11/15/16
2016NewlyElectedCounty
OfficialsTraining
IdahoStateTaxCommission
SteveFiscus,Admin.,PropertyTaxDivision
GeorgeBrown,DeputyAttorneyGeneral
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11/15/16
StatutesinIdahoCode
CountyGovernment- Title31
GeneralTax- Title63
UrbanRenewal- Title50
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IdahoStateTaxCommission(ISTC)
monitorsquantityofappraisalsand
levelofassessment.
I.C.63-314&Rule314(frequency)
I.C.63-208&Rule131&217
(marketvalue)
I.C.63-316&Rule316(enforcement)
Appraisal– I.C.§63-314
Vs.
Assessment– I.C.§63-301
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FrequencyofAssessment
• “Allreal,personalandoperatingpropertysubjectto
propertytaxationmustbeassessedannually….”
(IC63-205)
– Countyassessesrealandpersonalproperty
– STCassessesoperatingproperty- (utilitiesandrailroads)
• “Taxablepropertyshallbeappraisedorindexedannually
toreflectcurrentmarketvalue.”(IC63-314)
– Appraisalincludesfieldinspection(requiredatleastevery5
years).
– Propertynotappraisedingivenyearmustbeindexedtocurrent
marketvalue.
– Currentmarketvaluethisyearisthevalueofthepropertyasof
January1,2014
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MarketValue
Considerallthreeapproachestovalue
(cost,marketandincome)
UseofRatiostudiestodetermineequalization
*youdonothavetowaituntiltheannual
studiesbytheSTCtoutilizeratioanalysis
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Enforcement
IdahoCode63-316&Rule316
TheTaxCommissionwithholdssalestax
distributiontopayforareappraisalprogramto
becompleted.
IdahoCode63-109
IftheTaxCommissiondeterminesthatvaluesdo
notachieveproperassessmentlevels,the
countyissubjecttoStateBoardofEqualization
actions
Exemptions
• 63-602(3)(a)(b)IdahoCode
• Includesalistofexemptionsthatdonotrequire
anapplication.(Govt.,cemeteries,libraries,agofmorethan5acres)
• Forexemptionsthatdorequireanapplication
April15tofilewiththeCountyCommissioners
NotifythetaxpayerandAssessorbyMay15
TaxpayermayfileanappealwiththeBOEif
theydon’tagreewiththedecision.
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Exemptions(cont.)
63-602NNCertainBusinessProperty
“DefinedProject”,includingaplan
“Investmentinnewplant”,602NN(2)(c)
Atleast$3,000,000attheprojectsite
Commissionersmaygrantalloraportionof
theexemptionforuptofiveyears
• Propertydoesnotqualifyifithaseverbeen
onthepropertyrolls
•
•
•
•
•
CountyBoardofEqualization
I.C.§63-501to511
(TraininginSpring2017)
TheBOEcanmeetmonthlyuntilthefourth
MondayinJune.Atthatpointtheymeetdaily,
ifnecessary,tocompletetheirbusiness.
Also,meetinNovemberforthesub-rollandin
Januaryforthemissedroll.
Whatarethesub-rollandmissedroll?
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AppealsfromtheCountyBOE?
StateBoardofTaxAppeals
NOTTHESTATEBOARDOFEQUALIZATION
63-3801to63-3814
or
DistrictCourt
TaxCommissionAppraises
PublicUtilitiesandRailroads
(AKA.CentrallyAssessed)
I.C.§63-401
• ApportionstoIdaho
• AllocatesvaluestoTaxingDistricts
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TheStateBoardofEqualizationhears
appealsofCentrallyAssessed
Propertiesandequalizescounty
valuesinAugust.
Taxingdistrictsholdbudgethearings
andsetbudgets.
I.C.§63-801to63- 812
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Budgetsandleviesaresenttothe
IdahoStateTaxCommissionfor
approval
I.C.§63-809
(TraininginMay2017)
TaxLeviesaresetbytheFourth
MondayinOctober,senttoCounty
ClerksandTreasurers
PropertyTaxBillsmailedpriortothe
fourthMondayinNovember
I.C.§63-902
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PaymentsaredueDecember20and
June20NOT for½yearbut½
payment.
I.C.§63-903
Delinquencies
I.C.§63-1001– 1015
TheTaxDeedProcess
Countiesmayhaveinternalpolicies
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UrbanRenewal
I.C.Title50Chapter20
URAvs.RAA????
