the assessor and board on lands of appealing party, before bringing assessment on appealing party’s land in line with other assessments in the county. McGoldrick Lumber Co. v. Benewah County, 54 Idaho 704, 35 P.2d 659 (1934).

Validity of Assessment.

The failure of the assessor to take or subscribe such affidavit shall not in any manner affect the validity of such assessment. Armstrong v. Jarron, 21 Idaho 747, 125 P. 170 (1912).

§ 63-311. Completion and delivery of subsequent and missed property rolls.

  1. The assessor shall assess all personal property and all improvements to real property except as otherwise provided in section 63-317, Idaho Code, which have been completed or discovered between the fourth Monday of June and the fourth Monday of November and which were not included on the property roll delivered on the fourth Monday of June, and shall enter such assessments on the subsequent property roll to be delivered to the clerk of the board on the fourth Monday of November of the current year.
  2. If other real or personal property is discovered and assessed between the fourth Monday of November and December 31st, it shall be assessed and entered on the missed property roll to be delivered to the clerk of the board on the first Monday of January of the following year.
  3. Personal property coming into the state from without the state after the first day of January shall be assessed as of the date of its entry into the state as follows; if before the first day of April, for its full market value for assessment purposes; if on the first day of April and before the first day of July, for three-fourths (3/4) of its full market value for assessment purposes; if on the first day of July and before the first day of October, for one-half (1/2) of its full market value for assessment purposes; and if on the first day of October and on or before the thirty-first day of December, for one-fourth (1/4) of its full market value for assessment purposes, and the taxes so levied thereupon shall be a first and prior lien on such property from the date of its entry into the state so assessed, and upon all other personal or real property, belonging to the same owner, and no personal property of any kind shall be exempt from such lien.
History.

I.C.,§ 63-311, as added by 1996, ch. 98, § 4, p. 308.

CASE NOTES

Improper Placement on Rolls.

Costs and attorney fees were awarded to a taxpayer in an appeal from a county assessor’s decision to assess property as non-operating after it had already been assessed as operating by the Idaho tax commission, because there was no reasonable basis for the decision to include the real property on the tax rolls under§ 63-311. The assessment amounted to double taxation. Union Pac. Land Res. Corp. v. Shoshone County Assessor, 140 Idaho 528, 96 P.3d 629 (2004).

§ 63-312. Affidavit to completed roll — Effect of failure to make affidavit.

  1. The county assessor, at the time of delivery of the property roll, subsequent property roll or missed property roll to the clerk of the board, must subscribe an affidavit that the property roll, subsequent property roll or missed property roll is, to the best of his knowledge and ability, a true and complete statement of market value for assessment purposes of all property subject to appraisal by him and that he has faithfully complied with all the duties imposed upon him under law.
  2. Failure by the assessor to make the affidavit shall not affect the validity of any appraisal entered on the property roll, subsequent property roll or missed property roll. The making of such affidavit, however, is declared to be a duty pertaining to the office of the assessor, and when the same is to be made by the deputy assessor it shall be the duty of the assessor to have the same properly made. In every case where the said affidavit is omitted from any assessment roll as completed as aforesaid, the board of county commissioners must require the assessor to make the same, or have the same made by the deputy assessor, and upon refusal or neglect of such assessor to supply such affidavit forthwith, the chairman of the board of county commissioners must immediately file in the district court in the county any [an] information, in writing, verified by his oath, charging such assessor with refusal or neglect to perform the official duties pertaining to his office, and thereupon he must be proceeded against as in such cases provided by law.
History.

I.C.,§ 63-312, as added by 1996, ch. 98, § 4, p. 308.

STATUTORY NOTES

Compiler’s Notes.

The bracketed insertion near the end of subsection (2) was added by the compiler to supply the probable intended term.

§ 63-313. Special provisions for transient personal property.

  1. All transient personal property shall be listed by the owner and shall show the quantity, name, model, serial number, if any, year of manufacture, 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 property 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 identified 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 personal property in transit through this state, or to transient personal property 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 property 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 over 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.
History.

I.C.,§ 63-313, as added by 1996, ch. 98, § 4, p. 308; am. 2008, ch. 400, § 7, p. 1101.

STATUTORY NOTES

Amendments.

The 2008 amendment, by ch. 400, added subsection (5).

Effective Dates.

Section 10 of S.L. 2008, ch. 400 provided that the act should take effect on and after January 1, 2009.

§ 63-314. County valuation program to be carried on by assessor.

  1. It shall be the duty of the county assessor of each county in the state to conduct and carry out a continuing program of valuation of all taxable properties under his jurisdiction pursuant to such rules as the state tax commission may prescribe, to the end that all parcels of property under the assessor’s jurisdiction are assessed at current market value. In order to promote uniform assessment of property in the state of Idaho, taxable property shall be appraised or indexed annually to reflect current market value. In order to achieve this goal, all taxable property in a county shall be appraised at least once every five (5) years, except as provided in subsection (6). Beginning in 2003, or year one (1) of any five (5) year cycle not less than fifteen percent (15%) of the taxable properties in the county shall be appraised during that year; by the end of year two (2) not less than thirty-five percent (35%) of the taxable properties in the county shall have been appraised during that year and the previous year; by the end of year three (3) not less than fifty-five percent (55%) of the taxable properties in the county shall have been appraised during that year and the previous two (2) years; by the end of year four (4) not less than seventy-five percent (75%) of the taxable properties in the county shall have been appraised during that year and the previous three (3) years; and by the end of year five (5) all one hundred percent (100%) of the taxable properties within the county shall have been appraised during that year and the previous four (4) years. Annually, all taxable property, not appraised that year, shall be indexed to reflect current market value for assessment purposes using market value property transactions and results of the annual appraisal of taxable property. The county assessor shall maintain in the respective offices sufficient records to show when each parcel or item of property was last appraised. The appraisal required by this section shall include a plan outlining the continuing valuation program. Said plan shall be submitted to the state tax commission for approval on or before the first Monday in February, 1997, and no less frequently than every fifth year thereafter. The state tax commission shall not approve any plan that fails to provide for adequate appraisal and valuation of all taxable properties in any county.
  2. The state tax commission is hereby authorized, empowered and directed to promulgate rules for the implementation of this program, and to provide any such county assessor with such supervision and technical assistance as may be necessary.
  3. The county commissioners of each county shall furnish the assessor with such additional funds and personnel as may be required to carry out the program hereby provided, and for this purpose may levy annually a property tax of not to exceed four-hundredths percent (.04%) of the market value for assessment purposes on all taxable property in the county to be collected and paid into the county treasury and appropriated to the property valuation fund which is hereby created. (4) If compliance with the requirements of subsection (1) is not obtained, or if any county fails to meet the goals set in subsection (1), the state tax commission may proceed as required by section 63-316, Idaho Code. If a county fails to meet the timelines in subsection (1), the state tax commission shall require a remediation plan.
  4. If compliance with the requirements of subsection (1) is not obtained, or if any county fails to meet the goals set in subsection (1), the state tax commission may proceed as required by section 63-316, Idaho Code. If a county fails to meet the timelines in subsection (1), the state tax commission shall require a remediation plan.
  5. As used in this section the term “adequate appraisal and valuation of all taxable properties in any county” means a process which includes a field inspection of not less than the number of taxable properties necessary to meet the requirements of subsection (1). Appraisal also includes collection, verification and analysis of market value sales, applicable income and expense data and building cost information, and application of this information to predict market value.
  6. The board of county commissioners may request that the Idaho state tax commission grant an extension of the five (5) year reappraisal deadline set forth in subsection (1). The request shall be in writing and shall set forth the reason(s) that the county is unable to complete the reappraisal process as required by subsection (1) and shall set forth the measures the county will undertake in order to complete the reappraisal program within the extension of time requested. In no case shall an extension exceed two (2) years. The state tax commission may approve or deny any request for an extension and shall notify the board of county commissioners of its decision in writing. The state tax commission shall not approve any extension absent a showing by the county of extraordinary circumstances. Extraordinary circumstances may include, but are not limited to, natural disasters or unforeseen circumstances that result in extreme financial hardship to the county. Circumstances that will not qualify for an extension may include, but are not limited to, failure to adequately fund the county valuation program as provided by this section, malfeasance, or mismanagement by a current elected official. The state tax commission shall not grant the extension provided in this section if studies conducted by the commission indicate that any category of property affected by such extension is not assessed at market value.
  7. The Idaho state tax commission shall report back to the Idaho house of representatives revenue and taxation committee and the senate local government and taxation committee whenever an extension authorized under subsection (6) is granted.
History.

I.C.,§ 63-314, as added by 1996, ch. 98, § 4, p. 308; am. 1997, ch. 117, § 14, p. 298; am. 2000, ch. 196, § 1, p. 486; am. 2003, ch. 34, § 1, p. 152.

STATUTORY NOTES

Compiler’s Notes.

The “s” enclosed in parentheses so appeared in the law as enacted.

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997. Section 2 of S.L. 2000, ch. 196 declared an emergency retroactively to January 1, 2000 and approved April 4, 2000.

CASE NOTES

Cited

Wurzburg v. Kootenai County, 155 Idaho 236, 308 P.3d 936 (Ct. App. 2013).

Decisions Under Prior Law
Constraints on Valuation Program.

While personnel and budget constraints are not an absolute defense under this section, the limitations of time and staff are factors to be taken into consideration, since the court must be cognizant of the practicalities of budget constraints when it comes to discharging governmental functions. Justus v. Board of Equalization, 101 Idaho 743, 620 P.2d 777 (1980).

Contract for Revaluation.

Contracts between county and appraiser for revaluation of county real property for tax purposes were not void as violative of Idaho Const., Art. VIII, § 3 which prohibits creation of unlimited county liability without voter approval; the expenditures at issue here were not only ordinary and necessary and authorized by the general laws of the state, but were required and mandated. Coeur d’Alene Lakeshore Owners & Taxpayers, Inc. v. Kootenai County, 104 Idaho 590, 661 P.2d 756 (1983).

Cyclical Revaluation Program.

This section prior to the 1979 amendment contemplated a five year cyclical revaluation program, but such a cyclical program was not mandatory. Justus v. Board of Equalization, 101 Idaho 743, 620 P.2d 777 (1980).

Multi-Year Valuation Program.

A multi-year program of property valuation for all properties within county assessor’s jurisdiction pursuant to this section, prior to its 1979 amendment, and which immediately reassessed plaintiff’s property but delayed other property until the final year of the plan, did not violate Idaho Const., Art. VII, § 5, since the plan was not arbitrary, capricious nor discriminatory as to plaintiff. Brammer v. Latah County Assessor, 102 Idaho 437, 631 P.2d 219 (1981).

§ 63-315. Assessment ratios and the determination of adjusted market value for assessment purposes for school districts.

  1. The provisions of this section shall apply only to charter districts levying a maintenance and operation levy in the prior calendar year. For the purpose of this section, adjusted market value for assessment purposes shall be the adjusted market value for assessment purposes of all property assessed for property tax purposes for the year referred to in sections 33-802 and 33-1002, Idaho Code.
  2. The state tax commission shall conduct a ratio study to annually ascertain the ratio between the assessed value and the market value for assessment purposes of all property assessed for property tax purposes. Said ratio study shall be conducted in accordance with nationally accepted procedures. From the ratio so ascertained the state tax commission shall compute the adjusted market value of all property assessed for property tax purposes.
  3. The ratio shall be computed in each school district and applied to the market value for assessment purposes within each school district.
  4. Sales used in determining the ratio required by this section shall be arm’s length, market value property sales occurring in the year beginning on October 1 of the year preceding the year for which the adjusted market value is to be determined. The state tax commission may, at its discretion, modify the sales period when doing so produces provably better representativeness of the actual ratio in any school district. The state tax commission may also add independently conducted appraisals when the state tax commission believes that this procedure will improve the representativeness and reliability of the ratio.
  5. Whenever the state tax commission is unable to determine with reasonable statistical certainty that the assessed value within any school district differs from the market value for assessment purposes, the state tax commission may certify the assessed value to be the adjusted market value of any school district.
  6. The state tax commission shall certify the adjusted market value of each school district to the state department of education and each county auditor no later than the first Monday in April each year. The state tax commission shall prepare a report indicating procedures used in computing the adjusted market value and showing statistical measures computed in the ratio study. The report of the state tax commission shall be made available for public inspection in the office of the county auditor.
  7. The state tax commission shall promulgate rules to implement the ratio study described in this section.
History.

I.C.,§ 63-315, as added by 1996, ch. 98, § 4, p. 308; am. 1998, ch. 102, § 1, p. 350; am. 2006 (1st E.S.), ch. 1, § 15; am. 2016, ch. 87, § 1, p. 273.

STATUTORY NOTES

Amendments.

The 2006 amendment, by ch. 1 (1st E.S.), effective January 1, 2006, added the first sentence in Subsection (1).

The 2016 amendment, by ch. 87, in subsection (6), deleted the former next-to-last sentence, which read: “This report shall be submitted to the state department of education at the same time as the certification of adjusted market value”.

Compiler’s Notes.

Section 1 of S.L. 2006 (1st E.S.), ch. 1, provides: “This act may be known and cited as the ‘Property Tax Relief Act of 2006’.”

§ 63-316. Adjustment of assessed value — Completion of assessment program by state tax commission — Payment of costs.

  1. Whenever the state tax commission, after a hearing, determines that any county assessor or the county commissioners in assessing property in the county subject to taxation have failed to abide by, adhere to and conform with the laws of the state of Idaho and the rules of the state tax commission in determining market value for assessment purposes, the state tax commission shall order the county assessor and county commissioners of such county to make the necessary changes or corrections in such assessments and if the county assessor and the county commissioners refuse or neglect to comply with such order, the state tax commission is authorized to and shall forthwith adjust or change the property roll in such county.
  2. In lieu of the hearings and actions permitted in subsection (1) of this section, the state tax commission shall monitor each county’s implementation of the continuing appraisal required in section 63-314, Idaho Code, and may require each county to file such reports of its progress at implementation of such continuing appraisals as the commission may find necessary. In the event that the commission finds that any county is failing to meet the requirements of section 63-314, Idaho Code, the commission may order that county’s indexing or appraisal or reappraisal programs be conducted under the exclusive and complete control of the state tax commission and the results of such programs shall be binding upon the county officers of the county for which ordered. Payments for the actual costs of such programs shall be made from the sales tax distribution created in section 63-3638, Idaho Code, and the amount of such payments shall be withheld from the payments otherwise made under the provisions of section 63-3638(10)(b) and (10)(c), Idaho Code, to the county for which indexing, appraisal or reappraisal has been ordered, and this subsection shall constitute the necessary appropriation to accomplish such payments, any other provision of law notwithstanding.
History.

I.C.,§ 63-316, as added by 1996, ch. 98, § 4, p. 308; am. 2000, ch. 207, § 1, p. 527; am. 2001, ch. 130, § 2, p. 451; am. 2009, ch. 341, § 141, p. 993; am. 2020, ch. 162, § 3, p. 470.

STATUTORY NOTES

Amendments.

The 2009 amendment, by ch. 341, updated the section reference in the last sentence in subsection (2).

The 2020 amendment, by ch. 162, substituted “section 63-3638(10)(b) and (10)(c), Idaho Code” for “section 63-3638(10)(c) and (10)(d), Idaho Code” near the middle of the last sentence in subsection (2).

Effective Dates.

Section 161 of S.L. 2009, ch. 341 provided that the act should take effect on and after January 1, 2011.

§ 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:
    1. 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
    2. Use of the property for any business or commercial purpose unrelated to the construction and sale of the property; or
    3. 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.
    1. 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.
    2. 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:
      1. 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.
    3. 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.
History.

I.C.,§ 63-317, as added by 1996, ch. 98, § 4, p. 308; am. 1997, ch. 117, § 15, p. 298; am. 2003, ch. 364, § 1, p. 972; am. 2004, ch. 260, § 1, p. 735; am. 2006, ch. 302, § 1, p. 931; am. 2013, ch. 21, § 2, p. 36; am. 2014, ch. 77, § 2, p. 202; am. 2019, ch. 31, § 1, p. 85.

STATUTORY NOTES

Cross References.

All property subject to taxation,§ 63-203.

Amendments.

The 2006 amendment, by ch. 302, in the introductory paragraph of subsection (2), inserted “and industrial,” and added the third sentence.

The 2013 amendment, by ch. 21, substituted “April 15” for “January 1” near the end of paragraph (3)(b). The 2014 amendment, by ch. 77, inserted the fourth sentence in the introductory language of subsection (2) and rewrote the first sentence in paragraph (3)(b), which formerly read: “Upon completion of the appraisal, the county assessor shall notify the owner of the appraisal, and further shall notify the owner of their right to apply for the exemption provided in sections 63-602G and 63-602X, Idaho Code”.

The 2019 amendment, by ch. 31, in subsection (3), paragraph (b), added the paragraph (i) designation to the existing provisions and added paragraph (ii).

Compiler’s Notes.

Section 20 of S.L. 1996, ch. 98 read: “Section 20. Existing Rules Remain in Effect. All rules heretofore adopted by the state tax commission and in effect on the effective date of this act shall remain in full force and effect unless and until superseded or replaced by rules duly adopted by the commission, or until the same are rejected, amended or modified by the legislature in accordance with the provisions of chapter 52, title 67, Idaho Code, or until they expire as provided in section 67-5292, Idaho Code.”

Effective Dates.

Section 21 of S.L. 1996, ch. 98 provided that the act shall be in full force and effect on January 1, 1997.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

Section 2 of S.L. 2004, ch. 260 declared an emergency retroactively to January 1, 2004. Approved March 23, 2004.

Section 4 of S.L. 2006, ch. 302 declared an emergency retroactively to January 1, 2006 and approved March 31, 2006.

Section 4 of S.L. 2014, ch. 77 declared an emergency and made this section retroactive to January 1, 2013.

Section 10 of S.L. 2019, ch. 31 declared an emergency and made this section retroactive to January 1, 2019. Approved February 20, 2019.

CASE NOTES

Exclusive Remedy.

Taxpayers’ exclusive remedy for attacking the county’s valuation of their property was the procedure set forth in subsection (4) [now (3)(b)] of this section; taxpayers tried to characterize their claims as a defective tax assessment notice, but in substance they sought judicial relief from the county assessor’s decision determining their occupancy tax liability. Castrigno v. McQuade, 141 Idaho 93, 106 P.3d 419 (2005).

Failure to Exhaust Remedies.
District court properly concluded that it lacked subject matter jurisdiction to consider the taxpayers’ request for a property tax refund where the taxpayers had not exhausted their administrative remedies; it was apparent that the claim for a property tax refund was in fact an attempt to appeal their occupancy tax assessment. Castrigno v. McQuade, 141 Idaho 93, 106 P.3d 419 (2005). Decisions Under Prior Law
Failure to Report.

When a landowner builds a new residence and fails to notify the assessor of the date of occupancy pursuant to this section, the new residence can constitute “inadvertently omitted property” within the meaning of§ 63-306. Hermann v. Blaine County Bd. of Comm’rs, 126 Idaho 970, 895 P.2d 571 (1995).

Tax Liability Upon Date of Occupancy.

In construing this section, the legislature intended for owners to be liable for taxes on the improvement from the date of occupancy, and, if they do not notify the assessor of the date of occupancy, they are still liable for the tax, plus interest and penalties. Hermann v. Blaine County Bd. of Comm’rs, 126 Idaho 970, 895 P.2d 571 (1995).

RESEARCH REFERENCES

ALR.

§ 63-318. Park model recreational vehicle to constitute personal property.

A park model recreational vehicle shall constitute personal property if not registered under the provisions of chapter 4, title 49, Idaho Code. Park model recreational vehicles shall not constitute real property. As used in this section, “park model recreational vehicle” has the same meaning as set forth in section 63-3622HH, Idaho Code.

History.

I.C.,§ 63-318, as added by 2017, ch. 134, § 13, p. 312.

Chapter 4 APPRAISAL, ASSESSMENT AND TAXATION OF OPERATING PROPERTY

Sec.

§ 63-401. Operating property assessed by state tax commission.

Operating property, completed or under construction, shall be assessed by the state tax commission. The state tax commission shall identify property to be included as operating property for assessment purposes. Property assessed by the state tax commission shall not be subject to another assessment by any county assessor. A decision by the state tax commission under this section may only be appealed as provided in sections 63-407 and 63-409, Idaho Code.

History.

I.C.,§ 63-401, as added by 1996, ch. 98, § 5, p. 308; am. 1998, ch. 400, § 2, p. 1249; am. 2002, ch. 135, § 1, p. 370.

STATUTORY NOTES

Effective Dates.

Section 2 of S.L. 2002, ch. 135 declared an emergency retroactively to January 1, 2002. Approved March 20, 2002.

CASE NOTES

Factors Considered in Valuation.

Where certain regulatory assets did not generate income, the Idaho tax commission did not err by failing to add them to the cost approach in valuing the property. Idaho Power Co. v. Idaho State Tax Comm’n, 141 Idaho 316, 109 P.3d 170 (2005).

Operating Property.

Idaho tax commission was required to first determine if property should be classified as operating property. Then, and only then, could an assessor either petition for a writ of review to dispute the classification or assess the property, if it was non-operating property, depending upon the commission’s definition of operating property. Therefore, a district court properly granted summary judgment in favor of a taxpayer in a case where a county assessor assessed property as non-operating after the same property had already been assessed as operating by the commission. Union Pac. Land Res. Corp. v. Shoshone County Assessor, 140 Idaho 528, 96 P.3d 629 (2004).

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-402. Nonoperating property assessed by county assessor.

All property belonging to any person owning, operating or constructing any public utility or railroad, wholly or partly within this state, not included within the meaning of the term “operating property” as defined in this title, namely, property not reasonably necessary for the maintenance and operation of such public utility or railroad, including land or buildings rented by a company or corporation as lessee which is used as or in connection with its business, such as business offices, warehouses, service centers, moorage grounds or docks, vacant lots and tracts of land, and lots and tracts of land with the buildings thereon not used or intended to be used in the operation of such public utility or railroad, also tenement and resident property, except section houses, also hotels and eating houses, not situated adjacent to the main track of any such railroad, shall be assessed by the assessor of the county wherein the same is situated.

History.

I.C.,§ 63-402, as added by 1996, ch. 98, § 5, p. 308.

CASE NOTES

Operating Property.

Idaho tax commission was required to first determine if property should be classified as operating property. Then, and only then, could an assessor either petition for a writ of review to dispute the classification or assess the property, if it was non-operating property, depending upon the commission’s definition of operating property. Therefore, a district court properly granted summary judgment in favor of a taxpayer in a case where a county assessor assessed property as non-operating after the same property had already been assessed as operating by the commission. Union Pac. Land Res. Corp. v. Shoshone County Assessor, 140 Idaho 528, 96 P.3d 629 (2004).

§ 63-403. Operator representative of owner.

Any person operating a public utility, railroad or private railcar fleet in this state shall be representative of every title and interest in the operating property and franchises of said public utility, railroad or private railcar fleet as owner, lessee or otherwise, and notice to such person, or his agent or representative, shall be notice to all interests in such property for the purpose of taxation. The assessment of such operating property in the name of the owner, lessee or operating company, shall be deemed and held to be an assessment of all title and interest in such property of every kind and nature.

History.

I.C.,§ 63-403, as added by 1996, ch. 98, § 5, p. 308.

§ 63-404. Operator’s statement — Arbitrary assessment.

  1. Every person owning, operating or constructing, either as owner or lessee, any public utility, railroad or private railcar fleet which is not exempt from taxation under the provisions of this title, shall prepare or cause to be prepared an annual statement showing all property subject to assessment by the state tax commission, together with such pertinent information as may be required on forms supplied by the state tax commission for such purposes, which statement and forms must be signed by the owner or lessee, or the president, secretary, auditor, superintendent or principal accounting officer or agent of such person, and delivered to the state tax commission on or before such time as the state tax commission may determine, and the state tax commission must file such statement and forms in its office.
  2. The statement must contain such information as the state tax commission determines to be necessary for it to properly assess the operating property. This information shall include, unless otherwise specified, such a general description of the property of such owner or lessee situated or operated in the state of Idaho as would be sufficient to identify the same for all purposes of assessment; the entire length of the system, the length of the system within this state, the length of the line owned and the length of the line operated for the whole system and in this state being separately shown; the total number of miles of each line within the state, the number of miles of main line, branch line, second track, siding and spurs being shown and the number of miles within any county, and within any incorporated city, and within any school or other taxing district into or through which said line extends; the total number of shares of capital stock for the whole system; the amount authorized, the amount issued, the amount outstanding and the dividends paid thereon being separately shown; the market and actual value of the shares of capital stock for the whole system; the funded debt for the whole system; and a detailed statement of all series of bonds, debentures and other securities forming part of the funded debt, at par value, with date of issue, date of maturity, rate of interest and interest paid; the market and actual cash values of such series of funded debt for the whole system; a detailed statement of all capital stock and bonds or other securities of such person, or of other persons, owned by or held in trust, the par value and market and actual value of the same; the entire gross receipts and gross expenses for the entire system each year, ending on the thirty-first day of December; and such other matters and things as may be required in the annual statement supplied by the state tax commission.
  3. In addition to the statement required by this section, every person filing such statement shall, at the same time, furnish to the state tax commission unless otherwise specified, certified copies of the annual reports of the board of directors or other officers to the stockholders, and the annual reports made to the surface transportation board, federal communications commission, federal energy regulatory commission and the securities [and] exchange commission or their successor agencies.
History.

(4) If any person or officer refuses or neglects to furnish the annual statement, list, or copies of the reports required to be furnished under the provisions of this chapter, or refuses or neglects to appear before the state tax commission, or to answer under oath all questions propounded to him in relation to matters necessary to be known by the commission in order to discharge its duties in the assessment of his property or the property of the person represented by him, then the commission shall make an arbitrary assessment of such property, except as otherwise provided in section 63-411, Idaho Code, which shall be as fair and equitable as it may be able to make from the best information it possesses, and any such person shall be estopped to question or impeach any such assessment in any hearing or proceeding thereafter. History.

I.C.,§ 63-404, as added by 1996, ch. 98, § 5, p. 308; am. 1997, ch. 117, § 16, p. 298.

STATUTORY NOTES

Compiler’s Notes.

For more on the surface transportation board, see http://www.stb.dot.gov/stb/index.html .

For more on the federal communications commission, see http://www.fcc.gov .

For more on the federal energy regulatory commission, see http://www.ferc.gov .

The bracketed insertion near the end of subsection (3) was added by the compiler to correct the name of the referenced agency. See http://www.sec.gov .

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

§ 63-405. Assessment of operating property.

  1. The state tax commission must assess all operating property at a meeting of the commission convening on the second Monday of August in each year, and must complete the assessment of such property on the fourth Monday in August.
  2. The state tax commission shall determine the system value and calculate the allocation and apportionment of the system value for all operating property and specifically determine:
    1. The number of miles and the value per mile of each railroad in the state and for each taxing district in which such railroad may exist.
    2. The number of miles and the value per mile of each telephone corporation in the state and for each taxing district in which such telephone corporation may exist.
    3. The number of miles and the value per mile of each pipeline in the state and for each taxing district in which such pipeline may exist.
    4. The number of miles and the value per mile of each water company under the jurisdiction of the public utilities commission in the state, and for each taxing district in which such water company may exist. The value per mile of any line included in this subsection, except railroads, shall be determined by dividing the total value of such line within the state by the number of miles of such line within the state. The value per mile of railroad line shall be determined by apportionment of the total value of line within the state. The apportionment shall be based twenty percent (20%) on the ratio of line miles in the state to line miles in the county; forty percent (40%) on the ratio of net ton miles in the state to net ton miles in the county; and forty percent (40%) on the ratio of station revenues in the state to station revenues in the county. All operating property of railroads shall be apportioned to the counties as part of the railroad line in the county. The apportionment for taxing districts shall be the same as the apportionment among counties.
    5. The system value, the number of miles and the value per mile of each electric current transmission line and each electric current distribution line in each county separately, and for each taxing district within said county in which such transmission and distribution lines may exist. The value per mile of any line included in this subsection shall be determined by dividing the apportioned value of such line within each county by the number of miles of such line within said county.
    6. The system value of private railcar fleets entering or standing in Idaho in the year preceding the constituted lien as provided in section 63-411(3), Idaho Code.
    7. The system value and calculate the allocation and apportionment of the system value for all other operating property.
  3. On and after January 1, 2004, any newly installed or constructed equipment located within a city corporate limit or within five (5) miles of a city corporate limit and used for and in conjunction with the thermal generation of electricity shall be apportioned based on physical location. For purposes of this subsection newly installed or constructed equipment used for and in conjunction with the thermal generation of electricity shall not include the remodeling, retrofitting, rehabilitation, refurbishing or modification of an existing electrical generation facility, or integration or transformation facilities such as substations or transmission lines. Notwithstanding the provisions of section 63-301A, Idaho Code, property apportioned based on physical location pursuant to this subsection shall be placed on the new construction roll. (4) If the value of property of any company assessable under this section is of such a nature that it cannot reasonably be apportioned on the basis of rail, wire, pipeline mileage, such as microwave and radio relay stations, the tax commission may adopt such other method or basis of apportionment to the county and taxing districts in which the property is situate as may be feasible and proper.
History.

I.C.,§ 63-405, as added by 1996, ch. 98, § 5, p. 308; am. 1997, ch. 117, § 17, p. 298; am. 1998, ch. 400, § 3, p. 1249; am. 2004, ch. 105, § 1, p. 379; am. 2006, ch. 302, § 3, p. 931.

STATUTORY NOTES

Cross References.

Correction assessments, procedure,§ 63-410.

Public utilities commission,§ 61-201 et seq.

Amendments.

The 2006 amendment, by ch. 302, added the last sentence in subsection (3).

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

Section 2 of S.L. 2004, ch. 105 declared an emergency retroactively to January 1, 2004. Approved March 19, 2004.

Section 4 of S.L. 2006, ch. 302 declared an emergency retroactively to January 1, 2006 and approved March 31, 2006.

CASE NOTES

Indian Reservations.

Where fuel supplier sold fuel to Indian reservation without directly going on to state lands, the state could not properly levy a tax on the fuel absent a clear congressional intent. Goodman Oil Co. v. Idaho State Tax Comm’n, 136 Idaho 53, 28 P.3d 996 (2001), cert. denied, 534 U.S. 1129, 122 S. Ct. 1068, 151 L. Ed. 2d 971 (2002).

Decisions Under Prior Law
Assessment of Property.

The state board of equalization (now state tax commission) is clothed by statute with authority to assess certain classes and kinds of property, and it has a right to exercise a fair discretion in expressing its judgment as to the valuation of such property; when it has acted and there is no fraud shown in its judgment, its action is not subject to review. Ada County v. Bottolfsen, 61 Idaho 363, 102 P.2d 287 (1940).

Constitutionality.

This section is not unconstitutional because it provides a different tax treatment of the operating property of electric public utilities, as contrasted with the tax treatment of the operating property of all other utilities and railroads. School Dist. No. 25 v. State Tax Comm’n, 101 Idaho 283, 612 P.2d 126 (1980).

Although each county throughout the state is entitled to tax the assessed value of the operating property of electric utilities located within that county’s boundaries, the fact that one county may have a larger or smaller amount of such operating property within its borders as contrasted with some other county does not render this section violative of the constitution. School Dist. No. 25 v. State Tax Comm’n, 101 Idaho 283, 612 P.2d 126 (1980).

The classifications created in this section, i.e., electric utilities as contrasted with all other utilities and railroads, are nonsuspect; therefore, such classification will withstand an equal protection challenge if there is any conceivable state of facts which will support it. School Dist. No. 25 v. State Tax Comm’n, 101 Idaho 283, 612 P.2d 126 (1980).

The mere fact that the amount of taxable operating property located within the state differs from one county to another does not render this section constitutionally prohibited “local” legislation; further, this section is not “special” in nature, thereby rendering it violative of Idaho Const., Art. III, § 19. School Dist. No. 25 v. State Tax Comm’n, 101 Idaho 283, 612 P.2d 126 (1980).

The uniformity clause of Idaho Const., Art. VII, § 5 only requires that the tax rate shall be uniform upon the same class of subjects within the territorial limits of the authority levying the tax; hence, the fact that, under the provisions of this section, the “value per mile” of operating property of an electric utility will differ as between various taxing districts does not render the statute violative of Idaho Const., Art. VII, § 5. School Dist. No. 25 v. State Tax Comm’n, 101 Idaho 283, 612 P.2d 126 (1980).

Electric Transmission Lines.

Board of equalization (now state tax commission) should determine assessed valuation of electric current transmission lines and operating companies by counties instead of by state as a whole, and each county should collect taxes upon assessed valuation of property within its territorial limits but said board has no power to apportion valuations to the different counties of state as its function ends with determining total value of electric company within county and total mileage of its lines. Kootenai County v. State Bd. of Equalization, 31 Idaho 155, 169 P. 935 (1917).

Railroad Valuation.

Where railroad line is double tracked, second track should not be valued and assessed as a separate and distinct line. Pocatello v. Ross, 51 Idaho 395, 6 P.2d 481 (1931).

Time of Assessment.

In computing length of railroad line, sidings and spurs need not be included. Pocatello v. Ross, 51 Idaho 395, 6 P.2d 481 (1931). Time of Assessment.

Provisions of this section as to time of convening and completing assessment are for benefit of the public and not the taxpayer and are, therefore, directory; thus assessment made December 4 after investigation, report, and recommendation by tax commission was not void. Idaho Ry., Light & Power Co. v. Monk, 218 F. 682 (D. Idaho 1914).

Valuation.

There is no provision that findings of value of public utilities commission shall be binding on state board of equalization (now state tax commission), but upon a hearing before said board (commission) for a reduction of assessment, such findings are admissible in evidence and may be regarded as prima facie just and reasonable. Northwest Light & Water Co. v. Alexander, 29 Idaho 557, 160 P. 1106 (1916).

Valuation by public utilities commission for rate-making purposes may be adopted as full cash value for taxation purposes. Washington Water Power Co. v. Kootenai County, 270 F. 369, modified on other grounds, 273 F. 524 (9th Cir. 1921).

Where railroad line is double tracked, second track should not be valued and assessed as a separate and distinct line. Pocatello v. Ross, 51 Idaho 395, 6 P.2d 481 (1931).

In computing length of railroad line, sidings and spurs need not be included. Pocatello v. Ross, 51 Idaho 395, 6 P.2d 481 (1931).

Board of equalization (now state tax commission) was not required in apportioning value of railroad lines for the purpose of taxation to exclude operating property within separate taxing units. Pocatello v. Ross, 51 Idaho 395, 6 P.2d 481 (1931).

§ 63-406. Attendance at assessment hearing.

The state tax commission may, for the purpose of securing evidence, facts or information to enable it to properly assess any operating property, require the attendance of the person, or any officer, manager or agent of such person, whose property is to be assessed, and require him to answer, under oath, all questions propounded which, in the judgment of the commission, would assist it in fixing the value of such property, whether such person, officer, manager or agent resides within or without this state.

History.

I.C.,§ 63-406, as added by 1996, ch. 98, § 5, p. 308.

§ 63-407. Appeal of operating property assessments.

Every person whose property is to be assessed by the state tax commission shall, upon request therefor in writing, be entitled to a hearing before the commission in relation to the assessment on his property or the assessment of other property in the state, and the commission shall, upon any such request, fix a time for such hearing within the period in which such assessment must be made, and such hearing shall be conducted in such manner as the commission may direct.

History.

I.C.,§ 63-407, as added by 1996, ch. 98, § 5, p. 308.

STATUTORY NOTES

Cross References.

Correction assessments, procedure,§ 63-410.

CASE NOTES

Appealing Assessments.

Idaho tax commission was required to first determine if property should be classified as operating property. Then, and only then, could an assessor either petition for a writ of review to dispute the classification or assess the property, if it was non-operating property, depending upon the commission’s definition of operating property. Therefore, a district court properly granted summary judgment in favor of a taxpayer in a case where a county assessor assessed property as non-operating after the same property had already been assessed as operating by the commission. Union Pac. Land Res. Corp. v. Shoshone County Assessor, 140 Idaho 528, 96 P.3d 629 (2004).

Decisions Under Prior Law
Nature of Hearing.

Taxpayer who has been afforded the opportunity of appearing before board (now commission) and presenting his arguments does not have the right, as in trial of a case in court, to be present during the entire time board (now commission) has under consideration the valuation of his property, and, in absence of fraud, cannot complain of action taken at an adjourned meeting at which he was not present. Idaho Ry., Light & Power Co. v. Monk, 218 F. 682 (D. Idaho 1914).

§ 63-408. Reexamination of value — Complaint by assessor.

The state tax commission shall, upon complaint by a county assessor, examine the valuation and allocation of value of property assessable on a statewide basis any part of which is allocable to his county.

History.

I.C.,§ 63-408, as added by 1996, ch. 98, § 5, p. 308.

CASE NOTES

Appealing Assessments.

Idaho tax commission was required to first determine if property should be classified as operating property. Then, and only then, could an assessor either petition for a writ of review to dispute the classification or assess the property, if it was non-operating property, depending upon the commission’s definition of operating property. Therefore, a district court properly granted summary judgment in favor of a taxpayer in a case where a county assessor assessed property as non-operating after the same property had already been assessed as operating by the commission. Union Pac. Land Res. Corp. v. Shoshone County Assessor, 140 Idaho 528, 96 P.3d 629 (2004).

§ 63-409. Appeals from state tax commission valuations of operating property.

  1. Any taxpayer or county assessor who is aggrieved by a state tax commission decision assessing a taxpayer’s operating property may file an appeal to the district court of Ada county or, if such operating property is located in only one (1) county, to the district court in and for the county in which such operating property is located. The appeal shall be filed within thirty (30) days after service upon the taxpayer of the decision. The appeal may be based upon any issue presented by the taxpayer to the state tax commission and shall be heard by the district court in a trial de novo without a jury in the same manner as though it were an original proceeding in that court. Nothing in this section shall be construed to suspend the payment of taxes pending appeal. Payment of taxes while an appeal hereunder is pending shall not operate to waive the right to an appeal. Any final order of the district court under this section shall be subject to appeal to the Idaho supreme court in the manner provided by the Idaho appellate rules.
  2. In any appeal taken pursuant to this section, the burden of proof shall fall upon the party seeking affirmative relief to establish that the valuation from which the appeal is taken is erroneous, or that the state tax commission erred in its decision regarding a claim that certain property is exempt from taxation, the value thereof, or any other relief sought before the state tax commission. A preponderance of the evidence shall suffice to sustain the burden of proof. The burden of proof shall fall upon the party seeking affirmative relief and the burden of going forward with the evidence shall shift as in other civil litigation. The district court shall render its decision in writing, including therein a concise statement of the facts found by the court and the conclusions of law reached by the court. The court may affirm, reverse, modify, or remand any order of the state tax commission, and shall grant other relief, invoke such other remedies and issue such orders, in accordance with its decision, as appropriate.
History.

I.C.,§ 63-409, as added by 1996, ch. 98, § 5, p. 308; am. 2003, ch. 266, § 1, p. 703.

STATUTORY NOTES

Effective Dates.

Section 5 of S.L. 2003, ch. 266 declared an emergency. Approved April 8, 2003.

CASE NOTES

Appealing Assessments.

Idaho tax commission was required to first determine if property should be classified as operating property. Then, and only then, could an assessor either petition for a writ of review to dispute the classification or assess the property, if it was non-operating property, depending upon the commission’s definition of operating property. Therefore, a district court properly granted summary judgment in favor of a taxpayer in a case where a county assessor assessed property as non-operating after the same property had already been assessed as operating by the commission. Union Pac. Land Res. Corp. v. Shoshone County Assessor, 140 Idaho 528, 96 P.3d 629 (2004). Proper standard of review in an appeal from a district court’s trial de novo of a decision of the Idaho tax commission is substantial evidence, and not on the record of the agency action. Idaho Power Co. v. Idaho State Tax Comm’n, 141 Idaho 316, 109 P.3d 170 (2005).

District court did not err in finding that the corporation proved by a preponderance of the evidence that the Idaho state tax commission’s valuation of its taxable operating property in Idaho was erroneous; the district court did not err in finding that the corporation’s expert’s appraisal was reliable. Pacificorp v. Idaho State Tax Comm’n, 153 Idaho 759, 291 P.3d 442 (2012).

§ 63-410. Certification of value to counties — Comparisons — Special meeting — Escaped assessments.

  1. On or before the first Monday of September in each year the chairman of the state tax commission, or his designee, must prepare and transmit certified statements of the taxable value of operating property by the commission to the county auditors of the several counties of this state. The certified statements shall show each type of operating property separately, shall show the taxable value of the operating property, and shall show the taxable value of operating property to be apportioned to each of the various taxing districts within a county, as provided in section 63-405, Idaho Code. The Idaho taxable value of private railcar fleets shall be apportioned to the several counties as provided in section 63-405, Idaho Code.
  2. Each county auditor, upon receipt of certified statements of the taxable value of operating property apportioned to his county, shall compare the same with the previous year’s taxable values, and if any errors are made by the state tax commission or if in the opinion of the county auditor any property in the county subject to assessment by the state tax commission, has not been assessed by the state commission or that any assessment as certified is erroneous it shall be the duty of the county auditor, as soon as any error or omission in such statement is discovered, to forthwith notify the chairman of the state tax commission of such error or omission, with as full an explanation as can be made by such county auditor. The county auditor shall send a duplicate copy of any such notice and explanation sent to the chairman of the state tax commission, to the office of the owner or nearest managing agent of any property which may be affected by any change in assessment under the provisions of this section.
  3. The governor may call a special meeting of the state tax commission for the purpose of correcting any errors made or to assess, allocate, and apportion any operating property which may have been omitted. Notice of at least ten (10) days of such special meeting shall be mailed by the chairman of the state tax commission to the owner or nearest managing agent of any property which may be affected by any change in assessment as originally certified. The procedure in the special meeting shall be as nearly as possible the same as provided in section 63-406, Idaho Code. Corrected statements shall be certified in the same manner as the original statements.
  4. Any property which has escaped taxation in the previous year shall be assessed by said commission on an equalized value, as with other property assessed in the preceding year, and such value shall be added to the value of the assessment for the current year.
History.

I.C.,§ 63-410, as added by 1996, ch. 98, § 5, p. 308.

§ 63-411. Special provisions for private railcar fleets — Notice of delinquency — Collection of delinquency.

  1. In case any such private railcar fleet shall fail or refuse to make the annual statement herein required within the time above specified, or shall make a false annual statement, the state tax commission shall proceed to assess the property of such private railcar fleet so failing, and shall add fifty percent (50%) to the value thereof, as ascertained and determined by the commission.
  2. The president or other officer of every railroad company whose lines run through, in or into this state shall, on or before such time as may be determined by the state tax commission, furnish to said commission a statement, verified by the affidavit of the officer or person making the same, showing the total number of miles made by the cars of every such private railcar fleet on their lines, branches, sidings, spurs and warehouse tracks in this state during the year ending on the thirty-first day of December last past. The state tax commission shall declare the date for the filing of the statement in its rules.
  3. The state tax commission shall determine the system value of private railcar fleets utilizing statements and data furnished by the railroads and private railcar operators, and such other pertinent information deemed necessary by the state tax commission. The state tax commission shall also be responsible for the allocation of the system value of private railcar fleets taxable in this state. In developing the allocation method, the state tax commission may use and consider any of the following factors or criteria:
    1. An actual count of cars in this state;
    2. The ratio between the mileage traveled by taxpayers’ cars in this state as compared with the mileage traveled by taxpayers’ cars everywhere;
    3. Such other factors or criteria as the state tax commission may deem appropriate.
  4. Private railcar fleets having an Idaho taxable value of five hundred thousand dollars ($500,000) or more shall be apportioned to where said cars were present in each county as determined by the state tax commission. The state tax commission shall certify the taxable value to the county auditor of each county showing the amounts of taxable value to be apportioned to the qualified taxing districts. The county auditor shall cause the taxable value to be entered upon the tax roll in the same manner as all other properties. The taxes shall be collected in the same manner as other operating property taxes by the county tax collector as provided by law.
  5. Private railcar fleets having an Idaho taxable value of less than five hundred thousand dollars ($500,000) shall not be apportioned to counties. The state tax commission hereby is empowered to charge, levy and collect the property tax so determined on the private railcar fleets under five hundred thousand dollars ($500,000) having a taxable situs in the state and such property shall be treated as personal property for taxing purposes.
    1. The state tax commission shall determine the property tax to be charged on the property covered by each such assessment by applying to the taxable value thereof the average tax rate in the state for the current year on private railcar fleets having an Idaho taxable value equal to or greater than five hundred thousand dollars ($500,000). In the event no private railcar fleets are assessed for five hundred thousand dollars ($500,000) or more in the current year, then the average property tax rate shall be the average tax rate on all taxable property for the prior year.
    2. Each property tax so charged and levied shall constitute a perpetual lien as of January 1 of the year of assessment on all the operating property of the private railcar fleet within this state and shall be payable in the same manner and at the same due dates provided by law in respect to property taxes on personal property payable in the several counties.
    3. In collecting such property taxes, the state tax commission is hereby authorized to pursue any or all of the rights, remedies or processes provided by law for the collection of a delinquency on personal property.
    4. All moneys collected by the state tax commission as provided under this subsection shall be paid forthwith to the state treasurer for transfer to the public school income fund.
  6. Whenever any person is delinquent in the payment of any obligation imposed by law, the state tax commission may give notice of the amount of the delinquency by registered mail to any railroad company over whose line or lines in this state the cars of said person have been transported, or are being transported, and which said railroad company has in its possession or under its control any credits or other personal property belonging to that person, or owes any debts to the delinquent.
    1. After receiving the notice the railroad company so notified shall neither transfer nor make other disposition of the credits, personal property, or debts until the state tax commission consents to a transfer or disposition, or until thirty (30) days elapse after receipt of the notice.
    2. All railroad companies so notified shall advise the state tax commission within five (5) days after receipt of the notice of all such credits, personal property, or debts in their possession, under their control, or owing by them.
  7. Whenever any railroad company advises the state tax commission that it has within its possession or under its control any credits or personal property belonging to a person with a delinquency, or owes any debt to that person, and the amount thereof, the state tax commission may thereupon issue a warrant of distraint and have the same served upon any such railroad company. Service of said warrant upon an agent of such railroad company within this state shall constitute valid service. Any railroad company so served shall pay over to the state tax commission the sum of any credits belonging to that person, or any debts owing to that person, whenever such credits or debts are less than the delinquency, penalty and costs; or shall pay over to the state tax commission the amount of the delinquency, penalty and costs, whenever such credits or debts are greater, and shall deduct the sum so paid over from the credits or debts due that person.
History.

I.C.,§ 63-411, as added by 1996, ch. 98, § 5, p. 308.

STATUTORY NOTES

Cross References.

Public school income fund,§ 33-903.

State treasurer,§ 67-1201 et seq.

Compiler’s Notes.
Effective Dates.

Section 21 of S.L. 1995, ch. 98 provided that the act shall be in full force and effect on January 1, 1997.

CASE NOTES

Decisions Under Prior Law
Changing Regulations Permitted.

Since this section authorizes the tax commission to adopt regulations governing this aspect of taxation, the commission is free to abolish, modify or change its regulation, if it perceives that the application of that regulation results in inequality or inequity. Idaho State Tax Comm’n v. Railbox Co., 116 Idaho 909, 782 P.2d 32, rehearing denied, 117 Idaho 365, 788 P.2d 180 (1989).

Presumption of Correction.

The value placed on property by assessors for ad valorem purposes is presumed to be correct. The burden is upon the taxpayer to show by clear and convincing evidence that he is entitled to relief. Idaho State Tax Comm’n v. Railbox Co., 116 Idaho 909, 782 P.2d 32, rehearing denied, 117 Idaho 365, 788 P.2d 180 (1989).

Regulations May Not be Ignored.

In assessing ad valorem tax on railroad boxcars, the tax commission was not permitted to ignore its own regulation in an attempt to search out special circumstances rendering the regulation meaningless. Idaho State Tax Comm’n v. Railbox Co., 116 Idaho 909, 782 P.2d 32, rehearing denied, 117 Idaho 365, 788 P.2d 180 (1989).

Chapter 5 EQUALIZATION OF ASSESSMENTS

Sec.

§ 63-501. Meeting of commissioners as a board of equalization.

  1. The county commissioners of each county shall convene as a board of equalization at least once in every month of the year up to the fourth Monday of June for the purpose of equalizing the assessments of property on the property roll and shall meet on the aforesaid date in each year:
    1. To complete the equalization of assessments on all property which has not yet been equalized; and
    2. To hear appeals of assessment or exemption of property which are received on or before the end of each county’s normal business hours on the fourth Monday of June.
  2. The county commissioners of each county in this state shall meet as a board of equalization on the fourth Monday of November in each year for the purpose of:
    1. Equalizing the assessments of all property entered upon the subsequent property roll;
    2. Determining complaints and hearing appeals in regard to the assessment of such property;
    3. Allowing or disallowing exemptions and cancellations claimed under the provisions of this title affecting the assessment or taxation of property entered upon the rolls, and having a settlement with the assessor and tax collector.

Upon meeting to complete the equalization of assessments, the board of equalization shall continue in session from day to day until equalization of the assessments of such property has been completed and shall also hear and determine complaints upon allowing or disallowing exemptions under chapter 6, title 63, Idaho Code. The board of equalization must complete such business and adjourn as a board of equalization on the second Monday of July, provided that the board of equalization may adjourn any time prior to the aforesaid date when they have completed all of the business as a board of equalization.

The county assessor or his designee shall attend all meetings of the county commissioners in session as a board of equalization and he may make any statements or introduce testimony and examine witnesses on questions before the board of equalization relating to the assessments.

The board of equalization shall complete its business and adjourn on or before the first Monday of December in each year, but if other personal or real property is discovered and assessed after the subsequent board of equalization has adjourned, and is entered on the missed property roll, the taxpayer may appeal that assessment to the county commissioners meeting as a board of equalization, for the purposes stated in subsection (2)(a), (b) and (c) of this section, during its monthly meeting in January of the following year, provided however, that said meeting must be no sooner than the first Monday in January.

History.

I.C.,§ 63-501, as added by 1996, ch. 98, § 6, p. 308; am. 2012, ch. 4, § 1, p. 6.

STATUTORY NOTES

Cross References.

Appeals from action of board of equalization,§ 63-511.

Cancellation and refund of unlawful taxes,§ 63-1302.

County commissioners authorized to levy taxes,§ 31-811.

Duties with reference to assessment of net profits of mines,§ 63-2810.

State tax commission created, Idaho Const., Art. VII, § 12.

Amendments.

The 2012 amendment, by ch. 4, in subsection (1), deleted former paragraph (b), which read, “To grant, allow or deny applications for exemption from property tax valuation,” redesignated former paragraph (c) as present paragraph (b), and inserted “or exemption” in paragraph (b).

CASE NOTES

Decisions Under Prior Law
Application.

