Signed by Governor Brad Little

Vote Smart's Synopsis:

Vote to pass a bill that amends Idaho's property tax deferral program to make seniors with a certain amount of home equity eligible for deferred taxes.

Highlights:

• Classifies "qualified claimant" as the following (Sec. 1-1):

• An individual who is a claimant who applies for and properly receives property tax relief; or

• An individual who meets the definition of "claimant" and is nevertheless be a qualified claimant, provided his household income does not exceed $450,000 for the tax years 2007-2021, which amount shall be increased by the annual cost-of-living percentage modification as determined by the Secretary of Health and Human Services.

• Establishes 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 regarding the qualified property subject to the election, is deferred until the deferral is terminated (Sec. 2-1).

• Establishes during the period of deferral, interest will accrue on the amount deferred at the annual rate of 6% annually interest (Sec. 2-2).

• Requires the lien imposed to continue to be a lien on the property in the amount of deferred taxes and interest thereon. The state tax commission will file with the county recorder of the county in which the property has located a notice of lien for deferred property taxes (Sec. 2-3).

• Requires the state tax commission to pay to the county tax collector of each county one-half of the amount due for each county as reimbursement for property taxes deferred as shown on the property tax reduction roll 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 of such amount by no later than June 20 of the following year (Sec. 3-1).

• Specifies the total amount of reimbursement payable to all counties will not exceed $5,000,000 regarding property taxes for one calendar year. If the amount of taxes approved for deferral exceeds $5,000,000, the amount of taxes deferred for each qualifying property will be reduced proportionately and the balance of property tax not deferred will be entered on the property tax notice and will be payable (Sec. 3-2).

Full Bill Text