TaxIncrementFinancing
aneconomicincentiveinvolvingpropertytax
• Permitsallocationofpropertytaxestourban
renewalagency(URA)inspecifiedareas
• Oftenusedtohelpprovideinfrastructure:
– Parkinggarages
– Sewerandwaterlines
– Streetimprovements
• Propertieswithintheseareasstillpaytaxesat
prevailingrate,butmoneyisnotpassedonto
localtaxingdistricts
– Beginningin2008,URAsnolongerderiverevenue
frommostvoterapprovedleviesandcertain
judgmentsagainsttaxingdistricts.
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Howdowedothemath?
• Notlikethis
2016PropertyTaxUse
3.4% $ 6.0 Mill
Cemetery
15.6% $ 28.0 Mill
Jr. College
City 26.8%
$ 455.8 Mill
School 29.8%
$ 505.4 Mill
38.2% $68.4 Mill
Fire
Other 10.6%
$ 179.3 Mill
42.9% $76.8 Mill
Miscellaneous
Highway 6.2%
$ 105.1 Mill
County 26.6%
$ 451.2 Mill
OTHER 10.6%
TOTAL
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So,whopaysthe
propertytax?
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
45.2%
28.4%
18.9%
2.8%
4.0%
0.5% 0.2%
Owner occupied residential
Commercial / Industrial
Timber
Operating (Utilities)
Distribution
shown is
statewide in
Idaho for
2016
Non-owner occupied residential
Agricultural
Mining
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Fiscal Year 2013 Tax Burden
Idaho vs. Neighbor States
250%
Percent of U.S. average
200%
150%
100%
50%
0%
Overall Property
Id
Mt
Nv
Sales
Or
Ind. Inc.
Ut
Corp.
Inc.
Wa
Mtr Veh.
Wy
Based on per capita taxes. States compared to U.S. average.
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FY2013OverallTaxBurden
Idahovs.NeighborStates
160.0%
140.0%
120.0%
100.0%
86.7%
93.8%
95.3%
96.4%
107.5%
93.7%
89.9%
Ut
Wa
80.0%
60.0%
40.0%
20.0%
0.0%
Idaho
Mt
Nv
Or
Wy
Based on taxes per $ of income.
FY2013PropertyTaxBurden
Idahovs.NeighborStates
160.0%
128.8%
140.0%
111.0%
120.0%
100.0%
77.7%
101.2%
81.2%
76.4%
80.0%
87.9%
60.0%
40.0%
20.0%
0.0%
Idaho
Mt
Nv
Or
Ut
Wa
Wy
Based on taxes per $ of income.
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TAXES COLLECTED IN IDAHO
PROPORTION OF STATE & LOCAL TAX REVENUE
PROPERTY TAX IS CALENDAR YEAR; OTHERS ARE FISCAL YEAR
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Sales
Motor Fuels
2003
2002
2001
2000
1999
Property
Corporation Income Tax
1998
1994
1990
1986
1982
1972
1967
1962
0%
Individual Income Tax
Other
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IdahoFiscalYear2016Revenue
StateandLocalTaxRevenue
Corporation Income Tax
$ 189 Million
3.6%
Motor Fuel
$ 317.5 Million
6.0%
Sales
$ 1,548.2 Million
29.3%
Other
$ 81.5 Million
1.5%
Individual Income Tax
$ 1,522 Million
28.8%
Property*
$1,696.7 Million
31.7%
Where the Money Came From
Millions of Dollars
Property Tax is Calendar 2016
IdahoFiscalYear2016GeneralAccount
StateTaxRevenue
Sales Tax
$ 1,303.0
Corporate
Income Tax
$ 177.5
Other Taxes
$ 27.6
Individual
Income Tax
$ 1,504.8
Millions of Dollars
Represents funds that
go to the general fund
refunds have been deducted.
Where the money came from.
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IdahoFiscalYear2016
GeneralAccountAppropriations
Other Education
$135.8 – 7.1%
Health &
Welfare
$ 685.3 –
22.3%
Colleges
$ 292.7 – 15.4%
All Education
$ 1,904.3 – 62.0%
Public Schools
$ 1,475.8 – 77.5%
All Other
$ 487.3– 15.7%
All Funding
Education Funding
Millions of Dollars
WheretheSalesTaxGoes
$MillioninFiscalYear2016
Other
Funds
$ 245.2
General
Account
$ 1,303.0
Building Fund
$ 5.0
Water Pollution
$ 4.8
Election
Consolidation
$ 4.5
Ag Replacement
$ 8.5
Personal Property
$ 18.9
Circuit Breaker
$ 16.6
Business Inventory
Replacement
$ 77.4
County Revenue
Sharing
$ 50.2
City Revenue
Sharing
$ 50.2
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SalesTaxDistribution
StatuteandRule
• DistributionformulasarefoundinIdahoCode
§63-3638(9)
• Definitionsandproceduresarefoundin
PropertyTaxAdministrativeRule995.