The county board of equalization at its December meeting has not been empowered by the legislature to hear complaints as regards assessments of real property, consequently such board was not empowered to equalize assessments of real property or hear complaints in regard thereto except at the board’s June and July meetings as provided by statute, and since such board at its December meeting could only be concerned with equalization of assessments upon personal property, therefore in considering the property herein involved, an interest in real property, the appellants were not afforded an opportunity to register their complaints that the property was improperly included upon the personal property roll. Tobias v. State Tax Comm’n, 85 Idaho 250, 378 P.2d 628 (1963).

The procedure prescribed by the legislature in respect to levying, assessing and collecting taxes must be strictly observed. Tobias v. State Tax Comm’n, 85 Idaho 250, 378 P.2d 628 (1963).

Construction.

Under R.C., § 1697 assessor was not required to be present, and no penalty was prescribed in the statute for assessor not being present, and the statute did not require the record to show his presence. Armstrong v. Jarron, 21 Idaho 747, 125 P. 170 (1912).

Statutory Remedy Exclusive.

Where taxpayer alleged excessive assessments on his personal property arising from the assessor’s application of rates different from rates at which other property in the county was assessed, taxpayer’s claim had to be pursued through the statutory administrative process provided for in this title prior to his seeking relief in the district court by way of a declaratory judgment or refund. V-1 Oil Co. v. County of Bannock, 97 Idaho 807, 554 P.2d 1304 (1976).

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-501A. Taxpayer’s right to appeal.

  1. Taxpayers may file an appeal of an assessment or exemption decision with the county board of equalization. An appeal shall be made in writing on a form provided by the county board of equalization or assessor and must identify the taxpayer, the property which is the subject of the appeal and the reason for the appeal. An appeal of an assessment listed on the property roll must be filed on or before the end of the county’s normal business hours on the fourth Monday of June. An appeal of an assessment listed on the subsequent property roll must be filed on or before the end of the county’s normal business hours on the fourth Monday of November. An appeal of an assessment listed on the missed property roll must be filed on or before the board of equalization adjourns on the day of its January meeting. The board of equalization may consider an appeal only if it is timely filed.
  2. Appeals from the county board of equalization shall be made pursuant to section 63-511, Idaho Code.
History.

I.C.,§ 63-501A, as added by 1996, ch. 98, § 6, p. 308; am. 1997, ch. 117, § 18, p. 298; am. 2012, ch. 4, § 2, p. 6.

STATUTORY NOTES

Amendments.

The 2012 amendment, by ch. 4, inserted “or exemption decision” in the first sentence of subsection (1).

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

§ 63-502. Function of board of equalization on assessments.

The function of the board of equalization shall be confined strictly to assuring that the market value for assessment purposes of property has been found by the assessor, and to the functions provided for in chapter 6, title 63, Idaho Code, relating to exemptions from taxation. It is hereby made the duty of the board of equalization to enforce and compel a proper classification and assessment of all property required under the provisions of this title to be entered on the property rolls, and in so doing, the board of equalization shall examine the rolls and shall raise or cause to be raised, or lower or cause to be lowered, the assessment of any property which in the judgment of the board has not been properly assessed. The board of equalization must examine and act upon all complaints filed with the board in regard to the assessed value of any property entered on the property rolls and must correct any assessment improperly made. The taxpayer shall have the burden of proof in seeking affirmative relief to establish that the determination of the assessor is erroneous, including any determination of assessed value. A preponderance of the evidence shall suffice to sustain the burden of proof.

History.

I.C.,§ 63-502, as added by 1996, ch. 98, § 6, p. 308; am. 2003, ch. 266, § 2, p. 703.

STATUTORY NOTES

Cross References.

Cancellation and refund of unlawful taxes,§ 63-1302.

Cancellation or adjustment of taxes when county commissioners cooperate with federal department or agency in reclamation, drainage and drought relief matters,§ 31-901 et seq.

Effective Dates.

Section 5 of S.L. 2003, ch. 266 declared an emergency. Approved April 8, 2003.

CASE NOTES

Decisions Under Prior Law
Application.

The procedure prescribed by the legislature in respect to levying, assessing and collecting taxes must be strictly observed. Tobias v. State Tax Comm’n, 85 Idaho 250, 378 P.2d 628 (1963).

Constitutionality.

The board of county commissioners sitting as a board of equalization and the district court on appeal from their action are not, by statute, assessing the property, but are equalizing the assessment; therefore the statute providing for appeals is constitutional. McGoldrick Lumber Co. v. Benewah County, 54 Idaho 704, 35 P.2d 659 (1934).

Method of Valuation.

County commissioners have no authority to substitute for the statutory method of valuing property a method of their own. Dexter Horton Trust & Sav. Bank v. Clearwater County, 235 F. 743 (D. Idaho 1916), aff’d, 248 F. 401 (9th Cir. 1918).

Powers of Board.

Powers of assessor and county board of equalization in matter of assessments and equalization of assessments cannot be usurped, court’s function on appeal being limited to review, and affirmance, reversal or modification thereof. Winton Lumber Co. v. Kootenai County, 53 Idaho 539, 26 P.2d 124 (1933).

Review.

The county board of equalization at its December meeting has not been empowered by the legislature to hear complaints as regards assessments of real property, consequently such board was not empowered to equalize assessments of real property or hear complaints in regard thereto except at the board’s June and July meetings as provided by statute, and since such board at its December meeting could only be concerned with equalization of assessments upon personal property, therefore the owners of an interest in real property assessed at the December meeting were not afforded an opportunity to register their complaints that the property was improperly included upon the personal property roll. Tobias v. State Tax Comm’n, 85 Idaho 250, 378 P.2d 628 (1963).

Statutory Remedy Exclusive.

The statutory remedy afforded to an aggrieved taxpayer is exclusive, and a taxpayer may not maintain an action against a county for a general money judgment for the amount of taxes erroneously exacted, where the tax is not absolutely void. Washburn-Wilson Seed Co. v. Jerome County, 65 Idaho 1, 138 P.2d 978 (1943).

Where a tax is not void ab initio and the legislature has empowered administrative board to determine questions with right of appeal to the courts from board’s decision, such remedy is exclusive. Washburn-Wilson Seed Co. v. Jerome County, 65 Idaho 1, 138 P.2d 978 (1943).

A taxpayer who did not complain before the board of equalization of the county with reference to the 1936 assessment and who did not appeal from an adverse decision of the board to the taxpayer’s complaint as to 1940 assessment could not maintain an action in court for the recovery of taxes paid under protest. Washburn-Wilson Seed Co. v. Jerome County, 65 Idaho 1, 138 P.2d 978 (1943). Where taxpayer alleged excessive assessments on his personal property arising from the assessor’s application of rates different from rates at which other property in the county was assessed, taxpayer’s claim had to be pursued through the statutory administrative process provided for in this title, prior to his seeking relief in the district court by way of a declaratory judgment or refund. V-1 Oil Co. v. County of Bannock, 97 Idaho 807, 554 P.2d 1304 (1976).

§ 63-503. New and additional assessments.

  1. The board of equalization, during its sessions, must direct and require the assessor to assess any property required by this title to be entered upon the property rolls, which is known to have escaped assessment, and in case any assessment of property made by the assessor is deemed by the board of equalization to be so incomplete or inaccurate as to render doubtful the collection of the taxes thereon, the said board must direct the assessor to make a new assessment of such property, in which case the defective assessment shall be cancelled.
  2. All changes in assessments and all new assessments ordered by the board of equalization shall be entered on the property rolls, under the direction of the clerk of the board, and any assessment so changed or entered has the same force and effect as if made and entered by the assessor before the completion of the property rolls.
  3. The county commissioners meeting as a board of equalization shall make no reduction in the assessment of any property when, according to the notation made by the assessor upon the roll, the owner, or his agent or representative, has refused to make the sworn taxpayer’s declaration required of him or has willfully concealed, removed, transferred, misrepresented or failed to list such property for the purpose of evading taxation, unless it is shown to the satisfaction of the board that such notation by the assessor is erroneous or false.
History.

I.C.,§ 63-503, as added by 1996, ch. 98, § 6, p. 308.

CASE NOTES

Decisions Under Prior Law
County Assessor’s Duty.

A county assessor should make such changes upon the assessment roll of his county as the board of equalization for his county has ordered relative to the assessment of an individual taxpayer. Murphy v. Board of Comm’rs, 6 Idaho 745, 59 P. 715 (1899).

Duty of Board.

It is the duty of the board of equalization to order the assessor to assess any property which has escaped assessment, and where such assessment is made before the final adjournment of the session of the board convened, the taxpayer has his opportunity of being heard and such assessment is not void for want of notice or opportunity to be heard thereon. Inland Lumber & Timber Co. v. Thompson, 11 Idaho 508, 83 P. 933 (1905). It was the duty of the county board of equalization to determine whether assessments had been made on full cash value and on equal bases throughout the county, and where property had been under or over assessed as compared with other assessments, and its assessment was above or below full cash value, the board was required to bring it in line with other property. McGoldrick Lumber Co. v. Benewah County, 54 Idaho 704, 35 P.2d 659 (1934).

Notice.

Where the board of equalization has made an order proposing a raise on the valuation of any specific property, and the person against whom such property is assessed thereafter appears at the time and place fixed for the hearing on such proposed change and protests against the same and submits his evidence, he thereby waives the service of notice and cannot be heard to object to the action because notice was not served. First Nat’l Bank v. Washington County, 17 Idaho 306, 105 P. 1053 (1909).

Powers of Board.

S.L. 1891 did not authorize the state board of equalization to raise or diminish the valuation put upon any class or classes of property, nor to fix the valuation of any class of property, but it could raise or diminish the aggregate valuation of the property of any county by such percentage as justice required. Orr v. State Bd. of Equalization, 3 Idaho 190, 28 P. 416 (1891).

§ 63-504. Lien of unpaid personal property taxes on real property.

Taxes upon personal property, where the owners of such personal property are owners of real property in the county, which have not been paid on or before the second Monday of October, and which the board of county commissioners finds to be a lien upon the real property, may be certified to the county auditor and the tax collector. Such taxes, together with all costs, late charges and interest must be entered by the county tax collector upon the property roll against the real property subject to such lien. The tax collector shall immediately notify the property owner of any such taxes which have been added. Such action shall result in cancellation of the taxes and late charges on the personal property roll for the personal property subject to the delinquency.

History.

I.C.,§ 63-504, as added by 1996, ch. 98, § 6, p. 308; am. 1998, ch. 2, § 1, p. 99.

CASE NOTES

Decisions Under Prior Law
Application.

This section is applicable to tax on migratory livestock. Scottish Am. Mtg. Co. v. Minidoka County, 47 Idaho 33, 272 P. 498, 65 A.L.R. 663 (1928).

Duty of Assessor.

If any tax due on personal property is not paid on demand or payment secured, the assessor (now tax collector) must distrain and sell so much of said property as might be necessary to pay the taxes or forthwith bring suit with attachment for such taxes or the estimated amount thereof. Lemhi County ex rel. Gilbreath v. Boise Livestock Loan Co., 47 Idaho 712, 278 P. 214 (1929).

RESEARCH REFERENCES

Am. Jur. 2d.
C.J.S.

§ 63-505. Production of evidence by county officials and others.

The board of equalization may require the attendance of any county officer or deputy, who must furnish the board with any information which may be had from the records in his office and which the board may deem necessary in equalizing the assessments, and may also subpoena witnesses and hear evidence in all matters relating to the assessment of property, and may arbitrarily assess the property of any person refusing to appear or testify, and any assessment so made shall be conclusive on all questions of assessment in any court or proceeding.

History.

I.C.,§ 63-505, as added by 1996, ch. 98, § 6, p. 308.

CASE NOTES

Decisions Under Prior Law
Statutory Remedy Exclusive.

A taxpayer who did not complain before the board of equalization of the county with reference to the 1936 assessment and who did not appeal from an adverse decision of the board to the taxpayer’s complaint as to 1940 assessment could not maintain an action in court for the recovery of taxes paid under protest. Washburn-Wilson Seed Co. v. Jerome County, 65 Idaho 1, 138 P.2d 978 (1943).

The statutory remedy afforded to an aggrieved taxpayer is exclusive, and a taxpayer may not maintain an action against a county for a general money judgment for the amount of taxes erroneously exacted, where the tax is not absolutely void. Washburn-Wilson Seed Co. v. Jerome County, 65 Idaho 1, 138 P.2d 978 (1943).

§ 63-506. Notice to taxpayer of new assessments and changes.

The board of equalization must, before taking final action in equalizing the assessed value of the property of any person refusing to appear and testify, or in increasing the assessed value of any property, notify the owner thereof, or his agent or representative, of its intention to do so, and require such person to appear forthwith before the board and make objection, if he has any. The board may direct the notice to be served personally upon the owner, or his agent or representative; or, it may direct the clerk to serve the notice by mail, addressed to such owner, or his agent or representative, at his last known post office address. In the case of service by mail, the board of equalization shall not take final action until ten (10) working days after the mailing of such notice, unless the owner, or his agent, or representative, shall sooner appear. If the owner is one other than the equitable titleholder, such as an escrowee, trustee of trust deed or other third party, the owner shall, within ten (10) days, deliver to the equitable titleholder a true copy of the notice from the board of equalization.

History.

I.C.,§ 63-506, as added by 1996, ch. 98, § 6, p. 308; am. 2007, ch. 15, § 1, p. 27.

STATUTORY NOTES

Cross References.

Notice by mail,§ 60-109A.

Record of proceedings,§ 63-507.

Amendments.

The 2007 amendment, by ch. 15, substituted “ten (10) working days” for “five (5) days” in the third sentence.

CASE NOTES

Decisions Under Prior Law
Constitutionality.
Increase on Appeal.

Statutes authorizing appeal to district court from decision of county board of equalization in proceeding to review assessment and authorizing district court to “modify” board’s determination is not unconstitutional as authorizing judiciary to exercise executive powers. McGoldrick Lumber Co. v. Benewah County, 54 Idaho 704, 35 P.2d 659 (1934). Increase on Appeal.

Statute authorizing district court, on appeal from board of equalization, to affirm, reverse, or “modify” authorizes court to increase assessments, although statutory notice has not been given; “modify” in taxation appeal includes the element of increasing. McGoldrick Lumber Co. v. Benewah County, 54 Idaho 704, 35 P.2d 659 (1934).

Time of Raising Valuation.

County board of equalization had authority to meet and raise valuations after the third Monday in July, its final order making such increases having been entered on the fourth Monday in July. Overland Co. v. Utter, 44 Idaho 385, 257 P. 480 (1927).

§ 63-507. Record of proceedings.

The clerk of the board must record in the official minutes all proceedings of the county commissioners relating to the equalization of assessments, the allowance of exemptions, and all changes, corrections and orders made by the board of equalization, and the names of all persons who have appeared before the board of equalization and who have been heard upon matters affecting the assessment of property.

History.

I.C.,§ 63-507, as added by 1996, ch. 98, § 6, p. 308.

§ 63-508. Completion of property roll after equalization.

As soon as the county auditor receives the certified statements prescribed in section 63-111, Idaho Code, he shall cause to be entered all changes and corrections made by the state tax commission in the assessments upon the property tax roll. The county auditor shall enter upon the operating property roll all assessments of operating property under the jurisdiction of the state tax commission in his county, and made by the state tax commission in adjusting the valuations among the taxing districts in accordance with the certified statement of the chairman of the state tax commission. The auditor shall enter the total equalized values and show the amount, and reasons for any exemptions which have been allowed by the county commissioners, and shall thereafter enter the total equalized values for taxation on the property rolls. The auditor shall then add up the total equalized values, amounts of exemption and total equalized values for taxation, and enter the total in the property rolls.

History.

I.C.,§ 63-508, as added by 1996, ch. 98, § 6, p. 308.

CASE NOTES

Decisions Under Prior Law
Ministerial Duty.

A statute, which requires that as soon as the county auditor receives certified statements from the state tax commission he shall enter in the columns in which the items to be corrected appear upon the real property assessment roll, all changes and corrections made by the state tax commission in the assessment, imposes a “purely ministerial” duty upon the county auditor, and if he refuses to carry out that duty a writ of mandamus will lie to compel his performance of that ministerial duty. Idaho State Tax Comm’n v. Staker, 104 Idaho 734, 663 P.2d 270 (1982).

§ 63-509. Delivery of rolls to county auditor — Abstracts of rolls.

  1. On or before the second Monday of July, the board of equalization must deliver the property rolls, with all changes, corrections and additions and exemptions from taxation entered therein, to the county auditor. It shall be the duty of the county auditor to cause to be prepared the roll for delivery to the county tax collector on or before the first Monday of November. It shall be the duty of the county auditor to cause to be prepared a total of the amount and value of each category of property and prepare an abstract of all the property entered upon the roll in the manner and form required by the state tax commission. Such forms must show, but need not be limited to, the market value for assessment purposes of all property by categories and the exemptions from taxation allowed by categories. Any abstracts needed by and prepared for the state tax commission must be delivered to the state tax commission by the fourth Monday of July. The abstracts will show the increment value as defined in section 50-2903, Idaho Code, in any revenue allocation area established pursuant to chapters 20 and 29, title 50, Idaho Code, and the value of exemptions granted pursuant to sections 63-602G, 63-602P, 63-602X, 63-602AA, 63-602BB and 63-602CC, Idaho Code, as well as the net taxable value for each of the categories. The abstracts shall be prepared and duly verified and must show a correct classification of all the property in accordance with the classification of such property upon the property roll, and all matters and things required to be shown upon the abstracts must be entered.
  2. The subsequent property roll shall be delivered to the county auditor as soon as possible after the first Monday in December. The county auditor shall deliver the subsequent property roll to the county tax collector without delay.
  3. The missed property roll shall be delivered to the county auditor as soon as possible, but no later than the first Monday in March of the succeeding year. The county auditor shall deliver the missed property roll to the county tax collector without delay.
  4. The county auditor must cause to be prepared abstracts of the combined subsequent and missed property rolls as prescribed in subsection (1) of this section and submit the abstracts to the state tax commission on or before the first Monday in March of the succeeding year.
History.

I.C.,§ 63-509, as added by 1996, ch. 98, § 6, p. 308; am. 1997, ch. 117, § 19, p. 298; am. 2013, ch. 21, § 3, p. 36; am. 2018, ch. 29, § 1, p. 53; am. 2020, ch. 313, § 2, p. 889.

STATUTORY NOTES

Cross References.

Garnishee, collecting officers not liable in official capacity as,§ 8-521.

Amendments.

The 2013 amendment, by ch. 21, rewrote the sixth sentence in subsection (1), which formerly read: “The value of exemptions will be shown and identified for exemptions granted pursuant to chapters 20 and 29, title 50, Idaho Code, for the value in excess of the equalized assessment valuation as shown on the base assessment roll in any revenue allocation area, and sections 63-602G, 63-602K, 63-602P, 63-602AA, 63-602X, 63-602BB and 63-602CC, Idaho Code, as well as the net taxable value for each of the categories.”

The 2018 amendment, by ch. 29, deleted “by certified mail” preceding “to the state tax commission” near the end of the fifth sentence in subsection (1) and near the middle of subsection (4).

The 2020 amendment, by ch. 313, deleted “63-602K” preceding “63-602P” near the end of the next-to-last sentence in subsection (1).

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

CASE NOTES

Decisions Under Prior Law
Statutory Remedy Exclusive.

When respondent’s predecessor in interest failed to appear before the board of equalization while it was in session in 1952 to protest the assessment of taxes, he waived or forfeited his right to thereafter challenge the assessment or the taxes levied thereon on the ground that the assessment was unequal and excessive; likewise with respect to the assessments made and the taxes levied for the years 1953 and 1954. Administrative remedies provided by the legislature for unequal assessment of property must be pursued by the taxpayer as a condition precedent to judicial action. In re Felton’s Petition, 79 Idaho 325, 316 P.2d 1064 (1957).

Where the district court received and acted upon evidence as to the value of the property for assessment purposes during the years 1952, 1953 and 1954 and found that the assessments were unequal and excessive, and ordered them reduced and the taxes abated, the court engaged in a process of equalization which it had no jurisdiction to do on an appeal from the board of county commissioners. In re Felton’s Petition, 79 Idaho 325, 316 P.2d 1064 (1957).

Time of Raising Valuation.

County board of equalization had authority to meet and raise valuations after the third Monday in July, its final order making such increases having been entered on the fourth Monday in July. Overland Co. v. Utter, 44 Idaho 385, 257 P. 480 (1927).

§ 63-510. Notification of valuation due to state tax commission.

  1. Prior to the first Monday of August the auditor of each county in the state shall notify the state tax commission of the net taxable value of all property situated within each taxing unit or district in the county from the property roll for the current year and shall provide an estimate of the net taxable value for each taxing unit or district from the current year’s estimated subsequent and missed property rolls. Such notification shall also include an estimate of the net taxable value within any area annexed during the immediate prior year to any taxing unit or district.
  2. Prior to the first Monday of March the auditor of each county in the state shall notify the state tax commission of the net taxable value of all property situated within each taxing unit or district in the county from the subsequent and missed property rolls. Such notification shall also include an estimate of the net taxable value within any area annexed during the immediate prior year, and listed on the subsequent or missed property roll, to any taxing unit or district.
  3. The notification required in subsections (1) and (2) of this section shall be on forms prescribed and provided by the state tax commission and shall list separately the value exempt from property taxation in accordance with section 63-602G, Idaho Code, and the value in excess of the equalized assessment valuation as shown on the base assessment roll in any revenue allocation area, pursuant to chapters 20 and 29, title 50, Idaho Code.
  4. For the purposes of this section, “taxing district,” as defined in section 63-201(28), Idaho Code, shall include each incorporated city in each county, regardless of whether said city certifies a property tax budget.
History.

I.C.,§ 63-510, as added by 1996, ch. 98, § 6, p. 308; am. 2008, ch. 53, § 3, p. 134; am. 2008, ch. 400, § 4, p. 1098; am. 2009, ch. 11, § 23, p. 14.

STATUTORY NOTES

Cross References.

Property and special taxes against counties,§ 63-110.

Amendments.

This section was amended by two 2008 acts which appear to be compatible and have been compiled together.

The 2008 amendment, by ch. 53, updated the section reference in subsection (4) in light of the 2008 amendment of§ 63-201.

The 2008 amendment, by ch. 400, updated the section reference in subsection (4) in light of the 2008 amendment of§ 63-201.

Effective Dates.

The 2009 amendment, by ch. 11, updated the section reference in subsection (4) in light of the 2008 amendment of§ 63-201. Effective Dates.

Section 10 of S.L. 2008, ch. 400 provided that the act should take effect on and after January 1, 2009.

§ 63-511. Appeals from county board of equalization.

  1. Any time within thirty (30) days after mailing of notice of a decision of the board of equalization, or pronouncement of a decision announced at a hearing, an appeal of any act, order or proceeding of the board of equalization, or the failure of the board of equalization to act may be taken to the board of tax appeals. Such appeal may only be filed by the property owner, the assessor, the state tax commission or by a person aggrieved when he deems such action illegal or prejudicial to the public interest. Nothing in this section shall be construed so as to suspend the payment of property taxes pending said appeal.
  2. Notice of such appeal stating the grounds therefor shall be filed with the county auditor, who shall forthwith transmit to the board of tax appeals a copy of said notice, together with a certified copy of the minutes of the proceedings of the board of equalization resulting in such act, order or proceeding, or a certificate to be furnished by the clerk of the board that said board of equalization has failed to act in the time required by law on any complaint, protest, objection, application or petition in regard to assessment of the complainant’s property, or a petition of the state tax commission. The county auditor shall also forthwith transmit all evidence taken in connection with the matter appealed. The county auditor shall submit all such appeals to the board of tax appeals within thirty (30) days of being notified of the appeal. The board of tax appeals may receive further evidence and will hear the appeal as provided in chapter 38, title 63, Idaho Code.
  3. Any appeal that may be taken to the board of tax appeals may, during the same time period, be taken to the district court for the county in which the property is located.
  4. In any appeal taken to the board of tax appeals or the district court pursuant to this section, the burden of proof shall fall upon the party seeking affirmative relief to establish that the valuation from which the appeal is taken is erroneous, or that the board of equalization erred in its decision regarding a claim that certain property is exempt from taxation, the value thereof, or any other relief sought before the board of equalization. A preponderance of the evidence shall suffice to sustain the burden of proof. The burden of proof shall fall upon the party seeking affirmative relief and the burden of going forward with the evidence shall shift as in other civil litigation. The board of tax appeals or the district court shall render its decision in writing, including therein a concise statement of the facts found by the court and the conclusions of law reached by the court. The board of tax appeals or the court may affirm, reverse, modify or remand any order of the board of equalization, and shall grant other relief, invoke such other remedies, and issue such orders in accordance with its decision, as appropriate.
History.

I.C.,§ 63-511, as added by 1996, ch. 98, § 6, p. 308; am. 1999, ch. 107, § 1, p. 334; am. 2003, ch. 266, § 3, p. 703; am. 2013, ch. 24, § 1, p. 45.

STATUTORY NOTES

Cross References.

County commissioners meeting as board of equalization,§ 63-501.

Amendments.

The 2013 amendment, by ch. 24, deleted “or by no later than October 1, whichever is later” from the end of the next-to-last sentence in subsection (2).

Compiler’s Notes.

Section 20 of S.L. 1996, ch. 98 read: “Existing Rules Remain in Effect. All rules heretofore adopted by the state tax commission and in effect on the effective date of this act shall remain in full force and effect unless and until superseded or replaced by rules duly adopted by the commission, or until the same are rejected, amended or modified by the legislature in accordance with the provisions of chapter 52, title 67, Idaho Code, or until they expire as provided in section 67-5292, Idaho Code.”

Effective Dates.

Section 21 of S.L. 1996, ch. 98 provided that the act shall be in full force and effect on January 1, 1997.

Section 5 of S.L. 2003, ch. 266 declared an emergency. Approved April 8, 2003.

CASE NOTES

Burden of Proof.

Taxpayer had the burden, by only a preponderance of the evidence, to show that real property valuations were erroneous, both before the board of tax appeals and in the district court. There was no reversible error, however, in also citing the clear and convincing standard, because the district court’s order showed that the evidence failed to even meet the lower burden of proof. Wurzburg v. Kootenai County, 155 Idaho 236, 308 P.3d 936 (Ct. App. 2013).

Exhaustion of Administrative Remedies.

District court lacked subject matter jurisdiction over the landowners’ claims due to their failure to exhaust administrative remedies; the landowners’ claims that the county assessor improperly assessed properties by neighborhood and utilized other improper procedures were challenges within the administrative framework. Park v. Banbury, 143 Idaho 576, 149 P.3d 851 (2006).

Taxpayer who appealed a county tax assessment ruling to the board of tax appeals but was not present at the board’s hearing failed to exhaust his administrative remedies and, thus, was not entitled to judicial review, because a board rule required him to actually appear and participate in the hearing. Blanton v. Canyon County, 144 Idaho 718, 170 P.3d 383 (2007).

Person Aggrieved.
Cited

Urban renewal agency was a person aggrieved and it had standing, given its pecuniary interest, to challenge a property tax exemption granted to a corporation, because the tax exemption created a very real and concrete loss to the agency’s revenue stream for the fiscal year. Ashton Urban Renewal Agency v. Ashton Mem., Inc., 155 Idaho 309, 311 P.3d 730 (2013). Cited Mitchell v. Bd. of Equalization, 138 Idaho 52, 57 P.3d 763 (2002).

Decisions Under Prior Law
Clerical Error.

The board of tax appeals has authority to direct a county board of equalization to correct an apparent error in one of its orders. Woodward v. Board of Equalization, 114 Idaho 882, 761 P.2d 1234 (Ct. App. 1988).

Constitutionality.

Provision in this section providing for an appeal from county equalization board to state tax board does not violate constitution, since Idaho Const., Art. VII, § 12 provides that state tax commission “shall have such other powers and perform such other duties as may be prescribed by law.” Utah Oil Refining Co. v. Hendrix, 72 Idaho 407, 242 P.2d 124 (1952).

Effect of Subsequent Legislation.

Effect of subsequent legislation on rights acquired under prior tax laws is discussed in Lawrence v. Defenbach, 23 Idaho 78, 128 P. 81 (1912); Peavey v. McCombs, 26 Idaho 143, 140 P. 965 (1914); Rice v. Rock, 26 Idaho 552, 144 P. 786 (1914); Grandview Irrigation Dist. v. Brown, 32 Idaho 187, 179 P. 952 (1919); Eaton v. McCarty, 34 Idaho 747, 202 P. 603 (1921); Hand v. Twin Falls County, 40 Idaho 638, 236 P. 536 (1925).

Exhaustion of Administrative Remedies.

In routine tax assessment complaints, the pursuit of statutory administrative remedies is a condition precedent to judicial review; however, the rule that administrative remedies must be exhausted before the district court will hear a case is a general rule and has been deviated from in some cases. Fairway Dev. Co. v. Bannock County, 119 Idaho 121, 804 P.2d 294 (1990).

The exceptions to the exhaustion of administrative remedies doctrine did not apply where the issue was the correctness of tax assessments. In such a case the district court does not acquire subject matter jurisdiction until all the administrative remedies have been exhausted. Fairway Dev. Co. v. Bannock County, 119 Idaho 121, 804 P.2d 294 (1990).

Injunction.
Power of District Court.

Suit by title company to enjoin collection of ad valorem tax on the ground that it was exempt from ad valorem tax by virtue of payment of premium tax was proper, since it was not a proceeding for equalization of a valid tax levied but a proceeding challenging a void tax against which equity can grant relief by means of an injunction. Security Abstract & Title Co. v. Leonardson, 74 Idaho 528, 264 P.2d 1027 (1953). Power of District Court.

District court may affirm, reverse, or modify order appealed from. First Nat’l Bank v. Board of County Comm’rs, 40 Idaho 391, 232 P. 905 (1925).

If the action taken was by the county board of equalization, as the minutes recite, then the district court would not acquire jurisdiction on appeal, since the statute provides that appeals from the county board of equalization are to be taken to the state tax commission. In re Felton’s Petition, 79 Idaho 325, 316 P.2d 1064 (1957).

Statutory Remedy Exclusive.

A taxpayer who did not complain before the board of equalization of the county with reference to the 1936 assessment and who did not appeal from an adverse decision of the board to the taxpayer’s complaint as to 1940 assessment could not maintain an action in court for the recovery of taxes paid under protest. Washburn-Wilson Seed Co. v. Jerome County, 65 Idaho 1, 138 P.2d 978 (1943).

Where a tax is not void ab initio and the legislature has empowered administrative board to determine questions with right of appeal to the courts from the board’s decision, such remedy is exclusive. Washburn-Wilson Seed Co. v. Jerome County, 65 Idaho 1, 138 P.2d 978 (1943).

The statutory remedy afforded to an aggrieved taxpayer is exclusive, and a taxpayer may not maintain an action against a county for a general money judgment for the amount of taxes erroneously exacted, where the tax is not absolutely void. Washburn-Wilson Seed Co. v. Jerome County, 65 Idaho 1, 138 P.2d 978 (1943).

Where taxpayer alleged excessive assessments on his personal property arising from the assessor’s application of rates different from rates at which other property in the county was assessed, taxpayer’s claim had to be pursued through the statutory administration process provided for in this title prior to his seeking relief in the district court by way of a declaratory judgment or refund. V-1 Oil Co. v. County of Bannock, 97 Idaho 807, 554 P.2d 1304 (1976).

Taxes Equalized on Appeal.

The board of county commissioners sitting as a board of equalization and the district court on appeal from their action are not considered as assessing the property, but only as equalizing the assessment. McGoldrick Lumber Co. v. Benewah County, 54 Idaho 704, 35 P.2d 659 (1934).

RESEARCH REFERENCES

Am. Jur. 2d.
C.J.S.

§ 63-512 — 63-513c. [Reserved.]

STATUTORY NOTES

Compiler’s Notes.

This section was enacted by S.L. 1996, ch. 368, § 1 and was repealed by § 3 of S.L. 1996, ch. 368, effective July 1, 1996.

Effective Dates.

Section 4 of S.L. 1996, ch. 368 declared an emergency and provided that §§ 1 and 2 should be in full force and effect on and after passage and approval but that “the authority granted herein to extend time shall terminate and be null and void and of no force and effect on and after July 1, 1996, but any extension granted within such period shall remain effective until it expires. Section 3 of this act shall be in full force and effect on and after July 1, 1996.” Approved March 20, 1996.

§ 63-514 — 63-516. [Reserved.]

Electronic funds transfers. [Repealed.]

STATUTORY NOTES

Compiler’s Notes.

This section, which comprised I.C.,§ 63-517, as added by 1996, ch. 58, § 1, p. 169, was repealed by S.L. 1996, ch. 98, § 1, effective January 1, 1997.

§ 63-513d. Filing and payment extensions as disaster relief. [Repealed.]

§ 63-517. Filing of electronic returns and documents

Chapter 6 EXEMPTIONS FROM TAXATION

Sec.

63-602LL. 63-602MM. [Reserved.]

§ 63-601. All property subject to taxation.

All property within the jurisdiction of this state, not expressly exempted, is subject to assessment and taxation.

History.

I.C.,§ 63-601, as added by 1996, ch. 98, § 7, p. 308.

§ 63-602. Property exempt from taxation.

  1. Property shall be exempt from taxation as provided in titles 21, 22, 25, 26, 31, 33, 39, 41, 42, 49, 50, 67 and 70, Idaho Code, and in chapters 6, 24, 30, 35 and 45, title 63, Idaho Code; provided, that no deduction shall be made in assessment of shares of capital stock of any corporation or association for exemptions claimed under this section, and provided further, that the term “full cash value” wherever used in this act shall mean the actual assessed value of the property as to which an exemption is claimed.
  2. The use of the word “exclusive” or “exclusively” in this chapter shall mean used exclusively for any one (1) or more, or any combination, of the exempt purposes provided hereunder and property used for more than one (1) exempt purpose, pursuant to the provisions of sections 63-602A through 63-602OO, Idaho Code, shall be exempt from taxation hereunder as long as the property is used exclusively for one (1) or more or any combination of the exempt purposes provided hereunder.
  3. All exemptions from property taxation claimed shall be approved annually by the board of county commissioners or unless otherwise provided:
    1. Exemptions pursuant to sections 63-602A, 63-602F, 63-602I, 63-602J, 63-602L(1), 63-602M, 63-602R, 63-602S, 63-602U, 63-602V, 63-602W, 63-602Z, 63-602DD(1), 63-602EE, 63-602OO, 63-2431, 63-3502, 63-3502A and 63-3502B, Idaho Code, do not require application or approval by the board of county commissioners. For all other exemptions in title 63, Idaho Code, the process of applying is as specified in the exemption statutes or, if no process is specified and application is necessary to identify the property eligible for the exemption, annual application is required. Exemptions in other titles require no application.
    2. For exemptions that require an application, provided such exemptions are for property otherwise subject to assessment by the county assessor, the application must be made to the county commissioners by April 15 and the taxpayer and county assessor must be notified of any decision by May 15, unless otherwise provided by law. The decision of the county commissioners and any subsequent assessment notices sent to the taxpayer may be appealed to the county board of equalization pursuant to sections 63-501 and 63-501A, Idaho Code.
    3. For exemptions that require an application, provided such exemptions are for property otherwise subject to assessment by the state tax commission, application for exemption shall be included with the annual operator’s statement as required pursuant to section 63-404, Idaho Code. Notice of the decision and its effect on the assessment will be provided in accordance with procedures specified in chapter 4, title 63, Idaho Code. Appeals shall be made to the state tax commission in accordance with section 63-407, Idaho Code.
  4. An owner of property that is intended for a tax-exempt purpose may apply to the board of county commissioners for a provisional property tax exemption, pursuant to section 63-1305C, Idaho Code.
History.

I.C.,§ 63-602, as added by 1996, ch. 98, § 7, p. 308; am. 2010, ch. 133, § 1, p. 283; am. 2012, ch. 4, § 3, p. 6; am. 2014, ch. 20, § 1, p. 26; am. 2018, ch. 194, § 3, p. 430; am. 2020, ch. 313, § 3, p. 889.

STATUTORY NOTES

Cross References.

Charitable trusts and private foundations exemption,§ 68-1201 et seq.

Corporate credit union, exemptions,§ 26-2186.

Health facilities authority, exemption,§ 39-1452.

Junior college dormitory housings, exemption,§ 33-2133.

Legislature may provide exemptions, Idaho Const., Art. VII, § 5.

State housing agency, exemptions,§ 67-6208.

Amendments.

The 2010 amendment, by ch. 133, in subsection (2), substituted “63-602NN” for “63-602Z”; and in subsection (3), added “unless otherwise provided in this chapter.”

The 2012 amendment, by ch. 4, substituted “titles 21, 22, 25, 26, 31, 33, 39, 41, 42, 49, 50, 67 and 70, Idaho Code, and in chapters 6, 24, 30, 35 and 45, title 63, Idaho Code” for “this chapter” in subsection (1); and, in subsection (3), rewrote the introductory paragraph, which formerly read, “All exemptions from property taxation claimed under this chapter shall be approved annually by the county board of equalization unless otherwise provided in this chapter” and added paragraphs (a) through (c).

The 2014 amendment, by ch. 20, substituted “sections 63-602A through63-602OO” for “sections 63-602A through 63-602NN” in subsection (2); and inserted “63-602OO” in subsection (3)(a).

The 2018 amendment, by ch. 194, added subsection (4).

The 2020 amendment, by ch. 313, deleted “63-602K for land of more than five (5) contiguous acres” following “63-602J” near the beginning of the first sentence in paragraph (3)(a).

Compiler’s Notes.

The term “this act” near the end of subsection (1) refers to S.L. 1996, Chapter 98, which is codified throughout this title. The reference probably should be to “this title,” being title 63, Idaho Code.

S.L. 2014, Chapter 20 became law without the signature of the governor.

Effective Dates.

Section 3 of S.L. 2010, ch. 133 declared an emergency retroactively to January 1, 2010 and approved March 29, 2010.

Section 2 of S.L. 2014, ch. 20 declared an emergency and made this section retroactive to January 1, 2014.

Section 5 of S.L. 2018, ch. 194 declared an emergency and made this section retroactive to January 1, 2016. Approved March 20, 2018.

CASE NOTES

Claim of Exemption.

Although community action agency (CAA) was a non-profit corporation created to provide low-income housing, CAA received $760,575 in private contributions in 1998, and $3,563,810 from government grants in 1999, and although it was a borderline call, the board of equalization properly revoked CAA’s property tax exemption; the fact that the tenants did not pay full market price for the assistance was not enough, by itself, for CAA to be considered a charity. Cmty. Action Agency, Inc. v. Bd. of Equalization, 138 Idaho 82, 57 P.3d 793 (2002).

Decisions Under Prior Law
Chattels Real.

Under former statute, defining personalty for tax purposes as “equities in state lands, easements, and reservations,” mineral reservations were assessable as personalty and not as realty. In re Winton Lumber Co., 57 Idaho 131, 63 P.2d 664 (1936).

Claim of Exemption.

When claim of exemption from taxation is made, person claiming it must be able to point out some provision of law plainly giving exemption. Cheney v. Minidoka County, 26 Idaho 471, 144 P. 343 (1914).

Classification.

Classification for purposes of tax exemption must not be arbitrary. Williams v. Baldridge, 48 Idaho 618, 284 P. 203 (1930).

Construction.

Language of exemption statutes must be given its ordinary meaning. Bistline v. Bassett, 47 Idaho 66, 272 P. 696 (1928).

An alleged grant of exemption will be strictly construed and, thus, must be in terms so specific and certain as to leave no room for doubt; an exemption cannot be sustained unless it is shown to be within the spirit as well as the letter of the law. Bistline v. Bassett, 47 Idaho 66, 272 P. 696 (1928).

While exemptions are to be strictly construed, statute must be clearly prohibited by constitution before it can be declared in violation thereof. Williams v. Baldridge, 48 Idaho 618, 284 P. 203 (1930).

Power to Exempt.

Statutes purporting to grant exemptions from general taxation should generally be strictly construed as exemptions are never presumed. Andrews v. North Side Canal Co., 52 Idaho 117, 12 P.2d 263 (1932). Power to Exempt.

Power of state to exempt from taxation is plenary save only as it may be limited by federal or state constitution. Williams v. Baldridge, 48 Idaho 618, 284 P. 203 (1930).

Purpose of Exemptions.

The purpose of exemptions of privately owned property from taxation undoubtedly is to promote the public welfare and the right of the legislature to exempt privately owned property is recognized, if it is exercised to encourage private enterprise and thereby further the public welfare. Sunset Mem. Gardens, Inc. v. Idaho State Tax Comm’n, 80 Idaho 206, 327 P.2d 766 (1958).

Recovery of Tax on Exempt Property.

Taxes paid under protest may be recovered where assessment was illegally made on exempt property. Idaho Irrigation Co. v. Lincoln County, 28 Idaho 98, 152 P. 1058 (1915).

Where tax on exempt property is paid voluntarily under mistake of law, taxpayer may not recover same. Asp v. Canyon County, 43 Idaho 560, 256 P. 92 (1927).

Special Assessments for Local Improvements.

Constitutional or statutory exemption from taxation applies only to taxation for general purposes of government and does not relieve from liability for local assessments for municipal and other like improvements. In re Drainage Dist. No. 1, 29 Idaho 377, 161 P. 315 (1916).

Uniform Taxation.

The term “property” within the constitutional provision requires all “property” to be taxed uniformly by value. Diefendorf v. Gallet, 51 Idaho 619, 10 P.2d 307 (1932).

Use as Criterion for Exemption.

Where use is the criterion, exemption is lost if property is appropriated to other uses. Bistline v. Bassett, 47 Idaho 66, 272 P. 696 (1928).

RESEARCH REFERENCES

Am. Jur. 2d.
C.J.S.
ALR.

Exemption of property leased by and used for purposes of otherwise tax exempt body. 55 A.L.R.3d 430.

§ 63-602A. Property exempt from taxation — Government property.

  1. The following property is exempt from taxation: property belonging to the United States, except when taxation thereof is authorized by the congress of the United States; property belonging to the state of Idaho; property belonging to a federally recognized Indian tribe, as defined in section 67-4001, Idaho Code, which property is situated within the boundaries of the reservation of the Indian tribe; and property belonging to any county or municipal corporation or school district within this state.
  2. However, inventory property acquired under agricultural credit programs of the consolidated farm service agency of the United States department of agriculture shall be subject to taxation as other property in the county.
  3. However, unimproved real property of more than ten (10) contiguous acres owned in fee simple by the department of fish and game shall be subject to a fee in lieu of property taxes contingent upon the following conditions and requirements:
    1. The fee in lieu of property taxes shall not exceed the property tax for the property at the time of acquisition by the department of fish and game, unless the property tax rate for the property shall have been increased.
    2. The department shall determine and identify the parcels of property and their current use as qualified under the provisions of this chapter. The department shall consult with the appropriate county treasurer and determine the fee to be paid on the property and credited continuously to the county current expense fund. The fee shall be an amount equal to the property tax the property would generate if assessed as agricultural property.
    3. Any future increase in the fee paid in lieu of property taxes shall be determined by the amount of property taxes the property would generate if assessed as agricultural property. The increase may be determined by the department working cooperatively with the appropriate county assessor. The method used for determining the fee that would be due on department property is to be used only under this subsection and has no other application in any other section of the Idaho Code.
    4. The department shall then provide to the assessor of the county where the parcels are located on or before the second Monday of March each year, a listing identifying each parcel of unimproved property by legal description, size and amount of the fee for the preceding calendar year. The treasurer shall prepare and submit a billing for payment based on this information to the department. Once the fee has been determined, payment shall be made by June 20 of that year from moneys appropriated for that purpose. However, if the fees exceed the moneys appropriated for that purpose, the director of the department of fish and game shall calculate the percent reduction that must be made and certify the proportionate reduction to each county treasurer.
History.

(e) For the purpose of this section only, unimproved real property shall mean property on which no homesite or improved site is located, and homesite or improved site shall mean any buildings, structures, or fixtures which have been erected or affixed to the land and the necessary acreage required to utilize the homesite or improved site as determined by the county assessor shall be exempt. For purposes of this subsection only, roads or fences shall not be considered as improvements. History.

I.C.,§ 63-602A, as added by 1996, ch. 98, § 7, p. 308; am. 2003, ch. 8, § 2, p. 14; am. 2013, ch. 134, § 1, p. 306.

STATUTORY NOTES

Cross References.

Idaho fish and game department,§ 36-101 et seq.

Amendments.

The 2013 amendment, by ch. 134, substituted “property belonging to the state of Idaho; property belonging to a federally recognized Indian tribe, as defined in section 67-4001, Idaho Code, which property is situated within the boundaries of the reservation of the Indian tribe; and property belonging” for “this state, or” in subsection (1) and substituted “this chapter” for “this act” at the end of the first sentence in paragraph (3)(b).

Compiler’s Notes.

For more on the farm service agency of the United States department of agriculture, see http://www.fsa.usda.gov .

§ 63-602B. Property exempt from taxation — Religious limited liability companies, corporations or societies.

  1. The following property is exempt from taxation: property belonging to any religious limited liability company, corporation or society of this state, used exclusively for and in connection with any combination of religious, educational, or recreational purposes or activities of such religious limited liability company, corporation or society, including any and all residences used for or in furtherance of such purposes.
  2. If the entirety of any property belonging to any such religious limited liability company, corporation or society is leased by such owner, or if such religious limited liability company, corporation or society uses the entirety of such property for business or commercial purposes from which a revenue is derived, then the same shall be assessed and taxed as any other property. If any such property is leased in part or used in part by such religious limited liability company, corporation or society for such business or commercial purposes, the assessor shall determine the value of the entire exempt property, and the value of the part used or leased for such business or commercial purposes, and that part used or leased for such business or commercial purposes shall be taxed as any other property. The Idaho state tax commission shall promulgate rules establishing a method of determining the value of the part used or leased for such business or commercial purposes. If the value of the part used or leased for such business or commercial purposes is determined to be three percent (3%) or less of the value of the entirety, the whole of said property shall remain exempt. If the value of the part used or leased for such business or commercial purposes is determined to be more than three percent (3%) of the value of the entirety, the assessor shall assess such proportionate part of such property, and shall assess the trade fixtures used in connection with the sale of all merchandise for such business or commercial purposes, provided however, that the use or lease of any property by any such religious limited liability company, corporation or society for athletic or recreational facilities, residence halls or dormitories, meeting rooms or halls, auditoriums, or club rooms for and in connection with the purposes for which such religious limited liability company, corporation or society is organized, shall not be deemed a business or commercial purpose, even though fees or charges be imposed and revenue derived therefrom.
History.

I.C.,§ 63-602B, as added by 1996, ch. 98, § 7, p. 308; am. 2007, ch. 38, § 1, p. 95; am. 2008, ch. 50, § 1, p. 122.

STATUTORY NOTES

Amendments.

The 2007 amendment, by ch. 38, in subsection (1), substituted “in connection with any combination of religious, educational, or recreational purposes or activities of such religious corporation or society, including any and all residences used for or in furtherance of such purposes” for “in connection with public worship, and any parsonage belonging to such corporation or society and occupied as such, and any recreational hall belonging to and used in connection with the activities of such corporation or society; and this exemption shall extend to property owned by any religious corporation or society which is used for any combination of religious worship, educational purposes and recreational activities, not designed for profit”; and added the subsection (1) designation and subsection (2). The 2008 amendment, by ch. 50, inserted “limited liability company” in the section heading and throughout the section text.

Effective Dates.

Section 3 of S.L. 2008, ch. 50 declared an emergency retroactively to January 1, 2008 and approved March 3, 2008.

CASE NOTES

Decisions Under Prior Law
Constitutionality.

This section’s “parsonage” exemption does not violate the Establishment Clause, as it does not differentiate among religious sects and the provision is neutral both in design and purpose. Corporation of Presiding Bishop of Church of Jesus Christ of Latter-Day Saints v. Ada County, 123 Idaho 410, 849 P.2d 83 (1993).

Construction.

This section must be construed strictly. Upper Columbia Mission Soc’y v. Kootenai County, 93 Idaho 880, 477 P.2d 503 (1970), overruled on other grounds, North Idaho Jurisdiction of Episcopal Churches, Inc. v. Kootenai County, 94 Idaho 644, 496 P.2d 105 (1972).

Parsonage.

Mission president’s home did not qualify for exemption as a “parsonage belonging to any religious corporation or society and occupied as such” within the strict parameters of this section where the mission president had no affiliated meetinghouse and no local congregation, where the mission president did not serve the function of a minister or parson, where the mission president never met with all the missionaries at one time in one place, and where the missionaries attended sabbath services and other services at the church in the area where they were staying. Corporation of Presiding Bishop of Church of Jesus Christ of Latter-Day Saints v. Ada County, 123 Idaho 410, 849 P.2d 83 (1993).

Residences owned by the Roman Catholic Diocese did not qualify for exemption as a “parsonage belonging to any religious corporation or society and occupied as such” within the parameters of this section, where a single-family residence was occupied by a semi-retired priest without a designated congregation and where the residents of a duplex property served chiefly as administrators, lacking a regular ministry. Ada County Assessor v. Roman Catholic Diocese, 123 Idaho 425, 849 P.2d 98 (1993).

RESEARCH REFERENCES

Am. Jur. 2d.
ALR.

Exemption of parsonage or residence of minister, priest, rabbi, or other church personnel. 55 A.L.R.3d 356.

§ 63-602C. Property exempt from taxation — Fraternal, benevolent, or charitable limited liability companies, corporations or societies.

The following property is exempt from taxation: property belonging to any fraternal, benevolent, or charitable limited liability company, corporation or society, the World War veteran organization buildings and memorials of this state, used exclusively for the purposes for which such limited liability company, corporation or society is organized; provided, that if any building or property belonging to any such limited liability company, corporation or society is leased by such owner or if such limited liability company, corporation or society uses such property for business purposes from which a revenue is derived which, in the case of a charitable organization, is not directly related to the charitable purposes for which such charitable organization exists, then the same shall be assessed and taxed as any other property, and if any such property is leased in part or used in part by such limited liability company, corporation or society for such purposes the assessor shall determine the value of the entire building and the value of the part used or leased for commercial purposes. If the value of the part used for commercial purposes is determined to be three percent (3%) or less than the value of the entirety, the whole of said property shall remain exempt. If the value of the part used for commercial purposes is determined to be more than three percent (3%) of the value of the entirety, the assessor shall assess such proportionate part of such building including the value of the real estate as is so leased or used for such purposes, and shall assess the trade fixtures used in connection with the sale of all merchandise; provided however, that the lease or use of any property by any such limited liability company, corporation or society for athletic or recreational facilities, residence halls or dormitories, meeting rooms or halls, auditoriums or club rooms within the purposes for which such limited liability company, corporation or society is organized, shall not be deemed a business or commercial purpose, even though fees or charges be imposed and revenue derived therefrom.

History.

I.C.,§ 63-602C, as added by 1996, ch. 98, § 7, p. 308; am. 2003, ch. 8, § 3, p. 14; am. 2008, ch. 50, § 2, p. 123.

STATUTORY NOTES

Cross References.

Fraternal benefit societies, tax exemption,§ 41-3223.

Amendments.

The 2008 amendment, by ch. 50, inserted “limited liability company” in the section heading and throughout the section text.

