Current through August 31, 2023
Sections
39-4105,
39-4301,
63-201,
63-302,
63-309,
63-602KK,
63-1703,
63-2801, Idaho Code
01.
Real Property. Real property
is defined in Section
63-201, Idaho Code. Real property
consists of land and improvements. (3-31-22)
a. Land. Land is real property as well as all
rights and privileges thereto belonging or any way appertaining to the land.
(3-31-22)
b. Law and Courts. Real
property also consists of all other property which 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. (3-31-22)
c. Improvements. Improvements are buildings,
structures, fences, and similar properties that are built upon land.
Improvements are real property regardless of 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. (3-31-22)
02.
Personal Property. Personal
property is defined in Section
63-201, Idaho Code, as everything
that is the subject of ownership that is not real property. (3-31-22)
03.
Fixtures. Fixtures are
defined in Section
63-201, Idaho Code, as articles
that were once moveable personal property items but have become real property
as determined by the application of the three factor test. (3-31-22)
a. The three factor test consists of
annexation, adaptation and intent as explained below. (3-31-22)
i. Annexation. Although once moveable
chattels, articles become accessory to and a part of improvements to real
property by having been physically or constructively incorporated therein or
annexed or affixed thereto in such a manner that removing them would cause
material injury or damage to the real property; and (3-31-22)
ii. Adaptation. The use or purpose of an item
is integral to the use of the real property to which it is affixed; and
(3-31-22)
iii. Intent. Items should
be considered personal property unless a person would reasonably be considered
to intend to make the articles, during their useful life, permanent additions
to the real property. The intent depends on an objective standard and what a
reasonable person would consider permanent and not the subjective intention of
the owner of the property. (3-31-22)
b. If an item of property satisfies all three
factors of the three factor test, the item becomes a fixture and therefore real
property. (3-31-22)
04.
Operating Property. Operating Property is defined in Section
63-201, Idaho Code. For any
purpose for which the distinction between personal property and real property
is relevant or necessary for operating property, operating property will be
characterized as personal or real based upon the criteria stated in this
guideline and the rules of the Tax Commission. (3-31-22)