DifferentTypesof
SalesTaxDistribution
• DistributionformulafoundinI.C.§63-3638(9)
– 11.5%continuouslyappropriated
• RevenueSharing– countiesandcitiesonly:
– 28.2%paidtovariouscities,
– 28.2%paidtovariouscounties,
• BaseandExcess– allbutschooldistricts:
– 35.9%paidtoseveralcountiesandcities,and
– 7.7%paidtoSpecialPurposeTaxingDistricts(SPTDs)
– Paidquarterly
• AllbuttheCityRevenuesharemoneypaiddirectlytoeach
county.Countythendistributesmoneytoeachappropriate
taxingdistrict.
• CityRevenueSharingpaiddirectlytoeachcity.
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RevenueSharing
CountyOnly
Howdoesthiswork?
• 28.2%ofthe11.5%paidasfollows:
– $1,320,000annuallydistributed1/44toeach
county.(equals$7,500perquarterpercounty)
– Thebalanceshallbepaidbasedoneachcounty’s
proportionateshareoftotalstate’spopulation.
CountyRevenueSharingReport
County Revenue Sharing
Quarter Ending September 30, 2016
Idaho Code 63-3638(10)(b)
County
7/12/2016
Ada County
Adams County
Bannock County
Bear Lake County
Benewah County
Bingham County
Blaine County
Boise County
Bonner County
Bonneville County
Boundary County
Butte County
Camas County
Canyon County
1/44
330,000
7,500
7,500
7,500
7,500
7,500
7,500
7,500
7,500
7,500
7,500
7,500
7,500
7,500
7,500
Est. 2015
Population
Population
Percent
434,211
26.237%
3,843
0.232%
83,744
5.060%
5,922
0.358%
9,052
0.547%
44,990
2.719%
21,592
1.305%
7,058
0.426%
41,859
2.529%
110,089
6.652%
11,318
0.684%
2,501
0.151%
1,066
0.064%
207,478
12.537%
Population
Share
3,633,886.62
32,161.84
700,848.67
49,560.87
75,755.66
376,518.69
180,702.19
59,067.99
350,315.54
921,328.44
94,719.68
20,930.72
8,921.29
1,736,371.32
Total
Distribution
3,641,386.62
39,661.84
708,348.67
57,060.87
83,255.66
384,018.69
188,202.19
66,567.99
357,815.54
928,828.44
102,219.68
28,430.72
16,421.29
1,743,871.32
http://www.tax.idaho.gov/search-reports.cfm?ch=EPB00679
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LiquorDistribution&Community
Colleges
• I.C.23-404DistributionofFunds
FY2013$11.9MilliontoCounties
• I.C.33-2110A(3)Tuition
50%ofLiquorFunds
• I.C.63-3638ASalesTaxonLiquor
GoesintoLiquorFundnotSalesTax
ProfitDistribution
FY 2015
Total Distribution
$64,412,744
CourtSupervision,
$0.4,1%
Millions of Dollars
Cities, $18.3,28%
Counties, $12.2,19%
CooperativeWelfare,
$0.7,1%
CourtServices, $4.1,
6%
CommunityCollege,
$0.6,1%
SubstanceAbuse
Treatment, $2.1,3%
GeneralFund, $24.9,
39%
PublicSchools, $1.2,
2%
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DistributionofNetFundstothe
HighwayDistributionAccount
• IdahoStatePolice…………………5%
• City,CountyandHighwayDistrict
Jurisdictions………………………….38%
• StateHighwayAccount……....57%
ThePersonalPropertyTax
• PersonalpropertytaxesinIdahowerebetween$104*
and$140*millionoutof$1,697millionintotalproperty
taxesin2016(6%- 8%statewide,butmuchhigherin
somecounties).
• Inadditiontofurniture,machinery,andequipment,the
abovefigureforpersonalpropertytaxincludesrailcars
andcertainotherportionsofoperatingproperty.
• Amountsshownreflect2015partialexemption
*Does not include $11.2 million tax on personal
property paid to urban renewal agencies; but includes
portion of operating property assumed to be
equivalent
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