Effective Dates.

Section 3 of S.L. 2008, ch. 50 declared an emergency retroactively to January 1, 2008 and approved March 3, 2008.

CASE NOTES

Apportionment.

Taxpayer was not entitled to an apportionment of its property taxes because it was unable to show that it leased less than three percent of its building and equipment to another entity; the evidence showed that the two companies were each entitled to use 50 percent of the property. Student Loan Fund of Idaho, Inc. v. Payette County, 138 Idaho 684, 69 P.3d 104 (2003).

Building Under Construction.

Charitable structure that was under construction did not qualify for a charitable tax exemption during the construction of the structure, because the mere fact that a charitable foundation was constructing building, that would perform charitable work once completed, was not sufficient to entitle the foundation to a tax exemption. The limited tours and activities that were being conducted on the property during construction could not serve as the basis for granting a property tax exemption. Ada Cty. Bd. of Equalization v. J.R. Simplot Found., Inc., 163 Idaho 75, 408 P.3d 73 (2017).

Determination of Charitable Status.

Although community action agency (CAA) was a non-profit corporation created to provide low-income housing, CAA received $760,575 in private contributions in 1998, and $3,563,810 from government grants in 1999, and although it was a borderline call, the board of equalization properly revoked CAA’s property tax exemption; the fact that the tenants did not pay full market price for the assistance was not enough, by itself, for CAA to be considered a charity. Cmty. Action Agency, Inc. v. Bd. of Equalization, 138 Idaho 82, 57 P.3d 793 (2002).

District court’s finding that a taxpayer was a charitable organization was not supported by substantial evidence, because the taxpayer received rent payments from an entity that shared its office building and equipment; there was no evidence that the payments were made with a donative intent. Student Loan Fund of Idaho, Inc. v. Payette County, 138 Idaho 684, 69 P.3d 104 (2003).

Use of Property.

Although the operator of a skilled nursing facility was recognized as a tax exempt organization and a public charity under the U.S. Internal Revenue Code, the operator was not a charitable organization for the purposes of this section, where its operations were similar to those of commercial facilities in the area, its money donations and volunteer hours did not reduce staffing or the amount charged to residents, the operator was compensated for all services it provided by the residents or by the state, the operator was dependent on government programs, and the operator did not provide services at a reduced cost, based on need. Evangelical Lutheran Good Samaritan Society v. Bd. of Equalization, 161 Idaho 378, 386 P.3d 901 (2016). Use of Property.

District court properly denied a taxpayer’s claim for an exemption for its property where the evidence showed that the land and buildings were not being used for a charitable purpose. Student Loan Fund of Idaho, Inc. v. Payette County, 138 Idaho 684, 69 P.3d 104 (2003).

This section mandates that a claimed property be used exclusively for the purposes for which a limited liability company, corporation, or society is organized. The exclusive use of the property must provide some gift or service of public benefit, which can be educational, religious, or physical or to provide a social benefit. Ada Cty. Bd. of Equalization v. J.R. Simplot Found., Inc., 163 Idaho 75, 408 P.3d 73 (2017).

Decisions Under Prior Law
Claim of Exemption.

Taxpayer must satisfy its burden and clearly establish a right to the exemption before an exemption will be granted. In re Evangelical Lutheran Good Samaritan Soc’y (Good Samaritan Village) v. Board of Equalization, 119 Idaho 126, 804 P.2d 299 (1990).

Construction.

Statutes granting tax exemptions must be strictly construed against the taxpayer and cannot be extended by judicial construction so as to create an exemption not specifically authorized. Bogus Basin Recreational Ass’n v. Boise County Bd. of Equalization, 118 Idaho 686, 799 P.2d 974 (1990).

Determination of Charitable Status.

There is nothing ambiguous in the portion of this section which holds that if any building or property belonging to a charitable organization, or any part of such building or property, is leased to anyone, then the building or property is subject to assessment and taxation, unless it constitutes less than three percent of the value of the entire building or property. Bogus Basin Recreational Ass’n v. Boise County Bd. of Equalization, 118 Idaho 686, 799 P.2d 974 (1990). Determination of Charitable Status.

— Applicability.

Determination of an institution’s charitable status is necessarily an individual matter, to be decided on a case-by-case basis. Canyon County v. Sunny Ridge Manor, Inc., 106 Idaho 98, 675 P.2d 813 (1984).

In determining charitable status of a nonprofit corporation under this section, a number of factors must be considered: (1) the stated purposes of its undertaking, (2) whether its functions are charitable, (3) whether it is supported by donations, (4) whether the recipients of its services are required to pay for the assistance they receive, (5) whether there is general public benefit, (6) whether the income received produces a profit, (7) to whom the assets would go upon dissolution of the corporation, and (8) whether the “charity” provided is based on need. Canyon County v. Sunny Ridge Manor, Inc., 106 Idaho 98, 675 P.2d 813 (1984).

To be classed as charitable, an organization need not provide monetary aid to the needy, but may provide any of a number of services of public benefit; the word “charitable,” in a legal sense, includes every gift for general public use, whether it be for educational, religious, physical or social benefit. Canyon County v. Sunny Ridge Manor, Inc., 106 Idaho 98, 675 P.2d 813 (1984).

An institution may be entitled to an exemption where it performs a function which might otherwise be an obligation of government and, thus, a nonprofit corporation may benefit only a limited group of people and still be considered “charitable” if that group of people possess a need which government might be required to fill; however, where there is no assistance to individuals which might normally require governmental funds, the institution must meet a stricter test: it must provide benefits to the community at large. Canyon County v. Sunny Ridge Manor, Inc., 106 Idaho 98, 675 P.2d 813 (1984).

Determination of a corporation’s charitable status for the purposes of this section must be made on a case-by-case basis; it necessarily involves consideration of the particular circumstances of the organization seeking such status, and it is not susceptible of the application of hard and fast rules or definitions. Coeur d’Alene Pub. Golf Club, Inc. v. Kootenai Bd. of Equalization, 106 Idaho 104, 675 P.2d 819 (1984).

It is no bar to an organization’s classification as charitable that the public benefit it provides is primarily recreational; public recreational facilities serve community social and physical needs, as well as providing some educational benefits. Coeur d’Alene Pub. Golf Club, Inc. v. Kootenai Bd. of Equalization, 106 Idaho 104, 675 P.2d 819 (1984).

For a corporation’s uses to be considered charitable it is essential that they provide some sort of general public benefit. Coeur d’Alene Pub. Golf Club, Inc. v. Kootenai Bd. of Equalization, 106 Idaho 104, 675 P.2d 819 (1984).

Not every nonprofit organization that provides some service to the public is entitled to claim that its property is exempt from taxation. Bogus Basin Recreational Ass’n v. Boise County Bd. of Equalization, 119 Idaho 126, 799 P.2d 974 (1990).

Providing homes and services for the elderly at a cost which can be met by them, and providing affordable housing and medical care which meets the special needs of the elderly in a nonprofit setting is generally considered to be a charitable purpose; however, this section not only requires that the organization be established as a charitable institution, but also that the property claimed as exempt must be used exclusively for charitable purposes. In re Evangelical Lutheran Good Samaritan Soc’y (Good Samaritan Village) v. Board of Equalization, 119 Idaho 126, 804 P.2d 299 (1990). Nonprofit corporation that provided low income housing to elderly and disabled clients did not perform a function which might otherwise have been an obligation of the government, since the housing it provided was supported by federal tax dollars, not private donations; as such, it merely shifted the burden from one group of taxpayers to another and did not qualify as a charitable organization pursuant to former similar section. Housing S.W., Inc. v. Washington County, 128 Idaho 335, 913 P.2d 68 (1996).

— Burden on Claimant.

Exemptions are never presumed, and the burden is on a claimant to establish clearly a right to exemption. Bogus Basin Recreational Ass’n v. Boise County Bd. of Equalization, 118 Idaho 686, 799 P.2d 974 (1990).

Taxpayer must satisfy its burden and clearly establish a right to the exemption before an exemption will be granted. In re Evangelical Lutheran Good Samaritan Soc’y (Good Samaritan Village) v. Board of Equalization, 119 Idaho 126, 804 P.2d 299 (1990).

— Leased Property.

It is clear that the legislature intended to exclude from exemption only those portions of an otherwise exempt property which are leased or used for commercial purposes; therefore, the portion of a fraternal organization’s building leased to the organization’s own members was not subject to assessment under this section. Boise Cent. Trades & Labor Council, Inc. v. Board of Ada County Comm’rs, 122 Idaho 67, 831 P.2d 535 (1992).

Incidental Benefits.

Although a society of a type contemplated under this section claimed that the independent living complex of its retirement center provided a charitable function in the community because it brought further growth and development to the area, this was an incidental benefit; the charitable nature of the society did not foster the growth, and it is well established that an incidental benefit bestowed upon a community does not constitute a public benefit for tax exemption purposes. In re Evangelical Lutheran Good Samaritan Soc’y (Good Samaritan Village) v. Board of Equalization, 119 Idaho 126, 804 P.2d 299 (1990).

Intent.

The rationale and intent of tax exemptions pursuant to this section are based upon legal principles and policy reasons which urge the legislature to encourage and promote sobriety, morality and virtue in the people of this state. In re Evangelical Lutheran Good Samaritan Soc’y (Good Samaritan Village) v. Board of Equalization, 119 Idaho 126, 804 P.2d 299 (1990).

Motorcycle Club.

Although motorcycle club provided a form of community service by offering recreational opportunities, club members, not the general public, benefitted most from club’s services; therefore, motorcycle club did not qualify for tax exempt status as a charitable organization. Owyhee Motorcycle Club, Inc. v. Ada County, 123 Idaho 962, 855 P.2d 47 (1993).

Public Golf Course.

Where significant expenses of development or operation of public golf course were provided for out of contributions or sale of the corporation’s land; the users’ green fees covered only a part of the total cost involved in establishing and maintaining the golf course; the corporation was not organized for profit; the board of directors were not compensated; no dividends were distributed; any net income was put back into the golf course in the form of improvements; there was no corporate stock issued, and the articles of incorporation provided that upon dissolution the corporation’s property would be donated to charitable uses, the golf course provided a significant benefit to the community in the form of inexpensive recreation and was tax exempt as a charitable corporation. Coeur d’Alene Pub. Golf Club, Inc. v. Kootenai Bd. of Equalization, 106 Idaho 104, 675 P.2d 819 (1984).

Religious Mission Home.

Where it was not demonstrated that president’s mission home provided a general public benefit, as required by Canyon County Assessor v. Sunny Ridge Manor, 106 Idaho 98, 675 P.2d 813 (1984), the use made of the mission home did not qualify for exemption under this section. Corporation of Presiding Bishop of Church of Jesus Christ of Latter-Day Saints v. Ada County, 123 Idaho 410, 849 P.2d 83 (1993).

Retirement Center.

Activities of residential retirement center — the uses to which its property is devoted — which were designed to fulfill its residents’ needs for recreation, society, culture, security, etc. would be, if other factors were present, “charitable” within the scope of this section. Canyon County v. Sunny Ridge Manor, Inc., 106 Idaho 98, 675 P.2d 813 (1984).

One of the factors most frequently looked at in determining if a retirement center is a charitable corporation is the amount of fees required of the residents; an institution may still qualify for a tax exemption even if fees are taken from residents to help cover operating expenses, but such fees must usually be nominal or not commensurate with the benefits provided. Canyon County v. Sunny Ridge Manor, Inc., 106 Idaho 98, 675 P.2d 813 (1984).

Where retirement center charged its residents fees sufficient to cover all of its current operating expenses, as well as to retire the debt on all of its facilities, it was difficult to view such an arrangement as charitable, and while such arrangement was not determinative of noncharitable status, it was a factor of great importance and should be weighted accordingly. Canyon County v. Sunny Ridge Manor, Inc., 106 Idaho 98, 675 P.2d 813 (1984).

Where residents of retirement center were required to pay completely for the benefits they received, and to be physically able to care for themselves, they were not a group of persons for whom any government assistance would be needed and where the benefits available at the center were reserved for the restricted group of persons who met the entrance qualifications, it could not be said that the center provided a general benefit to the community; moreover, although the center did not operate at a profit, and its articles of incorporation provided that upon dissolution the corporation’s assets would be distributed to nonprofit corporations or institutions, these factors were not sufficient to establish charitable status and the center was not a “charitable corporation” under this section. Canyon County v. Sunny Ridge Manor, Inc., 106 Idaho 98, 675 P.2d 813 (1984).

In order for retirement village to be allowed a tax exemption, the exclusive use of the property must provide some gift or service of public benefit. If the independent living units do not meet the needs of the elderly residents, or if the cost of living in the independent living units is not affordable for those elderly who need the services, then there is no public gift or benefit as contemplated by the statutes. If the only elderly persons residing in the facility are those who can afford to pay the founder’s fee or the monthly maintenance fees that are comparable to profit oriented commercial retirement housing in the same community the organization is not entitled to tax exempt status. In re Evangelical Lutheran Good Samaritan Soc’y (Good Samaritan Village) v. Board of Equalization, 119 Idaho 126, 804 P.2d 299 (1990).

RESEARCH REFERENCES

ALR.

Receipt of pay from beneficiaries as affecting tax exemption of charitable institutions. 37 A.L.R.3d 1191.

Tax exemption of property used by fraternal or benevolent association for clubhouse or similar purposes. 39 A.L.R.3d 640.

Exemption of charitable or educational organization from sales or use tax. 53 A.L.R.3d 748.

§ 63-602D. Property exempt from taxation — Certain hospitals.

  1. For the purposes of this section, “hospital” means a hospital as defined by chapter 13, title 39, Idaho Code, and includes one (1) or more acute care, outreach, satellite, outpatient, ancillary or support facilities of such hospital whether or not any such individual facility would independently satisfy the definition of hospital.
  2. The following property is exempt from taxation: the real property owned and personal property, including medical equipment, owned or leased by a hospital corporation or a county hospital or hospital district that is operated as a hospital and the necessary grounds used therewith.
  3. If real property, not currently exempt from taxation, is being prepared for use as a hospital, the value of the bare land only shall be taxed while the property is being prepared for use as a hospital. All improvements to and construction on the real property, while it is being prepared for use as a hospital, shall be exempt from taxation. For purposes of this section, property is being “prepared for use as a hospital” if the corporation has begun construction of a hospital project as evidenced by obtaining a building permit that will, on completion, qualify such property for an exemption and, as of the assessment date, has not abandoned the construction. Construction shall not be considered abandoned if it has been delayed by causes and circumstances beyond the corporation’s control or when delay is caused by an event that has occurred in the absence of the corporation’s willful neglect or intentional acts, omissions or practices engaged in by the corporation for the purpose of impeding progress. Notwithstanding the foregoing, in no event shall improvements to property that is being prepared for use as a hospital qualify for an exemption from ad valorem property tax under this subsection for more than three (3) consecutive tax years; upon completion of construction and obtaining a certificate of occupancy, the entire real property shall be exempt from taxation if the corporation meets the requirements of subsection (4) of this section; provided, property already exempt or eligible for exemption shall not be affected by the provisions of this subsection.
  4. The corporation must show that the hospital:
    1. Is organized as a nonprofit corporation pursuant to chapter 30, title 30, Idaho Code, or pursuant to equivalent laws in its state of incorporation;
    2. Has received an exemption from taxation from the internal revenue service pursuant to section 501(c)(3) of the Internal Revenue Code.
  5. The board of equalization shall grant an exemption to the property of: (a) a county hospital; (b) a hospital district; or (c) any hospital corporation meeting the criteria provided in subsection (4) of this section.
  6. If a hospital corporation uses property for business purposes from which a revenue is derived that is not directly related to the hospital corporation’s exempt purposes, then the property shall be assessed and taxed as any other property. If property is used in part by a hospital corporation for such purposes, then the assessor shall determine the value of the entire property and the value of the part used that is not directly related to the hospital corporation’s exempt purposes. If the value of the part that is not directly related to the hospital corporation’s exempt purposes is determined to be three percent (3%) or less than the value of the entire property, then the property shall remain exempt. If the value of the part that is not directly related to the hospital corporation’s exempt purposes is determined to be more than three percent (3%) of the value of the entire property, then the assessor shall assess the proportionate part of the property, including the value of the real estate used for such purposes. (7) A hospital corporation issued an exemption from property taxation pursuant to this section and operating a hospital having one hundred fifty (150) or more patient beds shall prepare a community benefits report to be filed with the board of equalization by December 31 of each year. The report shall itemize the hospital’s amount of unreimbursed services for the prior year (including charity care, bad debt, and underreimbursed care covered through government programs); special services and programs the hospital provides below its actual cost; donated time, funds, subsidies and in-kind services; additions to capital such as physical plant and equipment; and indication of the process the hospital has used to determine general community needs that coincide with the hospital’s mission. The report shall be provided as a matter of community information. Neither the submission of the report nor the contents shall be a basis for the approval or denial of a corporation’s property tax exemption.
History.

I.C.,§ 63-602D, as added by 1996, ch. 98, § 7, p. 308; am. 1999, ch. 126, § 1, p. 366; am. 2006, ch. 319, § 1, p. 1016; am. 2017, ch. 58, § 32, p. 91.

STATUTORY NOTES

Amendments.

The 2006 amendment, by ch. 319, in subsections (2) and (5), inserted references to “or a county hospital or hospital district”.

The 2017 amendment, by ch 58, substituted “chapter 30, title 30” for “chapter 3, title 30” in paragraph (4)(a).

Federal References.

Section 501(c)(3) of the Internal Revenue Code, referred to in paragraph (4)(b), is compiled as 26 U.S.C.S. § 501(c)(3).

Compiler’s Notes.

Section 2 of S.L. 1999, ch. 126 reads: “An emergency existing therefor, which emergency is hereby declared to exist, this act shall be in full force and effect on and after its passage and approval. This act shall apply retroactively for all property tax purposes commencing January 1, 1999, and shall further apply retroactively for purposes of property tax assessments, equalization proceedings, exemption proceedings, appeals and court actions which are now pending or that are commenced or arise after the effective date of this act for all tax years commencing on and after January 1, 1996, notwithstanding that the period for which an exemption is claimed is before the effective date of this act.”

The words enclosed in parentheses so appeared in the law as enacted.

Effective Dates.

Section 2 of S.L. 2006, ch. 319 declared an emergency retroactively to January 1, 2006 and approved March 31, 2006.

CASE NOTES

Decisions Under Prior Law
Determination of Charitable Status.

Taxpayer must satisfy its burden and clearly establish a right to the exemption before an exemption will be granted. Evangelical Lutheran Good Samaritan Soc’y (Good Samaritan Village) v. Board of Equalization, 119 Idaho 126, 804 P.2d 299 (1990).

Hospital Distinguished from Retirement Center.

Considering that tax exemptions are construed strictly against the taxpayer, the definition of hospital requires it be more than an institution which provides housing and minimal medical care for those who are ambulatory and otherwise able to care for themselves; independent living units used primarily to provide housing for aged or elderly persons in a retirement community or village did not qualify as a tax exempt hospital. Evangelical Lutheran Good Samaritan Soc’y (Good Samaritan Village) v. Board of Equalization, 119 Idaho 126, 804 P.2d 299 (1990).

Retirement Centers.

In order for retirement village to be allowed a tax exemption, the exclusive use of the property must provide some gift or service of public benefit. If the independent living units do not meet the needs of the elderly residents, or if the cost of living in the independent living units is not affordable for those elderly who need the services, then there is no public gift or benefit as contemplated by the statutes. If the only elderly persons residing in the facility are those who can afford to pay the founder’s fee or the monthly maintenance fees that are comparable to profit oriented commercial retirement housing in the same community the organization is not entitled to tax exempt status. Evangelical Lutheran Good Samaritan Soc’y (Good Samaritan Village) v. Board of Equalization, 119 Idaho 126, 804 P.2d 299 (1990).

RESEARCH REFERENCES

Am. Jur. 2d.
ALR.

Homes for aged as exempt from property taxation. 37 A.L.R.3d 565.

Nursing homes as exempt from property taxation. 34 A.L.R.5th 529.

§ 63-602E. Property exempt from taxation — Property used for school or educational purposes.

  1. The following property is exempt from taxation: all property used exclusively for nonprofit school or educational purposes, property used for charter school purposes, and all property from which no profit is derived and which is held or used exclusively for endowment, building or maintenance purposes of schools or educational institutions.
  2. If property is used primarily for nonprofit school purposes or charter school purposes and for business purposes from which a revenue is derived, which revenue is not related to the educational purpose for which the nonprofit school or charter school exists, the assessor shall determine the value of the entire property, of the part used for nonprofit school purposes or charter school purposes, and of the part used for such unrelated business purposes. The portion of the building used for nonprofit school purposes or charter school purposes and for business and administration of the nonprofit school or charter school shall be exempt from taxation.
  3. Possessory interests in improvements on state college or state university owned land used exclusively for student housing, college or university operated dining, or other education related purposes approved by the state board of education and board of regents of the university of Idaho as proper for the operation of such state college or university shall be exempt from taxation.
History.

I.C.,§ 63-602E, as added by 1996, ch. 98, § 7, p. 308; am. 2003, ch. 222, § 1, p. 574; am. 2006, ch. 366, § 1, p. 1104; am. 2010, ch. 254, § 2, p. 644.

STATUTORY NOTES

Amendments.

The 2006 amendment, by ch. 366, inserted “nonprofit school purposes or” and “nonprofit school or” preceding “charter” throughout subsection (2).

The 2010 amendment, by ch. 254, added subsection (3).

Effective Dates.

Section 2 of S.L. 2003, ch. 222 declared an emergency retroactively to January 1, 2003 and approved April 4, 2003.

Section 2 of S.L. 2006, ch. 366 declared an emergency retroactively to January 1, 2006 and approved April 7, 2006.

Section 3 of S.L. 2010, ch. 254 declared an emergency retroactively to January 1, 2010 and approved April 8, 2010.

CASE NOTES

Multiple Use Property.

The exemptions from taxation are not mutually exclusive: real property utilized by religious organizations for summer encampments should be exempt from ad valorem taxes, since all activities conducted thereon, although in some aspects charitable, and in some aspects educational, are nevertheless directly related to the religious purposes for which such groups are organized. North Idaho Jurisdiction of Episcopal Churches, Inc. v. Kootenai County, 94 Idaho 644, 496 P.2d 105 (1972).

RESEARCH REFERENCES

ALR.

Tax exemption of property of educational body as extending to property used by personnel as living quarters. 55 A.L.R.3d 485.

§ 63-602F. Property exempt from taxation.

The following property is exempt from taxation:

  1. Possessory rights to public lands;
  2. Mining claims not patented;
  3. All public cemeteries;
  4. All public libraries.
History.

I.C.,§ 63-602F, as added by 1996, ch. 98, § 7, p. 308.

STATUTORY NOTES

Cross References.

Profits of mines, taxation of,§ 63-2801 et seq.

Public libraries exempt from taxation, Idaho Const., Art. VII, § 4.

RESEARCH REFERENCES

ALR.

§ 63-602G. Property exempt from taxation — Homestead. [Effective until January 1, 2021.]

  1. For each tax year, the first one hundred thousand dollars ($100,000) of the market value for assessment purposes of the homestead as that term is defined in section 63-701, Idaho Code, or fifty percent (50%) of the market value for assessment purposes of the homestead as that term is defined in section 63-701, Idaho Code, whichever is the lesser, shall be exempt from property taxation.
  2. The exemption allowed by this section may be granted only if:
    1. The homestead is owner-occupied and used as the primary dwelling place of the owner as of January 1, provided that in the event the homestead is owner-occupied after January 1 but before April 15, the owner of the property is entitled to the exemption. The homestead may consist of part of a multidwelling or multipurpose building and shall include all of such dwelling or building except any portion used exclusively for anything other than the primary dwelling of the owner. The presence of an office in a homestead, which office is used for multiple purposes, including business and personal use, shall not prevent the owner from claiming the exemption provided in this section; and
    2. The state tax commission has certified to the board of county commissioners that all properties in the county which are subject to appraisal by the county assessor have, in fact, been appraised uniformly so as to secure a just valuation for all property within the county; and
    3. The owner has certified to the county assessor by April 15 that:
      1. He is making application for the exemption allowed by this section;
      2. The homestead is his primary dwelling place; and
      3. He has not made application in any other county for the exemption, and has not made application for the exemption on any other homestead in the county.
    4. For the purpose of this section, the definition of “owner” shall be the same definition set forth in section 63-701(7), Idaho Code.
    5. Any owner may request in writing the return of all copies of any documents submitted with the affidavit set forth in section 63-703(4), Idaho Code, that are held by a county assessor, and the copies shall be returned by the county assessor upon submission of the affidavit in proper form.
    6. For the purpose of this section, the definition of “primary dwelling place” shall be the same definition set forth in section 63-701(8), Idaho Code.
    7. For the purpose of this section, the definition of “occupied” shall be the same definition set forth in section 63-701(6), Idaho Code.
  3. An owner need only make application for the exemption described in subsection (1) of this section once, as long as all of the following conditions are met:
    1. The owner has received the exemption during the previous year as a result of his making a valid application as defined in subsection (2)(c) of this section.
    2. The owner or beneficiary, partner, member or shareholder, as appropriate, still occupies the same homestead for which the owner made application.
    3. The homestead described in subsection (3)(b) of this section is owner-occupied or occupied by a beneficiary, partner, member or shareholder, as appropriate, and used as the primary dwelling place of the owner or beneficiary, partner, member or shareholder, as appropriate, as of January 1; provided however, that in the event the homestead is owner-occupied after January 1, but before April 15, the owner of the property is entitled to the exemption.
  4. The exemption allowed by this section must be taken before the reduction in taxes provided by sections 63-701 through 63-710, Idaho Code, is applied.
  5. Recovery of property tax exemptions allowed by this section but improperly claimed or approved:
    1. Upon discovery of evidence, facts or circumstances indicating any exemption allowed by this section was improperly claimed or approved, the county assessor shall decide whether the exemption claimed should have been allowed, and if not, notify the taxpayer in writing, assess a recovery of property tax and notify the county treasurer of this assessment. If the county assessor determined that an exemption was improperly approved as a result of county error, the county assessor shall present the discovered evidence, facts or circumstances from the improperly approved exemption to the board of county commissioners, at which time the board may waive a recovery of the property tax and notify such taxpayer in writing.
    2. When information indicating that an improper claim for the exemption allowed by this section is discovered by the state tax commission, the state tax commission may disclose this information to the appropriate county assessor, board of county commissioners and county treasurer. Information disclosed to county officials by the state tax commission under this subsection may be used to decide the validity of any entitlement to the exemption provided in this section and is not otherwise subject to public disclosure pursuant to chapter 1, title 74, Idaho Code.
    3. The assessment and collection of the recovery of property tax must begin within the seven (7) year period beginning the date the assessment notice reflecting the improperly claimed or approved exemption was required to be mailed to the taxpayer.
    4. The taxpayer may appeal to the county board of equalization the decision by the county assessor 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. The board may waive the collection of all or part of any costs, late charges and interest, in order to facilitate the collection of the recovery of the property tax.
    5. For purposes of calculating the tax, the amount of the recovered property tax shall be for each year the exemption allowed by this section 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 multiplied 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.
    6. 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.
    7. Recovered property taxes shall be billed, collected and distributed in the same manner as property taxes, except each taxing district or unit shall be notified of the amount of any recovered property taxes included in any distribution.
    8. Thirty (30) days after the taxpayer is notified, as provided in subsection (5)(a) of this section, the assessor shall record a notice of intent to attach a lien. Upon the payment in full of such recovered property taxes prior to the attachment of the lien as provided in subsection (5)(i) of this section, 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 board of equalization decision granting the appeal. If the real property is sold to a bona fide purchaser for value, prior to the recording of the notice of the intent to attach a lien, the county assessor and treasurer shall cease the recovery of such unpaid recovered property tax.
    9. Any unpaid recovered property taxes shall become a lien upon the real property in the same manner as provided for property 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 assessor sent the notice to the taxpayer pursuant to this section.
    10. For purposes of the limitation provided by section 63-802, Idaho Code, moneys received pursuant to this subsection as recovery of property tax shall be treated as property tax revenue.
  6. The legislature declares that this exemption is necessary and just.
  7. A homestead, having previously qualified for exemption under this section in the preceding year, shall not lose such qualification due to: the owner’s, beneficiary’s, partner’s, member’s or shareholder’s absence in the current year by reason of active military service, or because the homestead has been leased because the owner, beneficiary, partner, member or shareholder is absent in the current year by reason of active military service. An owner subject to the provisions of this subsection must apply for the exemption with the county assessor every year on or before a deadline date as specified by the county assessor for the county in which the homestead is claimed. If an owner fails to apply on or before the established deadline, the county may, at its discretion, discontinue the exemption for that year.
  8. A homestead, having previously qualified for exemption under this section in the preceding year, shall not lose such qualification due to the owner’s, beneficiary’s, partner’s, member’s or shareholder’s death during the year of the owner’s, beneficiary’s, partner’s, member’s or shareholder’s death and the tax year immediately following such death provided that the homestead continues to be a part of the owner’s, beneficiary’s, partner’s, member’s or shareholder’s estate. After such time the new owner shall reapply to receive the exemption pursuant to this section and shall meet the qualification criteria contained in this section.

When an “owner,” pursuant to the provisions of section 63-701(7), Idaho Code, is any person who is the beneficiary of a revocable or irrevocable trust, or who is a partner of a limited partnership, a member of a limited liability company, or shareholder of a corporation, he or she may provide proof of the trust, limited partnership, limited liability company, or corporation in the manner set forth in section 63-703(4), Idaho Code.

History.

I.C.,§ 63-602G, as added by 1996, ch. 98, § 7, p. 308; am. 1997, ch. 358, § 1, p. 1058; am. 1999, ch. 382, § 1, p. 1047; am. 2001, ch. 69, § 1, p. 129; am. 2001, ch. 166, § 1, p. 576; am. 2004, ch. 156, § 1, p. 495; am. 2004, ch. 190, § 1, p. 597; am. 2005, ch. 283, § 1, p. 919; am. 2006, ch. 429, § 1, p. 1313; am. 2007, ch. 39, § 1, p. 96; am. 2009, ch. 7, § 1, p. 7; am. 2012, ch. 214, § 1, p. 581; am. 2013, ch. 21, § 4, p. 36; am. 2014, ch. 324, § 1, p. 802; am. 2015, ch. 141, § 159, p. 379; am. 2016, ch. 94, § 1, p. 287.

STATUTORY NOTES
Amendments.

This section was amended by two 2004 acts which appear to be compatible and have been compiled together.

The 2004 amendment, by ch. 156, § 1, effective March 23, 2004 and retroactively to January 1, 2004, rewrote subsection (2)(d) and substituted “section 63-703(4), Idaho Code,” for “paragraph (d) of this subsection” in subsection (2)(e).

The 2004 amendment, by ch. 190, § 1, effective July 1, 2004, inserted present subsection (5) and renumbered former subsections (5) and (6) as subsections (6) and (7).

The 2006 amendment, by ch. 429, throughout the section, substituted “homestead” for “residential improvements”; and in subsection (1), substituted “2006” for “1983”, inserted “subject to annual adjustment as provided herein” substituted “first seventy-five thousand” for “first fifty thousand” inserted “as that term is defined in section 63-701, Idaho Code” and added the second through sixth sentences.

The 2007 amendment, by ch. 39, added the last sentence in subsections (5)(a) and (5)(d); in the first sentence of subsection (5)(e), added “For purposes of calculating the tax,” substituted “the amount of the recovered property tax” for “A recovery of property tax,” deleted “the lesser of” preceding “a maximum of seven (7) years” and “or until the property tax was transferred to a bona fide purchaser for value” from the end; and added subsection (5)(h) and made related redesignations.

The 2009 amendment, by ch. 7, in the third sentence in subsection (1), substituted “annual change in the Idaho housing price index” for “annual increase in the Idaho housing price index.”

The 2012 amendment, by ch. 214, added subsection (8).

The 2013 amendment, by ch. 21, in subsection (5), substituted “county board of equalization” for “board of county commissioners” in the first sentence in paragraph (d) and substituted “county board of equalization” for “county commissioners’” near the end of the second sentence in paragraph (h).

The 2014 amendment, by ch. 324, rewrote subsection (7), relating to what is considered to be active military duty for purposes of the homestead exemption.

The 2015 amendment, by ch. 141, substituted “chapter 1, title 74” for “chapter 3, title 9” in paragraph (5)(b).

The 2016 amendment, by ch. 94, rewrote subsection (1), setting the homestead exemption value at $100,000 or 50 percent of assessed value, whichever is less.

Compiler’s Notes.

For this section as effective January 1, 2021, see the following section, also numbered§ 63-602G.

Effective Dates.

Section 9 of S.L. 2001, ch. 69 provided that the act should take effect on and after January 1, 2002.

Section 8 of S.L. 2004, ch. 156 declared an emergency retroactively to January 1, 2004. Approved March 23, 2004. Section 2 of S.L. 2005, ch. 283 declared an emergency retroactively to January 1, 2005 and approved April 5, 2005.

Section 2 of S.L. 2006, ch. 429 declared an emergency retroactively to January 1, 2006 and approved April 12, 2006.

Section 2 of S.L. 2007, ch. 39 declared an emergency retroactively to January 1, 2007 and approved March 2, 2007.

Section 2 of S.L. 2009, ch. 7 declared an emergency retroactively to January 1, 2009. Approved February 19, 2009.

Section 2 of S.L. 2012, ch. 214 declared an emergency and made this section retroactive to January 1, 2012. Approved April 3, 2012.

CASE NOTES

Cited

Bradbury v. Idaho Judicial Council, 149 Idaho 107, 233 P.3d 38 (2009).

Decisions Under Prior Law
Constitutionality.

Homeowners are not a suspect class and the exemption under this section for homeowners furthers legitimate state interests, such as fostering home ownership and equalizing the tax burden between residential and business properties; therefore, this section does not violate the equal protection provisions ofIdaho Const., Art. I, § 2 or the Fourth Amendment to the United States Constitution. Simmons v. Idaho State Tax Comm’n, 111 Idaho 343, 723 P.2d 887 (1986).

The provision of Idaho Const., Art. VII, § 5 which expressly authorizes “such exemptions from taxation as from time to time shall seem necessary and just . . .” does not mean that property may be wholly, but not partially, exempt; therefore, the partial exemption under this section of owner-occupied residential improvements does not violate Idaho Const., Art. VII, §§ 2 or 5. Simmons v. Idaho State Tax Comm’n, 111 Idaho 343, 723 P.2d 887 (1986).

Impairment of Contracts.

This section’s effect on property tax revenues and on the government’s ability to pay its bond obligations is too speculative to impair the obligation of contracts in violation of U.S. Const., Art. I, § 10. Simmons v. Idaho State Tax Comm’n, 111 Idaho 343, 723 P.2d 887 (1986).

Owners.

Where agreement between sellers and taxpayers was found to be a contract to purchase home, taxpayers were owners of the property for purposes of this section and were entitled to homeowners’ exemption. Ada County Assessor v. Taylor, 124 Idaho 550, 861 P.2d 1215 (1993).

§ 63-602G. Property exempt from taxation — Homestead. [Effective January 1, 2021.]

  1. For each tax year, the first one hundred thousand dollars ($100,000) of the market value for assessment purposes of the homestead as that term is defined in section 63-701, Idaho Code, or fifty percent (50%) of the market value for assessment purposes of the homestead as that term is defined in section 63-701, Idaho Code, whichever is the lesser, shall be exempt from property taxation.
  2. The exemption allowed by this section may be granted only if:
    1. The homestead is owner-occupied and used as the primary dwelling place of the owner. The homestead may consist of part of a multidwelling or multipurpose building and shall include all of such dwelling or building except any portion used exclusively for anything other than the primary dwelling of the owner. The presence of an office in a homestead, which office is used for multiple purposes, including business and personal use, shall not prevent the owner from claiming the exemption provided in this section; and
    2. The state tax commission has certified to the board of county commissioners that all properties in the county which are subject to appraisal by the county assessor have, in fact, been appraised uniformly so as to secure a just valuation for all property within the county; and
    3. The owner has certified to the county assessor that:
      1. He is making application for the exemption allowed by this section;
      2. The homestead is his primary dwelling place; and
      3. He has not made application in any other county for the exemption, and has not made application for the exemption on any other homestead in the county.
    4. For the purpose of this section, the definition of “owner” shall be the same definition set forth in section 63-701(7), Idaho Code.
    5. Any owner may request in writing the return of all copies of any documents submitted with the affidavit set forth in section 63-703(4), Idaho Code, that are held by a county assessor, and the copies shall be returned by the county assessor upon submission of the affidavit in proper form.
    6. For the purpose of this section, the definition of “primary dwelling place” shall be the same definition set forth in section 63-701(8), Idaho Code.
    7. For the purpose of this section, the definition of “occupied” shall be the same definition set forth in section 63-701(6), Idaho Code.
  3. An owner need only make application for the exemption described in subsection (1) of this section once, as long as all of the following conditions are met:
    1. The owner has received the exemption during the previous year as a result of his making a valid application as set forth in subsection (2)(c) of this section.
    2. The owner or beneficiary, partner, member or shareholder, as appropriate, still occupies the same homestead for which the owner made application. (c) The homestead described in paragraph (b) of this subsection is owner-occupied or occupied by a beneficiary, partner, member or shareholder, as appropriate, and used as the primary dwelling place of the owner or beneficiary, partner, member or shareholder, as appropriate.
  4. The exemption allowed by this section shall be effective upon the date of the application and must be taken before the reduction in taxes provided by sections 63-701 through 63-710, Idaho Code, is applied.
  5. Recovery of property tax exemptions allowed by this section but improperly claimed or approved:
    1. Upon discovery of evidence, facts or circumstances indicating any exemption allowed by this section was improperly claimed or approved, the county assessor shall decide whether the exemption claimed should have been allowed and, if not, notify the taxpayer in writing, assess a recovery of property tax and notify the county treasurer of this assessment. If the county assessor determined that an exemption was improperly approved as a result of county error, the county assessor shall present the discovered evidence, facts or circumstances from the improperly approved exemption to the board of county commissioners, at which time the board may waive a recovery of the property tax and notify such taxpayer in writing.
    2. When information indicating that an improper claim for the exemption allowed by this section is discovered by the state tax commission, the state tax commission may disclose this information to the appropriate county assessor, board of county commissioners and county treasurer. Information disclosed to county officials by the state tax commission under this subsection may be used to decide the validity of any entitlement to the exemption provided in this section and is not otherwise subject to public disclosure pursuant to chapter 1, title 74, Idaho Code.
    3. The assessment and collection of the recovery of property tax must begin within the seven (7) year period beginning the date the assessment notice reflecting the improperly claimed or approved exemption was required to be mailed to the taxpayer.
    4. The taxpayer may appeal to the county board of equalization the decision by the county assessor 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. The board may waive the collection of all or part of any costs, late charges, and interest in order to facilitate the collection of the recovery of the property tax.
    5. For purposes of calculating the tax, the amount of the recovered property tax shall be for each year the exemption allowed by this section 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 multiplied 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.
    6. 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.
    7. Recovered property taxes shall be billed, collected and distributed in the same manner as property taxes, except each taxing district or unit shall be notified of the amount of any recovered property taxes included in any distribution. (h) 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 recovered property taxes prior to the attachment of the lien as provided in paragraph (i) 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 board of equalization decision granting the appeal. If the real property is sold to a bona fide purchaser for value prior to the recording of the notice of the intent to attach a lien, the county assessor and treasurer shall cease the recovery of such unpaid recovered property tax.
      1. Any unpaid recovered property taxes shall become a lien upon the real property in the same manner as provided for property 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 assessor sent the notice to the taxpayer pursuant to this section.
  6. The legislature declares that this exemption is necessary and just.
  7. A homestead, having previously qualified for exemption under this section in the preceding year, shall not lose such qualification due to: the owner’s, beneficiary’s, partner’s, member’s or shareholder’s absence in the current year by reason of active military service, or because the homestead has been leased because the owner, beneficiary, partner, member or shareholder is absent in the current year by reason of active military service. An owner subject to the provisions of this subsection must apply for the exemption with the county assessor every year on or before a deadline date as specified by the county assessor for the county in which the homestead is claimed. If an owner fails to apply on or before the established deadline, the county may, at its discretion, discontinue the exemption for that year.
  8. A homestead, having previously qualified for exemption under this section in the preceding year, shall not lose such qualification due to the owner’s, beneficiary’s, partner’s, member’s or shareholder’s death during the year of the owner’s, beneficiary’s, partner’s, member’s or shareholder’s death and the tax year immediately following such death provided that the homestead continues to be a part of the owner’s, beneficiary’s, partner’s, member’s or shareholder’s estate. After such time, the new owner shall reapply to receive the exemption pursuant to this section and shall meet the qualification criteria contained in this section.

When an “owner,” pursuant to the provisions of section 63-701(7), Idaho Code, is any person who is the beneficiary of a revocable or irrevocable trust, or who is a partner of a limited partnership, a member of a limited liability company, or shareholder of a corporation, he or she may provide proof of the trust, limited partnership, limited liability company, or corporation in the manner set forth in section 63-703(4), Idaho Code.

(j) For purposes of the limitation provided by section 63-802, Idaho Code, moneys received pursuant to this subsection as recovery of property tax shall be treated as property tax revenue.

History.

I.C.,§ 63-602G, as added by 1996, ch. 98, § 7, p. 308; am. 1997, ch. 358, § 1, p. 1058; am. 1999, ch. 382, § 1, p. 1047; am. 2001, ch. 69, § 1, p. 129; am. 2001, ch. 166, § 1, p. 576; am. 2004, ch. 156, § 1, p. 495; am. 2004, ch. 190, § 1, p. 597; am. 2005, ch. 283, § 1, p. 919; am. 2006, ch. 429, § 1, p. 1313; am. 2007, ch. 39, § 1, p. 96; am. 2009, ch. 7, § 1, p. 7; am. 2012, ch. 214, § 1, p. 581; am. 2013, ch. 21, § 4, p. 36; am. 2014, ch. 324, § 1, p. 802; am. 2015, ch. 141, § 159, p. 379; am. 2016, ch. 94, § 1, p. 287; am. 2020, ch. 248, § 1, p. 727.

STATUTORY NOTES

Amendments.

The 2020 amendment, by ch. 258, in subsection (2), deleted “as of January 1, provided that in the event the homestead is owner-occupied after January 1 but before April 15, the owner of the property is entitled to the exemption” from the end of the first sentence in paragraph (a) and deleted “by April 15” following “county assessor” at the end of the introductory paragraph of paragraph (c); deleted “as of January 1; provided however, that in the event the homestead is owner-occupied after January 1, but before April 15, the owner of the property is entitled to the exemption” from the end of paragraph (3)(c); and inserted “shall be effective upon the date of the application and” near the middle of subsection (4).

Compiler’s Notes.

For this section as effective until January 1, 2021, see the preceding section, also numbered §n 63-602G.

Effective Dates.

Section 2 of S.L. 2020, ch. 248 provided that the act should take effective January 1, 2021.

§ 63-602H. Value of residential property in certain zoned areas.

  1. Residential property located in an area which was previously zoned residential but has been changed to a zone other than residential shall be appraised, assessed and taxed as if such property were in an area zoned residential as long as such property is continuously used by the owner thereof solely for residential purposes.
  2. “Residential property” as used herein is defined as any tract of three (3) acres or less which is used by the owner thereof solely for residential purposes.
History.

I.C.,§ 63-602H, as added by 1996, ch. 98, § 7, p. 308.

§ 63-602I. Property exempt from taxation — Household goods, wearing apparel and other personal effects in certain cases.

The following property is exempt from taxation: all household goods, furniture and furnishings actually in use by the owner in his private home or dwelling place, or temporarily in storage pending delivery by a vendor to him for his personal use, and not for sale or in commercial use, and all wearing apparel and other personal effects held by any person for the exclusive use and benefit of himself or family and not for sale or commercial use.

History.

I.C.,§ 63-602I, as added by 1996, ch. 98, § 7, p. 308.

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-602J. Property exempt from taxation — Motor vehicles and vessels properly registered.

The following property is exempt from taxation: motor vehicles properly registered and for which the required fee has been paid under the provisions of the laws of the state of Idaho, recreational vehicles for which the fees imposed by law have been paid and vessels for which the certificate of registration fees imposed by law have been paid.

History.

I.C.,§ 63-602J, as added by 1996, ch. 98, § 7, p. 308.

STATUTORY NOTES

Cross References.

Motor vehicle operating fee in lieu of property tax,§§ 49-401, 49-426.

Recreational vehicles, license fees,§§ 49-444 to 49-448.

§ 63-602K. Property exempt from taxation

Speculative portion of value of agricultural land. [Amended and Redesignated.]

STATUTORY NOTES

Compiler’s Notes.

Former§ 63-602K was amended and redesignated as§ 63-205C by S.L. 2020, ch. 313, § 1, effective July 1, 2020.

§ 63-602L. Property exempt from taxation — Intangible personal property.

  1. The following intangible personal property is exempt from taxation: capital stock and bonds. The deposits in national banks, state banks, and savings and loan associations. Shares and accounts of savings and loan associations, credit unions or associations organized under the laws of the state of Idaho for the purpose of accumulating the savings and funds of their members and lending the same to their members. Goodwill, customer lists, contracts and contract rights, patents, trademarks, custom computer programs as defined in section 63-3616, Idaho Code, copyrights, trade secrets, franchises, licenses, rights-of-way which are possessory only and not accompanied by title.
  2. The commission shall promulgate rules which shall provide for the exclusion of exempt intangible personal property from taxable value of operating property. Such rules shall allow each taxpayer the right to elect one (1) of the following three (3) methods for exclusion of exempt intangible personal property from its taxable value:
    1. Separate exclusion of the exempt intangible personal property at the system level value; or
    2. Separate exclusion of the exempt intangible personal property at the state allocated value; or
    3. Exclusion of the exempt intangible personal property by valuation of only tangible personal property and nonexempt intangible personal property using valuation models which do not impound or include values of the exempt intangible personal property.
History.

I.C.,§ 63-602L, as added by 1996, ch. 98, § 7, p. 308; am. 1998, ch. 400, § 4, p. 1249.

STATUTORY NOTES

Cross References.

Corporate credit unions, exemptions,§ 26-2186.

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-602M. Property exempt from taxation — Certain secured dues and credits.

The following property is exempt from taxation: all dues and credits secured by mortgage, trust deed or other liens except as otherwise provided by law.

History.

I.C.,§ 63-602M, as added by 1996, ch. 98, § 7, p. 308.

§ 63-602N. Property exempt from taxation — Irrigation water and structures — Certain property of irrigation districts or canal companies.

  1. Water rights for the irrigation of lands are exempt from taxation.
  2. Canals, ditches, pipelines, flumes, aqueducts, reservoirs, dams, and any other necessary facility used primarily for the conveyance, storage, or providing of water for the irrigation of lands, are exempt from taxation to the extent irrigation water is thereby conveyed, stored or diverted; provided that if any portion of such property is used for purposes other than irrigation of lands or the conveyance, storage, or providing of water to a nonprofit irrigation company or irrigation district, the assessor shall determine the entire value of such property so used and assess the proportionate part of such property that is devoted to such use.
  3. All real and personal property is exempt that is owned, used, operated or occupied:
    1. Primarily for the maintenance and operation of any irrigation project or irrigation works or system in conducting the business of furnishing water to landowners, members or shareholders; or
    2. By any organization, whether incorporated or unincorporated, heretofore organized or which shall hereafter be organized, for the operation, maintenance, or management of an irrigation project or irrigation works or system and for the purpose of furnishing water to landowners, members or shareholders, the control of which is actually vested in those entitled to the use of the water from such irrigation works or system for the irrigation of lands to which the water from such irrigation works or system is appurtenant, including all title and interest in such property as owner, lessee, or otherwise.

Provided, that if any portion of such property is used for commercial purposes by others than its landowners, members or shareholders, the assessor shall determine the entire value of such portion of the property so used and assess the proportionate part of the property that is used for commercial purposes.

History.

I.C.,§ 63-602N, as added by 1996, ch. 98, § 7, p. 308; am. 2016, ch. 189, § 16, p. 513.

STATUTORY NOTES

Amendments.

The 2016 amendment, by ch. 189, substituted “Certain property” for “Operating property” in the section heading; in subsection (3), added the present introductory paragraph and paragraph (a), redesignated the first sentence and part of second sentence as paragraph (b) and rewrote them, which formerly read: “The operating property of all organizations, whether incorporated or unincorporated, heretofore organized or which shall hereafter be organized, for the operation, maintenance, or management of an irrigation project or irrigation works or system or for the purpose of furnishing water to its landowners, members or shareholders, the control of which is actually vested in those entitled to the use of the water from such irrigation works or system for the irrigation of lands to which the water from such irrigation works or system is appurtenant, is exempt from taxation. The term ‘operating property’ as used in this section shall include all real and personal property owned, used, operated or occupied primarily for the maintenance and operation of such irrigation project or irrigation works and system or in conducting its business of furnishing water to its landowners, members or shareholders and shall include all title and interest in such property as owner, lessee, or otherwise” and deleted “operating” preceding “property” in the last paragraph.

CASE NOTES

Decisions Under Prior Law
Irrigation Projects and Systems.

The plain meaning of the term “irrigation project” or “irrigation system” must be confined to a project or system constructed and operated for the purpose of irrigation; the terms do not reach a project or system constructed or operated for the purpose of generation of hydroelectric power. Boise-Kuna Irrigation Dist. v. Idaho State Tax Comm’n, 119 Idaho 269, 805 P.2d 475 (1991).

§ 63-602O. Property exempt from taxation — Property used for generating and delivering electrical power for irrigation or drainage purposes and property used for transmitting and delivering natural gas energy for irrigation or drainage purposes.

The following property is exempt from taxation: property used for generating or delivering electrical power to the extent that such property is used for furnishing power for pumping water for irrigation or drainage purposes on lands in the state of Idaho, and property used for transmitting or delivering natural gas energy to the extent that such property is used for furnishing natural gas energy for pumping water for irrigation or drainage purposes on lands in the state of Idaho. This exemption shall accrue to the benefit of the consumer of such power, or the consumer of such natural gas energy, except in cases where the water so pumped is sold or rented to irrigate lands, in which event the property used for generating or delivering power, and property used for transmitting or delivering natural gas energy, shall be assessed for taxation to the extent that such water is so sold or rented.

History.

I.C.,§ 63-602O, as added by 1996, ch. 98, § 7, p. 308.

§ 63-602P. Property exempt from taxation — Facilities for water or air pollution control.

  1. The following property is exempt from taxation: facilities, installations, machinery or equipment, attached or unattached to real property, and designed, installed and utilized in the elimination, control or prevention of water or air pollution, or, in event such facilities, installations, equipment or machinery shall also serve other beneficial purposes and uses, such portion of the assessed valuation thereof as may reasonably be calculated to be necessary for and devoted to elimination, control or prevention of water or air pollution. The state tax commission or county assessor shall determine such exempt portion, and shall not include as exempt any portion of any facilities which have value as the specific source of marketable byproducts.
  2. If any water corporation, as defined by section 61-125, Idaho Code, regulated by the Idaho public utilities commission is or has been ordered by the state board of health [and welfare] or the Idaho public utilities commission to install equipment designed and utilized in the elimination, control or prevention of water pollution, the Idaho public utilities commission shall notify the Idaho state tax commission of the percentage such property bears to the total invested plant of the company and said portion shall be exempt from property taxation. Said percentage reported to the Idaho state tax commission by the Idaho public utilities commission may be contested by any person or party at a public hearing held before the Idaho state tax commission.
History.

I.C.,§ 63-602P, as added by 1996, ch. 98, § 7, p. 308.

STATUTORY NOTES

Cross References.

Public utilities commission,§ 61-201 et seq.

Compiler’s Notes.

The bracketed insertion in subsection (2) was made by the compiler to reflect a name change authorized by S.L. 1973, ch. 286, § 1 and S.L. 1974, ch. 23, § 47. See§ 56-1006.

CASE NOTES

Decisions Under Prior Law
Equipment Not Exempt.

A taxpayer’s contention that certain equipment used in a lumber mill operation was pollution control equipment and that the trial court erred in failing to find it exempt from the state sales tax was without merit. Richardson v. State Tax Comm’n, 100 Idaho 705, 604 P.2d 719 (1979).

§ 63-602Q. Property exempt from taxation — Certain cooperative telephone lines.

The following property is exempt from taxation: cooperative telephone lines from which no profit is derived and upon or over which no fees or tolls are charged or collected. This exemption shall only apply to any cooperative telephone system having twenty-five (25) or less subscribers or users.

History.

I.C.,§ 63-602Q, as added by 1996, ch. 98, § 7, p. 308.

§ 63-602R. Property exempt from taxation — Agricultural crops.

The following property is exempt from property taxation: agricultural crops, whether growing or held for use or sale, while the legal or equitable title remains with the producer, and fruit and nut-bearing trees and grapevines; provided that nothing herein contained shall be construed to exempt timber, forest, forest land, or forest products from the provisions of chapter 17, title 63, Idaho Code.

History.

I.C.,§ 63-602R, as added by 1996, ch. 98, § 7, p. 308.

§ 63-602S. Property exempt from taxation — Fruits and vegetables held for human consumption, and seeds, shipped out of the state.

  1. Any person, firm or corporation engaged in the storing or processing of fruits or vegetables held for human consumption or shipment of seeds out of the state must file a full declaration of such property as of the assessment date with the county assessor. On any assessment made on fruits and vegetables held for sale for human consumption, or any processed product, thereof, or seeds, in the hands of farmers, producers, or of a processor, or while being transported to or held in storage in a public or private warehouse structure, the board of equalization of the county in which the assessment was made, at its meeting on the first Monday of December as provided by law for equalizing the assessments of personal property on the subsequent personal property assessment roll, shall cancel such assessments in whole or proportionate part on receipt of sufficient documentary proof that the personal property so assessed was actually sold and transported or shipped to another point outside the state of Idaho on or before December 1 of the current year of assessment. No such cancellation shall be made unless such proof be furnished to said board on or before such meeting in such year.
  2. Public warehousing is the storing of personal property by any person, firm or corporation regularly engaged in the business of storing such property for hire.
  3. Private warehousing is the storage of personal property by any person, firm or corporation which is carrying on the activity of warehousing or storing such property only in the operation of his or its own business.
  4. This exemption shall only apply to private storage from and after a notice, describing by address and physical premises, is filed with the county assessor, which notice shall be filed annually.
History.

I.C.,§ 63-602S, as added by 1996, ch. 98, § 7, p. 308.

§ 63-602T. Property exempt from taxation — Personal property manufactured or processed in this state and actually sold and shipped out of state.

  1. Any person, firm, or corporation engaged in the manufacture or processing of personal property in this state which property is stored in a public or private warehouse structure or area must file a full declaration of such property as of the assessment date with the county assessor. On any assessment made on personal property manufactured or processed in this state by person [persons], firms or corporations having a domicile or place of business in Idaho, being stored in a public or private warehouse structure or area, the board of equalization of the county in which such assessment was made, at its meeting on the first Monday of December as provided by law for equalizing the assessments of personal property on the subsequent personal property assessment roll, shall cancel such assessments in whole or proportionate part on receipt of sufficient documentary proof that the personal property so assessed was actually sold and transported or shipped to another point outside the state of Idaho on or before December 1 of the current year of assessment. No such cancellation shall be made unless such proof be furnished to said board on or before such meeting in such year. The term “manufactured” or “processed” as used herein refers to personal property which has been fabricated, constructed, assembled, milled or converted into a finished product and is not intended to include any personal property undergoing a stage of manufacture or process prior to the end finished product.
  2. Public warehousing is the storing of personal property by any person, firm or corporation regularly engaged in the business of storing such property for hire.
  3. Private warehousing is the storage of personal property by any person, firm or corporation which is carrying on the activity of warehousing or storing such property only in the operation of his or its own business.
  4. Private or public warehouse area is intended to mean for purposes of this act open storage or place properly identified which is normally used to store personal property by any person, firm or corporation.
  5. This exemption shall only apply to a private warehouse, private and public warehousing area from and after a notice, describing by address and physical premises, is filed with the county assessor, which notice shall be filed annually.
History.

I.C.,§ 63-602T, as added by 1996, ch. 98, § 7, p. 308.

STATUTORY NOTES

Compiler’s Notes.

The bracketed word in the second sentence of subsection (1) was added by the compiler to supply the grammatically correct term.

The term “this act” in subsection (4) refers to S.L. 1996, chapter 98, which is codified throughout title 63, Idaho Code.

RESEARCH REFERENCES

ALR.

§ 63-602U. Property exempt from taxation — Personal property shipped into the state and stored in a public or private warehouse structure, and designated for shipment out of the state to be considered in transit.

  1. Personal property shipped into this state and stored in a public or private warehouse structure, which property is not offered for sale in Idaho and designated for reshipment outside of the state, is considered to be “in transit” and shall be exempt from taxation. Such property shall not be deprived of exemption because while in storage, awaiting such further shipment, such personal property is labeled, packaged, disassembled, divided, broken in bulk, relabeled, or repackaged, or because the personal property is held for resale to customers outside the state of Idaho. Provided that all personal property claimed to be exempt “in transit” be labeled as such and shall be designated immediately upon receipt as being in transit upon the books and records of the warehouse, whether public or private, wherein the same is located. The books and records of such storage warehouse shall contain a full, true and correct inventory of all such property, together with the date of receipt of same, the point of origin, the date of its withdrawal, and, if known, the ultimate destination thereof. The books and records pertaining to the storage of any such in transit property shall be opened to inspection by any taxing authority in the state of Idaho having jurisdiction thereof upon reasonable demand having been made.
  2. Public warehousing is the storing of personal property by any person, firm or corporation regularly engaged in the business of storing such property for hire.
  3. Private warehousing is the storage of personal property by any person, firm or corporation which is carrying on the activity of warehousing or storing such property only in the operation of his or its own business. This exemption shall only apply to private storage from and after a notice, describing by address and physical premises, is filed with the county assessor, which notice shall be filed annually.
History.

I.C.,§ 63-602U, as added by 1996, ch. 98, § 7, p. 308.

§ 63-602V. Property exempt from taxation — Personal property shipped into the state and stored in the original package.

Personal property of any person, firm or corporation, having neither domicile nor place of business in this state, which property upon being brought or shipped into this state is forthwith stored in the original package in a warehouse operated for public use and for hire, shall, while so stored, be deemed in transit and shall be exempt from taxation.

History.

I.C.,§ 63-602V, as added by 1996, ch. 98, § 7, p. 308.

§ 63-602W. Business inventory exempt from taxation — Business inventory that is a component of real property that is a single family dwelling.

The following property is exempt from property taxation: business inventory. For the purpose of this section, “business inventory” means all items of tangible personal property or other property, including site improvements, described as:

  1. All livestock, fur-bearing animals, fish, fowl and bees.
  2. All nursery stock, stock-in-trade, merchandise, products, finished or partly finished goods, raw materials, and all forest products subject to the provisions of chapter 17, title 63, Idaho Code, supplies, containers and other personal property that is held for sale or consumption in the ordinary course of the taxpayer’s manufacturing, farming, wholesale jobbing, or merchandising business.
  3. Residential improvements never occupied. Once residential improvements are occupied as defined in section 63-317, Idaho Code, they shall be subject to the tax provided by section 63-317, Idaho Code. The provisions of section 63-602Y, Idaho Code, shall not apply to the exemption provided by this subsection. The exemption provided by this subsection applies only to improvements to real property, and only until first occupied. For purposes of this section, the term “residential improvements” means only:
    1. Single family residences; or
    2. Residential townhouses; or
    3. Residential condominium units.

The nonresidential portion of an improvement to real property that is used or is to be used for residential and nonresidential purposes does not qualify for the exemption provided by this section. If an improvement contains multiple residential units, each such unit shall lose the exemption provided in this section when it becomes occupied.

History.

(4) Site improvements that are associated with land, such as roads and utilities, on real property held by the land developer, either as owner or vendee in possession under a land sale contract, for sale or consumption in the ordinary course of the land developer’s business until other improvements, such as buildings or structural components of buildings, are begun or the real property is conveyed to a third party. For purposes of this subsection, a transfer of title to real property to a legal entity of which at least fifty percent (50%) is owned by the land developer, the land developer’s original entity or the same principals who owned the land developer’s original entity shall not be considered a conveyance to a third party. For purposes of this subsection, the amount of the exemption shall be the difference between the market value of the land with site improvements and the market value of the land without site improvements as shall be determined by a comparative market analysis of a similarly situated parcel or parcels of real property that have not been improved with such site improvements contemplated by this subsection. In the case the market value of land without site improvements cannot be reasonably assessed because of the absence of comparable sales, an exemption value of seventy-five percent (75%) of the market value of land with site improvements shall be granted to that parcel. An application is required for the exemption provided in this subsection in the first year the exemption is claimed; in subsequent consecutive years no new application is required. The application must be made to the board of county commissioners by April 15 and the taxpayer and county assessor must be notified of any decision and assessment of property by May 15. The decision or assessment of property, or both, of the board of county commissioners may be appealed to the county board of equalization no later than the fourth Monday in June. The applicant shall notify the board of county commissioners in writing of any change in eligibility for the parcel by April 15. History.

I.C.,§ 63-602W, as added by 1996, ch. 98, § 7, p. 308; am. 1997, ch. 242, § 1, p. 703; am. 1998, ch. 95, § 1, p. 341; am. 2012, ch. 192, § 1, p. 517; am. 2013, ch. 276, § 1, p. 714.

STATUTORY NOTES

Amendments.

The 2012 amendment, by ch. 192, inserted “including site improvements” in the introductory paragraph and added subsection (4).

The 2013 amendment, by ch. 276, rewrote subsection (4), which formerly read: “Site improvements, that are associated with land, such as roads and utilities, on real property held by the land developer for sale or consumption in the ordinary course of the land developer’s business until other improvements, such as buildings or structural components of buildings, are begun or title to the land is conveyed from the land developer. An application is required for the exemption provided in this subsection.”

Compiler’s Notes.

S.L. 2012, chapter 192 became law without the signature of the governor.

S.L. 2013, chapter 276 became law without the signature of the governor.

Effective Dates.

Section 3 of S.L. 1997, ch. 242 provided that the act should be in effect on and after January 1, 1998.

Section 3 of S.L. 1998, ch. 95 declared an emergency and made the act effective retroactively to January 1, 1998. Approved March 19, 1998.

Section 3 of S.L. 2012, ch. 192 declared an emergency and made this section retroactive to January 1, 2012.

Section 2 of S.L. 2013, ch. 276 declared an emergency and made this section retroactive to January 1, 2013.

CASE NOTES

Decisions Under Prior Law

Leasing business property. Purpose of exemption.

Business Machines.

A corporation’s business machines are “business inventory” when they are not in lease status, since it is then stock in trade, merchandise, or personal property held for sale or consumption in the course of business. Xerox Corp. v. Ada County Assessor, 101 Idaho 138, 609 P.2d 1129 (1980).

Claim for Exemption.

Where taxpayer alleged that his business inventory, which was exempted from taxation under this section, was nevertheless assessed for ad valorem taxation, taxpayer was required to pursue his claim first before the board of county commissioners prior to his seeking relief in district court by way of declaratory judgment and refund of taxes paid under protest. V-1 Oil Co. v. County of Bannock, 97 Idaho 807, 554 P.2d 1304 (1976).

Constitutionality.

It cannot be held that the classification of the property under this section is arbitrary, unreasonable or unjust so as to warrant setting it aside as unconstitutional, as the granting of the exemptions is for the benefit of the economic welfare of the state of Idaho; nor is the classification violative of the Fourteenth Amendment of the U.S. Constitution. Leonardson v. Moon, 92 Idaho 796, 451 P.2d 542 (1969).

The granting of an exemption from ad valorem taxation of “all livestock, fur-bearing animals, fish, fowl and bees” by exempting business inventory and describing such property as business inventory was to use a fiction, but such exemption is valid, since under Idaho Const., Art. VII, § 5, the legislature had power and authority to grant the exemption in a direct manner, had it wanted to. Leonardson v. Moon, 92 Idaho 796, 451 P.2d 542 (1969).

Fostering the livestock and farming industry in Idaho is a valid purpose. Leonardson v. Moon, 92 Idaho 796, 451 P.2d 542 (1969).

Leasing Business Property.

Property owned by a business should not be exempted from ad valorem taxation as business inventory when it is leased to customers of the business. Xerox Corp. v. Ada County Assessor, 101 Idaho 138, 609 P.2d 1129 (1980).

Purpose of Exemption.

A fundamental purpose of this legislation was to relieve the ordinary merchant or businessman of the inequitable ad valorem taxes which had been assessed against him on goods, wares, and merchandise which he kept in stock solely for purposes of resale and not for personal use. Leonardson v. Moon, 92 Idaho 796, 451 P.2d 542 (1969).

§ 63-602X. Property exempt from taxation — Casualty loss.

  1. The following property is exempt from taxation: real and personal property which has been damaged by an event causing casualty loss to all or a portion of the property. The board of equalization on a case-by-case basis shall determine whether to grant an exemption.
  2. The county board of equalization shall decide whether to grant such claim for exemption on or before the second Monday of July of the year in which the claim is filed. If granted, either in whole or in part, the county board of equalization shall order all necessary adjustments made in the property roll.

An exemption granted under this section shall be for the year in which the real or personal property has been damaged or destroyed. Claimants seeking exemption under this section must apply to the county board of equalization. The application must be in writing on a form provided by the county and must identify the claimant, the date of the casualty loss, and the property that has been damaged or destroyed. The application must be filed on or before the end of the county’s normal business hours on the fourth Monday of June of the year in which the casualty loss occurred. If an exemption is granted, the value of the property subject to taxation shall be calculated by dividing the number of days in the year prior to the casualty loss by the number of days in the year and multiplying the resulting quotient by the market value of the property less any applicable exemptions, as of 12:01 a.m. on the first day of January of the tax year.

History.

I.C.,§ 63-602X, as added by 1996, ch. 98, § 7, p. 308; am. 1997, ch. 117, § 20, p. 298.

STATUTORY NOTES

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

§ 63-602Y. Property exempt from taxation — Effect of change of status.

  1. If any property, real or personal, which is exempted from taxation on the first day of January shall thereafter have a changed status during the year, either by change in ownership or otherwise, in a manner that if the changed status had existed on the first day of January the property would have been taxable at that time, then the property shall be assessed in the following manner: If the status changed before the first day of April, then for its full market value for assessment purposes; if on the first day of April and before the first day of July, then for three-fourths (3/4) of its full market value for assessment purposes; if on the first day of July and before the first day of October, then for one-half (1/2) of its full market value for assessment purposes; and if the status changed on or after the first day of October, then for one-fourth (1/4) of its full market value for assessment purposes. However, if the changed status results from the leasing or rental of property normally constituting business inventory, the same shall be subject to property tax only for the period it is so leased or rented and upon its return to business inventory shall again be exempt. Each owner of such property shall, on the first Monday of November of each year, file with the assessor for the home county of the owner with a copy for every other county involved, a statement listing and sufficiently identifying such property, the counties where it was situated and the periods of the preceding twelve (12) calendar months during which the property was leased or rented within each county.
  2. At the time of filing such statement with the assessor of his home county, the owner of such leased or rented property shall provide such assessor with a copy for every other county involved.
  3. The assessor of such home county shall ascertain the portion of said preceding twelve (12) calendar months during which such property was leased or rented in the home county and shall enter such property upon the subsequent or missed property roll and the tax collector of the home county shall compute and collect the property tax thereon. The assessor shall indorse the full market value for assessment purposes of each item of such property upon copies of the statement and the owner of the property shall, within five (5) days, furnish an indorsed copy of the owner’s statement to the assessor of each county of the state wherein such property was located during the lease or rental period, and each such other county assessor shall likewise assess and the tax collector shall collect the property taxes due for the portion of the preceding twelve (12) calendar months the leased or rented property was situate in their county.
  4. The property taxes due thereon shall be a first and prior lien upon such property and all real and personal property of the owner thereof within the state until all property taxes due have been paid.
History.

I.C.,§ 63-602Y, as added by 1996, ch. 98, § 7, p. 308.

CASE NOTES

Decisions Under Prior Law
Conditions Affecting Assessment.

Where the logs were severed, the risk of loss under the contract accrued to corporate purchaser and where the government had sufficient control over purchaser to guarantee payment of the logs, trial court was correct in determining that the beneficial and actual property in the logs was vested in purchaser at the time of assessment notwithstanding that the retention of title by the government was for scaling purposes, which occurred outside state and state was entitled to collect personal property tax as provided by statute. Tree Farmers, Inc. v. Goeckner, 86 Idaho 290, 385 P.2d 649 (1963).

Leasing of Business Inventory.

Property owned by a business should not be exempted from ad valorem taxation as business inventory when it is leased to customers of the business. Xerox Corp. v. Ada County Assessor, 101 Idaho 138, 609 P.2d 1129 (1980).

§ 63-602Z. Exemption from occupancy tax.

Any improvement to real property exempt from property taxation under the laws of this state or under the laws of the United States shall be exempt from occupancy taxation.

History.

I.C.,§ 63-602Z, as added by 1996, ch. 98, § 7, p. 308.

§ 63-602AA. Property exempt from taxation — Exceptional situations. — (1) The following property is exempt or partially exempt from taxation: real and personal property belonging to persons who, because of unusual circumstances that affect their ability to pay the property tax, should be relieved from paying all or part of said tax in order to avoid undue hardship, which undue hardship must be determined by the board of equalization.

(2) An exceptional value exemption granted under this section shall be for the current tax year only and property exempted hereunder shall continue to be listed and assessed for the ensuing tax years as other property.

(3) Claimants seeking exemption under this section must apply each year to the board of equalization and such claim must be submitted by the fourth Monday of June of the current year. The board of equalization must consider and act on all such claims no later than the second Monday of July.

(4) Each person claiming such exemption shall give a sworn statement containing full and complete information of his financial status to such board and shall make true answers to all questions propounded in writing, or otherwise, touching such person’s right to the exemption claimed. The chairman of the board shall have authority to administer oaths to each person appearing as a claimant for such exemption and, in addition to such examination, each claimant shall subscribe to and swear that his answers to questions propounded on written forms to be prescribed by the state tax commission are true, and which sworn statement shall be kept and filed by the clerk of the county board of equalization. The board may, in its discretion and for good cause shown, allow an agent or some person acting for and on behalf of the claimant to make the claim for exemption for any claimant in the manner herein provided, or where a person is unable to make such sworn statement, the person’s spouse, surviving spouse, guardian or personal representative, or other person having knowledge of the facts, may make such sworn statement in his stead.

(5) The county board of equalization shall decide and determine from each examination and from each written claim for exemption whether or not such person is entitled to the exemption claimed or to any part thereof, and shall make a record thereof accordingly.

History.

I.C.,§ 63-602AA, as added by 1996, ch. 98, § 7, p. 308; am. 2016, ch. 10, § 1, p. 10.

STATUTORY NOTES

Amendments.

The 2016 amendment, by ch. 10, substituted “the fourth Monday of June” for “June 20” near the end of the first sentence in subsection (3) and substituted “person is unable to make such sworn statement, the person’s spouse, surviving spouse” for “person unable to make such sworn statement, his wife, widow” near the end of subsection (4).

§ 63-602BB. Partial exemption for remediated land. — (1) During the tax year 1997 and each year thereafter, a site as defined in section 39-7203, Idaho Code, and qualifying under chapter 72, title 39, Idaho Code, shall be eligible for property tax exemption not to exceed seven (7) years.

(2) “Remediated value” shall mean market value for assessment purposes of the land on January 1, less the market value for assessment purposes of the land on the January 1 prior to the year in which the remediation was completed.

(3) The exemption shall amount to fifty percent (50%) of the remediated land value. The exempted value assessed under this formula shall remain constant throughout the period of the exemption.

(4) The exemption allowed by this section may be granted only if:

  1. The covenant not to sue as provided in section 39-7207, Idaho Code, remains in full force and effect for the entire period of exemption;
  2. The site remains in the possession of the owner for the entire exemption period.

(5) The exemption allowed by this section may be rescinded if:

(a) The covenant not to sue as provided in section 39-7207, Idaho Code, is rescinded by the department;

(b) The site is transferred to a new owner.

(6) The owner need only make application for the exemption described in this section once over the course of the seven (7) year period.

(7) No owner of a site shall be granted the exemption provided in this section if said site has been:

(a) Previously granted the exemption provided in this section regardless of whether the entire seven (7) years of the exemption have been used;

(b) Denied by the department as a qualifying site pursuant to chapter 72, title 39, Idaho Code.

(8) The legislature declares this exemption to be necessary and just.

History.

I.C.,§ 63-602BB, as added by 1997, ch. 117, § 21, p. 298.

STATUTORY NOTES

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

§ 63-602CC. Property exempt from taxation — Qualified equipment utilizing postconsumer waste or postindustrial waste. — (1) The following property is exempt from taxation: qualified equipment utilizing postconsumer waste or postindustrial waste used to manufacture products. This exemption shall be granted only if the list of all taxable personal property as described in section 63-302, Idaho Code, is submitted by the property owner or the agent thereof to the assessor not later than March 15 of each year. Additionally, the requirements of subsection (3) of this section shall be met.

(2) As used in this section:

  1. “Postconsumer waste” or “postindustrial waste” means only those products and materials consisting of metals, paper, glass or plastic generated by businesses or consumers which have served their intended end use or usefulness and either have been or would normally be disposed of as solid waste except for the fact that they are separated from solid waste for purposes of collection, recycling or reuse. “Postconsumer waste” or “postindustrial waste” shall not include radioactive waste, as defined in subsection (4)(g) of section 63-3029D, Idaho Code, or hazardous waste, as defined in chapter 44, title 39, Idaho Code.
  2. “Product” means any material resulting from a manufacturing process and offered for sale to the private or public sector which is composed of at least fifty percent (50%) postconsumer waste or postindustrial waste. “Product” does not include any shredded material unless such shredded material is incorporated directly into the manufacturing process.
  3. “Qualified equipment” means machinery or equipment located within Idaho which has at least an estimated three (3) years useful life and at least ninety percent (90%) of the total actual production from the equipment during the previous calendar year utilized postconsumer waste or postindustrial waste. “Qualified equipment” shall not include any machinery or equipment which is used for the collection, as defined herein, of postconsumer waste or postindustrial waste. As used in this section “collection” means:
    1. The acquisition of materials from businesses or the general public through purchase or donation, including the organization of systems for such acquisitions;
    2. The preparation of materials for over-the-road transportation through cleaning, densification by shredding, baling, or any other method, or coalescence, including the organization of systems for such preparation; or
    3. The transportation of postconsumer waste or postindustrial waste between separate geographical locations, including the movement of materials around the manufacturing site.

(3) On the list of taxable personal property required by subsection (1) of this section, the property owner, or agent thereof, shall identify all qualified equipment, and all machinery and equipment that does not meet the definitions of qualified equipment.

The property owner, or agent thereof, shall also report use of all qualified equipment, on forms prescribed by the state tax commission.

(4) The county assessor may request additional information of the company to verify the basis of the exemption claimed in this section.

(5) The legislature declares that this exemption is necessary and just.

History.

I.C.,§ 63-602CC, as added by 1997, ch. 117, § 22, p. 298.

STATUTORY NOTES

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

§ 63-602DD. Manufactured homes used under a dealer’s plate or as a sheep and cow camp. — The following property is exempt from taxation: Manufactured homes that are:

  1. Manufactured homes eligible to be used under a dealer’s license plate; or
  2. Manufactured homes designated as sheep and cow camps.
History.

I.C.,§ 63-602DD, as added by 2004, ch. 27, § 3, p. 43.

STATUTORY NOTES

Prior Laws.

Former§ 63-602DD, which comprised (I.C.,§ 63-602DD, as added by 1998, ch. 38, § 1, p. 165), was repealed by S.L. 2004, ch. 27, § 1.

§ 63-602EE. Property exempt from taxation — Certain tangible personal property. — The following property is exempt from taxation: class 2 property that is agricultural machinery and equipment and exclusively used in agriculture during the immediately preceding tax year. For purposes of this section:

  1. “Agricultural machinery and equipment” shall mean any machinery and equipment that is used in:
    1. Production or harvest of field crops including, but not limited to, grains, feed crops, fruits and vegetables, or the production of or caring for nursery stock as defined in section 22-2302, Idaho Code; or
    2. The grazing, feeding or raising of livestock, fur-bearing animals, fish, fowl and bees, or harvest of their production, to be sold or used as part of a net profit-making agricultural enterprise or dairy.
  2. “Harvest” shall include all activities necessary for a raw agricultural commodity to be put into its most basic salable form and shall also include on-farm storage of the commodity before it is first handled in the primary channels of trade.
  3. Buildings shall not be considered to be agricultural machinery and equipment.
  4. The provisions of this section shall be broadly interpreted in favor of granting the exemption.
History.

I.C.,§ 63-602EE, as added by 2018, ch. 297, § 3, p. 702; am. 2019, ch. 53, § 4, p. 141.

STATUTORY NOTES

Prior Laws.

Former§ 63-602EE, which comprised I.C.,§ 63-602EE, as added by S.L. 2001, ch. 356, § 1, p. 1250; am. S.L. 2002, ch. 150, § 1, p. 440; am. S.L. 2018, ch. 297, § 1, p. 702; am. 2019, ch. 53, § 2, p. 141, was repealed by S.L. 2018, ch. 297, § 2 and S.L. 2019, ch. 53, § 3, effective January 1, 2020.

Amendments.

The 2019 amendment, by ch. 53, in subsection (1), inserted “or harvest” near the beginning of paragraph (a) and “or harvest of their production” near the middle of paragraph (b), added subsections (2) and (4), and redesignated former subsection (2) as subsection (3).

Legislative Intent.
Effective Dates.

Section 4 of S.L. 2018, ch. 297 made this section effective on or after January 1, 2020. Approved March 27, 2018.

Section 5 of S.L. 2019, ch. 53 declared an emergency and made the amendment of this section effective on and after January 1, 2020.

§ 63-602FF. Partial exemption for parcels of land in a rural home site development plat. [Repealed.]

STATUTORY NOTES

Compiler’s Notes.

This section, which comprised I.C.,§ 63-602FF, as added by 2002, ch. 341, § 2, p. 958, was repealed by S.L. 2006, ch. 233, § 1, effective January 1, 2006. See§ 63-602K.

§ 63-602GG. Property exempt from taxation — Low-income housing owned by nonprofit organizations. — (1) As provided in this section, low-income housing owned by nonprofit organizations shall be exempt from taxation.

(2) In order to qualify as a nonprofit organization under this section, an organization must demonstrate that:

  1. It is organized as a nonprofit corporation pursuant to chapter 30, title 30, Idaho Code, or pursuant to equivalent laws in the applicable state of incorporation; and
  2. It has received an exemption from taxation from the internal revenue service pursuant to section 501(c)(3) of the Internal Revenue Code; and
  3. No proceeds or tax benefits of the organization or from the low-income housing property owned by the organization shall inure to any individual or for-profit entity other than normal employee compensation.

(3) In order to qualify for the exemption provided in this section, the low-income housing property shall meet the following qualifications:

(a) Both legal and equitable title to the property is solely owned by the nonprofit organization seeking the exemption and is managed by the owner or a related nonprofit organization qualifying for the exemption set forth in section 63-602C, Idaho Code; and

(b) Tenants shall not be evicted based upon their inability to pay for a period of three (3) months if such inability is due to a catastrophic event that is not under the tenant’s control. For purposes of this subsection, “catastrophic event” means a medical condition or injury in which sudden, serious and unexpected symptoms of illness or injury are sufficiently severe to render the tenant unable to participate in employment and such illness or injury has been certified by one (1) or more licensed physicians and/or psychiatrists or psychologists. The term “catastrophic event” does not apply to individuals who voluntarily remove themselves from the workforce; and

(c) Except for a manager’s unit, all of the housing units in the low-income housing property are dedicated to low-income housing in the following manner: Fifty-five percent (55%) of the units shall be rented to those earning sixty percent (60%) or less of the median income for the county in which the housing is located; twenty percent (20%) of the units shall be rented to those earning fifty percent (50%) or less of the median income of the county in which the housing is located; and twenty-five percent (25%) of the units shall be rented to those earning thirty percent (30%) or less of the median income for the county in which the housing is located.

(4) The exemption provided in this section shall not apply:

(a) If the project is financed after the effective date of this act and applicable law permits the payment of property taxes with federal or state funds, grants, loans or subsidies; or

(b) If the property is receiving federal project-based assistance, as provided by 42 U.S.C. sections 1437f(d)(2), 1437f(f)(6) and 1437f(o)(13); or

(c) To any property used by a taxpayer to qualify for tax credits under the provisions of 26 U.S.C. chapter 42 or any successor programs until such time as the property is solely owned by a nonprofit organization as defined in this section and is no longer utilized to receive federal tax credits.

(5) Notwithstanding any other provision of this section, a low-income housing property shall be exempt from taxation due to undue hardship if:

(a) The property was financed prior to the effective date of this act; and

(b) Such financing was dependent upon the tax-exempt status of the property; and

(c) The law does not allow additional federal or state revenues to be available for the payment of property taxes.

(6) Nothing in this section shall affect the qualification of properties for tax-exempt status under other provisions of title 63, Idaho Code.

History.

I.C.,§ 63-602FF, as added by 2002, ch. 162, § 1, p. 481; am. and redesig. 2003, ch. 16, § 16, p. 48; am. 2017, ch. 58, § 33, p. 91.

STATUTORY NOTES

Amendments.

The 2017 amendment, by ch. 58, substituted “chapter 30, title 30, Idaho Code” for “chapter 3, title 30, Idaho Code” near the beginning of paragraph (2)(a).

Federal References.

Section 501(c)(3) of the Internal Revenue Code, referred to in paragraph (2)(b), is codified as 26 USCS § 501(c)(3).

The provisions of 26 U.S.C. chapter 42, referred to in paragraph (4)(c), are codified at 26 USCS § 4940 et seq.

Compiler’s Notes.

This section was formerly compiled as§ 63-602FF.

The phrase “effective date of this act” in paragraphs (4)(a) and (5)(a) refers to the effective date of S.L. 2002, chapter 162, which was effective July 1, 2002.

Effective Dates.

Section 18 of S.L. 2003, ch. 16 declared an emergency. Approved February 12, 2003.

CASE NOTES

Construction.

A plain reading of this section leads to one conclusion: all of a property’s housing units must be rented, except for the manager’s unit, according to the three distinct income classes created by the section. Aspen Park, Inc. v. Bonneville Cty., 165 Idaho 319, 444 P.3d 891 (2019).

§ 63-602HH. Property exempt from taxation — Significant capital investments. — (1) The net taxable value of all property of a taxpayer in excess of eight hundred million dollars ($800,000,000) located within a single county in Idaho shall be exempt from property taxation and any special assessment.

(2) The property included in the calculation of the exemption set forth in this section shall include all real property owned, and all personal property owned, leased, or rented that would otherwise be subject to property tax; provided however, with respect to leased or rented personal property, only that portion of the property which a taxpayer is contractually liable for payment of property taxes thereon shall be included in the calculation of the exemption.

(3) Leased or rented personal property, included in the calculation of the exemption provided by this section shall not be assessable against the owner of such property.

(4) The exemption set forth in this section shall apply first to owned real and personal property and, if exhausted, shall then apply to leased or rented personal property.

(5) The taxpayer owning, leasing, or renting the property included in the calculation of the exemption shall designate the property to which the exemption applies.

(6) The exemption set forth in this section shall not be available to any taxpayer with respect to a given year who, in the immediately preceding calendar year, failed to make significant capital investments of at least twenty-five million dollars ($25,000,000), by the acquisition or improvement of real or personal property located within the county referred to in subsection (1) of this section.

(7) The exemption set forth in this section shall not be available to any taxpayer with respect to a given year who, as of the first day of such year, did not employ or engage on a regular full-time basis, or the equivalent thereof, at least one thousand five hundred (1,500) workers within the county referred to in subsection (1) of this section.

(8) Except for the exemption provided for in subsection (4) of section 63-3029B, Idaho Code, no other exemption from property tax or any special assessment provided by the statutes of this state shall be applicable to any property described in subsection (2) of this section with respect to a year in which the exemption set forth in subsection (1) of this section applies to any of the same property.

(9) Property exempted under this section shall not be included on any new construction roll prepared by the county assessor in accordance with section 63-301A, Idaho Code.

(10) The state tax commission shall adopt all rules that may be necessary to implement this section.

History.

I.C.,§ 63-602HH, as added by 2005, ch. 284, § 1, p. 922; am. 2006, ch. 59, § 1, p. 183.

STATUTORY NOTES

Amendments.

The 2006 amendment, by ch. 59, added present subsection (9) and redesignated former subsection (9) as present subsection (10).

Compiler’s Notes.

Section 1 of S.L. 2005, ch. 279 also enacted a§ 63-602HH, which has been designated by the compiler as§ 63-602II. That redesignation was made permanent by S.L. 2006, ch. 16, § 25.

Effective Dates.

Section 2 of S.L. 2005, ch. 284 declared an emergency retroactively to January 1, 2005 and approved April 5, 2005.

Section 4 of S.L. 2006, ch 59 declared an emergency retroactively to January 1, 2006 and approved March 14, 2006.

§ 63-602II. Property exempt from taxation — Unused infrastructure. — (1) It is the intent of this section to preserve infrastructure and encourage economic development in the limited circumstances when a business or other commercial entity ceases to operate on property within a county.

(2) Following notice as prescribed in section 31-710, Idaho Code, and public hearings, the board of county commissioners of any county shall have the authority to exempt from taxation the unused infrastructure of a business, provided that the business states that such infrastructure is nonoperational under penalty of perjury.

(3) The exemption shall be for a period of up to five (5) years, provided that the board of county commissioners may vote to extend the exemption for a period not exceeding five (5) additional years.

(4) The board of county commissioners shall publish in its minutes any decision to grant or deny the exemption provided in this section and shall notify the county assessor and state tax commission of any exemption and the duration of such exemption. It shall be the responsibility of the assessor to return the property valuation of the unused infrastructure to the tax rolls upon the expiration of the exemption.

(5) The exemption provided in this section shall not be granted for any portion of an operating public utility.

(6) As used in this section, “unused infrastructure” means installed utilities including, but not limited to, rail, water, natural gas and electrical lines.

History.

I.C.,§ 63-602HH, as added by 2005, ch. 279, § 1, p. 877; am. and redesig. 2006, ch. 16, § 25, p. 42.

STATUTORY NOTES

Amendments.

The 2006 amendment, by ch. 16, redesignated this section which was enacted as a second 63-602HH by S.L. 2005, ch. 279, § 1.

Compiler’s Notes.

This section was enacted as§ 63-602HH by § 1 of S.L. 2005, ch. 279. Another§ 63-602HH was enacted by § 1 of S.L. 2005, ch. 284, so this section was redesignated as§ 63-602II by the compiler. This section was permanently assigned as§ 63-602II by § 25 of S.L. 2006, ch. 16.

§ 63-602JJ. Property exempt from taxation — Certain property of producer of electricity by means of wind, solar or geothermal energy. — Real estate, fixtures or personal property is exempt from taxation if it is:

  1. Owned, controlled, operated or managed by an electrical or natural gas association or producer of electricity by means of wind energy, solar energy or geothermal energy, excluding entities that are regulated by the Idaho public utilities commission as to price;
  2. Held or used in connection with or to facilitate the generation, transmission, distribution, delivery or measuring of electric power, natural gas or electrical energy generated, manufactured or produced by means of wind energy, solar energy or geothermal energy, and all conduits, ducts or other devices, materials, apparatus or property for containing, holding or carrying conductors used for the transmission, distribution and delivery of electric power, natural gas or electric energy generated, manufactured or produced by means of wind energy, solar energy or geothermal energy, including construction tools, materials and supplies; and
  3. Subject to the taxes on gross wind, solar or geothermal energy earnings pursuant to chapter 35, title 63, Idaho Code.
History.

I.C.,§ 63-602JJ, as added by 2016, ch. 189, § 2, p. 513.

STATUTORY NOTES

Cross References.

Idaho public utilities commission,§ 61-201 et seq.

Prior Laws.

Former§ 63-602JJ, Property exempt from taxation — Certain operating property of producer of electricity by means of wind energy or by means of geothermal energy, which comprised I.C.,§ 63-602JJ, as added by S.L. 2007, ch. 143, § 7, p. 415; am. S.L. 2008, ch. 227, § 8, p. 699, was repealed by S.L. 2016, ch. 189, § 1, effective July 1, 2016.

§ 63-602KK. Property exempt from taxation — Certain personal property. —

    1. An item of taxable personal property purchased on or after January 1, 2013, shall be exempt from property taxation if the item of taxable personal property has an acquisition price of three thousand dollars ($3,000) or less. (1)(a) An item of taxable personal property purchased on or after January 1, 2013, shall be exempt from property taxation if the item of taxable personal property has an acquisition price of three thousand dollars ($3,000) or less.
    2. 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:
      1. The purchase price of a new or used item;
      2. The cost of freight and shipping;
      3. The cost of installation, engineering, erection or assembly; and
      4. Sales and use taxes.
    3. For purposes of this subsection, an “item of taxable personal property” 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 property 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.
  1. 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 not otherwise exempt, shall be exempt to the extent of one hundred thousand dollars ($100,000). 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 relationship described in section 267 of the Internal Revenue Code, as defined in section 63-3004, Idaho Code.
    1. 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) 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 applicable to personal property in the location, and the tax before and after the exemption allowed in subsection (2) of this section. The certification 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 certification shall be reviewed and, if necessary, corrected by the state tax commission. (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) 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 applicable to personal property in the location, and the tax before and after the exemption allowed in subsection (2) of this section. The certification 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 certification shall be reviewed and, if necessary, corrected by the state tax commission.
    2. Except as provided in subsection (7) of this section, the year beginning January 1, 2014, and every year thereafter, 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.
    1. Subject to the limitations of this section, the state tax commission 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 certification provided 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 certification 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 public body or agency entitled thereto, equal to the amounts that would have been distributed in accordance with the formula for such distribution set forth in section 50-2908, Idaho Code. Taxing districts created on or after January 1, 2013, shall not be eligible for the reimbursement provided for in this paragraph. (b) The state tax commission shall pay one-half (1/2) of the reimbursement 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. (4)(a) Subject to the limitations of this section, the state tax commission 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 certification provided 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 certification 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 public body or agency entitled thereto, equal to the amounts that would have been distributed in accordance with the formula for such distribution set forth in section 50-2908, Idaho Code. Taxing districts created on or after January 1, 2013, shall not be eligible for the reimbursement provided for in this paragraph. (b) The state tax commission shall pay one-half (1/2) of the reimbursement 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.
    1. 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. (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.
    2. The exemption from personal property tax provided for in subsection (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.
    1. The application for the exemption provided for in subsection (2) of this section shall be in the form prescribed by the state tax commission and shall include such information as the state tax commission may require by rule as needed to implement the purpose of this section including, 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 personal property. (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 commission and shall include such information as the state tax commission may require by rule as needed to implement the purpose of this section including, 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 personal property.
    2. 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 mailing 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.
    3. A taxpayer need only make application for the exemption in this section once as long as all of the following conditions are met:
      1. The taxpayer has received the exemption during the previous year as a result of him making a valid application as defined in this section.
      2. The amount of the exemption allowed by this section is more than the taxable value of personal property owned by the taxpayer.
      3. 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 maximum amount allowed as an exemption by this section. (d) Knowingly failing to report changes in the taxable value of personal 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.
  2. Recovery of property tax exemptions allowed by this section but improperly claimed:
    1. 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.
    2. The assessment and collection of the recovery of property tax must begin within the seven (7) year period beginning on the date the assessment notice reflecting the improperly claimed exemption was required to be mailed to the taxpayer.
    3. 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.
    4. For purposes of calculating the tax, the amount of the recovered property tax shall be for each year the exemption allowed by this section 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 multiplied 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 subsection (6)(d) of this section shall be assessed for each tax year.
    5. 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.
    6. Recovered property taxes shall be billed, collected and distributed 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 commission 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.
    7. 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 recovered 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.
    8. Any unpaid recovered property taxes shall become a lien upon the taxpayer’s personal property in the same manner as provided for property 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 property tax shall be treated as property tax revenue.
  3. 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. Notwithstanding amounts calculated as provided in subsection (1) of this section, the amount of the exemption otherwise provided in subsection (2) of this section shall be calculated as follows:
    1. Take the lesser amount of:
      1. The number of counties in which a company has operating property multiplied by one hundred thousand dollars ($100,000); or
      2. The total statewide value of eligible personal property reported by the company.
    2. 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.

(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 property exempt from taxation pursuant to this section shall be treated as property tax revenues.

History.

I.C.,§ 63-602KK, as added by 2008, ch. 400, § 2, p. 1093; am. 2009, ch. 42, § 1, p. 119; am. 2013, ch. 243, § 1, p. 581; am. 2014, ch. 357, § 4, p. 886; am. 2015, ch. 96, § 1, p. 233.

STATUTORY NOTES

Cross References.

Board of tax appeals,§ 63-3801 et seq.

Amendments.

The 2009 amendment, by ch. 42, in the last sentence in subsection (2), inserted “January 1 of the year following” and substituted “fiscal year 2008” for “previous fiscal year”; in the last sentence in subsection (4)(a), substituted “personal property exempted by this section” for “taxable personal property,” deleted “on or before January 1, 2009” following “section 50-2903(15), Idaho Code,” and inserted “equal to the amounts that would have been distributed”; and added subsections (6) and (7).

The 2013 amendment, by ch. 243, rewrote the section to the extent that a detailed comparison is impracticable.

The 2014 amendment, by ch. 357, in subsection (6), deleted “every five (5) years” following “this section once” in the introductory language of paragraph (c) and redesignated former paragraph (c)(iv) as present paragraph (d); and, in subsection (7), deleted “per affidavit” at the end of the introductory language and substituted “each tax year” for “each annual affidavit filed” in the last sentence of paragraph (d).

Federal References.

The 2015 amendment, by ch. 96, rewrote subsection 2, which formerly read: “On and after January 1, 2013, each taxpayer’s personal property, located in the county, which is not otherwise exempt, shall be exempt to the extent of one hundred thousand dollars ($100,000). For the purposes of this section, a taxpayer includes two (2) or more individuals using the property in a common enterprise or a related group of two (2) or more organizations when the individuals or organizations are within a relationship described in section 267 of the Internal Revenue Code, as defined in section 63-3004, Idaho Code”; inserted “Except as provided in subsection (7) of this section” at the beginning of paragraph (3)(b); in subsection (7), rewrote paragraph (f) which formerly read: “Recovered property taxes shall be billed, collected and distributed in the same manner as property taxes, except each taxing district or unit shall be notified of the amount of any recovered property taxes included in any distribution”; and added subsection (8). Federal References.

Section 267 of the Internal Revenue Code, referred to in subsection (2), is codified as 26 U.S.C.S. § 267.

Compiler’s Notes.

S.L. 2014, chapter 357 became law without the signature of the governor.

Effective Dates.

Section 10 of S.L. 2008, ch. 400 provided that the act should take effect on and after January 1, 2009.

Section 4 of S.L. 2009, ch. 42 declared an emergency retroactively to January 1, 2009. Approved March 23, 2009.

Section 5 of S.L. 2013, ch. 243 declared an emergency and made this section retroactive to January 1, 2013. Approved April 3, 2013.

Section 8 of S.L. 2014, ch. 357 declared an emergency and made this section retroactive to January 1, 2014.

§ 63-602LL. [Reserved.]

§ 63-602NN. Property exempt from taxation — Certain business property.

  1. Provided that there is a plant investment that meets all tax incentive criteria as defined in subsection (2) of this section, the board of county commissioners may exempt all or a part of the change from the base value attributable directly to the plant investment.
  2. As used in this section:
    1. “Base value” means the assessed value on the county’s property rolls of property associated with the plant investment from the year immediately preceding the year representing the beginning of the project period during which a plant investment pursuant to this section occurs.
    2. “Building or structural components of buildings” means real property improvements to land as defined in section 63-201(11), Idaho Code, that are owned or leased by the taxpayer and located in Idaho within the boundaries of the project site.
    3. “Defined project” means a written plan presented to the county commissioners by a taxpayer outlining projected investment in new plant for new plant and building facilities during a project period and located at a project site.
    4. “Plant investment” means investment in new or existing plant and building facilities. Such plant and building facilities include buildings or structural components of buildings, related parking facilities, food service facilities, business office facilities and other building facilities directly related to the business making the plant investment. Plant investment also includes investments in the personal property associated with the plant and its facilities.
    5. “Project period” means the period of time beginning at the earlier of a physical change to the project site or the first employment of new employees or contractors located in Idaho who are related to the activities at the project site.
    6. “Project site” means an area or areas at which the affected plant and building facilities are located and at which the tax incentive criteria have been or will be met and which are either:
      1. A single geographic area located in this state at which the affected plant and building facilities owned or leased by the taxpayer are located; or
      2. One (1) or more geographic areas located in this state if eighty percent (80%) or more of the plant investment is made at one (1) of the areas.
    7. “Tax incentive criteria” means the following conditions:
      1. The board of county commissioners shall by ordinance establish an investment amount not less than five hundred thousand dollars ($500,000) at all project sites within the county for which the exemption and all exemptions thereafter granted shall apply, thereby providing uniformity to all taxpayers; (ii) The plant investment will bring significant economic benefits to the county; and
      2. The plant or building facilities will be for nonretail purposes that are either commercial or industrial.
  3. The board of county commissioners may grant the property tax exemption for the defined project for a period of up to five (5) years. The agreement shall be considered a contract arrangement between the county and the taxpayer for the exemption time period granted by the board of county commissioners and the annual approval provision contained in subsection (3) of section 63-602, Idaho Code, shall not apply to the exemption provided in this section as long as the contract enumerated in this section is valid and in force and effect. If, within the project period, the use or nature of the defined project or investment in the new plant changes such that the project would no longer qualify for the tax exemption, the board of county commissioners may unilaterally terminate the agreement and withdraw the tax exemption.
  4. When considering whether to grant the property tax exemption, the board of county commissioners may consider trade secrets, as defined in section 74-107(1), Idaho Code, in executive session as allowed in section 74-206(1)(d), Idaho Code.
  5. Before granting a property tax exemption under this section, the board of county commissioners shall hold a public meeting regarding whether to grant the exemption. The board of county commissioners shall provide a summary of the application under consideration, a written notice of the time, date and location of the public meeting, and an invitation to participate in the meeting to all affected taxing districts, urban renewal agencies and the Idaho department of commerce at least five (5) calendar days before the meeting.
  6. Property exempted under this section shall not be included on any new construction roll prepared by the county assessor in accordance with section 63-301A, Idaho Code, until the exemption ceases.
  7. The legislature declares this exemption necessary and just.
History.

I.C.,§ 63-602NN, as added by 2008, ch. 327, § 1, p. 897; am. 2010, ch. 133, § 2, p. 283; am. 2017, ch. 263, § 1, p. 655.

STATUTORY NOTES

Amendments.

The 2010 amendment, by ch. 133, in subsection (1), inserted “a defined project based on”; added paragraphs (2)(a) and (2)(g), and made related redesignations; in paragraph (2)(c), inserted “and personal property related thereto”; in paragraph (2)(e), deleted the last sentence, which formerly read: “The project site must be identified and described to the county commissioners by a taxpayer subject to tax under chapter 30, title 63, Idaho Code, in the form and manner prescribed by the commission”; deleted former paragraph (2)(h)(ii), which read: “During a period of time beginning on January 1, 2008, and ending at the conclusion of the project period, the project is located in a rural development zone as defined by the United States department of agriculture rural development’s business and industry loan program,” and made a related reference update; and in subsection (3), added the language beginning “and the annual approval provision” through to the end. The 2017 amendment, by ch. 263, rewrote the section to the extent that a detailed comparison is impracticable.

Effective Dates.

Section 2 of S.L. 2008, ch. 327 declared an emergency retroactively to January 1, 2008. Approved March 31, 2008.

Section 3 of S.L. 2010, ch. 133 declared an emergency retroactively to January 1, 2010. Approved March 29, 2010.

§ 63-602OO. Property exempt from taxation — Oil or gas related wells. — The following property is exempt from taxation: wells drilled for the production of oil, gas or hydrocarbon condensate.

History.

I.C.,§ 63-602OO, as added by 2013, ch. 109, § 1, p. 259.

STATUTORY NOTES

Effective Dates.

Section 2 of S.L. 2013, ch. 109 declared an emergency and made this section retroactive to January 1, 2013. Approved March 21, 2013.

§ 63-603. Electric, or gas, public utilities pumping water for irrigation or drainage — Reduction of assessment in accordance with exemption — Credit on customers’ bills or payment to consumers.

  1. The state tax commission shall, at the time of assessment of the property of any electrical, or gas, public utility, cooperative organized under the rural electrification administration act of the United States congress, or other company distributing electrical power (“utility”), determine the amount of the exemption under section 63-602O, Idaho Code, and shall reduce such assessment so that any such utility shall not be required to pay any property taxes upon that portion of its property so exempted.
  2. The full amount of property taxes which would have been due from such utility if such exemption had not been made, shall be credited or paid annually, for the year in which the exemption is made, on the electric or gas bill, to the consumer by the utility furnishing such electricity or gas for irrigation purposes.
  3. If the consumer is not a customer of the deliverer of electrical power or natural gas energy, the full amount of property taxes which would have been due from such utility if such exemption had not been made, shall be paid annually, for the year in which the exemption is made, directly to the consumer by the utility delivering such electricity or gas for irrigation purposes. To qualify for credit or direct payment the person or organization at the point of delivery must also be the person or organization pumping water for irrigation purposes and not a distributor or redistributor of electrical power or natural gas energy.
  4. For the purposes of determining the benefit to which each consumer is entitled by virtue of this exemption, the following procedure is provided.

The amount of such exemption or reduction by the state tax commission shall be as nearly as practicable, such as would yield the amount of property taxes included in the rates of such utility under the tariff schedule(s) applicable to the furnishing of such electricity or gas.

To receive the benefit of the exemption under section 63-602O, Idaho Code, and this section, each consumer who is not a customer of the deliverer of electrical power or gas energy must file an application with the state tax commission on or before April 30 each year except that for the year 1993, only such application may be filed on or before June 15. The state tax commission shall prescribe by rule the form and information necessary for such application.

History.

I.C.,§ 63-603, as added by 1996, ch. 98, § 7, p. 308.

STATUTORY NOTES

Cross References.

Public utilities commission,§ 61-201 et seq.

Public utilities law,§ 61-101 et seq.

Compiler’s Notes.

The reference to the rural electrification administration act in subsection (1) should be to the rural electrification act, which is codified as 7 USCS § 901 et seq.

The words and “s” enclosed in parentheses so appeared in the law as enacted.

CASE NOTES

Decisions Under Prior Law
Constitutionality.

This section is not unconstitutional under Idaho Const., Art. VII, § 8, since Idaho Const., Art. VII, § 5, gives the legislature authority to provide for such exemption by statute. Williams v. Baldridge, 48 Idaho 618, 284 P. 203 (1930).

This section is not unconstitutional under Idaho Const., Art. VIII, § 2 or 4, for it does not lend state aid and credit to private individuals in nature of a subsidy but is a valid exemption under Idaho Const., Art. VII, §§ 5 and 8. Williams v. Baldridge, 48 Idaho 618, 284 P. 203 (1930).

This section exempting from taxation property of power companies used in developing or transmitting energy for pumping water for irrigation purposes is not void as fixing arbitrary, unreasonable and unjust classification. Williams v. Baldridge, 48 Idaho 618, 284 P. 203 (1930).

§ 63-604. Land actively devoted to agriculture defined.

  1. For property tax purposes, land which is actively devoted to agriculture shall be eligible for appraisal, assessment and taxation as agricultural property each year it meets one (1) or more of the following qualifications:
    1. The total area of such land, including the homesite, is more than five (5) contiguous acres, and is actively devoted to agriculture which means:
      1. It is used to produce field crops including, but not limited to, grains, feed crops, fruits and vegetables; or
      2. It is used to produce nursery stock as defined in section 22-2302(11), Idaho Code; or
      3. It is used by the owner for the grazing of livestock to be sold as part of a for-profit enterprise, or is leased by the owner to a bona fide lessee for grazing purposes; or
      4. It is in a cropland retirement or rotation program.
    2. The area of such land is five (5) contiguous acres or less and such land has been actively devoted to agriculture within the meaning of subsection (1)(a) of this section during the last three (3) growing seasons; and
      1. It agriculturally produces for sale or home consumption the equivalent of fifteen percent (15%) or more of the owner’s or lessee’s annual gross income; or
      2. It agriculturally produced gross revenues in the immediately preceding year of one thousand dollars ($1,000) or more. When the area of land is five (5) contiguous acres or less, such land shall be presumed to be nonagricultural land until it is established that the requirements of this subsection have been met.
  2. Land shall not be classified or valued as agricultural land which is part of a platted subdivision with stated restrictions prohibiting its use for agricultural purposes, whether within or without a city.
  3. Land utilized for the grazing of a horse or other animals kept primarily for personal use or pleasure rather than as part of a bona fide for-profit enterprise shall not be considered to be land actively devoted to agriculture.
  4. Land actively devoted to agriculture, having previously qualified for exemption under this section in the preceding year, or which would have qualified under this section during the current year, shall not lose such qualification due to the owner’s or lessee’s absence in the current year by reason of active military service in a designated combat zone, as defined in section 112 of the Internal Revenue Code. If an owner fails to timely apply for exemption as required in this section solely by reason of active duty in a designated combat zone, as defined in section 112 of the Internal Revenue Code, and the land would otherwise qualify for exemption under this section, then the board of county commissioners of the county in which the land actively devoted to agriculture is located shall refund property taxes, if previously paid, in an amount equal to the exemption which would otherwise have applied.
  5. If the land qualified for exemption pursuant to section 63-602FF, Idaho Code, in 2005, then the land will qualify in 2006 for the exemption pursuant to section 63-602K, Idaho Code, upon the filing of a statement by the owner with the board of county commissioners that the land will be actively devoted to agriculture pursuant to this section in 2006.
  6. For purposes of this section, the act of platting land actively devoted to agriculture does not, in and of itself, cause the land to lose its status as land being actively devoted to agriculture if the land otherwise qualifies for the exemption under this section. (7) As used in this section:
    1. “Contiguous” means being in actual contact or touching along a boundary or at a point, except no area of land shall be considered not contiguous solely by reason of a roadway or other right-of-way.
    2. “For-profit” means the enterprise will, over some period of time, make or attempt to make a return of income exceeding expenses.
    3. “Platting” means the filing of the drawing, map or plan of a subdivision or a replatting of such, including certification, descriptions and approvals with the proper county or city official.
History.

I.C.,§ 63-604, as added by 1996, ch. 98, § 7, p. 308; am. 2001, ch. 12, § 1, p. 13; am. 2002, ch. 93, § 1, p. 255; am. 2005, ch. 271, § 1, p. 835; am. 2006, ch. 233, § 2, p. 691.

STATUTORY NOTES

Amendments.

The 2006 amendment, by ch. 233, added present subsections (5), (6), and (7)(c) and redesignated former subsection (5) as (7).

Federal References.

Section 112 of the Internal Revenue Code, referred to in subsection (4), is codified as 26 U.S.C.S. § 112.

Compiler’s Notes.

Section 63-602FF, referred to in subsection (5) was repealed by S.L. 2006, ch. 233, § 1. See§ 63-602K.

Effective Dates.

Section 2 of S.L. 2001, ch. 12 declared an emergency retroactively to January 1, 2001 and approved February 16, 2001.

Section 2 of S.L. 2002, ch. 93 declared an emergency retroactively to January 1, 2002. Approved March 19, 2002.

Section 2 of S.L. 2005, ch. 271 declared an emergency retroactively to January 1, 2005. Approved April 5, 2005.

Section 4 of S.L. 2006, ch. 233 declared an emergency retroactively to January 1, 2006 and approved March 30, 2006.

CASE NOTES

Agricultural Use Not Shown.

Deputy county assessor found no evidence livestock was being grazed on the properties involved, nor was the rancher making regular rent payments or otherwise complying with the terms of his lease. The legislative intent behind the agricultural exemption was that “use” is a requirement and, therefore, the property owners were not entitled to the exemption with respect to use of the land for grazing purposes. Ada County Bd. of Equalization v. Highlands, Inc., 141 Idaho 202, 108 P.3d 349 (2005).

It is unreasonable to read this section as exempting land from taxation where the land was not actually devoted to crop or livestock production and was not in a crop-rotation program; contiguous homesites are not exempted by§ 63-604, and the landowners offered no evidence suggesting that some activities consumed more than the additional exempted acre. Kimbrough v. Idaho Bd. of Tax Appeals & Canyon County Bd. of Equalization (In re Kimbrough), 150 Idaho 417, 247 P.3d 644 (2011).

Construction with Other Law.

Former Idaho Admin. Code 35.01.165(04)(d) exceeded the authority granted by§ 63-602K and this section making the regulation unenforceable, and the district court properly awarded the taxpayer an agricultural exemption, recovery of the taxes paid under protest, together with interest accrued. Cmty. Action Agency, Inc. v. Bd. of Equalization, 138 Idaho 82, 57 P.3d 793 (2002).

Exemption.

Whether an agricultural use of undeveloped property violates a local zoning ordinance has no relevance to the requirements for a property tax exemption for agricultural land under§ 63-602K and this section. Thompson Dev., LLC v. Bd. of Appeals, 153 Idaho 646, 289 P.3d 48 (2012).

§ 63-605. Land used to protect wildlife and wildlife habitat.

  1. For the tax year commencing January 1, 2007, an application for appraisal, assessment and taxation under this section as land actively devoted to agriculture pursuant to section 63-604, Idaho Code, shall be filed in the office of the county assessor on or before the fourth Monday in June 2007. For the tax year commencing January 1, 2008, and for each and every year thereafter, an application for appraisal, assessment and taxation under this section as land actively devoted to agriculture pursuant to section 63-604, Idaho Code, shall be filed in the office of the county assessor between January 1 and April 15 of each year for which the requested tax status is to apply. Land eligible for this tax status is land which is either:
    1. Owned and used for wildlife habitat by a private, nonprofit corporation which corporation has a recognized tax exempt status under section 501(c)(3) of the Internal Revenue Code, and which corporation qualifies for exemption status under section 63-602C, Idaho Code, and which corporation is dedicated to the conservation of wildlife or wildlife habitat; or
    2. Being managed pursuant to a conservation easement or a conservation agreement, as defined in this section and which easement or agreement has been entered into with a private, nonprofit corporation which has a tax exempt status under section 501(c)(3) of the Internal Revenue Code, which corporation qualifies for exemption status under section 63-602C, Idaho Code, and which land qualified, for three (3) consecutive years immediately preceding management of the land pursuant to a conservation easement or a conservation agreement, as land actively devoted to agriculture pursuant to section 63-604, Idaho Code.
  2. As used in this section, “conservation agreement” means a written document between a private, nonprofit corporation enumerated in subsection (1) of this section and the landowner which defines wildlife, flora or fauna or freshwater biota to be protected and outlines a minimum of a ten (10) year management plan to protect target species and to control noxious weeds in accordance with Idaho noxious weed law in chapter 24, title 22, Idaho Code. Progress in managing the target species and controlling noxious weeds shall be monitored and an annual progress report shall be submitted each year along with the application filed as required in this section.
  3. The conservation agreement or a copy of the document creating the conservation easement shall be filed with the county assessor by April 15 of the year for which application for the tax status is made. Following initial approval of an application in any tax year, for each subsequent, consecutive year in which application is made and the tax status is claimed, it shall not be necessary to resubmit the conservation agreement or a copy of the document creating the conservation easement unless the agreement or easement document has been amended. In the event the document is amended, the amended version shall be submitted with that year’s application.
History.

(4) Failure to file an application for each year that tax status under this section is claimed, or failure to annually document progress in managing the target species and controlling noxious weeds as required in subsection (2) of this section, shall result in loss of the tax status provided in this section. History.

I.C.,§ 63-605, as added by 1996, ch. 98, § 7, p. 308; am. 2000, ch. 215, § 1, p. 603; am. 2007, ch. 168, § 1, p. 496.

STATUTORY NOTES

Amendments.

The 2007 amendment, by ch. 168, rewrote the section to the extent that a detailed comparison is impracticable.

Federal References.

Section 501(c)(3) of the Internal Revenue Code, referred to in paragraphs (1)(a) and (1)(b), is codified as 26 U.S.C.S. § 501(c)(3).

Compiler’s Notes.

Section 20 of S.L. 1996, ch. 98 read: “Existing Rules Remain in Effect. All rules heretofore adopted by the state tax commission and in effect on the effective date of this act shall remain in full force and effect unless and until superseded or replaced by rules duly adopted by the commission, or until the same are rejected, amended or modified by the legislature in accordance with the provisions of chapter 52, title 67, Idaho Code, or until they expire as provided in section 67-5292, Idaho Code.”

Effective Dates.

Section 21 of S.L. 1996, ch. 98 provided that the act shall be in full force and effect on January 1, 1997.

Section 2 of S.L. 2007, ch. 168 declared an emergency retroactively to January 1, 2007 and approved March 23, 2007.

§ 63-606. Equalization of aggregate values. [Repealed.]

STATUTORY NOTES

Compiler’s Notes.

This section, which comprised S.L. 1913, ch. 58, § 75; reen. C.L. 133:75; C.S., § 3172; I.C.A.,§ 61-5078, was repealed by S.L. 1965, ch. 312, § 32, p. 849.

§ 63-606A. Small employer growth incentive exemption.

  1. The county board of equalization of any county in which any property, the investment in which qualifies for the income tax credits described in sections 63-4403 and 63-4404, Idaho Code, is located may exempt all or a portion of the value of such property from property taxation. The board may grant the exemption when it finds that the investments in such property benefit the citizens within the county and taxing districts within the county in a manner and to such a degree that to grant the exemption is necessary and just.
  2. Property exempted under this section shall not be included on any new construction roll prepared by the county assessor in accordance with section 63-301A, Idaho Code.
  3. Applications for the exemption under this section shall be considered by the board as other applications for exemption under section 63-501, Idaho Code. Upon request of the board, the state tax commission may disclose to the board or county official designated by the board information necessary to identify and determine the property upon which the exemption may be granted.
History.

I.C.,§ 63-606A, as added by 2005, ch. 370, § 2, p. 1178.

STATUTORY NOTES

Compiler’s Notes.

Section 3 of S.L. 2005, ch. 370 provided: “Severability. The provisions of this act are hereby declared to be severable and if any provision of this act or the application of such provision to any person or circumstance is declared invalid for any reason, such declaration shall not affect the validity of the remaining portions of this act.”

Effective Dates.

Section 4 of S.L. 2005, ch. 370 declared an emergency retroactively to January 1, 2005. Approved April 13, 2005.

§ 63-607. Limitations. [Repealed.]

STATUTORY NOTES

Compiler’s Notes.

This section, which comprised S.L. 1913, ch. 58, § 76; reen C.L. 133:76; C.S., § 3173; I.C.A.,§ 61-508, was repealed by S.L. 1965, ch. 312, § 32, p. 849.

§ 63-608. [Reserved.]

STATUTORY NOTES

Compiler’s Notes.

These sections, which comprised 1913, ch. 58, §§ 78, 79, p. 173; reen. C.L. 133:78, 133:79; C.S., §§ 3175, 3176; I.C.A.,§§ 61-510, 61-511, concerning criterion for value for equalization and meetings other than for equalization, were repealed by S.L. 1965, ch. 312, § 32, p. 849.

§ 63-611 — 63-626. [Reserved.]

STATUTORY NOTES

Compiler’s Notes.

These sections, which comprised S.L. 1957, ch. 165, §§ 1, 2, p. 299, concerning duty in allocating funds to any county upon the basis of equalized assessed valuations, were repealed by S.L. 1965, ch. 312, § 32, p. 849.

§ 63-602MM. [Reserved.]

§ 63-609, 63-610. Criterion of value — Meetings. [Repealed.]

§ 63-627, 63-628. Allocation of funds to county — State ad valorem and special state taxes. [Repealed.]

Chapter 7 PROPERTY TAX RELIEF

Sec.

§ 63-701. Definitions.

As used in this chapter:

  1. “Claimant” means a person who has filed an application under section 63-602G, Idaho Code, and has filed a claim under the provisions of sections 63-701 through 63-710, Idaho Code. Except as provided in section 63-702(2), Idaho Code, on January 1 or before April 15 of the year in which the claimant first filed a claim on the homestead in question, a claimant must be an owner of the homestead, a claimant must have lawful presence in the United States pursuant to section 67-7903, Idaho Code, and on January 1 of said year a claimant must be:
    1. Not less than sixty-five (65) years old; or
    2. A child under the age of eighteen (18) years who is fatherless or motherless or who has been abandoned by any surviving parent or parents; or
    3. A widow or widower; or
    4. A disabled person who is recognized as disabled by the social security administration pursuant to title 42 of the United States Code, or by the railroad retirement board pursuant to title 45 of the United States Code, or by the office of management and budget pursuant to title 5 of the United States Code, or, if a person is not within the purview of, and is therefore not recognized as disabled by, any other entity listed in this paragraph, then by the public employee retirement system or public employee disability plan in which the person participates that may be of any state, local unit of government or other jurisdiction in the United States of America; or
    5. A disabled veteran of any war engaged in by the United States, whose disability is recognized as a service-connected disability of a degree of ten percent (10%) or more, or who has a pension for nonservice-connected disabilities, in accordance with laws and regulations administered by the United States department of veterans affairs; or
    6. A person, as specified in 42 U.S.C. 1701, who was or is entitled to receive benefits because he is known to have been taken by a hostile force as a prisoner, hostage or otherwise; or
    7. Blind.
  2. “Homestead” means the dwelling, owner-occupied by the claimant as described in this chapter and used as the primary dwelling place of the claimant and may be occupied by any members of the household as their home, and so much of the land surrounding it, not exceeding one (1) acre, as is reasonably necessary for the use of the dwelling as a home. It may consist of a part of a multidwelling or multipurpose building and part of the land upon which it is built. “Homestead” does not include personal property such as furniture, furnishings or appliances, but a manufactured home may be a homestead.
  3. “Household” means the claimant and the claimant’s spouse. The term does not include bona fide lessees, tenants, or roomers and boarders on contract. “Household” includes persons described in subsection (8) (b) of this section.
  4. “Household income” means all income received by the claimant and, if married, all income received by the claimant’s spouse, in a calendar year.
  5. “Income” means the sum of federal adjusted gross income as defined in the Internal Revenue Code, as defined in section 63-3004, Idaho Code, and to the extent not already included in federal adjusted gross income:
    1. Alimony;
    2. Support money;
    3. Nontaxable strike benefits;
    4. The nontaxable amount of any individual retirement account, pension or annuity, including railroad retirement benefits, all payments received under the federal social security act except the social security death benefit as specified in this subsection, state unemployment insurance laws, and veterans disability pensions and compensation, excluding any return of principal paid by the recipient of an annuity and excluding rollovers as provided in 26 U.S.C. 402 or 403, and excluding the nontaxable portion of a Roth individual retirement account distribution, as provided in 26 U.S.C. 408A;
    5. Nontaxable interest received from the federal government or any of its instrumentalities or a state government or any of its instrumentalities;
    6. Worker’s compensation; and
    7. The gross amount of loss of earnings insurance.
  6. “Occupied” means actual use and possession.
  7. “Owner” means a person holding title in fee simple or holding a certificate of motor vehicle title (either of which may be subject to mortgage, deed of trust or other lien) or who has retained or been granted a life estate or who is a person entitled to file a claim under section 63-702, Idaho Code. “Owner” shall also include any person who:
    1. Is the beneficiary of a revocable or irrevocable trust which is the owner of such homestead and under which the claimant or the claimant’s spouse has the primary right of occupancy of the homestead; or
    2. Is a partner of a limited partnership, member of a limited liability company or shareholder of a corporation if such entity holds title in fee simple or holds a certificate of motor vehicle title and if the person holds at least a five percent (5%) ownership in such entity, as determined by the county assessor; or (c) Has retained or been granted a life estate.
    1. “Primary dwelling place” means the claimant’s dwelling place on January 1 or before April 15 of the year for which the claim is made. The primary dwelling place is the single place where a claimant has his true, fixed and permanent home and principal establishment, and to which whenever the individual is absent he has the intention of returning. A claimant must establish the dwelling to which the claim relates to be his primary dwelling place by clear and convincing evidence or by establishing that the dwelling is where the claimant resided on January 1 or before April 15 and: (8)(a) “Primary dwelling place” means the claimant’s dwelling place on January 1 or before April 15 of the year for which the claim is made. The primary dwelling place is the single place where a claimant has his true, fixed and permanent home and principal establishment, and to which whenever the individual is absent he has the intention of returning. A claimant must establish the dwelling to which the claim relates to be his primary dwelling place by clear and convincing evidence or by establishing that the dwelling is where the claimant resided on January 1 or before April 15 and:
      1. At least six (6) months during the prior year; or
      2. The majority of the time the claimant owned the dwelling if owned by the claimant less than one (1) year; or
      3. The majority of the time after the claimant first occupied the dwelling if occupied by the claimant for less than one (1) year. The county assessor may require written or other proof of the foregoing in such form as the county assessor may determine.

It does not include gifts from nongovernmental sources or inheritances. To the extent not reimbursed, the cost of medical care as defined in section 213(d) of the Internal Revenue Code, incurred and paid by the claimant and, if married, the claimant’s spouse, may be deducted from income. To the extent not reimbursed, personal funeral expenses, including prepaid funeral expenses and premiums on funeral insurance, of the claimant and claimant’s spouse only, may be deducted from income up to an annual maximum of five thousand dollars ($5,000) per claim. “Income” does not include veterans disability pensions received by a person described in subsection (1) (e) of this section who is a claimant or a claimant’s spouse if the disability pension is received pursuant to a service-connected disability of a degree of forty percent (40%) or more. “Income” does not include dependency and indemnity compensation or death benefits paid to a person described in subsection (1) of this section by the United States department of veterans affairs and arising from a service-connected death or disability. “Income” does not include lump sum death benefits made by the social security administration pursuant to 42 U.S.C. 402(i). Documentation of medical expenses may be required by the county assessor and state tax commission in such form as the county assessor or state tax commission shall determine. “Income” shall be that received in the calendar year immediately preceding the year in which a claim is filed. Where a claimant and/or the claimant’s spouse does not file a federal tax return, the claimant’s and/or the claimant’s spouse’s federal adjusted gross income, for purposes of this section, shall be an income equivalent to federal adjusted gross income had the claimant and/or the claimant’s spouse filed a federal tax return, as determined by the county assessor. The county assessor or state tax commission may require documentation of income in such form as each shall determine, including, but not limited to: copies of federal or state tax returns and any attachments thereto; and income reporting forms such as the W-2 and 1099.

For determining income for certain married individuals living apart, the provisions of sections 2(c) and 7703(b) of the Internal Revenue Code shall apply.

“Owner” includes a vendee in possession under a land sale contract. Any partial ownership shall be considered as ownership for determining initial qualification for property tax reduction benefits; however, the amount of property tax reduction under section 63-704, Idaho Code, and rules promulgated pursuant to section 63-705, Idaho Code, shall be computed on the value of the claimant’s partial ownership. “Partial ownership,” for the purposes of this section, means any one (1) person’s ownership when property is owned by more than one (1) person or where the homestead is held by an entity, as set forth in this subsection, but more than one (1) person has the right of occupancy of such homestead. A person holding either partial title in fee simple or holding a certificate of motor vehicle title together with another person, but who does not occupy the dwelling as his primary dwelling place, shall not be considered an owner for purposes of this section, if such person is a cosignatory of a note secured by the dwelling in question and at least one (1) of the other cosignatories of the note occupies the dwelling as his primary dwelling place. The combined community property interests of both spouses shall not be considered partial ownership as long as the combined community property interests constitute the entire ownership of the homestead, including where the spouses are occupying a homestead owned by an entity, as set forth in this subsection, and the spouses have the primary right of occupancy of the homestead. The proportional reduction required under this subsection shall not apply to community property interests. Where title to property was held by a person who has died without timely filing a claim for property tax reduction, the estate of the deceased person shall be the “owner,” provided that the time periods during which the deceased person held such title shall be attributed to the estate for the computation of any time periods under subsection (8) (a) or (b) of this section.

History.

(b) Notwithstanding the provisions of paragraph (a) of this subsection, the property upon which the claimant makes application shall be deemed to be the claimant’s primary dwelling place if the claimant is otherwise qualified and resides in a care facility and does not allow the property upon which the claimant has made application to be occupied by persons paying a consideration to occupy the dwelling. Payment of utilities shall not be payment of a consideration to occupy the dwelling. A claimant’s spouse who resides in a care facility shall be deemed to reside at the claimant’s primary dwelling place and to be a part of the claimant’s household. A care facility is a hospital, nursing facility or intermediate care facility for people with intellectual disabilities as defined in section 39-1301, Idaho Code, or a facility as defined in section 39-3302(16), Idaho Code, or a dwelling other than the one upon which the applicant makes application where a claimant who is unable to reside in the dwelling upon which the application is made lives and receives help in daily living, protection and security. History.

I.C.,§ 63-701, as added by 1996, ch. 98, § 8, p. 362; am. 1997, ch. 24, § 1, p. 33; am. 1997, ch. 117, § 23, p. 323; am. 1998, ch. 352, § 1, p. 1108; am. 1999, ch. 40, § 1, p. 77; am. 1999, ch. 382, § 2, p. 1047; am. 2000, ch. 20, § 1, p. 38; am. 2000, ch. 109, § 1, p. 239; am. 2000, ch. 154, § 1, p. 389; am. 2000, ch. 274, § 149, p. 799; am. 2001, ch. 69, § 2, p. 129; am. 2001, ch. 325, § 1, p. 1140; am. 2004, ch. 156, § 2, p. 495; am. 2005, ch. 31, § 1, p. 143; am. 2005, ch. 241, § 1, p. 749; am. 2005, ch. 280, § 58, p. 880; am. 2006, ch. 350, § 2, p. 1065; am. 2008, ch. 117, § 1, p. 323; am. 2010, ch. 235, § 55, p. 542; am. 2011, ch. 85, § 1, p. 176; am. 2015, ch. 224, § 1, p. 687; am. 2017, ch. 14, § 1, p. 22; am. 2019, ch. 159, § 3, p. 515; am. 2020, ch. 65, § 2, p. 151.

STATUTORY NOTES

Amendments.

This section was amended by two 1997 acts which appear to be compatible and have been compiled together.

The 1997 amendment, by ch. 24, § 1, in subsection (5) at the end of the former first sentence substituted a comma for a period and at the beginning of the former second sentence substituted “nontaxable” for “Nontaxable” thereby combining the former first and second sentences into the present first sentence and in subsection (6) added “or (e)” following “subsection (1)(d)”.

The 1997 amendment, by ch. 117, § 23, in subsection (1) in the first sentence substituted “sections 63-701 through 63-710, Idaho Code” for “this chapter” following “under the provisions”, in the second sentence at the beginning added “Except as provided in section 63-702(2), Idaho Code, on” for “On”, and substituted “be an owner of” for “own” preceding “a homestead”; in subsection (3) added the last sentence; in subsection (5) added “and to the extent not already included in federal adjusted gross income,” following “section 63-3004, Idaho Code,”; in the present second sentence substituted “or inheritances.” for “, inheritances, or” and adding “To the extent not reimbursed, cost of” thereby creating the present second and third sentences and in the present third sentence added “may be deducted from income” at the end of the sentence; in subsection (8) at the end of the first sentence added “or who is a person entitled to file a claim under section 63-702, Idaho Code” and in the fifth sentence substituted “computed on the value of the claimant’s” for “reduced to a proportion commensurate with the proportion of” preceding “partial ownership”; and in subdivision (9)(b) added the present second sentence.

This section was amended by two 1999 acts which appear to be compatible and have been compiled together.

The 1999 amendment, by ch. 40, § 1, in subdivision (1)(d), substituted “by the social security administration pursuant to title 42 of the United States Code, or by the railroad retirement board pursuant to title 45 of the United States Code, or by the office of management and budget pursuant to title 5 of the United States Code; or” for “pursuant to 42 USC 423, 45 USC 228, 45 USC 231 or 5 USC 8337;” and in subsection (6), added “or who is over age sixty-five (65) and lives in the claimant’s dwelling and receives protective, oversight, caregiving or personal care services provided by the claimant” following “of this section.” The 1999 amendment, by ch. 382, § 2, in subsection (8), in the present second sentence, inserted “or irrevocable” following “a revocable,” and inserted “or who is a partner of a limited partnership, member of a limited liability company or shareholder of a corporation which holds title in fee simple or holds a certificate of motor vehicle title and who has retained or been granted a life estate”; and in subdivision (9)(b), in the last sentence, substituted “39-3302(16)” for “39-3302(15)” and inserted “(1)” following “one.”

This section was amended by four 2000 acts which appear to be compatible and have been compiled together.

The 2000 amendment, by ch. 20, § 1, in the second sentence in subsection (8), substituted “or who has retained” for “and who has retained”; and in the last sentence of subdivision (9)(b), deleted “(1)” following “one”.

The 2000 amendment, by ch. 109, § 1, added the present seventh sentence in subsection (8).

The 2000 amendment, by ch. 154, § 1, added the present fifth sentence in subsection (5).

The 2000 amendment, by ch. 274, § 149, in subsection (6), substituted “personal assistance services” for “personal care services” in two places; in the last sentence of subdivision (9)(b), substituted “nursing facility or intermediate care facility” for “skilled nursing facility, intermediate care facility or intermediate care facility”, and deleted “(1)” following “one”.

This section was amended by three 2005 acts which appear to be compatible and have been compiled together.

The 2005 amendment, by ch. 31, § 1, substituted the ending beginning with “claimant first filed” for “claim was filed a claimant must be an owner of a homestead and be” in the introductory language of subsection (1) and made a stylistic change.

The 2005 amendment, by ch. 241, § 1, substituted “department of veterans affairs” for “veterans administration” in subsection (1)(e) and added the fifth sentence following subsection (5)(g).

The 2005 amendment, by ch. 280, § 58, substituted “section 39-3302(14)” for “section 39-3302(16)” in subsection (8)(b).

The 2006 amendment, by ch. 350, in the introductory paragraph of subsection (1), inserted “an application under section 63-602G, Idaho Code, and has filed”; in subsection (5)(d), inserted “any return of principal paid by the recipient of an annuity and excluding”; and in the first sentence of the last paragraph of subsection (5), deleted “capital gains” preceding “gifts from nongovernmental sources.”

The 2008 amendment, by ch. 117, added the last paragraph in subsection (5).

The 2010 amendment, by ch. 235, substituted “people with intellectual disabilities” for “the mentally retarded” in the last sentence in paragraph (8)(b).

The 2011 amendment, by ch. 85, in the first undesignated paragraph following paragraph (5)(g), deleted “board of equalization” following “county assessor”, twice in the seventh sentence and once in the last sentence.

The 2015 amendment, by ch. 224, added “or, if a person is not within the purview of, and is therefore not recognized as disabled by, any other entity listed in this paragraph, then by the public employee retirement system or public employee disability plan in which the person participates that may be of any state, local unit of government or other jurisdiction in the United States of America” at the end of paragraph (1)(d). The 2017 amendment, by ch. 14, substituted “provided in 26 U.S.C. 402 or 403, and excluding the nontaxable portion of a Roth individual retirement account distribution, as provided in 26 U.S.C. 408A” for “provided in section 402 or 403 of the Internal Revenue Code)” at the end of paragraph (5)(d).

The 2019 amendment, by ch. 159, substituted “section39-3302(16), Idaho Code” for section “39-3302(14), Idaho Code” near the middle of the last sentence in paragraph (8)(b).

The 2020 amendment, by ch. 65, added “a claimant must have lawful presence in the United States pursuant to section 67-7903, Idaho Code” near the end of the introductory paragraph in subsection (1) and substituted “incurred and paid” for “incurred or paid” in the first sentence in paragraph (5)(g).

Federal References.

Section 213(d) of the Internal Revenue Code, referred to in the paragraph following subsection (5)(g), is codified as 26 U.S.C.S. § 213(d).

Sections 2(c) and 7703(b) of the Internal Revenue Code, referred to in the last paragraph of subsection (5), are codified as 26 U.S.C.S. §§ 2(c) and 7703(b).

Compiler’s Notes.

The words enclosed in parentheses so appeared in the law as enacted.

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

Section 2 of S.L. 1999, ch. 34 declared an emergency retroactively to January 1, 1998 and approved March 8, 1999.

Section 2 of S.L. 2000, ch. 20 declared an emergency retroactively to January 1, 2000 and approved March 1, 2000.

Section 2 of S.L. 2000, ch. 109 declared an emergency retroactively to January 1, 2000 and approved March 30, 2000.

Section 2 of S.L. 2000, ch. 154 declared an emergency retroactively to January 1, 2000 and approved April 3, 2000.

Section 9 of S.L. 2001, ch. 69 provided that the act should take effect on and after January 1, 2002.

Section 2 of S.L. 2017, ch. 14 declared an emergency and made this section retroactive to January 1, 2017. Approved February 16, 2017.

Section 8 of S.L. 2004, ch. 156 declared an emergency retroactively to January 1, 2004. Approved March 23, 2004.

Section 2 of S.L. 2005, ch. 241 declared an emergency retroactively to January 1, 2005 and approved April 1, 2005.

Section 3 of S.L. 2006, ch. 350 declared an emergency retroactively to January 1, 2006 and approved April 7, 2006.

Section 2 of S.L. 2015 provided that the act should take effective on and after January 1, 2016.

CASE NOTES

Cited

Bradbury v. Idaho Judicial Council, 149 Idaho 107, 233 P.3d 38 (2009).

§ 63-701A. Operating property of pipe lines for transportation of commodities assessable by tax commission. [Repealed.]

STATUTORY NOTES

Compiler’s Notes.

This section, which comprised I.C.,§ 63-701A, as added by 1951, ch. 116, § 1, p. 270, was repealed by S.L. 1965, ch. 312, § 32.

§ 63-702. Reduction in property taxes or occupancy taxes — Claim is personal — Exceptions.

    1. A property tax reduction shall be allowed pursuant to the provisions of sections 63-701 through 63-710, Idaho Code, if the owner occupies the residential improvements after January 1 but before April 15, and if no other property tax reductions or occupancy tax reductions under this section have been claimed by the owner for the same year. (1)(a) A property tax reduction shall be allowed pursuant to the provisions of sections 63-701 through 63-710, Idaho Code, if the owner occupies the residential improvements after January 1 but before April 15, and if no other property tax reductions or occupancy tax reductions under this section have been claimed by the owner for the same year.
    2. An occupancy tax reduction shall be allowed pursuant to the provisions of sections 63-701 through 63-710, Idaho Code, if the owner occupies the newly constructed residential improvements at any time during the year and has not filed for a property tax reduction or occupancy tax reduction under this section on any other homestead for the same year.
  1. The right to file a claim under the provisions of sections 63-701 through 63-710, Idaho Code, shall be personal to the claimant and shall not survive his death except:
    1. Such right may be exercised on behalf of a living claimant by an agent authorized in writing to so act, by a guardian or other representative acting pursuant to judicial authority or by any person or entity described in section 63-711(3), Idaho Code. If a claimant dies after having filed a timely claim, the amount thereof shall be allowed to his personal representative, if one is appointed, or to surviving heirs or to the trust or other entity owning the property, as appropriate; and
    2. In the case of property owned by an estate, revocable trust, irrevocable trust, limited partnership, limited liability company or corporation, where the deceased person’s widow or widower succeeds to the interest of the deceased person in that entity and occupies the dwelling as required in this chapter, the deceased owner’s widow or widower, or any person or entity described in section 63-711(3), Idaho Code, on behalf of that widow or widower:
      1. May file a claim on behalf of the deceased spouse if the deceased spouse qualified or would have qualified as a claimant under subsection (1) of this section in the year in which the claim is filed; or
      2. The widow or widower shall be deemed the owner of the property in any year after the year of the death of the spouse.
History.

I.C.,§ 63-702, as added by 1996, ch. 98, § 8, p. 308; am. 1997, ch. 117, § 24, p. 298; am. 2001, ch. 166, § 2, p. 576; am. 2001, ch. 69, § 3, p. 129; am. 2004, ch. 156, § 3, p. 495; am. 2019, ch. 31, § 2, p. 85.

STATUTORY NOTES

Amendments.
Effective Dates.

The 2019 amendment, by ch. 31, added “Reduction in property taxes or occupancy taxes” at the beginning of the section heading; in subsection (1), rewrote the first two sentences, which formerly read: “The right to file a claim under the provisions of sections 63-701 through 63-710, Idaho Code, shall be personal to the claimant and shall not survive his death except as otherwise provided in this section. A property tax reduction shall be allowed pursuant to the provisions of sections 63-701 and 63-710, Idaho Code, if the owner occupies the residential improvements after January 1 but before April 15, and if no other property tax reductions have been claimed” by designating the current text as paragraph (a) and adding paragraph (b); in subsection (2), added the introductory paragraph, redesignated the last two sentences of former subsection (1) as paragraph (a), redesignated former subsection (2) as paragraph (b), and redesignated former paragraphs (a) and (b) as present paragraphs (b)(i) and (ii), and in paragraph (b)(i), substituted “under subsection (1) of this section in the year” for “on January 1 or before April 15 of the year.” Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that the §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

Section 9 of S.L. 2001, ch. 69 provided that the act should take effect on and after January 1, 2002.

Section 8 of S.L. 2004, ch. 156 declared an emergency retroactively to January 1, 2004. Approved March 23, 2004.

Section 10 of S.L. 2019, ch. 31 declared an emergency and made the amendment of this section retroactive to January 1, 2019. Approved February 20, 2019.

§ 63-703. Procedure for filing claims.

  1. Any claim filed shall be signed by the claimant or by any person or entity described in section 63-711(3), Idaho Code. By signing such claim, the claimant or other person or entity signing such claim shall attest to the truth of such claim and shall be subject to the penalties provided by section 18-5401, Idaho Code, for stating as true any material fact known to be false. All claims shall be made on forms prescribed by the state tax commission and shall be in triplicate. One (1) copy of the form shall be provided to the claimant or the person or entity acting on behalf of the claimant, one (1) copy shall be kept for all county purposes, and one (1) copy shall be forwarded to the state tax commission with the property tax reduction roll. Except as provided in section 63-707, Idaho Code, the claim and its documentation shall not be deemed to be public records and may not be used for any commercial purpose; provided however, the state tax commission and the county assessor may use the contents of such claims and documentation for general statistical analysis and may publish such analysis, or any part of such analysis, as appropriate.
  2. By filing a claim, a claimant does not relinquish any right he or any member of his household may have to apply for a cancellation of property taxes pursuant to section 63-711, Idaho Code. The county commissioners may grant any such claimant, or any member of his household, a cancellation of property taxes, late charges and interest under such section, if a claim has been filed under the provisions of sections 63-701 through 63-710, Idaho Code.
  3. If two (2) or more individuals of a household are able to meet the qualifications of a claimant, they may decide between themselves who may obtain a reduction in property taxes or occupancy taxes under the provisions of sections 63-701 through 63-710, Idaho Code, and shall certify such division in writing to the county assessor in such form as the county assessor shall require, but if they do not decide between themselves, then the reduction shall be divided equally among or between the claimants in the household or shall be divided as determined under section 63-701(7), Idaho Code, whichever is appropriate.
  4. When an “owner” is any person who is the beneficiary of a revocable or irrevocable trust, or is a partner of a limited partnership, or member of a limited liability company, or shareholder of a corporation, if such entity holds title in fee simple or holds a certificate of motor vehicle title, and if said person holds at least a five percent (5%) ownership in such entity, he or she, or any person or entity described in section 63-711(3), Idaho Code, may provide proof of the foregoing as follows:
    1. If the owner of the homestead is a revocable or irrevocable trust, by an affidavit stating:
      1. That the claimant, or the claimant’s spouse, is a beneficiary of the trust; and
      2. That the claimant, or the claimant’s spouse, is the occupier of the residential property and uses the property as the primary dwelling place of the occupier as of January 1 or before April 15.
    2. The affidavit shall include the attaching of copies of those portions of the trust which set forth the status of the claimant or the claimant’s spouse as beneficiary and which contain the signature page or pages of the trust. (b) If the owner is a limited partnership, limited liability company, or corporation, by an affidavit stating the entity holds title in fee simple or holds a certificate of motor vehicle title, and if said person holds at least a five percent (5%) ownership in such entity. The affidavit shall include the attaching of:
      1. Proof of the current status of the entity owning the property, including statements from the secretary of state as to such status if appropriate;
      2. Copies of any documents, or portions thereof, relating to the entity including, but not limited to, those portions of the articles of organization or operating agreements of the entity indicating the person’s membership or ownership in the entity and the membership or ownership percentage held by such person; and
      3. Copies of any contracts or other agreements between the entity and the claimant or the claimant’s spouse including, but not limited to, any portions thereof that show the right of occupancy of the homestead by the person.
    3. Any other documentation which the county assessor determines would aid the county assessor in carrying out the provisions of this chapter.
History.

I.C.,§ 63-703, as added by 1996, ch. 98, § 8, p. 308; am. 1997, ch. 117, § 25, p. 298; am. 2001, ch. 69, § 4, p. 129; am. 2004, ch. 156, § 4, p. 495; am. 2019, ch. 31, § 3, p. 85.

STATUTORY NOTES

Amendments.

The 2019 amendment, by ch. 31, inserted “or occupancy taxes” near the beginning of subsection (3).

Effective Dates.

Section 9 of S.L. 2001, ch. 69 provided that the act should take effect on and after January 1, 2002.

Section 8 of S.L. 2004, ch. 156 declared an emergency retroactively to January 1, 2004. Approved March 23, 2004.

Section 10 of S.L. 2019, ch. 31 declared an emergency and made the amendment of this section retroactive to January 1, 2019. Approved February 20, 2019.

§ 63-704. Amount of property tax or occupancy tax reduction.

  1. Each claimant qualifying for and applying for a reduction in property taxes or occupancy taxes under the provisions of sections 63-701 through 63-710, Idaho Code, shall be allowed a reduction in taxes on his homestead for the current year only, in the amounts provided by subsection (4) of this section.
  2. All property taxes and occupancy taxes continue to be the responsibility of the individual taxpayer, and all taxes continue to be perpetual liens against the property against which assessed. All taxes may be collected and enforced in the usual manner, if the taxpayer does not receive any tax reduction as provided under sections 63-701 through 63-710, Idaho Code, or if the taxpayer receives less tax reduction than the whole amount of property taxes or occupancy taxes he is charged with.
  3. The claimant property owner’s tax reduction shall be based upon the current year’s assessed value and the current year’s levy.
  4. Property tax and occupancy tax reductions qualified under sections 63-701 through 63-710, Idaho Code, shall be allowed as set out in section 2, chapter 59, laws of 1992, and adjusted for cost-of-living fluctuations as provided in section 63-705, Idaho Code.
  5. A claimant who is a veteran with a service-connected disability of one hundred percent (100%) or a disability rating based on individual unemployability rating that is compensated at the one hundred percent (100%) disability rate, as certified by the United States department of veterans affairs, shall also be eligible for a special property tax or occupancy tax reduction, as provided in section 63-705A, Idaho Code.
History.

I.C.,§ 63-704, as added by 1996, ch. 98, § 8, p. 308; am. 1997, ch. 117, § 26, p. 298; am. 2001, ch. 69, § 5, p. 129; am. 2018, ch. 183, § 1, p. 401; am. 2019, ch. 31, § 4, p. 85; am. 2020, ch. 246, § 1, p. 719.

STATUTORY NOTES

Cross References.

Homestead defined,§ 63-701.

Amendments.

The 2018 amendment, by ch. 183, added subsection (5).

The 2019 amendment, by ch. 31, inserted references to occupancy taxes in the section heading and throughout the section; deleted “property” preceding “tax” or “taxes” near the end of subsection (1), four times in subsection (2), and near the beginning of subsection (3).

The 2020 amendment, by ch. 246, inserted “or a disability rating based on individual unemployability rating that is compensated at the one hundred percent (100%) disability rate, as certified by the United States department of veterans affairs” near the middle of subsection (5).

Compiler’s Notes.

Section 2, chapter 59, laws of 1992, referred to in subsection (4), amended former§ 63-120 and was later repealed by S.L. 1996, ch. 98, § 1.

Effective Dates.

Section 9 of S.L. 2001, ch. 69 provided that the act should take effect on and after January 1, 2002.

Section 10 of S.L. 2019, ch. 31 declared an emergency and made the amendment of this section retroactive to January 1, 2019. Approved February 20, 2019.

Section 3 of S.L. 2020, ch. 246 declared an emergency and made the amendment of this section retroactive to January 1, 2020. Approved March 24, 2020.

§ 63-705. Publication of changes in income limitations and property tax or occupancy tax reduction amounts.

  1. The state tax commission shall publish adjustments to the income limitations, which shall be the greater of: (a) an individual’s income as defined in section 63-701, Idaho Code, of not more than twenty-eight thousand dollars ($28,000) per household for tax year 2006 and each tax year thereafter; or (b) one hundred eighty-five percent (185%) of the federal poverty guidelines for a household of two (2) for tax year 2006 and each tax year thereafter. The lowest limitation shall allow a maximum reduction of one thousand three hundred twenty dollars ($1,320) in tax year 2006 and thereafter, or actual property taxes or occupancy taxes, as applicable, whichever is less. Each income limitation and reduction amount shall be prorated based on the basic maximum reduction, in practicable increments so that the highest income limitation will provide for a reduction of one hundred fifty dollars ($150), or actual property taxes, whichever is less.
  2. The tax commission shall publish the adjustments required by this section each and every year the secretary of health and human services announces cost-of-living modifications, pursuant to 42 U.S.C. 415(i). The adjustments shall be published no later than October 1 of each such year and shall be effective for claims filed in and for the following property tax year.
  3. The publication of adjustments under this section shall be exempt from the provisions of chapter 52, title 67, Idaho Code, but shall be provided to each county and to members of the public upon request and without charge.
History.

I.C.,§ 63-705, as added by 1996, ch. 98, § 8, p. 308; am. 1997, ch. 117, § 27, p. 298; am. 1998, ch. 102, § 2, p. 350; am. 2006, ch. 350, § 1, p. 1065; am. 2019, ch. 31, § 5, p. 85.

STATUTORY NOTES

Amendments.

The 2006 amendment, by ch. 350, in subsection (1), in the first sentence, substituted the language beginning “which shall be the greater of” for “and property tax reduction amounts to reflect cost-of-living fluctuations”; deleted the former second sentence, which read: “The adjustments shall effect changes in each income limitation by a percentage equal as near as practicable to the annual cost-of-living percentage modification as determined by the secretary of health and human services pursuant to 42 USC 415(i)”; and in the second sentence, substituted “one thousand three hundred twenty dollars ($1,320) in tax year 2006 and thereafter” for “one thousand one hundred dollars ($1,100) in tax year 1998, and one thousand two hundred dollars ($1,200) in tax year 1999.”

Effective Dates.

The 2019 amendment, by ch. 31, inserted “or occupancy tax” near the end of the section heading; inserted “or occupancy taxes, as applicable” near the end of the second sentence in subsection (1); and substituted “announces cost-of-living modifications, pursuant to 42 U.S.C. 415(i)” for “announces said cost-of-living modification” at the end of the first sentence in subsection (2). Effective Dates.

Section 3 of S.L. 2006, ch. 350 declared an emergency retroactively to January 1, 2006 and approved April 7, 2006.

Section 10 of S.L. 2019, ch. 31 declared an emergency and made the amendment of this section retroactive to January 1, 2019. Approved February 20, 2019.

§ 63-705A. Special property tax or occupancy tax reduction for disabled veterans.

  1. For tax year 2020 and thereafter, regardless of any reduction received under section 63-705, Idaho Code, a veteran with a service-connected disability of one hundred percent (100%) or a disability rating based on individual unemployability rating that is compensated at the one hundred percent (100%) disability rate, as certified by the United States department of veterans affairs, shall receive a special reduction in property taxes or occupancy taxes levied on his homestead, as defined in section 63-701, Idaho Code. The special tax reduction shall be in the amount of one thousand three hundred twenty dollars ($1,320) or for the amount of the veteran’s actual property taxes or occupancy taxes, as applicable, whichever is less. If a veteran qualifies for tax reduction under both this section and section 63-705, Idaho Code, the combined tax reduction amount may not exceed the actual amount of the veteran’s property taxes or occupancy taxes on his homestead.
  2. An applicant for a special property tax or occupancy tax reduction under this section shall comply with all procedural requirements set forth in sections 63-701 through 63-710, Idaho Code, with the exception of any income documentation.
  3. In the event that a qualified veteran applies for the special tax reduction in this section but then dies, the veteran’s surviving spouse is entitled to receive the special tax reduction in that year and subsequent years, until such time as the surviving spouse remarries, dies, or no longer has property tax levied on the homestead.
History.

I.C.,§ 63-705A, as added by 2018, ch. 183, § 2, p. 401; am. 2019, ch. 31, § 6, p. 85; am. 2020, ch. 246, § 2, p. 719.

STATUTORY NOTES

Amendments.

The 2019 amendment, by ch. 31, inserted references to occupancy taxes in the section heading and throughout the section and deleted “property” preceding “tax reduction” near the beginning of the second sentence and near the beginning and middle of the last sentence in subsection (1) and near the beginning and middle in subsection (3).

The 2020 amendment, by ch. 246, in subsection (1), in the first sentence, substituted “tax year 2020” for “tax year 2019” at the beginning and inserted “or a disability rating based on individual unemployability rating that is compensated at the one hundred percent (100%) disability rate, as certified by the United States department of veterans affairs” near the middle.

Effective Dates.

Section 10 of S.L. 2019, ch. 31 declared an emergency and made the amendment of this section retroactive to January 1, 2019. Approved February 20, 2019. Section 3 of S.L. 2020, ch. 246 declared an emergency and made the amendment of this section retroactive to January 1, 2020. Approved March 24, 2020.

§ 63-706. Time requirements for filing claim.

  1. Any claim for property tax reduction to be granted under the provisions of sections 63-701 through 63-710, Idaho Code, shall be filed in the office of the county assessor between January 1 and April 15 of each year. If April 15 is a weekend or a certain holiday recognized by the internal revenue service, such claims shall be considered timely filed if filed on the next business day.
  2. Any claim for occupancy tax reduction to be granted under the provisions of sections 63-701 through 63-710, Idaho Code, shall be governed by the provisions of section 63-317, Idaho Code, but must be filed in the office of the county assessor no later than the fourth Monday in January of the year following the year for which the occupancy tax was levied.
History.

I.C.,§ 63-706, as added by 1996, ch. 98, § 8, p. 308; am. 1997, ch. 117, § 28, p. 298; am. 2001, ch. 69, § 6, p. 129; am. 2011, ch. 85, § 2, p. 176; am. 2013, ch. 21, § 5, p. 36; am. 2019, ch. 31, § 7, p. 85.

STATUTORY NOTES

Amendments.

The 2011 amendment, by ch. 85, rewrote the section to the extent that a detailed comparison is impracticable.

The 2013 amendment, by ch. 21, added the last sentence.

The 2019 amendment, by ch. 31, added the subsection (1) designation to the existing provisions in this section and add subsection (2).

Effective Dates.

Section 9 of S.L. 2001, ch. 69 provided that the act should take effect on and after January 1, 2002.

Section 10 of S.L. 2019, ch. 31 declared an emergency and made the amendment of this section retroactive to January 1, 2019. Approved February 20, 2019.

§ 63-707. Procedure after claim approval.

  1. The county assessor shall prepare a tax reduction roll, which shall be in addition to the property roll, the subsequent property roll, and missed property rolls. The tax reduction roll shall show:
    1. The name of the taxpayer;
    2. The description of the property for which a reduction in property taxes or occupancy taxes is claimed, suitably detailed to meet the requirements of the individual county;
    3. The assessor’s best estimate of current market value, and any prorated net taxable value of the eligible portion of the property’s current market value for assessment purposes;
    4. The amount of tax reduction for which the applicant is eligible as determined by the income of the claimant and, if married, the claimant’s spouse, pursuant to sections 63-704 and 63-705, Idaho Code; and
    5. The amount of tax reduction for which a disabled veteran homeowner is eligible, pursuant to section 63-705A, Idaho Code.
  2. Except as provided in section 63-317, Idaho Code, and as soon as possible, but in any event by no later than June 1, the tax reduction roll shall be certified to the county auditor and to the state tax commission in the manner prescribed by rules promulgated by the state tax commission. The property tax reduction roll shall be accompanied by a copy of the claim forms.
    1. Except as provided in section 63-317, Idaho Code, and as soon as possible, but in any event by no later than the fourth Monday of October, the county auditor shall complete the tax reduction roll by adding the following information: (3)(a) Except as provided in section 63-317, Idaho Code, and as soon as possible, but in any event by no later than the fourth Monday of October, the county auditor shall complete the tax reduction roll by adding the following information:
      1. The current year’s levy for the code area in which the property is situated;
      2. The amount of occupancy tax reduction claimed based on the current year’s market value for assessment purposes and the current year’s levy;
      3. The amount of property tax reduction claimed based on the current year’s market value for assessment purposes and the current year’s levy; and
      4. The current year’s market value for assessment purposes.
    2. Except as provided in section 63-317, Idaho Code, and as soon as possible, but in any event no later than the fourth Monday of October, the county auditor shall certify the completed tax reduction roll to the state tax commission in the manner prescribed by rules promulgated by the state tax commission.
  3. The state tax commission shall determine the total number of claims to be allowed in each county, the dollar amount of each claim allowed, and the total dollar amount for all claims for each county. These amounts shall be certified to the county auditor and tax collector by the state tax commission by no later than the third Monday in November.
  4. The state tax commission may audit each and every claim submitted to it and, any other provision of law notwithstanding, may utilize income tax returns filed by the claimant or by the claimant’s spouse to determine the income of the claimant or the claimant’s spouse.
  5. If it is determined by the state tax commission that a claim is erroneous, the tax commission shall disapprove so much of the claim as necessary in order to conform with statutory standards. The tax commission shall provide the claimant, or the person or entity acting on behalf of the claimant, written notice of the tax commission’s intent to disapprove all or a portion of the claim. The claimant, or the person or entity acting on behalf of the claimant, shall have twenty-eight (28) days to make written protest to the tax commission of the intended action. The claimant, or the person or entity acting on behalf of the claimant, may submit additional information and may request an informal hearing with the commission. If the claimant, or the person or entity acting on behalf of the claimant, fails to make written protest within twenty-eight (28) days, the tax commission shall provide written notice of disapproval to the claimant, or the person or entity acting on behalf of the claimant, by the second Monday of October and to the county auditor of the county from which the claim was received. Any claimant, or person or entity acting on behalf of the claimant, whose claim is disapproved in whole or in part by the state tax commission may: (a) File a claim with the county commissioners for a special cancellation pursuant to section 63-711, Idaho Code;

(b) Appeal such disapproval by the state tax commission to the board of tax appeals or to the district court of the county of residence of the taxpayer within thirty (30) days.

History.

I.C.,§ 63-707, as added by 1996, ch. 98, § 8, p. 308; am. 2001, ch. 69, § 7, p. 129; am. 2004, ch. 156, § 5, p. 495; am. 2011, ch. 85, § 3, p. 176; am. 2018, ch. 183, § 3, p. 401; am. 2019, ch. 31, § 8, p. 85.

STATUTORY NOTES

Amendments.

The 2011 amendment, by ch. 85, deleted “Immediately after claims have been approved by the board of equalization” from the beginning of the introductory paragraph of subsection (1); in subsection (2), substituted “no later than June 1” for “no later than the fourth Monday of June” in the first sentence and deleted “for disapproved claims, when requested by the state tax commission and a copy of the approved claims form” from the end of the last sentence; in the introductory paragraph in subsection (6), substituted “twenty-eight (28) days” for “fourteen (14) days” in the third and fifth sentences and substituted “second Monday of October” for “fourth Monday of October” near the end of the fifth sentence.

The 2018 amendment, by ch. 183, added paragraph (1)(e).

The 2019 amendment, by ch. 31, inserted “Except as provided in section 63-317, Idaho Code, and” at the beginning of subsections (2) and paragraphs (3)(a) and (b); in subsection (1), in the introductory paragraph, deleted “property” preceding “tax reduction roll” near the beginning and substituted “roll, and missed property roll. The tax reduction” for “roll, and missed property rolls, which property tax reduction” near the end, inserted “or occupancy taxes” in paragraph (b); deleted “property” preceding “tax reduction” near the beginning of subsection (2); and, in subsection (3), deleted “property” preceding “tax reduction” near the end of the introductory paragraph in paragraph (a) and near the middle of paragraph (b), added paragraph (a)(ii), and redesignated former paragraphs (a)(ii) and (iii) as (a)(iii) and (iv)

Effective Dates.

Section 9 of S.L. 2001, ch. 69 provided that the act should take effect on and after January 1, 2002.

Section 8 of S.L. 2004, ch. 156 declared an emergency retroactively to January 1, 2004. Approved March 23, 2004. Section 10 of S.L. 2019, ch. 31 declared an emergency and made the amendment of this section retroactive to January 1, 2019. Approved February 20, 2019.

§ 63-708. Recovery of erroneous claims.

Within three (3) years of payment, the state tax commission may recover any erroneous or incorrect payment made under sections 63-701 through 63-710, Idaho Code, from any “claimant” as defined in section 63-701(1), Idaho Code. The deficiency determination, collection, and enforcement procedures provided by the Idaho income tax act, sections 63-3039, 63-3042, 63-3043 through 63-3064, Idaho Code, shall apply and be available to the commission for enforcement and collection under sections 63-701 through 63-710, Idaho Code, and such sections shall, for this purpose, be considered part of sections 63-701 through 63-710, Idaho Code. Wherever liens or any other proceedings are defined as income tax liens or proceedings, they shall, when applied in enforcement or collection under sections 63-701 through 63-710, Idaho Code, be described as tax relief liens and proceedings. In connection with such sections, a deficiency shall consist of any amount erroneously claimed by or paid to a claimant under sections 63-701 through 63-710, Idaho Code.

History.

I.C.,§ 63-708, as added by 1996, ch. 98, § 8, p. 308; am. 1997, ch. 117, § 29, p. 298.

§ 63-709. Reimbursement by state tax commission.

  1. By no later than December 20 of each year, the state tax commission shall pay to the county tax collector of each county one-half (1/2) of the amount due each county as reimbursement for reduction in property taxes as provided in sections 63-701 through 63-710, Idaho Code, as shown on the abstract of property tax reduction roll and claims forms approved by the state tax commission, and shall pay the second one-half (1/2) of such amount by not later than June 20 of the following year.
  2. The state tax commission may make one (1) lump sum payment by June 20 of the following tax year to the appropriate county tax collector if the reimbursement results from the granting of occupancy tax reduction and the claim was entered on the supplemental roll. Any amount of occupancy tax scheduled to be reimbursed by the state tax commission shall not be subject to late fees, penalties, or interest of any kind.
History.

I.C.,§ 63-709, as added by 1996, ch. 98, § 8, p. 308; am. 1997, ch. 117, § 30, p. 298; am. 2004, ch. 156, § 6, p. 495; am. 2019, ch. 31, § 9, p. 85.

STATUTORY NOTES

Amendments.

The 2019 amendment, by ch. 31, added the subsection (1) designation to the existing provisions in the section and added subsection (2).

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

Section 8 of S.L. 2004, ch. 156 declared an emergency retroactively to January 1, 2004. Approved March 23, 2004.

Section 10 of S.L. 2019, ch. 31, provided that the amendment by § 9 of the act [this section] should take effect on and after July 1, 2019.

§ 63-710. Procedure after reimbursement.

The money received by the county tax collector under the provisions of section 63-709, Idaho Code, may be considered by the counties and other taxing districts and budgeted against at the same time, in the same manner and in the same year as revenues from taxation.

History.

I.C.,§ 63-710, as added by 1996, ch. 98, § 8, p. 308; am. 2004, ch. 156, § 7, p. 495; am. 2006, ch. 59, § 2, p. 183.

STATUTORY NOTES

Amendments.

The 2006 amendment, by ch. 59, deleted former subsection (1) which read: “Upon receipt of the notice of percentage reduction from the state tax commission, the county auditor shall immediately notify the county commissioners, and the commissioners may take this reduction into consideration in making its property tax levies, and the county commissioners are authorized, but not required, to increase any levy to the extent necessary to compensate for the percentage reduction”, and deleted the subsection (2) designation from the remaining provisions of the section.

Effective Dates.

Section 8 of S.L. 2004, ch. 156 declared an emergency retroactively to January 1, 2004. Approved March 23, 2004.

Section 4 of S.L. 2006, ch 59 declared an emergency retroactively to January 1, 2006 and approved March 14, 2006.

§ 63-711. Cancellation of taxes — Hardship and casualty losses — Special.

  1. Property taxes may be canceled for reason of undue hardship. The commissioners may, at their discretion, grant such cancellation for a specified time period. The commissioners may, at their discretion, cancel taxes on property which has been damaged by an event causing casualty loss to all or a portion of the property when the event occurs after the fourth Monday of June or casualty losses for which the amount of loss cannot be determined until after the fourth Monday of June.
  2. Applicants seeking a cancellation pursuant to this section must apply to the county commissioners. Each applicant shall give a sworn statement containing full and complete information of his financial status to the county commissioners and shall make true answers to all questions put before him touching such person’s right to the cancellation. The county commissioners shall decide and determine from each examination and from each written application for said cancellation whether or not such person is entitled to the cancellation claimed or any part thereof accordingly. In applying for a cancellation pursuant to this section, an applicant may submit an application at any time and the county commissioners may grant such application, either in whole or in part, at any regular meeting and the burden of proving the right of such cancellation shall rest upon the applicant.
  3. The county commissioners may, for good cause shown, allow an agent or some person or entity acting for and on behalf of the applicant to make the application for the cancellation provided in this section for any applicant, or where a person is entitled to cancellation shall be mentally incompetent or physically unable to make such sworn statement, his or her spouse, widow, widower, guardian, power of attorney, or personal representative, or other person having knowledge of the facts, may make the application for the cancellation.
  4. Any time within thirty (30) days after mailing of a decision of the county commissioners, or pronouncement of a decision announced at a meeting, or the failure of the county commissioners to act, an appeal may be taken to the district court for the county in which the property is located. Such appeal may only be filed by the property owner or by any person aggrieved, or by a person or entity acting on behalf of such person, when he deems any such action illegal or prejudicial to the public interest. Nothing in this section shall be construed so as to suspend the payment of property taxes pending said appeal.
  5. The county commissioners shall order all necessary adjustments to be made in the property tax records of the various county officers and taxing districts.
  6. The cancellation of property taxes which have become delinquent shall affect only those property taxes granted a cancellation by order of the county commissioners and all interest and late charges on such taxes.

Notice of such appeal stating the grounds thereafter shall be filed with the county auditor, who shall forthwith transmit a copy of said notice to the county commissioners.

History.

I.C.,§ 63-711, as added by 1996, ch. 98, § 8, p. 308; am. 1997, ch. 117, § 31, p. 298; am. 1998, ch. 102, § 3, p. 350; am. 2001, ch. 69, § 8, p. 129.

STATUTORY NOTES

Compiler’s Notes.

Section 20 of S.L. 1996, ch. 98 read: “Existing Rules Remain in Effect. All rules heretofore adopted by the state tax commission and in effect on the effective date of this act shall remain in full force and effect unless and until superseded or replaced by rules duly adopted by the commission, or until the same are rejected, amended or modified by the legislature in accordance with the provisions of chapter 52, title 67, Idaho Code, or until they expire as provided in section 67-5292, Idaho Code.”

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

Section 21 of S.L. 1996, ch. 98 provided that the act shall be in full force and effect on January 1, 1997.

Section 9 of S.L. 2001, ch. 69 provided that the act should take effect on and after January 1, 2002.

CASE NOTES

Decisions Under Prior Law
Exemptions Strictly Construed.

Statutes purporting to grant exemptions from general taxation should generally be strictly construed as exemptions are never presumed. Andrews v. North Side Canal Co., 52 Idaho 117, 12 P.2d 263 (1932).

§ 63-712. Short title.

The provisions of sections 63-712 through 63-721, Idaho Code, shall be known and may be cited as the “Property Tax Deferral Act.”

History.

I.C.,§ 63-712, as added by 2006, ch. 234, § 1, p. 694.

STATUTORY NOTES

Effective Dates.

Section 3 of S.L. 2006, ch. 234 declared an emergency retroactively to January 1, 2006 and approved March 30, 2006.

§ 63-713. Definitions.

In addition to the definitions in section 63-701, Idaho Code, the following definitions apply to sections 63-712 through 63-721, Idaho Code.

  1. “Qualified claimant” means:
    1. An individual who is a claimant who applies for and properly receives property tax relief under the provisions of sections 63-701 through 63-710, Idaho Code; or
    2. An individual who meets the definition of “claimant” under section 63-701, Idaho Code, and is otherwise eligible to file a claim under sections 63-701 through 63-710, Idaho Code, except by reason of exceeding the income limitations of section 63-705, Idaho Code, may nevertheless be a qualified claimant, provided his household income does not exceed forty thousand dollars ($40,000) for the tax year 2007, which amount shall be increased by the annual cost-of-living percentage modification as determined by the secretary of health and human services pursuant to 42 U.S.C. section 415(i) beginning in 2009.
  2. “Qualified property” means property owned by a qualified claimant, provided that the property is the “homestead,” as defined in section 63-701, Idaho Code, of the qualified claimant, is owned only by the qualified claimant and his or her spouse and is not subject to a trust or life estate or other ownership held by a person who is not the qualified claimant or his or her spouse.
  3. “Sufficient equity” means that:
    1. The property is not security for a reverse mortgage, a home equity loan or line of credit, or any similar loan or encumbrance; and
    2. The amount of all encumbrances of any nature on the property that are superior to any liens for deferral, plus the amount of property tax and interest previously deferred on the same property, does not exceed eighty percent (80%) of the current year’s market value for assessment purposes.
History.

I.C.,§ 63-713, as added by 2006, ch. 234, § 1, p. 694; am. 2008, ch. 214, § 1, p. 670; am. 2013, ch. 22, § 1, p. 42.

STATUTORY NOTES

Amendments.

The 2008 amendment, by ch. 214, subdivided subsection (1); added paragraph (1)(b); and rewrote subsection (2), which formerly read: “Qualified property’ means property for which: (a) A qualified claimant is eligible to receive benefits under the provisions of sections 63-701 through 63-710, Idaho Code, for the year for which the qualified claimant applies for a deferral of payment of property tax; and (b) Is owned only by the qualified claimant and his or her spouse and is not subject to a trust or life estate or other ownership held by a person who is not the qualified claimant or his or her spouse.”

The 2013 amendment, by ch. 22, added subsection (3).

Effective Dates.

Section 3 of S.L. 2006, ch. 234 declared an emergency retroactively to January 1, 2006 and approved March 30, 2006.

Section 5 of S.L. 2013, ch. 22 declared an emergency and made this section retroactive to January 1, 2013. Approved February 26, 2013.

§ 63-714. Application — Deferral of property tax.

  1. A qualified claimant, as defined in section 63-713(1)(a), Idaho Code, may elect, upon the application for property tax relief filed under section 63-703, Idaho Code, to defer payment of any property tax due after application of all benefits available under section 63-704, Idaho Code. A qualified claimant, as defined in section 63-713(1)(b), Idaho Code, may apply for property tax deferral under sections 63-712 through 63-721, Idaho Code. The state tax commission shall prescribe the form and manner by which the election must be made and may require that the application include information establishing the outstanding balance of any encumbrances, proof of insurance of an amount adequate for the amount of deferred tax and interest, and such other information as the state tax commission reasonably determines to be necessary. The state tax commission may require written or other proof of the encumbrances or casualty insurance in such form as the state tax commission may determine.
  2. No application for deferral of property taxes shall be granted if:
    1. The application fails to show sufficient equity in that property; or
    2. The application fails to show proof of insurance of an amount adequate for the amount of the deferred tax and interest.
History.

I.C.,§ 63-714, as added by 2006, ch. 234, § 1, p. 694; am. 2008, ch. 214, § 2, p. 670; am. 2013, ch. 22, § 2, p. 42.

STATUTORY NOTES

Amendments.

The 2008 amendment, by ch. 214, in the introductory paragraph in subsection (1), in the first sentence, inserted “as defined in section 63-713(1)(a), Idaho Code”, and added the second sentence.

The 2013 amendment, by ch. 22, in subsection (2) deleted “after consideration of encumbrances that are superior to any liens for deferral to secure the payment of all existing deferrals granted in the property” from the end of paragraph (a) and deleted paragraph (c), which formerly read: “The result would be to defer property taxes which, together with the amount of property tax and interest previously deferred on the same property, would exceed fifty percent (50%) of the qualified claimant’s proportional share of the market value of the qualified property.”

Effective Dates.

Section 3 of S.L. 2006, ch. 234 declared an emergency retroactively to January 1, 2006 and approved March 30, 2006. Section 5 of S.L. 2013, ch. 22 declared an emergency and made this section retroactive to January 1, 2013. Approved February 26, 2013.

§ 63-715. Procedures — Appeals.

Elections for deferral of payment of property tax shall be subject to the provisions of section 63-706, Idaho Code, and shall be included on the property tax reduction roll and processed and reviewed as provided in section 63-707, Idaho Code, for claims for property tax relief.

History.

I.C.,§ 63-715, as added by 2006, ch. 234, § 1, p. 694; am. 2011, ch. 85, § 4, p. 176.

STATUTORY NOTES

Amendments.

The 2011 amendment, by ch. 85, deleted “if approved by the county board of equalization” following “section 63-706, Idaho Code, and” near the middle of the section.

Effective Dates.

Section 3 of S.L. 2006, ch. 234 declared an emergency retroactively to January 1, 2006 and approved March 30, 2006.

§ 63-716. Deferral — Interest — Lien — Priority.

  1. Upon approval by the state tax commission, payment of any amount of property tax due for the year to which the election relates, after application of the property tax relief available under sections 63-701 through 63-710, Idaho Code, and subject to the limitation in section 63-717(2), Idaho Code, in regard to the qualified property subject to the election, shall be deferred until the deferral is terminated under section 63-718, Idaho Code.
  2. During the period of deferral, interest shall accrue on the amount deferred at the annual rate of six percent (6%) annually.
  3. The lien imposed by section 63-206, Idaho Code, shall continue to be a lien on the property in the amount of deferred taxes and interest thereon. The state tax commission shall file with the county recorder of the county in which the property is located a notice of lien for deferred property taxes. Notwithstanding the provisions of section 63-206, Idaho Code, the lien for deferred taxes and interest shall not be a first and prior lien, but shall take its priority from the date and time of filing of the notice of lien.
History.

I.C.,§ 63-716, as added by 2006, ch. 234, § 1, p. 694; am. 2011, ch. 85, § 5, p. 176.

STATUTORY NOTES

Amendments.

The 2011 amendment, by ch. 85, deleted “both the county board of equalization and” following “Upon approval by” at the beginning of subsection (1).

Effective Dates.

Section 3 of S.L. 2006, ch. 234 declared an emergency retroactively to January 1, 2006 and approved March 30, 2006.

§ 63-717. Reimbursement by state tax commission.

  1. By no later than December 20 of each year, the state tax commission shall pay to the county tax collector of each county one-half (1/2) of the amount due each county as reimbursement for property taxes deferred as provided in sections 63-712 through 63-721, Idaho Code, as shown on the property tax reduction roll required under section 63-707, Idaho Code, as modified by actions of the state tax commission relating to claims approved or disapproved by the state tax commission, and shall pay the second one-half (1/2) of such amount by not later than June 20 of the following year. The payments may be combined with payments made under section 63-709, Idaho Code.
  2. The total amount of reimbursement payable to all counties under this section shall not exceed five hundred thousand dollars ($500,000) in regard to property taxes for one (1) calendar year. In the event that the amount of taxes approved for deferral exceeds five hundred thousand dollars ($500,000), the amount of taxes deferred for each qualifying property shall be reduced proportionately and the balance of property tax not deferred shall be entered on the property tax notice required by section 63-902, Idaho Code, and shall be payable as required by chapter 9, title 63, Idaho Code.
History.

I.C.,§ 63-717, as added by 2006, ch. 234, § 1, p. 694.

STATUTORY NOTES

Effective Dates.

Section 3 of S.L. 2006, ch. 234 declared an emergency retroactively to January 1, 2006 and approved March 30, 2006.

§ 63-718. Events terminating deferral — Payment of deferred tax and interest.

  1. A deferral of property tax payments shall terminate on the earlier of:
    1. Voluntary payment of the full amount of deferred tax and interest to the state tax commission;
    2. The death of the qualified claimant or if there is more than one (1) qualified claimant, the death of the last surviving qualified claimant;
    3. A sale or other transfer of title to the property or any part of the property except a transfer of title to a surviving spouse of a deceased qualified claimant;
    4. The property no longer qualifies for the exemption provided in section 63-602G, Idaho Code, for residential improvements;
    5. A determination by the state tax commission under section 63-720, Idaho Code, that the deferral of property tax payments was erroneously granted to a person who is not a qualified claimant or in regard to property that is not qualified property.
  2. When a deferral of property tax is terminated any unpaid amount of deferred tax and interest shall be paid to the state tax commission no later than one hundred eighty (180) days after the termination.
  3. Any payments of deferred property tax received by the state tax commission under this section or under sections 63-719 and 63-720, Idaho Code, shall be distributed to the property tax deferral recovery fund which is hereby created. Amounts in the property tax deferral recovery fund are hereby continuously appropriated for the purposes of section 63-3638(5), Idaho Code.
History.

I.C.,§ 63-718, as added by 2006, ch. 234, § 1, p. 694; am. 2013, ch. 22, § 3, p. 42.

STATUTORY NOTES

Amendments.

The 2013 amendment, by ch. 22, in subsection (1), rewrote paragraph (b), which formerly read: “The death of the qualified claimant. In the case of more than one (1) qualified claimant, the death of the last surviving qualified claimant.”

Effective Dates.

Section 3 of S.L. 2006, ch. 234 declared an emergency retroactively to January 1, 2006 and approved March 30, 2006.

Section 5 of S.L. 2013, ch. 22 declared an emergency and made this section retroactive to January 1, 2013. Approved February 26, 2013.

§ 63-719. Tax deed for deficiency in repayment.

Any amount of deferred tax due under section 63-718, Idaho Code, which is not paid to the state tax commission on the due date, is a delinquency subject to the provisions of chapter 10, title 63, Idaho Code, except that references to county and county officials in that chapter shall be taken as references to the state tax commission.

History.

I.C.,§ 63-719, as added by 2006, ch. 234, § 1, p. 694.

STATUTORY NOTES

Effective Dates.

Section 3 of S.L. 2006, ch. 234 declared an emergency retroactively to January 1, 2006 and approved March 30, 2006.

§ 63-720. Recovery of erroneous and other improper deferrals.

  1. In addition to the provisions of section 63-719, Idaho Code, the state tax commission may recover deferrals of tax payments made under sections 63-712 through 63-721, Idaho Code, from any person who elected the deferral under section 63-714, Idaho Code, if the commission determines that:
    1. A deferral was granted to a person who is not a qualified claimant or in regard to property that is not qualified property; or
    2. The owner of the property subject to the deferral does not possess sufficient equity in that property.
  2. The deficiency determination, collection, and enforcement procedures provided by the Idaho income tax act, sections 63-3039, 63-3042, 63-3043 through 63-3064, Idaho Code, shall apply and be available to the commission for enforcement and collection under sections 63-712 through 63-721, Idaho Code, and such sections shall, for this purpose, be considered part of sections 63-712 through 63-721, Idaho Code. Wherever liens or any other proceedings are defined as income tax liens or proceedings, they shall, when applied in enforcement or collection under sections 63-712 through 63-721, Idaho Code, be described as tax deferral liens and proceedings. In connection with such sections, a deficiency shall consist of any amount subject to recovery under this section together with any interest and penalty due thereon.
History.

I.C.,§ 63-720, as added by 2006, ch. 234, § 1, p. 694; am. 2013, ch. 22, § 4, p. 42.

STATUTORY NOTES

Amendments.

The 2013 amendment, by ch. 22, in subsection (1), rewrote paragraph (b), which formerly read: “The owner of the property subject to the deferral possesses insufficient equity in that property, after consideration of encumbrances that are superior to any liens for deferral, to secure the payment of all existing deferrals granted in the property.”

Effective Dates.

Section 3 of S.L. 2006, ch. 234 declared an emergency retroactively to January 1, 2006 and approved March 30, 2006.

Section 5 of S.L. 2013, ch. 22 declared an emergency and made this section retroactive to January 1, 2013. Approved February 26, 2013.

§ 63-721. Knowingly filing a false claim a misdemeanor.

Every person who applies for deferral of taxes under section 63-714, Idaho Code, knowing that the person for whom the application is made is not a qualified claimant or knowing that the property is not qualified property, is guilty of a misdemeanor and on conviction thereof shall be punished as provided for misdemeanors in section 18-303, Idaho Code.

History.

I.C.,§ 63-721, as added by 2006, ch. 234, § 1, p. 694.

STATUTORY NOTES

Cross References.

Penalty for misdemeanor when no other punishment prescribed,§ 18-113.

Effective Dates.

Section 3 of S.L. 2006, ch. 234 declared an emergency retroactively to January 1, 2006 and approved March 30, 2006.

Chapter 8 LEVY AND APPORTIONMENT OF TAXES

Sec.

§ 63-801. Annual state property tax levy.

  1. The county commissioners in each county in this state must meet on the second Monday of September in each year to ascertain the tax rate necessary to be levied on each dollar of the valuation of all the taxable property in the county for such year in order to raise the amount of state taxes apportioned to such county by the state tax commission. The total of all levies must be within the limits prescribed by the laws of this state.
  2. In any period during which a sales tax is in force in this state, there shall be no levy of the general state property tax permitted by section 9, article VII, of the constitution of the state of Idaho.
History.

I.C.,§ 63-801, as added by 1996, ch. 98, § 9, p. 308.

STATUTORY NOTES

Cross References.

Counties authorized to levy and collect taxes,§ 31-604.

County commissioners authorized to equalize assessment,§ 31-812.

County commissioners authorized to levy taxes,§ 31-811.

CASE NOTES

Decisions Under Prior Law
Appeal.

Under former statute an appeal could be taken from order of the board making a tax levy. Fenton v. Board of Comm’rs, 20 Idaho 392, 119 P. 41 (1911).

County Levy Authorized.
County’s Liability for Uncollected State Tax.

It is within power of legislature to pass an act authorizing board of commissioners of any county indebted to the state on account of state taxes due from such county to state to make a sufficient levy not exceeding a maximum rate therein specified for purpose of paying and liquidating such indebtedness. Gooding v. Profitt, 11 Idaho 380, 83 P. 230 (1905); Gooding v. Cowen, 11 Idaho 392, 83 P. 234 (1905); Gooding v. Anderson, 11 Idaho 392, 83 P. 234 (1905). County’s Liability for Uncollected State Tax.

A county was not liable to the state for uncollected state tax levied upon lands which, in default of payment, were sold at delinquent tax sale and bid in by the county, until such lands were redeemed or otherwise disposed of by the county. State v. Ada County, 7 Idaho 261, 62 P. 457 (1900).

Determination of Assessment Roll.

Where county board of equalization reduced assessor’s assessment of cattle in county by 10% on July 13, but state tax commission on second Monday in August reinstated prior assessment of assessor, and county officers by order of board of county commissioners on September 14 refused to accept assessment ordered by state tax commission, the latter was entitled to writ of mandamus compelling county officers and county board of equalization to obey order of state tax commission though petition was not filed until December 3, since final determination of true assessment roll rests with state tax commission. State Tax Comm’n v. Johnson, 75 Idaho 105, 269 P.2d 1080 (1954).

“Levy” Construed.

Word “levy” is sometimes used to denote mere ministerial act of computing and extending a tax according to an assessment and at other times it refers to legislative function of determining amount of money to be raised by taxation. Northern P.R.R. v. Chapman, 29 Idaho 294, 158 P. 560 (1916).

Lien of Tax.

Taxes on migratory livestock, when properly extended on real property assessment roll, become lien on real property of owner. Scottish Am. Mtg. Co. v. Minidoka County, 47 Idaho 33, 272 P. 498 (1928).

Lien of county and city taxes is same as that of state taxes and they are of same priority. Bosworth v. Anderson, 47 Idaho 697, 280 P. 227 (1929).

Means to Pay Indebtedness.

There being no constitutional prohibition against the legislature’s providing a means whereby warrant indebtedness of counties may be extinguished by the issuance and sale of funding bonds, the legislative act governs. Jones v. Power County, 27 Idaho 656, 150 P. 35 (1915).

Warrant Redemption Fund.

Warrant redemption fund of the county may not be used to pay necessary and ordinary expenses of county government. Garrity v. Board of County Comm’rs, 54 Idaho 342, 34 P.2d 949 (1934).

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-802. Limitation on budget requests — Limitation on tax charges — Exceptions.

  1. Except as provided in subsections (3) and (4) of this section, no taxing district shall certify a budget request for an amount of property tax revenues to finance an annual budget that exceeds the greater of paragraphs (a) through (k) of this subsection, inclusive:
    1. The dollar amount of property taxes certified for its annual budget for any one (1) of the three (3) tax years preceding the current tax year, whichever is greater, for the past tax year, which amount may be increased by a growth factor of not to exceed three percent (3%) plus the amount of revenue calculated as described in this subsection. Multiply the levy of the previous year, not including any levy described in subsection (4) of this section, or any school district levy reduction resulting from a distribution of state funds pursuant to section 63-3638(11) or (13), Idaho Code, by the value shown on the new construction roll compiled pursuant to section 63-301A, Idaho Code; and by the value of annexation during the previous calendar year, as certified by the state tax commission for market values of operating property of public utilities and by the county assessor;
    2. The dollar amount of property taxes certified for its annual budget during the last year in which a levy was made;
    3. The dollar amount of the actual budget request, if the taxing district is newly created, except as may be provided in paragraph (i) of this subsection;
    4. In the case of school districts, the restriction imposed in section 33-802, Idaho Code;
    5. In the case of a nonschool district for which less than the maximum allowable increase in the dollar amount of property taxes is certified for annual budget purposes in any one (1) year, such a district may, in any following year, recover the forgone increase by certifying, in addition to any increase otherwise allowed, an amount not to exceed one hundred percent (100%) of the increase originally forgone. Provided however, that prior to budgeting any forgone increase, the district must provide notice of its intent to do so, hold a public hearing, which may be in conjunction with its annual budget hearing, and certify by resolution the amount of forgone increase to be budgeted and the specific purpose for which the forgone increase is being budgeted. Upon adoption of the resolution, the clerk of the district shall file a copy of the resolution with the county clerk and the state tax commission. Said additional amount shall be included in future calculations for increases as allowed;
    6. If a taxing district elects to budget less than the maximum allowable increase in the dollar amount of property taxes, the taxing district may reserve the right to recover all or any portion of that year’s forgone increase in a subsequent year by adoption of a resolution specifying the dollar amount of property taxes being reserved. Otherwise, that year’s forgone increase may not be recovered under paragraph (e) of this subsection. The district must provide notice of its intent to do so and hold a public hearing, which may be in conjunction with its annual budget hearing if applicable. The resolution to reserve the right to recover the forgone increase for that year shall be adopted at the annual budget hearing of the taxing district if the district has a budget hearing requirement;
    7. In the case of cities, if the immediately preceding year’s levy subject to the limitation provided by this section is less than 0.004, the city may increase its budget by an amount not to exceed the difference between 0.004 and actual prior year’s levy multiplied by the prior year’s market value for assessment purposes. The additional amount must be approved by sixty percent (60%) of the voters voting on the question at an election called for that purpose and held on the date in May or November provided by law and may be included in the annual budget of the city for purposes of this section;
    8. A taxing district may submit to the electors within the district the question of whether the budget from property tax revenues may be increased beyond the amount authorized in this section, but not beyond the levy authorized by statute. The additional amount must be approved by sixty-six and two-thirds percent (66 2/3%) or more of the voters voting on the question at an election called for that purpose and held on the May or November dates provided by section 34-106, Idaho Code. If approved by the required minimum sixty-six and two-thirds percent (66 2/3%) of the voters voting at the election, the new budget amount shall be the base budget for the purposes of this section;
    9. When a nonschool district consolidates with another nonschool district or dissolves and a new district performing similar governmental functions as the dissolved district forms with the same boundaries within three (3) years, the maximum amount of a budget of the district from property tax revenues shall not be greater than the sum of the amounts that would have been authorized by this section for the district itself or for the districts that were consolidated or dissolved and incorporated into a new district;
    10. In the instance or case of cooperative service agencies, the restrictions imposed in sections 33-315 through 33-318, Idaho Code;
    11. The amount of money received in the twelve (12) months immediately preceding June 30 of the current tax year as a result of distributions of the tax provided in section 63-3502B(2), Idaho Code.
  2. In the case of fire districts, during the year immediately following the election of a public utility or public utilities to consent to be provided fire protection pursuant to section 31-1425, Idaho Code, the maximum amount of property tax revenues permitted in subsection (1) of this section may be increased by an amount equal to the current year’s taxable value of the consenting public utility or public utilities multiplied by that portion of the prior year’s levy subject to the limitation provided by subsection (1) of this section.
  3. No board of county commissioners shall set a levy, nor shall the state tax commission approve a levy for annual budget purposes, which exceeds the limitation imposed in subsection (1) of this section unless authority to exceed such limitation has been approved by a majority of the taxing district’s electors voting on the question at an election called for that purpose and held pursuant to section 34-106, Idaho Code, provided however, that such voter approval shall be for a period of not to exceed two (2) years.
  4. The amount of property tax revenues to finance an annual budget does not include revenues from nonproperty tax sources and does not include revenue from levies for the payment of judicially confirmed obligations pursuant to sections 63-1315 and 63-1316, Idaho Code, and revenue from levies that are voter-approved for bonds, override levies or supplemental levies, plant facilities reserve fund levies, school emergency fund levies or for levies applicable to newly annexed property or for levies applicable to new construction as evidenced by the value of property subject to the occupancy tax pursuant to section 63-317, Idaho Code, for the preceding tax year. The amount of property tax revenues to finance an annual budget does not include any property taxes that were collected and refunded on property that is exempt from taxation, pursuant to section 63-1305C, Idaho Code. (5) The amount of property tax revenues to finance an annual budget shall include moneys received as recovery of property tax for a revoked provisional property tax exemption under section 63-1305C, Idaho Code.
History.

I.C.,§ 63-802, as added by 2012, ch. 339, § 12, p. 934; am. 2015, ch. 10, § 2, p. 12; am. 2016, ch. 69, § 2, p. 241; am. 2016, ch. 189, § 4, p. 513; am. 2017, ch. 148, § 1, p. 366; am. 2018, ch. 194, § 4, p. 430; am. 2019, ch. 205, § 5, p. 625; am. 2020, ch. 41, § 1, p. 92.

STATUTORY NOTES

Prior Laws.

Former§ 63-802, which comprised I.C.,§ 63-802, as added by 1996, ch. 98, § 9, p. 308; am. 1997, ch. 97, § 1, p. 227; am. 1997, ch. 117, § 32, p. 298; am. 1998, ch. 407, § 1, p. 1263; am. 1999, ch. 260, § 1, p. 665; am. 1999, ch. 381, § 1, p. 1045; am. 2000, ch. 444, § 1, p. 1407; am. 2005, ch. 178, § 1, p. 549; am. 2006, ch. 318, § 39, p. 990; am. 2007, ch. 144, § 2, p. 419; am. 2008, ch. 400, § 8, p. 1102; am. 2009, ch. 42, § 2, p. 119; am. 2009, ch. 341, § 142, p. 993; am. 2010, ch. 283, § 3, p. 760; am. 2012, ch. 339, § 4, p. 934; am. 2015, ch. 10, § 1, p. 12; am. 2016, ch. 69, § 1, p. 241; am. 2016, ch. 189, § 3, p. 513, was repealed by S.L. 2012, ch. 339, § 9, effective July 1, 2017.

Amendments.

The 2015 amendment, by ch. 10, inserted “or (13)” following “section 63-3638(11)” in the second sentence of paragraph (1)(a).

This section was amended by two 2016 acts which appear to be compatible and have been compiled together.

The 2016 amendment, by ch. 69, § 2, in subsection (e), inserted the present second and third sentences

The 2016 amendment, by ch. 189, § 4, in subsection (1), substituted “subsections (3) and (4)” for “subsection (3)” in the introductory paragraph and added paragraph (j).

The 2017 amendment, by ch. 148, inserted paragraph (1)(f) and redesignated the subsequent paragraphs accordingly.

The 2018 amendment, by ch. 194, added the last sentence in subsection (4) and added subsection (5).

The 2019 amendment, by ch. 205, inserted “for the payment of judicially confirmed obligations pursuant to sections 63-1315 and 63-1316, Idaho Code, and revenue from levies” near the beginning of the first sentence in subsection (4).

The 2020 amendment, by ch. 41, in paragraph (1)(f), substituted “reserve” for “disclaim” near the middle of the first sentence and near the beginning of the present fourth sentence, substituted “increase in a subsequent year by adoption of a resolution specifying the dollar amount of property taxes being reserved” for “increase by adoption of a resolution declaring the same” at the end of the first sentence, added the present second sentence, and deleted “provided however, that the resolution shall not apply to forgone increases from prior budget years” from the end of the last sentence.

Compiler’s Notes.

Section 16 of S.L. 2012, ch. 339 provided: “Severability. The provisions of this act are hereby declared to be severable and if any provision of this act or the application of such provision to any person or circumstance is declared invalid for any reason, such declaration shall not affect the validity of the remaining portions of this act.”

Section 8 of S.L. 2019, ch. 205 provided: “Severability. The provisions of this act are hereby declared to be severable and if any provision of this act or the application of such provision to any person or circumstance is declared invalid for any reason, such declaration shall not affect the validity of the remaining portions of this act.”

Effective Dates.

Section 17 of S.L. 2012, ch. 339 makes the enactment of this section effective July 1, 2017.

Section 3 of S.L. 2015, ch. 10 provided that the amendment of this section by section 2 should take effect on and after July 1, 2017.

Section 3 of S.L. 2016, ch. 69 provided that the amendment of this section should take effect on and after July 1, 2017.

Section 17 of S.L. 2016, ch. 189 provided that the amendment of this section should take effect on and after July 1, 2017.

Section 5 of S.L. 2018, ch. 194 declared an emergency and made this section retroactive to January 1, 2016. Approved March 20, 2018.

Section 9 of S.L. 2019, ch. 205 declared an emergency and made the amendment of this section retroactive to January 1, 2019. Approved March 25, 2019.

§ 63-802A. Notice of budget hearing.

  1. Not later than April 30 of each year, each taxing district shall set and notify the county clerk of the date and location set for the budget hearing of the district. If no budget hearing is required by law, the county clerk shall be so notified.
  2. Beginning in 2003, a taxing district that fails to comply with subsection (1) of this section shall be prohibited from including in its budget any budget increase otherwise permitted by either subsection (1)(a) or (1)(e) of section 63-802, Idaho Code.
  3. If a taxing district wishes to change the time and location of such budget hearing as stated on the assessment notice, it shall publish such change of time and location in advance of such hearing as provided by law.
History.

I.C.,§ 63-802A, as added by 1999, ch. 36, § 1, p. 73; am. 2000, ch. 265, § 1, p. 742; am. 2006 (1st E.S.), ch. 1, § 16.

STATUTORY NOTES

Amendments.

The 2006 amendment, by ch. 1 (1st E.S.), effective January 1, 2006, substituted “taxing district” for “nonschool district” in Subsection (2), deleted former Subsection (3), which read: “Beginning in 2003, a school district that fails to comply with subsection (1) of this section shall be prohibited, in the year of such failure, from increasing the portion of its property tax budget raised under section 33-802 2., Idaho Code, over the amount of the immediately preceding year”, and redesignated former subsection (4) as present subsection (3).

Compiler’s Notes.

Section 1 of S.L. 2006 (1st E.S.), ch. 1, provides: “This act may be known and cited as the ‘Property Tax Relief Act of 2006’.”

Effective Dates.

Section 2 of S.L. 1999, ch. 36 declared an emergency retroactive to January 1, 1999 and approved March 3, 1999.

§ 63-802B. [Reserved.]

  1. In the case of an election to create a new taxing district, the county clerk, of the county or counties where the proposed taxing district is proposed to be located, shall mail a notice of the election to all residences within the proposed taxing district or to residents in the proposed taxing district who are eligible to vote in this election. The notice shall be mailed not less than fourteen (14) calendar days prior to the day of the election and shall state with specificity: the purpose of the election, the date of the election, which shall be on a date authorized in section 34-106, Idaho Code, the polling places, the time the polls will be open, the aggregate amount of taxes that will be raised in the proposed taxing district if the election is successful and the increase that will occur per one hundred thousand dollars ($100,000) of taxable value of property, above any exemptions, of residential property, commercial property, industrial property, land actively devoted to agriculture and operating property.
  2. The county clerk shall, within ten (10) days after the filing of the petition to create the new taxing district, estimate the cost of advertising and holding the election provided in this section and notify in writing the person or any of the persons filing the petition as to the amount of the estimate. The person or persons shall within twenty (20) days after receipt of the written notice deposit the estimated amount with the county clerk in cash, or the petition shall be deemed withdrawn. If the deposit is made and the proposed new taxing district is formed, the person or persons so depositing the sum shall be reimbursed from the first moneys collected by the county from the taxes authorized to be levied by this section.
  3. Compliance with this section shall satisfy any notice or publication requirement as may be provided by law.
History.

I.C.,§ 63-802C, as added by 2007, ch. 364, § 1, p. 1097; am. 2009, ch. 341, § 143, p. 993.

STATUTORY NOTES

Amendments.
Compiler’s Notes.

The 2009 amendment, by ch. 341, added the subsection (1) designation, and therein, in the second sentence, inserted “which shall be on a date authorized in section 34-106, Idaho Code”; added the subsection (2) designation, and rewrote the subsection, which formerly read: “The county clerk may bill the proposed taxing district for reimbursement of costs of administering this section”; and added the subsection (3) designation. Compiler’s Notes.

S.L. 2007, chapter 364, became effective July 1, 2007, without the signature of the governor.

Effective Dates.

Section 161 of S.L. 2009, ch. 341 provided that the act should take effect on and after January 1, 2011.

§ 63-803. Certification of budgets in dollars.

  1. Whenever any taxing district is required by law to certify to any county treasurer, county auditor, county assessor, county commissioners or to any other county officer, any property tax levy, upon property located within said district, such certification shall, notwithstanding any other provision of the law applicable to any such district, be made at the time and in the manner hereinafter provided.
  2. The county auditor shall inform each of the taxing districts within his county of the taxable value of that district as soon as such value is known to the auditor, whether the value comes from the appraisal and assessment of real and personal property, or from allocation of the taxable value of operating property, or from other sources.
  3. Using the taxable value of the district, the council, trustees, board or other governing body of any taxing district shall certify the total amount required from a property tax upon property within the district to raise the amount of money fixed by their budget as previously prepared or approved. The amount of money so determined shall be certified in dollars to the appropriate county commissioners. Any taxing unit, except regional airport authorities, located in more than one (1) county shall divide its dollar budget for certification to the separate counties by multiplying the amount of such budget by a fraction, the numerator of which shall be the total taxable value of all property in such taxing unit within the county to which such certification is to be made, and the denominator of which shall be the total taxable value of property in such taxing unit in all such counties. Budget certification to the participating counties of regional airport authorities shall be made in the manner prescribed in section 21-807(10), Idaho Code. Taxable value shall be certified by the county auditor of each affected county to such taxing unit and such certification shall be used in this formula. Except as provided in section 33-805, Idaho Code, relating to school emergency fund levies, the certification to the county commissioners required in this section shall be made not later than the Thursday prior to the second Monday in September, unless, upon application therefor, the county commissioners grant an extension of not more than seven (7) working days. After receipt of this certification, the county commissioners shall make a tax levy as a percent of taxable value of all property in the taxing district which, when applied to the tax rolls, will meet the budget requirements certified by such taxing districts.
History.

(4) Except as provided in section 50-2908(1), Idaho Code, for the purpose of this section, “taxable value” shall mean the portion of the equalized assessed value, less any exemptions, and the value that exceeds the value of the base assessment roll for the portion of any taxing district within a revenue allocation area of an urban renewal district, located within each taxing district which certifies a budget to be raised from a property tax levy. When the county auditor is notified of revenues sufficient to cover expenses as provided in section 50-2903(5), Idaho Code, taxable value shall also include the value that exceeds the value of the base assessment roll for the portion of any taxing district within a revenue allocation area. For each taxing district, taxable value shall include the value from the property and operating property rolls for the current year and subsequent and missed property rolls for the prior year or the best estimate of the subsequent and missed property rolls for the current year. History.

I.C.,§ 63-803, as added by 2012, ch. 339, § 13, p. 934; am. 2013, ch. 243, § 3, p. 581; am. 2014, ch. 37, § 2, p. 63; am. 2014, ch. 357, § 6, p. 886; am. 2019, ch. 205, § 6, p. 625.

STATUTORY NOTES

Amendments.

The 2013 amendment, by ch. 243, § 3, updated a reference in subsection (4) in light of the 2013 amendment of§ 63-602KK.

The 2014 amendment, by ch. 37, § 2, deleted “except the exemption for personal property in section 63-602KK(2), Idaho Code” following “less any exemptions” in the first sentence of subsection (4).

The 2014 amendment, by ch. 357, § 6, deleted “except the exemption for personal property in section 63-602KK(2), Idaho Code,” following “less any exemptions” near the middle of the first sentence in subsection (4).

The 2019 amendment, by ch. 205, substituted “section 50-2908(1), Idaho Code” for “subsection (1)(a) through (e) of section 50-2908, Idaho Code” near the beginning of subsection (4).

Compiler’s Notes.

Although the introductory language of S.L. 2014, ch. 357, § 6 said that it was amending section 63-803, Idaho Code, as added by S.L. 2012, ch. 339, § 13, the actual text of the session law did not reflect the contents of S.L. 2012, ch. 339, § 13. The error was inconsequential as the 2014 amendment did not address the provisions unique to S.L. 2012, ch. 339, § 13, and the purported change was also made by S.L. 2014, ch. 37, § 3.

S.L. 2014, chapter 357 became law without the signature of the governor.

Section 8 of S.L. 2019, ch. 205 provided: “Severability. The provisions of this act are hereby declared to be severable and if any provision of this act or the application of such provision to any person or circumstance is declared invalid for any reason, such declaration shall not affect the validity of the remaining portions of this act.”

Effective Dates.

Section 17 of S.L. 2012, ch. 339, as amended by S.L. 2013, ch. 243, § 3, made the enactment of this section effective July 1, 2017.

Section 3 of S.L. 2014, ch. 37, provided that the amendment of this section should take effective on and after January 1, 2017.

Section 8 of S.L. 2014, ch. 357 provided that the amendment of this section by section 6 of that act should take effect on and after July 1, 2017.

Section 9 of S.L. 2019, ch. 205 declared an emergency and made the amendment of this section retroactive to January 1, 2019. Approved March 25, 2019.

§ 63-804. Filing copy of budget.

The council, trustees, board or other governing body of any taxing district shall at the time of certifying the total amount required from a property tax upon property within the district to raise the amount of money fixed by their budget as previously prepared or approved and as provided for in section 63-803, Idaho Code, file with the appropriate county commissioners a certified copy of their budget as previously prepared, approved and adopted.

History.

I.C.,§ 63-804, as added by 1996, ch. 98, § 9, p. 308.

§ 63-805. Annual levies.

  1. The county commissioners of each county in this state may levy annually upon all taxable property of said county, a property tax for general county purposes, including the provision of public defender services, to be collected and paid into the county treasury and apportioned to the county current expense fund which levy shall not exceed twenty-six hundredths percent (.26%) of market value for assessment purposes of such property, or a levy sufficient to raise two hundred fifty thousand dollars ($250,000), whichever is greater. If a county establishes the justice fund, as provided in section 31-4602, Idaho Code, the maximum current expense levy shall be reduced to twenty hundredths percent (.20%) of market value for assessment purposes, or a levy sufficient to raise two hundred fifty thousand dollars ($250,000), whichever is greater.
  2. The county commissioners of each county in this state may levy upon all taxable property of said county, a property tax for the purposes set forth in the statutes authorizing a county justice fund, to be collected and paid into the county treasury and apportioned to the county justice fund, if one has been established. Said levy shall not exceed twenty hundredths percent (.20%) of market value for assessment purposes of such property, or a levy sufficient to raise two hundred fifty thousand dollars ($250,000), whichever is greater.
  3. Annually, before the second Monday in September, the board of trustees of any school district within the county having determined the number, if any, of pupils in average daily attendance above the number included in the last annual report thereof, and the amount of money required to provide the educational support programs and transportation support programs for such additional pupils in average daily attendance, as defined in chapter 10, title 33, Idaho Code, the county commissioners shall determine the total of such new requirements within the county and upon the taxable property situate within the district requesting the same, and the county commissioners shall levy a tax sufficient to provide such amount, provided in no case shall the levy be more than six-hundredths percent (.06%) of the taxable value of the property to be collected and paid to the requesting district.
    1. The county commissioners of each county in this state may levy annually upon all taxable property of its county, a property tax for the acquisition, maintenance and operation of public parks or public recreational facilities, to be collected and paid into the county treasury and apportioned to a fund to be designated as the “parks and recreation fund,” which is hereby created, and such county commissioners may appropriate otherwise unappropriated funds for such purposes. No levy made under this subsection shall exceed one-hundredth percent (.01%) of the market value for assessment purposes on all taxable property within the district. (4)(a) The county commissioners of each county in this state may levy annually upon all taxable property of its county, a property tax for the acquisition, maintenance and operation of public parks or public recreational facilities, to be collected and paid into the county treasury and apportioned to a fund to be designated as the “parks and recreation fund,” which is hereby created, and such county commissioners may appropriate otherwise unappropriated funds for such purposes. No levy made under this subsection shall exceed one-hundredth percent (.01%) of the market value for assessment purposes on all taxable property within the district.
    2. Any funds unexpended from the “parks and recreation fund,” or any funds unexpended from the current year’s certified parks and recreation budget may be retained in, or deposited to, the “parks and recreation fund” for the purpose of future land acquisition, park expansion or improvement, or the acquisition of operating equipment. The maximum accumulation of funds allowable shall not exceed twice the amount of money provided by the levy authorized in paragraph (a) of this subsection. (5) Upon the same property and for the same year the county commissioners must also levy such other property taxes as may be necessary for the payment of the interest on county bonds or to provide a sinking fund for the redemption of county bonds or such other authorized taxes as may be necessary for any other or special purposes, to be collected and paid into the county treasury and apportioned as provided by the laws of this state.

The county commissioners shall have the right to make a “general reserve appropriation,” said appropriation not to exceed five percent (5%) of the county justice fund budget as finally adopted. The total levy, however, for the county justice fund, including the “general reserve appropriation,” shall be within the limitations imposed by chapter 8, title 63, Idaho Code, or by any statutes of the state of Idaho in force and effect.

History.

I.C.,§ 63-805, as added by 1996, ch. 98, § 9, p. 308; am. 2016, ch. 214, § 3, p. 600.

STATUTORY NOTES

Amendments.

The 2016 amendment, by ch. 214, inserted “including the provision of public defender services” in the first sentence of subsection (1).

CASE NOTES

Decisions Under Prior Law
Application.

The county school emergency fund is to be raised by a tax levied upon all taxable property of the county or by a tax levied upon the taxable property of the school district or districts which request the levy to be made. Board of Trustees v. Board of Comm’rs, 83 Idaho 172, 359 P.2d 635 (1961).

Conflict of Statutes.

In case of conflict between statutes relating to annual county tax levy for warrant redemption fund and subsequent statutes authorizing counties to issue bonds funding their warrant indebtedness existing as of second Monday in January, 1933, subsequent statutes control. Lloyd Corp. v. Bannock County, 53 Idaho 478, 25 P.2d 217 (1933).

Constitutionality.

Statutes authorizing counties to issue bonds funding their warrant indebtedness existing as of second Monday in January, 1933, did not violate constitutional provision requiring legislature to provide system of county finance. Lloyd Corp. v. Bannock County, 53 Idaho 478, 25 P.2d 217 (1933).

County School Emergency Fund.

The county school emergency fund is to be raised by a tax levied upon all taxable property of the county, or by a tax levied upon the taxable property of the school district or districts which request the levy to be made. Board of Trustees v. Board of Comm’rs, 83 Idaho 172, 359 P.2d 635 (1961).

Funding Bonds.

Bonds funding county warrant indebtedness existing as of second Monday in January, 1933, were “general obligations” of county, for payment of which unlimited tax levy could be made. Lloyd Corp. v. Bannock County, 53 Idaho 478, 25 P.2d 217 (1933).

Levy for School Purposes.

Unanimous vote of electors of common school district at annual meeting fixing total budget for maintenance of school during the ensuing year was a substantial compliance with the statute requiring a vote upon levy of special tax for schools before certification by trustees to county commissioners. Copenhaver v. Common Sch. Dist. No. 17, 56 Idaho 182, 52 P.2d 129 (1935).

Levy to Redeem Warrants Not Double Taxation.

Levy to redeem warrants, part of which were issued between second Monday in January, 1931, and second Monday in April, 1931, was not invalid as involving duplicate taxation as to amounts required to pay warrants issued between such dates, because general budget levy covered warrants issued subsequent to second Monday in January, when levies were applied to all property alike. Oregon S.L.R.R. v. Washington County, 54 Idaho 171, 30 P.2d 198 (1934).

Purpose of Section.

In the county school emergency fund statutes the levy provided is authorized in order to provide funds with which to defray unanticipated expense of educational and transportation programs brought about by reason of increase in pupil attendance. It is in the nature of an emergency measure to procure funds with which to provide, among other things, teachers, classroom facilities and transportation for new classroom units, the number of which could not be determined until pupil enrollment took place at the commencement of the next term. Board of Trustees v. Board of Comm’rs, 83 Idaho 172, 359 P.2d 635 (1961).

Taxes.
— Levy.

The levy for the county school emergency fund is a county tax levied equally and uniformly upon all the taxable property in the county. The taxpayers are not assessed as members of a school district but as citizens of the county. The proceeds of the tax levy are apportioned in varying amounts and because some districts receive less than the amount of levy therein does not constitute lack of uniformity where the tax is apportioned reasonably and according to the need in an effort to equalize education or standards throughout the county. Board of Trustees v. Board of Comm’rs, 83 Idaho 172, 359 P.2d 635 (1961).

The statute authorizing the levying of a tax sufficient to provide a county equalization program, not in excess of thirty-five per cent of the state minimum educational program, does not require that the performance of the preliminary steps by the county commissioners and county superintendent of schools be made a matter of record, and if the underlying facts justifying such steps exist, their existence is controlling. Northern Pac. Ry. v. Shoshone County, 63 Idaho 36, 116 P.2d 221 (1941).

— Property Subject to.

The provisions of the statute authorizing the levy for county school emergency fund is explicit in directing that the levy be made upon all taxable property of the county and since the requested levy must be county wide, it does not lack uniformity of taxation within the defendant county. Board of Trustees v. Board of Comm’rs, 83 Idaho 172, 359 P.2d 635 (1961).

Taxes Collected Within Highway District.

Retention of money collected from property within highway district under warrant redemption levy and used by county in redemption of outstanding unpaid county road and bridge warrants does not amount to double taxation. Golden Gate Hwy. Dist. v. Canyon County, 45 Idaho 406, 262 P. 1048 (1927).

Tax Levied for Roads.

The boards of county commissioners are required to levy a general property tax annually on the assessed valuation of all the taxable property in their respective counties for the maintenance and improvement of the established public roads and highways; the tax so levied is to be collected and paid into the county treasury and apportioned as provided by law. Potlatch Lumber Co. v. Board of County Comm’rs, 29 Idaho 399, 160 P. 256 (1916).

§ 63-806. Warrant redemption fund.

  1. Upon the same property and for the same year the county commissioners shall levy a property tax for the redemption of outstanding county warrants issued prior to the first day of October in said year, to be collected and paid into the county treasury and apportioned to the county warrant redemption fund, which levy shall be sufficient for the redemption of all the outstanding county warrants, unless the amount of outstanding warrants exceeds the amount that would be raised by a levy of two-tenths of one percent (.2%) of the market value for assessment purposes on all taxable property in the county, in which case the county commissioners shall annually levy a property tax of two-tenths of one percent (.2%) of the market value for assessment purposes on all taxable property in the county for the redemption of such outstanding warrants.
  2. All property taxes levied in any year for the county current expense fund, county road fund and county bridge fund and collected on or after the first day of January in the succeeding year and any property tax levied for any purpose and which is no longer needed for such purpose when collected must be paid into the county treasury and apportioned to the county warrant redemption fund, except as otherwise provided by law. All money in the county treasury on the first day of October to the credit of the county current expense fund, county road fund, county bridge fund or any other fund which is no longer needed must be transferred to the county warrant redemption fund upon the books of the county auditor and county treasurer by resolution of the county commissioners entered upon the records of the proceedings.
History.

I.C.,§ 63-806, as added by 1996, ch. 98, § 9, p. 308.

CASE NOTES

Transfer of Funds.

Though§ 31-1508 generally prohibits the transfer of any money from one county fund to another, and§ 40-709(7) restricts the use of certain road funds, there are exceptions thereto: the requirement of subsection (2) that a county transfer to the warrant redemption fund all money in the county treasury no longer needed and, in particular, all money to the credit of the county road fund, appears to fall within these exceptions. In re Boise County, 465 B.R. 156 (Bankr. D. Idaho 2011).

Decisions Under Prior Law
Bonding.

By this section, power of board of county commissioners to issue bonds for payment or redemption of outstanding county warrants is abrogated. This applies to warrants which were issued before said law went into effect as well as to warrants which were issued after it went into effect. Peavy v. McCombs, 26 Idaho 143, 140 P. 965 (1914).

Cash Basis.

By this provision, legislature declared its purpose to place counties of the state upon a cash basis. Peavy v. McCombs, 26 Idaho 143, 140 P. 965 (1914).

Conflict of Statutes.

In case of conflict between statutes relating to annual county tax levy for warrant redemption fund and subsequent statutes authorizing counties to issue bonds funding their warrant indebtedness existing as of second Monday in January, 1933, subsequent statutes control. Lloyd Corp. v. Bannock County, 53 Idaho 478, 25 P.2d 217 (1933).

Constitutionality.

This section was passed in obedience to the mandate of Idaho Const., Art. VII, § 15. Peavy v. McCombs, 26 Idaho 143, 140 P. 965 (1914).

Construction.

This section contemplates that only money not needed for purposes for which it was collected is to be transferred to warrant redemption fund by resolution of board of county commissioners. Laclede Hwy. Dist. v. Bonner County, 33 Idaho 476, 196 P. 196 (1921).

Duty of ascertaining what money in treasury at end of fiscal year, or thereafter collected out of levy of preceding year, is needed is committed to discretion of board of county commissioners. Laclede Hwy. Dist. v. Bonner County, 33 Idaho 476, 196 P. 196 (1921).

Double Taxation.

The retention of money collected from the property within the highway district under the warrant redemption levy and used by the county in the redemption of outstanding unpaid county road and bridge warrants did not amount to double taxation, in that it was not a duplicate taxation of property for the same purpose for the same year. Golden Gate Hwy. Dist. v. Canyon County, 45 Idaho 406, 262 P. 1048 (1927).

Power of County Commissioners.
Redemption of Warrants.

Board of county commissioners has no power to levy tax for purpose of establishing warrant redemption fund, unless there are unpaid county warrants issued prior to second Monday of April in year in which levy is made. Oregon S.L.R.R. v. Gooding County, 33 Idaho 452, 196 P. 196 (1921). Redemption of Warrants.

Levy to redeem warrants, part of which were issued between the second Monday in January and the second Monday in April, same year, was not invalid as involving duplicate taxation as to the amounts required to pay the warrants issued between such dates, because it applied to all property alike. Oregon S.L.R.R. v. Washington County, 54 Idaho 171, 30 P.2d 198 (1934).

Uncollected State Taxes.

A county is not liable to the state for uncollected state taxes levied upon lands, which, in default of payment, are sold at delinquent sale, and bid in by the county, until such lands are redeemed or otherwise disposed of by the county. State v. Ada County, 7 Idaho 261, 62 P. 457 (1900).

Warrant Redemption Fund.

Warrant redemption fund of the county may not be used to pay necessary and ordinary expenses of county government. Garrity v. Board of County Comm’rs, 54 Idaho 342, 34 P.2d 949 (1934).

§ 63-807. Levy by new taxing units — Duties of auditor.

No taxing district formed or organized after the first day of January, in any year, shall be authorized to make a levy for that calendar year, nor shall the auditor of any county in which the taxing district may be situated be required to extend any levy on behalf of the taxing district upon the county rolls extended by him for the year. No existing taxing district which shall annex any territory after the first day of January of the current year, shall be authorized to levy a property tax for the year upon the property situated in the annexed territory and the property shall in all respects be taxed as if the annexation had not taken place. However, should any existing school district or school districts divide, consolidate or reorganize after the assessment date in any year, the board of trustees of the divided, consolidated or reorganized school district shall have the power to levy property taxes and certify the levy for the year in the same manner and according to the same boundaries which the separate school districts involved in the division, consolidation or reorganization could have levied property taxes had the division, consolidation or reorganization not taken place.

History.

I.C.,§ 63-807, as added by 1996, ch. 98, § 9, p. 308; am. 2016, ch. 30, § 1, p. 73.

STATUTORY NOTES

Amendments.

The 2016 amendment, by ch. 30, deleted “Except as otherwise provided by law” from the beginning of the section.

Effective Dates.

Section 2 of S.L. 2016, ch. 30 provided that the act should take effect on and after January 1, 2017.

§ 63-808. Record of proceedings.

  1. The clerk of the board must keep a record of all proceedings of the county commissioners relating to the levy of property taxes in the minutes and all levies authorized and fixed by the county commissioners must be recorded in said minutes. Except as otherwise provided in subsection (2) of this section, the clerk must, on or before the third Monday of September in each year, prepare four (4) certified copies of the record of all levies authorized and fixed by the county commissioners, and deliver one (1) of such copies to the assessor, and one (1) of such copies to the tax collector, and one (1) of such copies to the state tax commission, who must each file the same in his or their office, and the clerk must file the other copy in his office as county auditor.
  2. When the county commissioners grant an extension for the certification required in section 63-803(3), Idaho Code, the clerk must prepare the certified copies specified in subsection (1) of this section on or before the fourth Monday of September.
History.

I.C.,§ 63-808, as added by 1996, ch. 98, § 9, p. 308.

STATUTORY NOTES

Compiler’s Notes.

Section 4 of S.L. 2020, ch. 339 provided: “Management Review. In accordance with Section 67-702(1)(c), Idaho Code, the Audit Division of the Legislative Services Office shall perform a management review of the Idaho State Tax Commission for the period July 1, 2019, through June 30, 2020. The review will evaluate compliance with Section 63-809, Idaho Code, to determine whether the Idaho State Tax Commission has carefully examined the statements furnished to it, as provided in Section 63-808, Idaho Code, and if it has notified the county commissioners of each county of the approval of all previously certified levies on or before the fourth Monday in October. Additionally, the review will include determining whether the Idaho State Tax Commission properly notified the county commissioners of each county and the governing authorities of any city, school district, or any other taxing district or municipality no later than the fourth Monday of October if it appeared that the county commissioners or governing authorities had fixed a levy or certified a property tax budget increase that exceeded any limitation provided by law; and, if it appeared that the county commissioners of any county have fixed a levy for any purpose or purposes not authorized by law, or in excess of the maximum permitted by law for any purpose or purposes, whether the Idaho State Tax Commission properly notified the Attorney General.”

§ 63-809. Unauthorized levy — Notification by state tax commission — Action to set aside.

  1. The state tax commission shall carefully examine the statements furnished to it, as provided in section 63-808, Idaho Code. On or before the fourth Monday in October, the state tax commission shall notify the county commissioners of each county of the approval of all previously certified levies. The state tax commission shall also notify the county commissioners of each county and the governing authorities of any city, school district, or any other taxing district or municipality no later than the fourth Monday of October if it appears that the county commissioners or governing authorities have fixed a levy or certified a property tax budget increase that exceeds any limitation provided by law.
  2. If it appears that the county commissioners of any county have fixed a levy for any purpose or purposes not authorized by law, or in excess of the maximum provided by law for any purpose or purposes, the state tax commission shall thereupon notify the attorney general, and if it appears that the governing authorities of any city, school district, or any other district or municipality to which is delegated by law the authority to levy property taxes, have fixed a levy for any purpose or purposes not authorized by law or in excess of the maximum provided by law for any purpose or purposes, the commission shall on or before the fourth Monday in October notify the board of county commissioners, county treasurer and county attorney of the county in which it appears that such unauthorized or excess levy has or levies have been fixed.
  3. The attorney general or the county attorney so notified shall immediately bring suit in a court of proper jurisdiction against the county commissioners or governing authorities of any city, school district or other district or municipality levying such unauthorized or excess levy to set aside such levy as being illegal.
  4. Any necessary expenses incurred by the attorney general or the county attorney in the prosecution of such action shall be borne by the county in which the suit was brought.
History.

I.C.,§ 63-809, as added by 1996, ch. 98, § 9, p. 308; am. 2000, ch. 433, § 1, p. 1390.

STATUTORY NOTES

Cross References.

Attorney general,§ 67-1401 et seq.

Compiler’s Notes.

Section 4 of S.L. 2020, ch. 339 provided: “Management Review. In accordance with Section 67-702(1)(c), Idaho Code, the Audit Division of the Legislative Services Office shall perform a management review of the Idaho State Tax Commission for the period July 1, 2019, through June 30, 2020. The review will evaluate compliance with Section 63-809, Idaho Code, to determine whether the Idaho State Tax Commission has carefully examined the statements furnished to it, as provided in Section 63-808, Idaho Code, and if it has notified the county commissioners of each county of the approval of all previously certified levies on or before the fourth Monday in October. Additionally, the review will include determining whether the Idaho State Tax Commission properly notified the county commissioners of each county and the governing authorities of any city, school district, or any other taxing district or municipality no later than the fourth Monday of October if it appeared that the county commissioners or governing authorities had fixed a levy or certified a property tax budget increase that exceeded any limitation provided by law; and, if it appeared that the county commissioners of any county have fixed a levy for any purpose or purposes not authorized by law, or in excess of the maximum permitted by law for any purpose or purposes, whether the Idaho State Tax Commission properly notified the Attorney General.”

§ 63-810. Erroneous levy — Corrective action.

  1. Whenever the county commissioners have discovered that a levy has been made by unintentional clerical, mathematical or electronic error, in any levy certified by such board, the county commissioners on their own motion may:
    1. If discovered prior to the fourth Monday of November of the year for which the levy is certified, order all necessary corrections made in all property tax records, if the corrected levy is otherwise within statutory limits.
    2. If discovered after the fourth Monday of November of the year for which the levy is certified, but before February 15 of the succeeding year, order all necessary corrections made in all property tax records, if the corrected levy is otherwise within statutory limits. The corrected levy shall be applied to the taxable value within each taxing district and the property taxes so applied shall be a perpetual lien on the property, and such property tax levy and tax charge shall supersede all previous incorrect levies and charges made for that year, except that the property tax computed using the corrected levy shall allow a credit for the amount of property taxes previously paid. If additional property tax is owed due to the corrected levy, the county tax collector shall, prior to the fourth Monday in May, mail to the last record owner of any property affected by such erroneous levy a notice of tax correction. The deadline for paying such property tax shall be no later than June 20 of that year. Late charges and interest will be added if full property tax is not paid by June 20 and interest will be calculated from January 1 as provided in section 63-1001, Idaho Code.
    3. Provided the levy correction is made after the fourth Monday of November or after tax notices have been mailed, the levy correction shall be considered at a hearing held by the county commissioners at which time any taxpayer may appear and be heard upon the issue. Notice of the date, time, place and purpose of such hearing shall be published in a newspaper published in the county, or if there is none, then in a newspaper of general circulation in the county. The notice shall be run once each week for the two (2) weeks preceding the hearing. The hearing shall be held not less than seven (7) days after the first notice is published.
  2. The county commissioners shall submit the corrected levy and a copy of the order to the state tax commission. The state tax commission shall review the corrected levy and take action as required in section 63-809, Idaho Code.
  3. For the purposes of sections 63-701 through 63-710, Idaho Code, and for the purposes of the distributions required in section 63-3638, Idaho Code, the state tax commission, county auditor, and the county commissioners shall use the corrected values and numbers allowed in this section to recompute and correct such distributions by adjusting future distributions to account for any difference. For the purposes of chapters 8 and 10, title 33, Idaho Code, the state department of education shall use the corrected values and numbers allowed in this section.
History.

I.C.,§ 63-810, as added by 1996, ch. 98, § 9, p. 308; am. 2012, ch. 38, § 4, p. 115; am. 2013, ch. 21, § 6, p. 36.

STATUTORY NOTES

Amendments.

The 2012 amendment, by ch. 38, in subsection (1), added the proviso at the beginning of paragraph (1)(c).

The 2013 amendment, by ch. 21, substituted “February 15” for “January 30” near the middle of the first sentence in paragraph (1)(b).

Effective Dates.

Section 6 of S.L. 2012, ch. 38 declared an emergency and made this section retroactive to January 1, 2012. Approved March 6, 2012.

§ 63-811. Computation of property taxes — Duty of county auditor.

  1. The county auditor must cause to be computed the amount of the local property taxes levied on the total of the taxable value as entered on the property and operating property rolls, and must deliver the property and operating property rolls to the tax collector on or before the first Monday of November.
  2. The county auditor must cause to be computed the amount of the local property taxes levied on the total of the taxable value as entered on the subsequent property roll, and must deliver the subsequent property roll to the tax collector as soon as possible, without delay, after the first Monday of December.
  3. The county auditor must cause to be computed the amount of the state property tax and the amount of the local property taxes levied on the total taxable value as entered on the missed property roll, and must deliver the missed property roll to the tax collector as soon as possible, without delay, in the year following the year in which the assessment was entered on the missed property roll.
  4. Except as provided in section 50-2908(1), Idaho Code, for the purpose of this section, “taxable value” shall mean the portion of the equalized assessed value, less any exemptions and the value that exceeds the value of the base assessment roll for the portion of any taxing district within a revenue allocation area of an urban renewal district, located within each taxing district which certifies a budget to be raised from a property tax levy.
  5. The county auditor, at the time of delivery to the county tax collector of the property roll, subsequent property roll, missed property roll or operating property roll with all property taxes computed, must subscribe an affidavit to such roll that he has to the best of his knowledge and ability computed the proper amount of property taxes due, and recorded such orders of the board of equalization as have been made and has made no other changes.
  6. Failure of the auditor to make the affidavit shall not affect the validity of any entry on the roll. The making of such affidavit, however, is declared to be a duty pertaining to the office of the county auditor. In every case where the said affidavit is omitted from the real property assessment roll, completed and delivered as aforesaid, the board of county commissioners must require the county auditor to make the same, and upon refusal or neglect of such county auditor to make and subscribe to such affidavit forthwith, the chairman of the said board must immediately file in the district court in the county, an information in writing, verified by his oath, charging such county auditor with refusal or neglect to perform the official duties pertaining to his office, and thereupon he must be proceeded against as in such cases provided by law.
History.

I.C.,§ 63-811, as added by 2012, ch. 339, § 14, p. 934; am. 2017, ch. 96, § 1, p. 245; am. 2019, ch. 205, § 7, p. 625.

STATUTORY NOTES

Cross References.

Personal property assessment roll, completion and delivery,§ 63-310.

Real property roll, completion procedure,§ 63-312.

Seizure and sale of personal property for taxes,§§ 63-1101 to 63-1108.

Prior Laws.

Former§ 63-811, which comprised I.C.,§ 63-811, as added by 1996, ch. 98, § 9, p. 308; am. 2006 (1st E.S.), ch. 1, § 17; am. 2008, ch. 253, § 3, p. 743; am. 2012, ch. 339, § 6, p. 934, was repealed by S.L. 2012, ch. 339, § 9, effective July 1, 2017.

Amendments.

The 2017 amendment, by ch. 96, substituted “in the year” for “after the first Monday of March of the year” in subsection (3).

The 2019 amendment, by ch. 205, substituted “section 50-2908(1), Idaho Code” for “subsection (1)(a) through (e) of section 50-2908, Idaho Code” near the beginning of subsection (4).

Compiler’s Notes.

Section 8 of S.L. 2019, ch. 205 provided: “Severability. The provisions of this act are hereby declared to be severable and if any provision of this act or the application of such provision to any person or circumstance is declared invalid for any reason, such declaration shall not affect the validity of the remaining portions of this act.”

Effective Dates.

Section 17 of S.L. 2012, ch. 339 makes the enactment of this section effective July 1, 2017.

Section 9 of S.L. 2019, ch. 205 declared an emergency and made the amendment of this section retroactive to January 1, 2019. Approved March 25, 2019.

CASE NOTES

Decisions Under Prior Law
Determination of Assessment Roll.
Omission of Certificate.

Where county board of equalization reduced assessor’s assessment of cattle in county by 10% on July 13, but state tax commission on second Monday in August reinstated prior assessment of assessor, and county officers by order of board of county commissioners on September 14 refused to accept assessment ordered by state tax commission, the latter was entitled to writ of mandamus compelling county officers and county board of equalization to obey order of state tax commission though petition was not filed until December 3, since final determination of true assessment roll rests with state tax commission. State Tax Comm’n v. Johnson, 75 Idaho 105, 269 P.2d 1080 (1954). Omission of Certificate.

Omission of certificate alone was mere informality which did not affect either validity of assessment or validity of appellant’s title. Armstrong v. Jarron, 21 Idaho 747, 125 P. 170 (1912).

Priority of Tax Liens.

Lien of county and city taxes is same as that of state taxes, and they are of the same priority. Bosworth v. Anderson, 47 Idaho 697, 280 P. 227 (1929).

Under Idaho Const., Art. VII, § 7,§ 43-720 and this section, state taxes are prior to all other liens against property. Smith v. Nampa, 57 Idaho 736, 68 P.2d 344 (1937).

State taxes, by the constitution, and county and city taxes, by legislative declaration, are prior to special assessments which are based on the theory of special benefit to the property against which the assessments are levied. Bosworth v. Anderson, 47 Idaho 697, 280 P. 227 (1929).

Substantial Compliance Required.

Substantial compliance with the requirements of the law in making assessments was all that was required, and when a tax deed was introduced in evidence, it was prima facie evidence of title and it was incumbent upon the person attacking the deed to prove the omission of some jurisdictional act or step which rendered it void. Armstrong v. Jarron, 21 Idaho 747, 125 P. 170 (1912).

Surety Liable for Stolen Money.

Under constitutional provision and statutes, surety on county assessor’s bond was held liable to county for loss of personal property tax money and motor vehicle license money collected by assessor and stolen from assessor without assessor’s fault. Bonneville County v. Standard Accident Ins. Co., 57 Idaho 657, 67 P.2d 904 (1937).

Validity of Assessment.

Each year the assessor must complete his assessment roll and must take and subscribe an affidavit verifying such assessment; however, failure to take or subscribe such affidavit shall not in any manner affect the validity of such assessment. Armstrong v. Jarron, 21 Idaho 747, 125 P. 170 (1912).

RESEARCH REFERENCES

Am. Jur. 2d.
C.J.S.

§ 63-812. Accounting and collection of property taxes.

The tax collector shall collect and account for the amount of property taxes due and remit any property tax revenues collected to the county auditor showing distribution to the proper accounts or funds.

History.

I.C.,§ 63-812, as added by 1996, ch. 98, § 9, p. 308.

STATUTORY NOTES

Cross References.

General revenue laws applicable,§ 63-1301.

Local improvement district assessments,§ 50-1701 et seq.

Monthly settlement of auditor with municipalities,§ 63-1202.

Compiler’s Notes.

Section 20 of S.L. 1996, ch. 98 read: “Existing Rules Remain in Effect. All rules heretofore adopted by the state tax commission and in effect on the effective date of this act shall remain in full force and effect unless and until superseded or replaced by rules duly adopted by the commission, or until the same are rejected, amended or modified by the legislature in accordance with the provisions of chapter 52, title 67, Idaho Code, or until they expire as provided in section 67-5292, Idaho Code.”

Effective Dates.

Section 21 of S.L. 1996, ch. 98 provided that the act shall be in full force and effect on January 1, 1997.

CASE NOTES

Decisions Under Prior Law
Assessment and Collection of Taxes.

In collecting municipal taxes under this section, the county officials merely act as the agents of the municipality in the performance of the duties required of them and this relationship of agency equally applies to the method of assessing and collecting taxes for both the chartered cities and the municipalities throughout the state. Hamilton v. McCall, 90 Idaho 253, 409 P.2d 393 (1965). Since, according to the tax collection procedures followed in this state, the counties act as a collecting agency in the collection of taxes for the state and municipality, payment of property taxes to the county rather than the municipality itself was sufficient to establish payment of taxes as required to sustain a claim based on adverse possession pursuant to§ 5-210. Rutledge v. State, 94 Idaho 121, 482 P.2d 515 (1971).

Constitutionality.

Where Boise City charter provided that city taxes should be levied by the mayor and council, assessed by the city assessor, and collected by the city collector, the constitution did not prohibit the legislature from transferring the duties of the collection of Boise City taxes, and other duties as to taxes from the city officials, to the county officials, but the county officials, in collecting such taxes, merely act as agents of the city in performance of the duties required of them. Bagley v. Gilbert, 63 Idaho 494, 122 P.2d 227 (1942).

Drainage Districts.

Provision of this section for collection fee for county applies to assessments of a drainage district. Drainage Dist. No. 2 v. Ada County, 38 Idaho 778, 226 P. 290 (1924).

Effect on City Charter.

Where the general statute, providing that the assessment and collection of all general taxes of a city within a county were transferred to the county assessor, and that each county should retain the sum equal to one and one half per cent of the city moneys collected in the payment for services rendered, made no reference to the special city charter which contained provision regarding the assessment and collection of city taxes, the general statutes could not be construed as amending the city charter, since the general statutes so construed would violate the constitutional provision that every act shall embrace but one subject and matters properly connected therewith which shall be expressed in its title. Bagley v. Gilbert, 63 Idaho 494, 122 P.2d 227 (1942).

Liability of County.

Where county was collecting sum for special improvement district, it was held liable to bondholders for amount improperly diverted to predatory animal fund. Bosworth v. Anderson, 47 Idaho 697, 280 P. 227 (1929).

Quarterly Reporting System.

The district court erred in requiring the taxable status of business machines to be determined on a monthly basis rather than on a quarterly basis, since in the interests of efficient recordkeeping and reporting a quarterly reporting system, and not a monthly reporting system, is required, and because property is to be assessed on a quarterly basis. Xerox Corp. v. Ada County Assessor, 101 Idaho 138, 609 P.2d 1129 (1980).

§ 63-813. Collection and enforcement

Actions against state of Idaho. [Repealed.]

STATUTORY NOTES

Compiler’s Notes.

This section, which comprised I.C.,§ 63-813, as added by S.L. 1969, ch. 262, § 1, p. 806, was repealed by S.L. 1973, ch. 13, § 1.

§ 63-802C. Election to create a new taxing district.

Chapter 9 PAYMENT AND COLLECTION OF PROPERTY TAXES

Sec.

§ 63-901. Property taxes payable only in legal tender.

All property taxes must be paid in lawful money of the United States. Notwithstanding the provisions of this section, a county may allow for payment of taxes by use of a debit card, credit card or electronic funds transfer.

History.

I.C.,§ 63-901, as added by 1996, ch. 98, § 10, p. 308; am. 2008, ch. 53, § 2, p. 134.

STATUTORY NOTES

Amendments.

The 2008 amendment, by ch. 53, added the last sentence.

CASE NOTES

Decisions Under Prior Law
Legal Tender.

Territorial statute requiring payment of taxes in any other than lawful money at par was void as being in conflict with act of congress of February 25, 1862, authorizing issue of legal tender notes. Haas v. Misner, 1 Idaho 170 (1868).

Tax collectors of the several counties in territory had no right to demand payment of taxes in gold coin, or in anything but legal currency of the United States at its par value. Crutcher v. Sterling, 1 Idaho 306 (1869).

Payment by Check.

Check given by taxpayer to tax collector in payment of his tax, which is drawn on solvent bank in which maker had adequate balance, and for which receipt showing full payment of taxes was issued, is not legal payment of such taxes where check was not paid on account of tax collector’s negligence in presenting it before bank failed. Vial v. Paradis, 44 Idaho 157, 255 P. 643 (1927); Gray v. Boundary County, 49 Idaho 589, 290 P. 399 (1930).

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-902. Property tax notice and receipts — Duty of tax collector.

  1. For property on the property roll or operating property roll, the county tax collector must, prior to the fourth Monday of November in each year, mail or transmit electronically, as that term is defined in section 63-115, Idaho Code, if electronic transmission is requested by the taxpayer, to every taxpayer, or to his agent or representative, at his last known post office address, a tax notice prepared upon forms prescribed in section 63-219, Idaho Code, which shall contain at least the following:
    1. The year in which the property tax was levied;
    2. The name and address of the property owner;
    3. An accurate description of the property or, in lieu thereof, the tax number of record;
    4. The parcel number;
    5. Full market value for assessment purposes;
    6. The total amount of property taxes due:
      1. State;
      2. County;
      3. City;
      4. School district separately shown as:
        1. Maintenance and operation;
        2. Bond;
        3. Supplemental;
        4. Other;
      5. And every other tax being separately shown.
    7. All property tax levies in the tax code area;
    8. The expiration date of any bond and voter-approved levy;
    9. The date when such property taxes become delinquent;
    10. Notation of delinquencies against said property;
    11. Whether an interim payment account exists;
    12. The different payment options available to the taxpayer, his agent or representative shall be printed in boldface type in a contrasting color or highlighted on the face of the tax notice;
    13. The total amount of property taxes for the previous tax year; and
    14. The information required by paragraph (i) of this subsection may be satisfied if the county treasurer provides an annual insert with the tax notice or a link on the tax notice to the county website where the information required by paragraph (i) of this subsection can be accessed. In addition to including the link to the county website, the county treasurer may also include on the tax notice a quick response code to access the information required by paragraph (i) of this subsection.
  2. The tax notices shall be numbered consecutively and the numbers must be entered upon all property rolls.
  3. Tax notices prepared in tax code area format shall state that levy sheets are available to the public.
  4. Levy sheets shall list the total property tax levy for each taxing district or taxing jurisdiction and the total in each tax code area.
  5. If the taxpayer is one other than the equitable titleholder, such as an escrowee, trustee of trust deed or other third party, the taxpayer shall deliver to the equitable titleholder a statement of the total amount of property taxes billed, on or before the second Monday of December.
  6. The tax collector in each county of the state is authorized to destroy all duplicate property tax receipts and microfilm of tax receipts on file in his office as they reach ten (10) years old. Property tax receipts may be destroyed if information has been replicated in other storage media.
  7. Computer and data processing routines for completion of all phases of the property tax roll procedures may be utilized with the responsibility for completion of each office’s statutory duties to remain under the supervision of that office. Wherever the designation “property roll” appears within title 63, Idaho Code, data processing or computer procedures and forms may be substituted as permanent records.
  8. The county tax collector must, as soon as possible after the subsequent or missed property roll is delivered to him from the county auditor, mail or transmit electronically, if electronic transmission is requested by the taxpayer, a notice to every taxpayer listed on the subsequent or missed property roll, or to his agent or representative. The notice shall conform as nearly as possible to the notice required for property listed on the property roll.
  9. Failure to mail or transmit electronically, if electronic transmission is requested by the taxpayer, such property tax notice, or receipt of said notice by the taxpayer, shall not invalidate the property taxes, or any proceedings in the collection of property taxes, or any proceedings in the foreclosure of property tax liens.
  10. No charge, other than property taxes, shall be included on a tax notice unless the entity placing such charge has received approval from the board of county commissioners to place such charge on the tax notice and such entity:
    1. Has the authority by law to place a lien on property; and
    2. Has the authority to certify such charge to the auditor; and
    3. Is required to collect such charge in the same manner provided by law for the collection of real and personal property taxes.
  11. If a taxpayer requests to receive a tax notice electronically, the request must be made on a form provided by the county tax collector.
History.

I.C.,§ 63-902, as added by 1996, ch. 98, § 10, p. 308; am. 1997, ch. 117, § 33, p. 298; am. 1997, ch. 241, § 1, p. 701; am. 2006, ch. 322, § 1, p. 1021; am. 2014, ch. 14, § 1, p. 21; am. 2020, ch. 215, § 1, p. 637.

STATUTORY NOTES

Cross References.

Disposition of forfeitures,§ 19-4705.

Duties of officers relating to settlement with state,§§ 63-1202.

Amendments.

This section was amended by two 1997 acts which appear to be compatible and have been compiled together.

The 1997 amendment, by ch. 117, § 33, added subsection (10).

The 1997 amendment, by ch. 241, § 1, added subdivision (1)(k).

The 2006 amendment, by ch. 322, in subsection (1)(f)(iv), inserted “separately shown as”; and added subsections (1)(f)(iv)(A) to (D).

The 2014 amendment, by ch. 14, inserted “or transmit electronically, as that term is defined in section 63-115, Idaho Code, if electronic transmission is requested by the taxpayer, to” in the introductory language of subsection (1); inserted “or transmit electronically, if electronic transmission is requested by the taxpayer” in subsections (8) and (9); and added subsection (11).

The 2020 amendment, by ch. 215, in subsection (1), added present paragraphs (h), (m) and (n) and redesignated the remaining paragraphs accordingly.

Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

Section 2 of S.L. 1997, ch. 241 provided that the act should be in effect on and after July 1, 1998.

§ 63-903. When payable.

  1. All property taxes extended on the property and operating property rolls shall be due and payable in full to the tax collector without late charges and interest on or before December 20 of the year in which the property taxes are levied. The property taxes may be paid in full or paid in two (2) halves, the first half on or before December 20 with a grace period extending to June 20 for the second half if the first half is totally paid.
  2. Any portion of a property tax may be paid at any time, but nothing in this section shall excuse costs, interest or late charges pursuant to section 63-1002, Idaho Code.
  3. If the first one-half (1/2) is not totally paid on or before December 20, late charges as defined in section 63-201, Idaho Code, and interest as provided in section 63-1001, Idaho Code, shall be assessed. If the first one-half (1/2) of the property tax has been paid in part, late charges and interest shall be calculated on the remaining first half tax due.
  4. If the second one-half (1/2) is not totally paid on or before June 20, late charges as defined in section 63-201, Idaho Code, and interest as provided in section 63-1001, Idaho Code, shall be assessed. If the second one-half (1/2) has been paid in part, late charges and interest shall be calculated on the remaining property tax due.
  5. Property taxes on the subsequent or missed property roll shall be billed within thirty (30) days after delivery of the property roll to the county tax collector or as otherwise provided. The tax collector shall notify the property owner of the property taxes due without delay after delivery of the property roll. Delinquency occurs if the tax remains unpaid thirty (30) days after the bills are mailed. Late charges as defined in section 63-201, Idaho Code, and interest as provided in section 63-1001, Idaho Code, shall be assessed in the same manner as all other property taxes.
  6. All property taxes and fees, together with any costs, late charges and interest collected by the county tax collector shall be remitted to the county auditor as provided in section 63-1201, Idaho Code.
  7. Payment of any current property taxes shall not invalidate any proceeding in the collection of a delinquency.
History.

I.C.,§ 63-903, as added by 1996, ch. 98, § 10, p. 308; am. 2018, ch. 69, § 1, p. 164.

STATUTORY NOTES

Amendments.

The 2018 amendment, by ch. 69, added the last sentence in subsection (5).

CASE NOTES

Cited Stender v. SSI Food Servs. Inc. (In re Bd. of Tax Appeals), 165 Idaho 433, 447 P.3d 881 (2019). Decisions Under Prior Law
Construction.

Where county has parted with title by tax sale and period of redemption has expired, under the law in force at time of sale from county to a third party, time of redemption is not extended under this act. Washington County v. Paradis, 38 Idaho 364, 222 P. 775 (1923).

Delinquent Taxes.

Where a mortgage provided that any failure to comply with the terms of the mortgage would make the entire debt due and payable, the mortgagors’ obligation, contained in the mortgage to pay before maturity all taxes on the realty, required payment by them of delinquent taxes, since the words “before maturity” could have no application to the payment of taxes on realty which cannot be paid before maturity. Home Owner’s Loan Corp. v. Stookey, 59 Idaho 267, 81 P.2d 1096 (1938).

The procedure prescribed by the legislature in respect to levying, assessing and collecting taxes must be strictly observed. Tobias v. State Tax Comm’n, 85 Idaho 250, 378 P.2d 628 (1963).

Drainage Assessments.

This section does not contemplate that drainage assessments are merged with general taxes and so considered part thereof, or that such latter taxes may not be paid while former is outstanding. Booth v. Clark, 42 Idaho 284, 244 P. 1099 (1926).

Effect of Insufficient Tender.

One liable to pay taxes, who makes a tender of an amount insufficient to cover amount of taxes lawfully assessed, becomes liable for all penalties and interest upon any sum found to be due. Washington Water Power Co. v. Kootenai County, 270 F. 369, modified on other grounds, 273 F. 524 (9th Cir. 1921).

Forfeiture of Sales Contract.

It is not ground for forfeiture of contract for sale of realty that taxes for certain year had become delinquent, when payment had been made for first half of year and second half had not yet been placed on delinquent list. Abercrombie v. Stoddard, 39 Idaho 146, 228 P. 232 (1924).

In General.

The county board of equalization at its December meeting has not been empowered by the legislature to hear complaints as regards assessments of real property, consequently such board was not empowered to equalize assessments of real property or hear complaints in regard thereto except at the board’s June and July meetings as provided by statute, and since such board at its December meeting could only be concerned with equalization of assessments upon personal property, therefore in considering the property herein involved, an interest in real property, the appellants were not afforded an opportunity to register their complaints that the property was improperly included upon the personal property roll. Tobias v. State Tax Comm’n, 85 Idaho 250, 378 P.2d 628 (1963).

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-904. Special provisions for collection of property taxes on personal property.

  1. If a personal property owner fails to make timely payment on the first one-half (1/2) provided for, the unpaid portion of the entire tax shall immediately become due and payable and a late charge as provided in section 63-201, Idaho Code, and interest as provided in section 63-1001, Idaho Code, on the unpaid portion of the first half shall be added. Interest shall be calculated from January 1 of the year following the year for which the taxes were assessed.
  2. All personal property taxes are due and payable upon demand. If no demand is made, taxes may be paid in part or in full until the tax collector issues a warrant of distraint for collection of said taxes.
  3. Whenever the county assessor notifies the tax collector of personal property that has been listed on a property roll, the tax collector may demand immediate payment of any property taxes due from the owner. Property taxes due shall be calculated using the previous year’s levies, unless current year’s levies are known.
  4. In lieu of demanding immediate payment of property taxes due, the county tax collector may require a surety bond adequate to secure the payment and collection of property taxes that may be due to that county.
  5. Property taxes on transient personal property shall be payable on demand, or in full on the due date stated on the notice. No extensions shall be granted on transient personal property.
  6. In the event a taxpayer is unable to pay his personal property tax due on or before December 20, he may appeal to the county commissioners prior to the property tax becoming delinquent. If sufficient information is given to satisfy the county commissioners that the property taxes will be paid, the county commissioners may grant an extension of time for the payment of the property taxes, late charges and interest, not to exceed four (4) months. A warrant of distraint shall not be issued until the expiration of the extended time. No extensions shall be granted on the second one-half (1/2) of the property tax.
History.

I.C.,§ 63-904, as added by 1996, ch. 98, § 10, p. 308.

CASE NOTES

Decisions Under Prior Law
Application.
Assessor Charged with Moneys.

The procedure prescribed by the legislature in respect to levying, assessing and collecting taxes must be strictly observed. Tobias v. State Tax Comm’n, 85 Idaho 250, 378 P.2d 628 (1963). Assessor Charged with Moneys.

Under constitutional provisions and statutes, county assessor was chargeable with all money coming into his possession in payment of personal property taxes and for motor vehicle licenses and would be given credit therefor only when he actually paid such money into county treasury. Bonneville County v. Standard Accident Ins. Co., 57 Idaho 657, 67 P.2d 904 (1937).

§ 63-905. Receipt for property taxes paid.

Upon payment of property taxes, the tax collector shall issue a receipt if requested by the taxpayer. The record of payment must show the date paid and the amount of payment. If the taxpayer is other than the equitable titleholder, such as an escrowee, trustee of trust deed or other third party, the taxpayer shall, upon request of the equitable titleholder, deliver to the equitable titleholder a receipt of property taxes paid. In the event payment is mailed to the tax collector, the cancelled check may serve as a receipt.

History.

I.C.,§ 63-905, as added by 1996, ch. 98, § 10, p. 308.

CASE NOTES

Decisions Under Prior Law
Informal Tax Receipt.

Facts of this case justified conclusion that giving of informal tax receipt by public official was a suspicious circumstance justifying investigation of his integrity. Griffith v. Anderson, 22 Idaho 323, 125 P. 218 (1912).

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-906. Interim payment account — Receipt for deposits.

Any person, upon application to the tax collector, may establish a payment schedule to allow payments including, but not limited to, monthly or quarterly, in amounts of at least twenty-five dollars ($25.00) or the balance owing, to be accumulated toward the payment of current or future real or personal property taxes.

  1. The tax collector shall issue a numbered receipt consisting of:
    1. Date deposited;
    2. Name and address of person making deposit;
    3. The amount of payment; and
    4. Account identification number or parcel number or legal description.
  2. The county shall pay no interest on any interim payment receipts, and the amount so deposited cannot be withdrawn by the depositor. Such receipts shall not invalidate any proceedings in the collection of property taxes, or in the issuance of any delinquency or any proceedings in the foreclosure of tax liens.
  3. The payment shall be posted to the roll when the current property tax becomes due.
  4. The tax collector may return to the depositor any moneys deposited in excess of the amount necessary to satisfy the tax lien if the payment schedule is not maintained.
  5. The tax collector shall be held accountable for all moneys received under this subsection [section] and shall be liable on his official bond for the custody and safekeeping of such moneys, except as to what may be on deposit in designated depositories under the provisions of the public depository law, which is hereby made applicable to such deposits.
History.

I.C.,§ 63-906, as added by 1996, ch. 98, § 10, p. 308; am. 2006, ch. 322, § 2, p. 1021.

STATUTORY NOTES

Amendments.

The 2006 amendment, by ch. 322, inserted “including, but not limited to, monthly or quarterly, in amounts” in the introductory paragraph.

Compiler’s Notes.

The bracketed insertion in subsection (5) was added by the compiler to supply the probable intended term.

§ 63-907. Entry of delinquent tax — Duty of county treasurer.

The county treasurer shall, on or before the first day of January in the succeeding year, enter all delinquent taxes on the property rolls. Such entries shall be dated as of the first day of January and shall have the force and effect of a sale to the treasurer as grantee in trust for the county, for all property entered upon the property roll on which first installment of the taxes has not been paid. The settlement date shall be as of the close of business on the December due date of the preceding year.

The county treasurer shall, on or before the first day of July in the succeeding year, make delinquency entries to be dated as of the first day of January in the year the taxes fall delinquent for all property entered upon the property roll on which the second installment of the taxes have not been paid. The settlement date shall be as of the close of business on the June due date of the current year.

History.

I.C.,§ 63-907, as added by 1996, ch. 98, § 10, p. 308.

STATUTORY NOTES

Compiler’s Notes.

Section 20 of S.L. 1996, ch. 98 read: “Existing Rules Remain in Effect. All rules heretofore adopted by the state tax commission and in effect on the effective date of this act shall remain in full force and effect unless and until superseded or replaced by rules duly adopted by the commission, or until the same are rejected, amended or modified by the legislature in accordance with the provisions of chapter 52, title 67, Idaho Code, or until they expire as provided in section 67-5292, Idaho Code.”

Effective Dates.

Section 21 of S.L. 1996, ch. 98 provided that the act shall be in full force and effect on January 1, 1997.

CASE NOTES

Decisions Under Prior Law
Amount of Penalty.

The unpaid assessment for 1922 became delinquent on the third Monday of December of that year. The penalty for delinquent state and county tax was 6 per cent, which was the rate for delinquent irrigation district assessment. The assessor correctly charged 6 per cent as penalty. Nampa & Meridian Irrigation Dist. v. Barker, 38 Idaho 529, 223 P. 529 (1924).

Delinquent Tax Lien.

Statutes providing that the sale of realty for taxes vests in the purchaser all right, title and interest therein, including delinquent taxes, which have become a lien upon the property since the date of tax sale certificate, upon which tax deed has been issued, apply to such annual instalment assessments as were spread on tax rolls for specific years between the date of tax certificate upon which tax deed was issued and the date of sale to the purchaser on tax sale. Thompson v. Goble, 58 Idaho 126, 71 P.2d 100 (1937).

District Taxes and Assessments.

Tax collector must receive general taxes tendered by taxpayer who refuses to pay drainage assessment. Booth v. Clark, 42 Idaho 284, 244 P. 1099 (1926).

Duty of Tax Collector.

The assessor should pay to the county treasurer moneys collected in his official capacity, and this duty is created by statute. Wonnacott v. Kootenai County, 32 Idaho 342, 182 P. 353 (1919).

Improvement Liens.

The sale of the property in question to the purchaser had the effect of canceling and vacating all of the delinquent improvement district taxes which had become a lien on the property after the entry as delinquent tax; the purchaser took title free from the liens of the improvement districts attaching subsequent to the entry as delinquent. Herbert v. Kester, 62 Idaho 670, 115 P.2d 417 (1941).

Interest on Taxes Recovered.

State statute allowing interest on taxes refunded after erroneous collection is inapplicable in suits for refunds brought in the federal courts. United States v. Nez Perce County, 95 F.2d 232 (9th Cir. 1938).

Taxes Involuntarily Paid.

Where an Indian paid taxes on land accrued while he held land under patent, and testified that he did not protest payment because it would have done him no good, such payment was involuntary, in view of the fact that nonpayment would result in almost immediate sale, and the United States could recover such taxes as trustee for the Indian after canceling the Indian’s patent. United States v. Nez Perce County, 95 F.2d 232 (9th Cir. 1938).

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-908. [Reserved.]

§ 63-908A. County special school assistant fund

Levy therefor. [Repealed.]

STATUTORY NOTES

Compiler’s Notes.

This section, which comprised I.C.,§ 63-908A, as added by 1953, ch. 123, § 2, p. 193, was repealed by S.L. 1963, ch. 311, § 4, p. 835.

§ 63-909. [Reserved.]

County board of education. [Repealed.]

STATUTORY NOTES

Compiler’s Notes.

This section, which comprised I.C.A.,§ 61-806D, as added by 1947, ch. 257, § 6, p. 725, was repealed by S.L. 1963, ch. 142, § 1, p. 405.

§ 63-910. Annual county tax levy

Chapter 10 COLLECTION OF DELINQUENCY ON REAL, PERSONAL AND OPERATING PROPERTY

Sec.

§ 63-1001. Effect of delinquency — Interest rate.

To avoid delinquency, total payment must be made in full to the county tax collector by the due date. Any delinquency shall have the force and effect of a sale to the county tax collector as grantee in trust for the county of the property described. Any payment on a delinquency is, in effect, a partial redemption of the property from tax sale. Interest on a delinquency will be charged at one percent (1%) per month calculated from January 1 following the year the tax lien attached, provided however, that the interest shall not be charged on collection costs.

History.

I.C.,§ 63-1001, as added by 1996, ch. 98, § 11, p. 308.

CASE NOTES

Cited

Hardy v. McGill, 137 Idaho 280, 47 P.3d 1250 (2002); Valiant Idaho, LLC v. JV LLC, 164 Idaho 280, 429 P.3d 168 (2018); Stender v. SSI Food Servs. Inc. (In re Bd. of Tax Appeals), 165 Idaho 433, 447 P.3d 881 (2019).

Decisions Under Prior Law
Character of Lien.

Under section 1547 of the R.S. of 1887 as amended, tax certificate vested in purchaser only a lien for sum paid. Bacon v. Rice, 14 Idaho 107, 93 P. 511 (1908).

Where adverse claimant was in possession of land and paid or tendered taxes assessed against it, priority of payment of taxes by another party who was not owner and was holder of tax certificate after payment constituted a lien upon land for such taxes, but did not defeat rights of adverse party. Johnson v. Sowden, 25 Idaho 227, 136 P. 1136 (1913).

Under R.C., § 1762, on filing certificate of tax sale with ex officio auditor and recorder, lien vested in purchaser and was divested only by the payment to county treasurer, on certificate of auditor, for use of purchaser, of the whole amount of money paid for such certificate, together with interest thereon. Rice v. Rock, 26 Idaho 552, 144 P. 786 (1914).

County Purchases Land.
Deed to County.

When the property is offered and there is no purchaser in good faith of the same, the whole amount of the property assessed in any or separate descriptions shall be struck off to the county and a duplicate certificate delivered to the county treasurer. Bacon v. Rice, 14 Idaho 107, 93 P. 511 (1908). Deed to County.

If property is not redeemed within three years from the date of the delinquency entry, the tax collector or his successor in office must make to the county a deed to the property. Thompson v. Goble, 58 Idaho 126, 71 P.2d 100 (1937).

Enforcement of Lien.

Tax sale certificate created a lien which ripened into title upon the issuance of a tax deed and holder of certificate had an estate or interest in real property which could be enforced. McKinnon v. McIlhargey, 24 Idaho 720, 135 P. 826 (1913).

Sale by County.

A sale of real property by the board of county commissioners shall, subject to its provisions, vest in the purchaser all of the right, title and interest of the county in the property so sold. Herbert v. Kester, 62 Idaho 670, 115 P.2d 417 (1941).

Sale of Interest If Tax Delinquent.

The settler has the right under the Reclamation Act to mortgage or sell and convey his interest in said land and may lose it through the foreclosure of a mortgage. The county may tax his interest and, if the tax becomes delinquent, may sell his interest in the land. Cheney v. Minidoka County, 26 Idaho 471, 144 P. 343 (1914).

Time for Redemption.

Where county has parted with title by tax sale and period of redemption has expired, under the law in force at time of sale from county to a third party, time of redemption is not extended. Washington County v. Paradis, 38 Idaho 364, 222 P. 775 (1923).

Unpaid Warrants Bear Interest.

Persons holding warrants issued by county auditor of independent school district may present same for payment. If there is not money sufficient to pay warrants in order of issuance, the treasurer shall indorse “not paid for want of funds.” Warrants so indorsed shall bear interest at a rate of seven per cent per annum from date of indorsement until ten days after called for payment. American Nat’l Bank v. Joint Indep. Sch. Dist. No. 9, 61 Idaho 405, 102 P.2d 826 (1940).

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-1002. Payment of delinquency — Order — Receipt.

  1. Whenever a delinquency exists for any year, the taxpayer may pay to the tax collector any part of such delinquency together with the costs, late charges and interest. Costs include certified mailings, title searches, advertising and all other expenses for the processing and collection of the delinquency. Provided however, that any delinquency shall be applied to costs, collection costs, special assessments, charges, fees, interest, late charges and property tax in the proportion each bears to the total amount due. Payment applied to the property tax shall be posted directly to the roll.
  2. Payment shall only be paid and accepted upon the oldest delinquency standing on the records of the county tax collector wherein such payment is made unless otherwise authorized by a judicial action. The second one-half (1/2) shall not be considered current if the first one-half (1/2) is delinquent.
  3. Upon payment of a delinquency, the tax collector shall issue to the taxpayer a receipt, if requested by the taxpayer. In the event payment is mailed to the tax collector, the cancelled check may serve as the receipt. Payment of current taxes shall not invalidate any proceeding in the collection of a delinquency.
History.

I.C.,§ 63-1002, as added by 1996, ch. 98, § 11, p. 308; am. 2018, ch. 70, § 1, p. 165.

STATUTORY NOTES

Amendments.

The 2018 amendment, by ch. 70, substituted “Payment shall” for “Payment may” at the beginning of subsection (2).

CASE NOTES

Receipt of Payment.

The “paid” stamp on undelivered tax notice was not a legal impediment to the issuance of a tax deed, where there was no evidence that the stamp acted as a receipt of payment. Floyd v. Bd. of Ada Cty. Comm’rs, 164 Idaho 659, 434 P.3d 1265 (2019).

Decisions Under Prior Law
Application of Later Payments.
Moratorium Act of 1933.

A county had no duty to apply taxpayer’s 1976 and 1977 property tax payments to his 1975 delinquency where the 1976 and 1977 taxes were not delinquent. Jahnke v. County of Bingham, 115 Idaho 548, 768 P.2d 811 (Ct. App. 1989). Moratorium Act of 1933.

The Moratorium Act of 1933 gave until at least the second Monday in January (January 14) 1935 to pay the tax and redeem the land from the tax liens. American Nat’l Bank v. Joint Indep. Sch. Dist. No. 9, 64 Idaho 691, 136 P.2d 976 (1943).

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-1003. Lien and effect of delinquency.

  1. Any delinquency on real property taxes in accordance with the provisions of this title shall constitute a perpetual lien in favor of the county for all property taxes, late charges and interest on the property described and shall entitle the county to a tax deed for such property in the manner provided for in this title. Such delinquency entry shall further constitute prima facie evidence in any legal proceedings in which it may lawfully be used that the property described was subject to appraisal, assessment and taxation at the time the same was assessed, that said property was appraised, assessed and equalized according to law, that the property taxes levied on such property were levied according to law, that such taxes were not paid before the delinquency became effective, and that the property and taxes were entered upon the property roll.
  2. Any delinquency on personal property taxes in accordance with the provisions of this title shall be a first and prior, perpetual lien, except as otherwise provided by law, upon such personal property and all real and personal property of the owner of such personal property until all property taxes due upon such personal property have been paid.
History.

I.C.,§ 63-1003, as added by 1996, ch. 98, § 11, p. 308.

CASE NOTES

Cessation of Lien.

A county tax lien ceases to exist when the county issues itself a tax deed for the property at issue. Valiant Idaho, LLC v. JV LLC, 164 Idaho 280, 429 P.3d 168 (2018).

§ 63-1004. Payment of delinquency on segregated property.

  1. The record owner or owners or any party in interest of a segregated portion of the property covered by a delinquency may release the lien for property taxes, by paying to the tax collector the amount of property taxes due along with late charges, interest and costs, if any, on that particular piece of property. The county assessor shall determine and provide to the tax collector the market value for assessment purposes of that segregated portion of property, and the tax collector will calculate the property tax to be paid for any prior year or years of delinquency, including the late charges, accrued interest and costs incurred.
  2. The record owner or owners or any party in interest of a segregated portion of property covered by a tax deed may redeem that property at the time and in the manner provided in section 63-1007, Idaho Code, by paying to the tax collector the amount due on that particular piece of property including, but not limited to, the late charges, accrued interest, title search fees and other costs incurred. The county assessor shall determine and provide to the tax collector the market value for assessment purposes of that segregated portion of property, and the tax collector will calculate the property tax to be paid for that current calendar year and all prior years of delinquency.
History.

I.C.,§ 63-1004, as added by 1996, ch. 98, § 11, p. 308.

§ 63-1005. Pending issue of tax deed — General provisions — Notice.

  1. If real property on which there is a delinquency is not redeemed within three (3) years from the date of delinquency, the county tax collector of the county wherein such property is situated must make, in favor of said county, a tax deed for such property. However, the county shall not be entitled to a tax deed for such real property until:
    1. A notice of pending issue of tax deed has been given; and
    2. An affidavit of compliance has been recorded.
  2. The county tax collector of the county wherein the real property for which a tax deed may issue shall serve or cause to be served written notice of pending issue of tax deed upon the record owner or owners and parties in interest of record in the following exclusive manner:
    1. By serving or causing to be served a copy of such notice by certified mail with return receipt demanded upon the record owner or owners and parties in interest of record at their last known address, such service of notice to be made no more than five (5) months nor less than two (2) months before the time set for the tax deed to issue;
    2. In the event that such notice is served as above described and returned undelivered after attempting to locate and serve the record owner or owners and parties in interest of record, by publishing a summary of such notice in a newspaper having general circulation in the county wherein the real property is situated. Such publication must be made at least once a week for four (4) consecutive weeks, the last publication of which is to be no more than two (2) months nor less than fourteen (14) days before the time set for the tax deed to issue.
  3. The record owner or owners and parties in interest of record shall be liable and pay to the county tax collector all costs and fees in the preparation, service and publication of such notice and the tax deed process and such costs shall become a perpetual lien upon the property in favor of the county tax collector.
  4. Such notice and summary thereof must contain the following items:
    1. The name and last known address of the record owner or owners;
    2. An accurate description of the property on which the delinquency stands, or, in lieu thereof, the tax number of record or parcel number used in assessing the same;
      1. A street address or other information which would be of assistance to the public in ascertaining the location of the property; or
      2. The name and telephone number of a person, firm or business office from whom information concerning the location of the property may be obtained;
    3. The year for which the property tax was assessed and for which the delinquency exists;
    4. An itemized statement detailing the delinquency and all costs and fees incident to the delinquency and notice up to and including the date of the making of such notice;
    5. The date the delinquency occurred;
    6. The time, date, place at which, and by whom the tax deed will issue; and
    7. A statement that the record owner or owners or any party in interest shall have adequate opportunity to be heard, to confront and cross-examine any evidence or witness against the record owner or owners, and obtain and present evidence on behalf of the record owner or owners or any party in interest. Such statement shall also contain notice of to whom inquiries and objections shall be directed concerning the notice and information contained therein and by what date such inquiries and objections must be received.
  5. Any party in interest may file a written request for such notice in the office of the county tax collector of the county wherein the property for which the delinquency stands have been made is situated. Such request shall contain the following items:
    1. The name and address of the record owner or owners;
    2. An accurate description of the property covered by the interest, or, in lieu thereof, the tax number of record or parcel number used in assessing the same;
    3. The name and address of the party in interest;
    4. An accurate description of the interest held; and
    5. The date of expiration of the interest held.
  6. If a record owner or owners or a party in interest shall have actual notice of the notice of pending issue of tax deed or that issuance of a tax deed is pending, it shall be deemed sufficient notice under this section.
  7. Service shall be deemed completed upon depositing the certified letter containing the original or a copy of the notice of pending issue of tax deed with return receipt demanded in any United States post office, or upon physical delivery of such notice or copy thereof by the county tax collector or his appointed agent to the record owner or owners or party in interest, or upon the date of last publication.
  8. No less than five (5) working days prior to the date on which the tax deed shall be issued, the county tax collector shall make an affidavit of compliance stating that he has complied with the conditions of issuance of notice of pending issue of tax deed described in this section, and stating particularly the facts relied on as constituting such compliance.
  9. Such affidavit shall be recorded in the office of the county recorder. Such record of affidavit shall be prima facie evidence that such notice has been given.
  10. Any person who knowingly and intentionally swears falsely to facts averred in any affidavit shall be guilty of perjury and be punished by a fine of not more than three hundred dollars ($300).
History.

I.C.,§ 63-1005, as added by 1996, ch. 98, § 11, p. 308.

CASE NOTES

Due Process.

Due process requires that, in any proceeding by which a person can be deprived of property, there must be notice reasonably calculated, under all the circumstances, to apprise interested parties of the opportunity to object. Hardy v. Phelps, — Idaho —, 443 P.3d 151 (2019).

Itemized Statement.

The inclusion of a flat fee in the notice of pending issue of tax deed does not give an itemized and detailed list of costs and fees and, therefore, violates the provisions of paragraph (4)(d). Chavez v. Canyon County, 152 Idaho 297, 271 P.3d 695 (2012).

Sufficient Notice.

County treasurer’s letters apprised the taxpayer of the delinquent tax proceedings well enough in advance to establish notice of both the delinquent taxes and the need for full payment to halt the tax deed process. While the taxpayer did not receive the formal notice contemplated by this section within the required time frame, he had actual notice that issuance of a tax deed was pending at least five months prior to the hearing. Floyd v. Bd. of Ada Cty. Comm’rs, 164 Idaho 659, 434 P.3d 1265 (2019).

This section does not require a county to choose another method of notice after service by certified mail at the property owners’ last known address has failed, and mail has been returned undelivered, before initiating the proces of service by publication. Hardy v. Phelps, — Idaho —, 443 P.3d 151 (2019).

Decisions Under Prior Law
Affidavit Confers Jurisdiction.

Proper, correct and sufficient affidavit detailing the acts performed is a jurisdictional prerequisite to issuance of a tax deed, and such affidavit must show personal service on party in possession of premises, if there be such. Evans v. Poppie, 51 Idaho 123, 4 P.2d 356 (1931).

The actual existence of the facts required to be shown by the affidavit is the thing which confers jurisdiction. The affidavit is merely the proof that the jurisdictional facts exist, but the failure to make the proof does not do away with the facts which the proof would show. Shail v. Croxford, 54 Idaho 408, 32 P.2d 777 (1934).

Construction.
County Tax Deed.

Where county has parted with title by tax sale and period of redemption has expired, under the law in force at time of sale from county to a third party, time of redemption is not extended under former similar law. Washington County v. Paradis, 38 Idaho 364, 222 P. 775 (1923). County Tax Deed.

The purchaser took title to the property, freed from the liens of the improvement district attaching between the date of the entry of such taxes as delinquent and the date the county sold and conveyed the property to the purchaser. Thompson v. Goble, 58 Idaho 126, 71 P.2d 100 (1937).

Effect of Subsequent Legislation.

Right of redemption from tax sale must be governed by the law in force at time of sale and cannot be abridged or enlarged by subsequent legislation; this right follows title under tax sale certificates. Washington County v. Paradis, 38 Idaho 364, 222 P. 775 (1923). See also Nampa & Meridian Irrigation Dist. v. Barker, 38 Idaho 529, 223 P. 529 (1924).

Error Not Cured by Deed.

Where the tax sale certificate contains an erroneous description of the land, it cannot be cured by inserting the correct description in the deed, because the sale was void. Cahoon v. Seger, 31 Idaho 101, 168 P. 441 (1917).

Insufficient Description.

A tax deed based upon a tax certificate that was void for the lack of description will not convey any title. Dickerson v. Hansen, 32 Idaho 18, 177 P. 760 (1918).

Insufficient Notice.

Because there was no evidence of any notice given whatsoever as required by this section and it was self-evident that the county treasurer was unable to truthfully recite the compliances required under statute, the issuance of the tax deed to county was invalid and the order declaring county to have superior right, title and interest in land must be vacated and title remains with original owner and heirs. Cluff v. Bonner County, 126 Idaho 950, 895 P.2d 551 (1995).

Partial Constitutional Infirmity.

To the extent that this section does not provide for notice to a mortgagee of record, who has not previously requested notice, this section is constitutionally infirm for allowing deprivation of a property interest without due process. Wylie v. Patton, 111 Idaho 61, 720 P.2d 649 (Ct. App. 1986).

Prima Facie Evidence of Regularity.

The tax deed is prima facie evidence of the regularity of all proceedings from the assessment to the execution of the tax deed and the burden rests upon the party attacking the deed to overcome this presumption. Andrews v. North Side Canal Co., 52 Idaho 117, 12 P.2d 263 (1932).

Reasonable and Diligent Search and Inquiry.

A taxpayer’s failure to include an address on the warranty deed does not relieve the county of its duty to perform a reasonable and diligent search and inquiry to find the taxpayer’s address and notify him prior to issuance of a tax deed. Giacobbi v. Hall, 109 Idaho 293, 707 P.2d 404 (1985). A reasonable and diligent inquiry under this section is one a diligent person, intent upon ascertaining a fact, would ordinarily make; it is an inquiry made with good faith, to ascertain the truth, and to be as full as the circumstances of the situation will permit. Giacobbi v. Hall, 109 Idaho 293, 707 P.2d 404 (1985).

Sufficiency of Affidavit.

The purpose of the statute in requiring proof of notice that property will be deeded to the county for delinquent taxes is that a record be made of the giving of the notice as by law required. The contents of the affidavit are sufficient for that purpose. Kivett v. Owyhee County, 58 Idaho 372, 74 P.2d 87 (1937).

Tax on Migratory Livestock.

Taxes on migratory livestock, when properly extended on real property assessment roll, become lien on real property of owner. Scottish Am. Mtg. Co. v. Minidoka County, 47 Idaho 33, 272 P. 498 (1928).

Title Conveyed.

If real property taxes are delinquent, this section provides the procedure for issuance of a tax deed by a county, and a properly issued tax deed conveys title to the county. Federal Land Bank v. Parsons, 116 Idaho 545, 777 P.2d 1218 (Ct. App. 1989).

Voidable Tax Deeds.

Error or omission in performance of duty imposed by law on a taxing officer, which results to prejudice of taxpayer, or which would raise the presumption that he was prejudiced, when viewed in the light of his conduct and the surrounding facts and circumstances under which he acted, should be resolved and construed in favor of the taxpayer and on the side of equity. Parsons v. Wrble, 21 Idaho 695, 123 P. 638 (1912).

Where failure to pay taxes for a given year is due to the honest mistake of both assessor and taxpayer, a tax deed issued for such unpaid taxes is voidable at the suit of owner within reasonable time after knowledge thereof. Fix v. Gray, 26 Idaho 19, 140 P. 771 (1914).

Where taxes have been actually paid by owner, but erroneously credited by officer, lien is discharged, and sale of property for delinquent taxes is voidable. Lohr v. Curley, 27 Idaho 739, 152 P. 185 (1915).

Where description is so indefinite and uncertain as to invalidate assessment, a tax sale and tax deed in pursuance thereof do not convey title to such lots. Booth v. Cooper, 22 Idaho 451, 126 P. 776 (1912).

Tax deed based upon invalid assessment conveys no title. Meserole v. Whitney, 22 Idaho 543, 127 P. 553 (1912).

§ 63-1006. Hearing and issuance of tax deed.

  1. When a record owner or owners or any party in interest upon whom a notice of pending issue of tax deed is served or who has actual knowledge of such notice or its contents fails, to appear or otherwise defend and answer at the time set for hearing in such notice and the county commissioners are satisfied that the county tax collector has fulfilled the requirements of section 63-1005, Idaho Code, the county commissioners shall, without further notice, immediately direct the county tax collector to issue and record a tax deed in favor of the county.
  2. When a record owner or owners or any party in interest upon whom such notice is served or who has actual knowledge of such notice or its contents appears or answers at the date specified in such notice, the county commissioners shall hear evidence and witnesses and make a final decision in writing. Such final decision shall be mailed by registered or certified mail return receipt demanded upon all parties affected by its action. If the county commissioners shall find that the county tax collector has conformed to the requirements of section 63-1005, Idaho Code, and that a delinquency was owing on the property described and that such delinquency has not been paid, the county commissioners shall immediately direct the county tax collector to issue a tax deed in favor of the county. Such final decision shall include findings of fact and conclusions of law.
  3. A record of the proceedings shall be kept and entered into the county minutes.
  4. Any person who is aggrieved by a final decision of the county commissioners concerning the issuance of a tax deed is entitled to have that decision reviewed by the district court of the district wherein the county is located by filing a petition in the district court within thirty (30) days after receipt of the final decision of the county commissioners. Such filing does not itself stay enforcement of the county commissioners’ decision; however, the county commissioners may grant, or the reviewing court may order, a stay upon appropriate terms. Review shall be conducted by the court without a jury and shall be confined to the record in the county minutes. The court may reverse or modify the decision of the county commissioners if substantial rights of the appellant have been prejudiced because the county commissioners’ findings, conclusions or decisions are:
    1. Made upon unlawful procedure;
    2. Clearly erroneous in view of reliable, probative and substantial evidence on the whole record; or
    3. Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.
  5. All costs and fees of any hearing or proceeding shall be awarded to the prevailing party or in the discretion of the reviewing court each party shall be responsible for their own costs and fees; provided however, the costs and fees shall not be ordered paid by any county or its officials in absence of a showing of gross negligence, gross nonfeasance or gross malfeasance by the county or its officers and a showing of substantial and definite injury to the petitioning party.
  6. The form of the tax deed issued must contain the following items:
    1. The name and address of the former record owner or owners;
    2. The name of the county in whose favor the tax deed issues;
    3. An accurate description of the property using a township, range, section and division of section, together with a statement as to acreage, or in the appropriate case, using block and lot numbers or as described in a city plat; and if appropriate, include the tax number;
    4. A statement that the tax deed issues out of a delinquency and hearing; and
    5. The tax deed must be signed by the county tax collector and acknowledged before the county recorder and shall be recorded as provided by law.
History.

I.C.,§ 63-1006, as added by 1996, ch. 98, § 11, p. 308.

CASE NOTES

Declaratory Judgment.

Where taxpayer filed an complaint requesting a declaratory judgment, claiming that the county had no authority to proceed to the issuance of a tax deed because it had charged a flat fee without the itemization of the administrative fees required in§ 63-1005, it was inappropriate for the district court to convert the taxpayer’s complaint to a petition for judicial review. Chavez v. Canyon County, 152 Idaho 297, 271 P.3d 695 (2012).

Due Process.

The right of due process gives a petitioner the opportunity to make an oral presentation to the court, as well as confront and cross examine adverse witnesses. Written submissions are unsatisfactory for due process, where witness credibility and oral presentation are critical to the decision-making process. However, writings are acceptable substitutes, where there is less value in a full evidentiary hearing, and the writings effectively communicate the arguments and evidence to the decision maker. Floyd v. Bd. of Ada Cty. Comm’rs, 164 Idaho 659, 434 P.3d 1265 (2019).

Judicial Review.

Pursuant to subsection (4), any person aggrieved by a county commissioners’ decision to issue a tax deed can have the decision reviewed by the district court. The district court confines its review to the record from the county and can only reverse or modify the commissioners’ decision if substantial rights have been prejudiced. Upon appeal, the decision reached by the district court is examined by an appellate court, only to consider whether the district court correctly decided the issues presented to it. Chavez v. Canyon County, 152 Idaho 297, 271 P.3d 695 (2012).

Cessation of Lien.
Title Coveyed.

A tax lien ceases to exist when the county issues itself a tax deed for the property at issue. Valiant Idaho, LLC v. JV LLC, 164 Idaho 280, 429 P.3d 168 (2018). Title Coveyed.

A tax deed conveys to the grantee the absolute title to the land described therein, free and clear of all encumbrances and subject only to the right of redemption set forth in§ 63-1007. Valiant Idaho, LLC v. JV LLC, 164 Idaho 280, 429 P.3d 168 (2018).

§ 63-1007. Redemption — Expiration of right.

  1. After the issuance of a tax deed, real property may be redeemed only by the record owner or owners, or party in interest, up to the time the county commissioners have entered into a contract of sale or the property has been transferred by county deed. In order to redeem real property, the record owner or owners, or party in interest, shall pay any delinquency including the late charges, accrued interest, and costs, including, but not limited to, title search and other professional fees. The property taxes accrued against such property subsequent to the issuance of a tax deed to the county shall be extended upon a valuation to be given by the assessor upon application of the tax collector. The property taxes shall be computed according to the authorized levies for the year or years to be extended, including the current calendar year which shall be calculated using the previous year’s levies until the current levies are authorized.
  2. Should such payments be made, a redemption deed shall be issued by the county tax collector into the name of the redemptioner and the rights, title and interest acquired by the county shall cease and terminate; provided however, that such right of redemption shall expire fourteen (14) months from the date of issuance of a tax deed to the county, in the event the county commissioners have not extinguished the right of redemption by contract of sale or transfer by county deed during said redemption period. In the event a tax deed is issued and payment is not received within fourteen (14) months of the issuance of such tax deed, then said tax deed to the county is presumptive evidence of the regularity of all proceedings prior thereto and the fee simple title, after the issuance of said tax deed, rests in the county.
History.

I.C.,§ 63-1007, as added by 1996, ch. 98, § 11, p. 308; am. 2001, ch. 193, § 1, p. 657; am. 2014, ch. 15, § 1, p. 23.

STATUTORY NOTES

Amendments.

The 2014 amendment, by ch. 15, substituted “fourteen (14) months” for “one (1) year” twice in subsection (2).

Effective Dates.

Section 3 of S.L. 2001, ch. 193 provided that the act should take effect on and after January 1, 2002.

CASE NOTES

Redemption Deed.

A redemption deed simply cancels and terminates all rights of the county in and to the land acquired by virtue of the treasurer’s tax deed. Valiant Idaho, LLC v. JV LLC, 164 Idaho 280, 429 P.3d 168 (2018).

Cited

Hardy v. McGill, 137 Idaho 280, 47 P.3d 1250 (2002).

Decisions Under Prior Law
Bid.

A bid, within the meaning of former similar statute, must, in order to terminate the right of redemption, be made in conformity with the terms of the sale as authorized by the county commissioners and as advertised. Kivett v. Owyhee County, 58 Idaho 372, 74 P.2d 87 (1937).

County Tax Deed.

A mortgagee’s right to redeem being terminated, not by deed, but by purchaser’s bid for land acquired by county under tax deed, the mortgagee in purchaser’s suit to quiet title could not question the validity of the deed because signed only by county commissioners’ chairman. Shail v. Croxford, 54 Idaho 408, 32 P.2d 777 (1934).

A deed from the county, to property acquired by it for nonpayment of taxes, conveys to the county’s purchaser the property free from irrigation assessments and also municipal taxes levied against such property. Smith v. Nampa, 57 Idaho 736, 68 P.2d 344 (1937).

Owner’s Redemption Not Barred by Laches.

The owner of a right of redemption, who was misled by a clerk of board of county commissioners and by purchaser of property from the county into believing that the county’s public sale of property was for cash as advertised and for more money than the owner was then able to pay in cash, was not barred by laches from asserting right of redemption, because of illegality of the sale, after more than four years had elapsed, since opposing parties could not avail themselves of a delay caused, or contributed to, by their own conduct. Kivett v. Owyhee County, 58 Idaho 372, 74 P.2d 87 (1937).

Time for Redemption.

Where realty is subject to redemption from tax deed made to county, time of redemption is governed by the law in effect at the time the county obtained title. Winans v. Swisher, 68 Idaho 364, 195 P.2d 357 (1948).

Validity of Deed.

Because there was no evidence of any notice given whatsoever as required by statute and it was self-evident that the county treasurer was unable to truthfully recite the compliances required under statute, the issuance of the tax deed to county was invalid and the order declaring county to have superior right, title and interest in land must be vacated and title remains with original owner and heirs. Cluff v. Bonner County, 126 Idaho 950, 895 P.2d 551 (1995).

RESEARCH REFERENCES

Am. Jur. 2d.
A.L.R.

§ 63-1008. Effect of tax deed as evidence.

  1. The matters recited in the delinquency must be recited in the deed, and such deed duly acknowledged or proved is prima facie evidence that:
    1. The property was appraised and assessed as required by law;
    2. The property was equalized as required by law;
    3. The property taxes were levied in accordance with law;
    4. The property taxes were not paid;
    5. The delinquency took effect at the proper time as prescribed by law;
    6. The property was not redeemed;
    7. The person who executed the deed was the proper officer;
    8. Where the real property was sold to pay property taxes on personal property that the real property belonged to the person liable to pay the property tax.
  2. The deed duly acknowledged or proved is prima facie evidence of the regularity of all other proceedings, from the assessment by the assessor inclusive up to the execution of the deed.
History.

I.C.,§ 63-1008, as added by 1996, ch. 98, § 11, p. 308.

CASE NOTES

Decisions Under Prior Law
Burden of Proof.

Fact that tax deed is made prima facie evidence of title simply shifts burden of proof; it does not deny right to defend title against a tax deed. Wilson v. Locke, 18 Idaho 582, 111 P. 247 (1910).

In a mortgage foreclosure action, holder of realty mortgage securing a note duly executed and recorded by the owner of the realty who sold the realty had the burden of proof of the vendor’s title to realty against a purchaser who denied the vendor’s title and denied that his purchase of realty was made subject to such mortgage, and introduced a tax deed to realty, executed and delivered to purchaser by irrigation district. Bogart v. Bagley, 65 Idaho 177, 141 P.2d 975 (1943).

The effect of the statutes in Idaho relating to tax deeds as evidence is to change the common-law order of proof, and to cast the burden of proof on the person attacking a tax title to affirmatively prove such irregularities or defects in prior proceedings as would overcome the prima facie case made by tax deeds. Bogart v. Bagley, 65 Idaho 177, 141 P.2d 975 (1943).

Description in Deed.

The description contained in the certificate or deed is complete if it describes a certain tract or parcel of land with sufficiency to enable anyone by the aid of such description to locate the land therein conveyed. Wilson v. Jarron, 23 Idaho 563, 131 P. 12 (1913).

Effect of Deed.

Where defendant relies upon tax deed for title, plaintiff may contest those matters in regard to which the statute makes the tax deed only prima facie evidence. McMasters v. Torsen, 5 Idaho 536, 51 P. 100 (1897).

A tax deed is prima facie evidence of the facts and things mentioned in it; and to defeat such deed, defendant must show nonexistence of such facts or some of them. Cooperative Sav. & Loan Ass’n v. Green, 5 Idaho 660, 51 P. 770 (1897); Armstrong v. Jarron, 21 Idaho 747, 125 P. 170 (1912).

The tax deed is prima facie evidence of the regularity of all proceedings from the assessment to the execution of the tax deed and the burden is upon the party attacking the deed to overcome this presumption. Andrews v. North Side Canal Co., 52 Idaho 117, 12 P.2d 263 (1932); Shail v. Croxford, 54 Idaho 408, 32 P.2d 777 (1934).

Erroneous Description.

The omission or failure of the assessor to properly state or estimate the number of acres in the tract may be fatal and render the assessment void and a subsequent tax deed ineffective for any purpose. Cahoon v. Seger, 31 Idaho 101, 168 P. 441 (1917).

Invalid Deed.

If, through some mistake or negligence, the officer fails to make a good and valid deed in pursuance of the sale and the certificate previously issued, he may exercise the power vested in him by law and voluntarily issue a good and valid deed, when the defects are called to his attention. White Pine Mfg. Co. v. Morey, 19 Idaho 49, 112 P. 674 (1910).

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-1009. Effect of tax deed as conveyance.

The deed conveys to the grantee the right, title, and interest held by the record owner or owners, provided that the title conveyed by the deed shall be free of any recorded purchase contract, mortgage, deed of trust, security interest, lien, or lease, as long as notice has been sent to the party in interest as provided in sections 63-201(17) and 63-1005, Idaho Code, and the lien for property taxes, assessments, amounts certified to the tax collector pursuant to section 50-1715, Idaho Code, charges, interest, and penalties for which the lien is foreclosed and in satisfaction of which the property is sold.

History.

I.C.,§ 63-1009, as added by 1996, ch. 98, § 11, p. 308; am. 2016, ch. 273, § 7, p. 751; am. 2020, ch. 273, § 4, p. 805.

STATUTORY NOTES

Cross References.

Repossession of water rights by irrigation district upon issuance of tax deed,§ 43-801 et seq.

Sale of county property,§ 31-808.

Amendments.

The 2016 amendment, by ch. 273, rewrote the section, which formerly read: “The deed conveys to the grantee the absolute title to the land described therein, free of all encumbrances except mortgages of record to the holders of which notice has not been sent as provided in section 63-1005, Idaho Code, any lien for property taxes which may have attached subsequently to the assessment and any lien for special assessments”.

The 2020 amendment, by ch. 273, substituted “as long” for “so long” near the middle and inserted “amounts certified to the tax collector pursuant to section 50-1715, Idaho Code” near the end.

Legislative Intent.

Section 1 of S.L. 2016, ch. 273 provided: “Legislative Intent. It is the intent of the Legislature to clarify the scope and effect of Idaho’s statutes governing tax deeds. In the case of Regan v. Owen , the Idaho Supreme Court addressed whether a tax deed issued pursuant to Section 63-1009, Idaho Code, has the effect of extinguishing an otherwise valid private easement across the subject property. Similar legislative language exists with respect to counties in Section 31-808, Idaho Code, with respect to irrigation entities in Section 43-720, Idaho Code, and with respect to cities in Section 50-1823, Idaho Code. The court did not decide the issue, but remanded to a lower court. The lower court subsequently ruled that, despite the harsh result, the statute has this effect. While a private access easement was at issue there, the reasoning would also result in the elimination of public utility easements, ditch rights, public highways and rights-of-way, conservation easements, and all manner of third-party rights in the land including, for example, interests of remaindermen following a life estate. By this legislation, the Idaho Legislature rejects that conclusion. It was never the intent of the Legislature to allow local governments to destroy valid property interests held by third parties in land that is subject to a sale or other conveyance based on a tax delinquency, except where notice and opportunity to cure is provided under the statute. Doing so would constitute an uncompensated taking of property under both the Idaho Constitution and the United States Constitution. The Legislature would never have intended such a result and, by this legislation, makes that clear. As its context should have made evident, the purpose of Section 63-1009, Idaho Code, and the other referenced sections, has always been to convey title absolutely free and clear of liens and mortgages of a monetary nature. It was never the intent of the Legislature to allow a local governmental entity to convey more than the delinquent taxpayer owned and thereby to destroy valid property interests held by others without notice and an opportunity to cure. This clarification brings the interpretation of Idaho’s tax deed statute into line with the interpretation of similar statutes in other jurisdictions, as had always been the Legislature’s intent.” Section 1 of S.L. 2020, ch. 273 provided: “Legislative Intent. It is the intent of the Legislature to clarify and confirm the scope and effect of Idaho’s statutes relating to the treatment of delinquent local improvement district assessments certified to the tax collector for collection. Section 50-1715, Idaho Code, permits, as an alternative method of collection to the issuance of delinquent certificates under the Local Improvement District Code, the certification of delinquent assessment installments to the tax collector. Once certified, said assessments are to be extended on the tax rolls and collected as are property taxes. Collection of delinquent property taxes is governed by the provisions of chapter 10, title 63, Idaho Code. By this legislation, the Idaho Legislature seeks to clarify any ambiguity that may exist regarding the treatment and interpretation of delinquent assessments certified to the tax collector pursuant to section 50-1715, Idaho Code, and to confirm the interplay between the Local Improvement District Code and the property tax statutes with respect to any such assessments so certified. It is and has always been the intent of the Legislature that delinquent local improvement district assessments certified to the tax collector for collection be governed by the collection provisions of chapter 10, title 63, Idaho Code, and not the collection provisions of the Local Improvement District Code. As context should have made evident, said delinquent assessments are to be treated in the same manner and to the same effect as delinquent property taxes, including with respect to collection, satisfaction, and extinguishment thereof. The purpose of section 63-1009, Idaho Code, has always been to convey title absolutely free and clear of liens and mortgages of a monetary nature; including, specifically, delinquent local improvement district assessments certified to the tax collector for collection pursuant to section 50-1715, Idaho Code. As with property taxes, a tax deed conveys title to the grantee free and clear of all certified delinquent local improvement district assessments for which the lien is foreclosed and in satisfaction of which the property is sold. It was never the intent of the Legislature for such certified local improvement district assessment amounts to survive the issuance of a tax deed in a manner inconsistent with the treatment of property taxes. Sections 50-1721 and 63-1009, Idaho Code, are being amended to clarify and confirm this intent.”

Compiler’s Notes.
Effective Dates.

Section 8 of S.L. 2016, ch. 273 declared an emergency. Approved March 30, 2016.

Section 5 of S.L. 2020, ch. 273 declared an emergency. Approved March 24, 2020.

CASE NOTES

2016 Amendment.

The 2016 amendment to this section has only prospective effect. The language of S.L. 2016, ch. 273, § 8 does not convey with clarity the legislature’s intent that the 2016 amendment be applied retroactively — which is what the law requires. Regan v. Owen, 163 Idaho 359, 413 P.3d 759 (2018).

Priorities.

When a lender redeemed parcels of land, the parcels returned to the status tyhat they held before the tax delinquency. Thus, a limited liability company’s prior mortgage was senior, and the lender’s later mortgage was junior. The tax lien ceased to exist when the county issued itself a tax deed for the parcels, and the county did not possess a general lien against the lender’s parcels when the lender redeemed and held absolute title to the land as described in its tax deed. Valiant Idaho, LLC v. JV LLC, 164 Idaho 280, 429 P.3d 168 (2018).

Title Conveyed.

A lender’s redemption deed did not subordinate it to the county’s right, title, claim, and interest based on a tax deed, because the redemption deed conveyed no fee title ownership. Rather, the county’s absolute ownership of the property through the tax deed was terminated, not conveyed, and the property was returned to the status quo among all lien holders. Valiant Idaho, LLC v. JV LLC, 164 Idaho 280, 429 P.3d 168 (2018).

Decisions Under Prior Law
Accuracy of Description.

More strictness is required in the description in an assessment where property is to be sold for delinquent taxes than is required in a deed of conveyance from grantor to grantee. In the former case, parol or extraneous evidence is not admissible, while in the latter case, it may become admissible. Wilson v. Jarron, 23 Idaho 563, 131 P. 12 (1913).

Appurtenances.

Carey Act water right, under§ 42-2022, does not attach and become such an appurtenance to the land that the title to such water right is conveyed under a tax deed of the land, where the purchase price of the water right has not been paid. Bennett v. Twin Falls North Side Land & Water Co., 27 Idaho 643, 150 P. 336 (1915).

Construction.

Exceptions in statute obviously prevent tax deed from conveying absolute title, and fact that deed is made out to state will not take it out of rule. State ex rel. Hoover v. Stuart, 41 Idaho 126, 238 P. 305 (1925).

Reasonable interpretation of statute is that tax deed executed to county at tax sale conveys to county absolute title to lands, free of all encumbrances except any lien for taxes which may have attached subsequently to assessment on account of delinquency of which land was sold. Larson v. Gilderoy, 45 Idaho 764, 267 P. 234 (1928).

Drainage district assessments and school district taxes are “taxes” within meaning of term as used in this section. Heffner v. Ketchen, 50 Idaho 435, 296 P. 768 (1931).

Liability for Subsequent Taxes.

Words “except any lien for taxes which may have attached subsequently to the assessment,” clearly reserve county’s lien for subsequent delinquencies. State ex rel. Hoover v. Stuart, 41 Idaho 126, 238 P. 305 (1925).

Sale of property for general taxes was held not to free such property from liability for payment of local improvement assessments attaching subsequent to assessment for taxes for which property was sold. Hunt v. City of St. Maries, 44 Idaho 700, 260 P. 155 (1927).

Lands purchased from county, acquired by reason of failure of prior owners to pay taxes, duly assessed, are liable for taxes assessed subsequent to taxes on account of delinquency for which property was sold. Larson v. Gilderoy, 45 Idaho 764, 267 P. 234 (1928).

Notice to Mortgagees of Record.

Before the county can obtain title by a tax deed, free of mortgages of record, the treasurer must provide notice of the proposed issuance of the tax deed both to mortgagees of record who have requested such a notice and to mortgagees of record who have not requested such a notice; furthermore, the notice given must allow for sufficient time to reasonably afford the mortgagee an opportunity to respond to the proposed issuance of the tax deed. Otherwise, the issuance of a tax deed will not convey title to the property free from the recorded security interest. Wylie v. Patton, 111 Idaho 61, 720 P.2d 649 (Ct. App. 1986).

Priorities.

Reclamation lien on Carey Act land was held subordinate to lien for taxes on same land. Equitable Trust Co. v. Cassia County, 5 F.2d 955 (9th Cir. 1925).

Lien of mortgage on land was superior to later lien of tax assessed upon owner’s livestock and fixed on land. Scottish Am. Mtg. Co. v. Minidoka County, 47 Idaho 33, 272 P. 498 (1928).

Redemption Right Follows Title.

The right of redemption from a tax sale must be governed by the law in force at the time of the sale and cannot be abridged or enlarged by subsequent legislation, and this right follows the title under the tax sale certificates. Lawrence v. Defenbach, 23 Idaho 78, 128 P. 81 (1912).

Right to Possession.

Holder of tax title to real estate who finds property unoccupied may enter upon and take actual possession of the premises, and in doing so he is not liable to original owner of property whose title has been divested by the tax deed. Steltz v. Morgan, 16 Idaho 368, 101 P. 1057 (1909).

Tax deed has no more force or effect as writ of assistance for procuring possession of real estate than any other deed, and holder of such deed who finds property occupied must, if occupant refuses to surrender possession, resort to same legal remedy for possession as holder of any other deed would employ. Steltz v. Morgan, 16 Idaho 368, 101 P. 1057 (1909).

Possession of property under claim of right at time it was sold for taxes thereafter constitutes color of title as against a stranger purchasing land at a tax sale, where land has been assessed to unknown owner. Johnson v. Sowden, 25 Idaho 227, 136 P. 1136 (1913).

A tax deed conveys absolute title to the grantee free of all liens and encumbrances which may have attached prior to the date of such deed. Andrews v. North Side Canal Co., 52 Idaho 117, 12 P.2d 263 (1932).

Title Conveyed.

Tax deed to the county gives it a clear title to the property conveyed thereby, except as to unnotified mortgagees whose mortgages are of record and who have requested notice, and also excepting taxes which have accrued under subsequent assessments. Smith v. Nampa, 57 Idaho 736, 68 P.2d 344 (1937).

If the property is not redeemed within the statutory limitations, the tax collector or his successor in office must make to the county a deed to the property, and a subsequent purchaser takes title to the property, freed from the liens of the improvement district attaching between the date of entry of such taxes as delinquent and the date of the sale to the purchaser. Thompson v. Goble, 58 Idaho 126, 71 P.2d 100 (1937).

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-1010. Deeds upon redemption.

In all cases where real property has been or may hereafter be sold for delinquency and a deed has been issued to the county therefor, and redemption has been made in the manner provided and in accordance with the provisions of section 63-1007, Idaho Code, the county tax collector, must issue a deed to the redemptioner; and upon the giving of such deed, such tax deed so issued to the county and the delinquency and tax sale upon which the same is based and all delinquencies and sales for prior year delinquencies shall become null and void, and all right, title and interest acquired by the county, under and by virtue of such tax deed, or tax sales, or delinquencies, shall cease and terminate.

History.

I.C.,§ 63-1010, as added by 1996, ch. 98, § 11, p. 308.

CASE NOTES

Effect of Deed.

A redemption deed is not a tax deed given by the county upon a sale to a purchaser. It is a deed issued to a redemptioner in consideration of the payment of delinquent taxes. A redemption deed simply cancels and terminates all rights of the county in and to the land acquired by virtue of the treasurer’s tax deed. Valiant Idaho, LLC v. JV LLC, 164 Idaho 280, 429 P.3d 168 (2018).

Cited

Hardy v. McGill, 137 Idaho 280, 47 P.3d 1250 (2002).

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-1011. Possession under tax deed conclusive as to regularity of proceedings.

  1. Any and all tax deeds issued by counties, or any other municipal or quasi-municipal corporations of the state of Idaho, authorized by law to issue deeds for delinquencies or assessments, shall, when the property has been sold by such counties or other municipal or quasi-municipal corporations and held and peaceably possessed by the purchaser or his successors in interest for more than one (1) year and upon which the purchaser or his successors in interest have paid all property taxes lawfully assessed thereon for such period, be conclusive as to the regularity and validity of all proceedings required by law to be done in making the levy, assessment, or sale of such property for the delinquency or assessment for which such property was sold.
  2. No action shall be maintained to contest any delinquency or assessment, or the proceedings upon which the tax deed has been issued after such property has been sold by the taxing agency, and the purchaser or his successors in interest have paid all property taxes legally levied or assessed thereon for a period of one (1) year, and such purchaser’s deed from such county or other taxing agency, shall be conclusive evidence of the doing of each and all of the acts, and taking of each and all proceedings required by law as to the issuance of a valid tax deed to such property.
History.

I.C.,§ 63-1011, as added by 1996, ch. 98, § 11, p. 308; am. 2001, ch. 193, § 2, p. 657.

STATUTORY NOTES

Cross References.

General provisions relating to adverse possession,§ 5-203 et seq.

Requirement of payment of taxes to give effect to adverse possession,§ 5-210.

Effective Dates.

Section 3 of S.L. 2001, ch. 193 provided that the act should take effect on and after January 1, 2002.

RESEARCH REFERENCES

Am. Jur. 2d.

§ 63-1012. Sale of personal property upon delinquency.

  1. Upon a delinquency of any personal property tax, the county tax collector shall issue a warrant of distraint for the collection of the delinquency. The warrant of distraint shall bear the date of its issuance, and shall be directed to the county sheriff. The warrant shall give the name of the delinquent taxpayer and his mailing address as ascertained by the county tax collector. The warrant shall also describe generally the personal property upon which the delinquency exists and give the amount of each delinquency. The warrant shall contain a direction to the county sheriff to seize and sell a sufficient amount of the property, or any other personal property of the delinquent taxpayer to be found within the county, with the minimum bid sufficient to pay the delinquency, together with interest and late charges thereon and together with all fees, commissions, mileage and costs accruing thereon.
  2. The county tax collector shall keep a record of the date of the issuance of each warrant of distraint and of the return, showing in detail the amount collected or the fact that no personal property belonging to the delinquent taxpayer was found. A record of all warrants of distraint shall, upon their return, be kept by the tax collector for a period of two (2) years. The collection of any delinquency, or the return of a warrant of distraint showing no property found, shall relieve the county sheriff and tax collector and their bondsmen from responsibility of that delinquency. Upon the return of any warrant of distraint showing property taxes uncollected it shall be the duty of the tax collector, when directed by the county commissioners, to commence and prosecute to judgment an action against the delinquent taxpayer, and no property shall be exempt from levy and sale upon execution issued on the judgment.
History.

I.C.,§ 63-1012, as added by 1996, ch. 98, § 11, p. 308.

STATUTORY NOTES

Cross References.

Distraint and sale of personal property for taxes,§§ 63-1101 to 63-1108.

Execution sales,§ 11-301 et seq.

CASE NOTES

Decisions Under Prior Law
Inadequate Description.

Where taxpayer alleged that warrants of distraint and tax receipts did not adequately and sufficiently describe the property, but where taxpayer failed to allege future damage through the county’s seeking again to collect the same taxes, the district court did not abuse its discretion in dismissing taxpayer’s suit for declaratory judgment. V-1 Oil Co. v. County of Bannock, 97 Idaho 807, 554 P.2d 1304 (1976).

Lien.

The lien for taxes is the first lien upon the property assessed for such taxes; it is also a lien only upon the then existing interest of its owner in any other property and is not superior to any incumbrance on such other property theretofore created by the act of the owner. Scottish Am. Mtg. Co. v. Minidoka County, 47 Idaho 33, 272 P. 498 (1928).

Methods of Collection.

Delinquent personal property taxes might be collected by distraint or by a suit in the name of the county, aided by attachment against property of the owner of the property taxed. Lemhi County ex rel. Gilbreath v. Boise Livestock Loan Co., 47 Idaho 712, 278 P. 214 (1929).

The procedure prescribed by the legislature in respect to levying, assessing and collecting taxes must be strictly observed. Tobias v. State Tax Comm’n, 85 Idaho 250, 378 P.2d 628 (1963).

§ 63-1013. Warrants of distraint — Service and execution.

  1. All warrants of distraint issued by the tax collector shall be served and executed by the sheriff in the manner provided by law for the services of executions by levy upon personal property and he shall make return of the same to the tax collector of the county within ninety (90) days from the date of his receipt thereof with an endorsement thereon showing that the delinquency therein described, together with interest, late charges and costs, as provided by law, have been collected, or that, no property can be found to seize under the warrant. For making a false return the sheriff shall be liable to the county for double the amount of the property taxes, with interest and costs.
  2. Fees allowed for issuing warrants of distraint, collection, levy and return of the same, shall be set by ordinance by the board of county commissioners. When levying on a warrant of distraint, the provisions of section 31-3203, Idaho Code, shall apply in determining service fees.
  3. If the sheriff returns the warrant of distraint showing that no property can be found upon which a levy can be made to collect the delinquency, he shall note in the return the county, if any, in this state to which the delinquent taxpayer may have moved together with his mailing address and the date of his departure shall also be noted on the returns. Upon the filing of the sheriff’s return showing that any delinquent taxpayer has moved to another county in this state, it shall be the duty of the tax collector to immediately issue and mail another warrant of distraint to the sheriff of the county to which the delinquent taxpayer is so shown to have moved, or in which personal property belonging to him may be found, and the sheriff to whom the other warrant of distraint is issued shall serve and return the warrant in the manner provided for the service and return of original warrants of distraint, making return of fees and commissions earned by him to the county auditor of his county, and paying any delinquency and fees collected, shown by the other warrant of distraint to be due, to the tax collector issuing the other warrant. Should a sheriff to whom the other warrant of distraint is issued be unable to find any property out of which the delinquency may be collected, he shall so return to the tax collector issuing the warrant.
History.

I.C.,§ 63-1013, as added by 1996, ch. 98, § 11, p. 308; am. 1997, ch. 117, § 34, p. 298; am. 2010, ch. 115, § 1, p. 241.

STATUTORY NOTES

Cross References.

Service of executions,§ 11-301.

Amendments.
Effective Dates.

The 2010 amendment, by ch. 115, in the first sentence in subsection (2), substituted “return of the same, shall be set by ordinance by the board of county commissioners” for “return of same, shall be ten dollars ($10.00) for issuing each warrant.” Effective Dates.

Section 42 of S.L. 1997, ch. 117 declared an emergency and provided that §§ 1 to 40 should be in full force and effect retroactive to January 1, 1997. Approved March 15, 1997.

§ 63-1014. Removal or sale or repossession of personal property before payment of property taxes on property rolls.

  1. Whenever any person, firm or corporation owning any personal property shall desire to remove the personal property from the county or sell or repossess the property before all property taxes due and payable including the current year’s taxes have been paid upon the personal property, the property taxes shall be paid to the tax collector upon demand and before the removal of the property from the county. It shall be the duty of the tax collector to collect the property taxes provided for in this section, and all the provisions of this chapter are hereby made available to the tax collector in the collection of such taxes.
    1. If a person holding a purchase money security interest desires to repossess and sell a specific piece of personal property and the market value of that personal property exceeds twenty thousand dollars ($20,000), that person shall provide to the tax collector a request to segregate that specific piece of personal property from the personal property tax parcel. The person holding the purchase money security interest shall provide a copy of the purchase money security interest agreement with the request for segregation.
    2. The county assessor shall determine and provide to the tax collector the market value for assessment purposes of that segregated portion of personal property. The tax collector shall calculate property tax to be paid for any delinquencies, including late charges, accrued interest, costs incurred and the estimated taxes for the current year relating to that segregated portion of personal property.
    3. The person holding the purchase money security interest shall pay all personal property taxes owed, including late charges, accrued interest and costs incurred on the specific segregated personal property to the tax collector before taking possession of the personal property or selling the property.
    4. The segregation of specific personal property from the personal property tax parcel shall not affect the priority of the tax lien on the remaining personal property items in the parcel.
  2. It shall be a misdemeanor for any person, firm or corporation to move from the county or sell or repossess any personal property or manufactured home without the payment of the current year’s property taxes or without paying property taxes due and owing, and upon conviction the person, firm or corporation shall, in addition to any penalty which the court may impose, pay to the tax collector a sum not in excess of double the amount of property tax which was collectible on the property removed or sold or repossessed, together with all costs and late charges provided for in this chapter. The excess sum shall be collected by the tax collector in the same manner as the original property tax.
History.

I.C.,§ 63-1014, as added by 1996, ch. 98, § 11, p. 308; am. 2012, ch. 307, § 1, p. 848.

STATUTORY NOTES

Cross References.

Penalty for misdemeanor when not otherwise provided,§ 18-113.

Amendments.

The 2012 amendment, by ch. 307, added paragraphs (a) through (d) to subsection (1).

§ 63-1015. Apportionment of proceeds from redemption.

Upon the redemption from tax sale of any property described in any delinquency entry, the amount paid on account of such redemption, shall be paid into the county treasury by the tax collector, upon the certificate of the county auditor, to be apportioned among the several state and county funds and taxing districts, as provided for the apportionment of property taxes.

History.

I.C.,§ 63-1015, as added by 1996, ch. 98, § 11, p. 308.

STATUTORY NOTES

Compiler’s Notes.

Section 20 of S.L. 1996, ch. 98 read: “Existing Rules Remain in Effect. All rules heretofore adopted by the state tax commission and in effect on the effective date of this act shall remain in full force and effect unless and until superseded or replaced by rules duly adopted by the commission, or until the same are rejected, amended or modified by the legislature in accordance with the provisions of chapter 52, title 67, Idaho Code, or until they expire as provided in section 67-5292, Idaho Code.”

Effective Dates.

Section 21 of S.L. 1996, ch. 98 provided that the act shall be in full force and effect on January 1, 1997.

CASE NOTES

Decisions Under Prior Law
Drainage Assessments.

It is not contemplated that drainage assessments are to be merged with general taxes and so considered part thereof, or that such latter taxes may not be paid while former is outstanding. Booth v. Clark, 42 Idaho 284, 244 P. 1099 (1926).

Chapter 11 SEIZURE AND SALE OF PERSONAL PROPERTY FOR TAXES

Sec.