01.
Procedures for Boise School District Ratio Studies. The Boise School District ratio study is conducted in accordance with the "Standard on Ratio Studies" referenced in Rule 003 of these rules.
a. Information on property sales, which meet the requirements of arm's length market value sales, is assembled into samples representing designations defined in Subsection 315.02 of this rule in the Boise School District. Except when sales or appraisals must be added or deleted to improve representativeness, sales used are those occurring within the Boise School District between October 1 of the year preceding the year for which adjusted market value is to be computed and September 30 of the next year. Each sale price is adjusted for time and compared to market value for assessment purposes for the year for which adjusted market value is to be computed. The Tax Commission may use sales from extended time periods and may add appraisals when data is lacking.
b. The market value for assessment purposes of the sale or appraised property is divided by the adjusted sale price or appraised value to determine the ratio.
c. A statistical analysis is conducted for the sales and appraisals in each property designation described in Subsection 315.02 of this rule in the Boise School District and appropriate measures of central tendency, uniformity, reliability, and normality computed.
d. If fewer than five (5) sales and appraisals are available, no adjustment to the net taxable value of the designation is made.
e. If it is determined with reasonable statistical certainty that the property designation is not at market value for assessment purposes, an adjusted market value is computed for the Boise School District by dividing the net taxable value for the year for which adjusted market value is to be determined by the appropriate ratio derived from the ratio study. The appropriate ratio to be used is the weighted mean ratio calculated from the sample for each designation, unless it can be clearly demonstrated that this statistic has been distorted by non-representative ratios. In this case the median may be substituted.
f. Within the Boise School District, adjusted market value for each secondary category of real, personal and operating property is summed to produce the adjusted market value for the Boise School District. The Boise School District net taxable value is divided by this adjusted market value to produce the overall ratio of assessment in the Boise School District.
g. Urban renewal increment values are not included in the net taxable value for the Boise School District. Upon receipt of an urban renewal agency's resolution recommending the adoption of an ordinance for termination of a revenue allocation area by December 31 of a given year, the increment value in the immediate prior year is included in the net taxable value for the Boise School District. If the resolution is received prior to the first Monday in April, the net taxable value for the immediate prior year is adjusted by adding the increment value. If any ratio study-based adjustments are warranted, they apply to the actual value including the increment value. If the resolution is received on or after the first Monday in April, but by September 1, a corrected certification of actual and adjusted values is provided as soon as practical.
h. "Reasonable statistical certainty," that the property designation in question is not at market value for assessment purposes is tested using ninety percent (90%) confidence intervals about the weighted mean or median ratios. If the appropriate confidence interval includes ninety-five percent (95%) or one hundred five percent (105%), there is not "reasonable statistical certainty" that the property designation is not at market value for assessment purposes.
i. Secondary categories are assigned to designations as follows:
i. Secondary categories 10, 12, 15, 18, 20, 26, 31, 34, 37, 40, 41, 46, 47, 48, 65, or 50 are residential; and
ii. Secondary categories 11, 13, 14, 16, 17, 21, 22, 27, 33, 35, 36, 38, 39, 42, 43, or 51 are commercial.
j. For all secondary categories, described in Rule 510, 511, or 512 of these rules but not contained in the list in Paragraph 315.01.i. of this rule, adjusted market value will equal taxable value.
k. "Appraisal" or "appraised value" refers to any Tax Commission provided property appraisal.
02.
Use of Property Designations. In computing the ratio for the Boise School District, the Tax Commission will designate property as residential or commercial and will assign sales and appraisals to these designations as shown in Paragraph 315.01.i. of this rule. For the Boise School District, adjusted market value is computed by dividing the appropriate ratio ascertained for each of these designations into the sum of the net taxable values for each secondary category assigned to a designation. Except as provided in Subsection 315.05 of this rule, for the net taxable value in any secondary category to be included in said sum, at least one (1) observation (sale or appraisal) from that secondary category must be present in the ratio study. If the ratio for any given designation in the Boise School District indicates that the market value for assessment purposes cannot be determined with reasonable statistical certainty to differ from statutorily required market value, the net taxable value shown on the Boise School District abstract(s) required pursuant to Subsection 315.04 of this rule for each of the secondary categories included in that designation is the adjusted market value for said designation.
03.
Assessor to Identify Location. Each county assessor will identify which sales submitted for the ratio study are located within the Boise School District.
04.
Abstracts of Value for the Boise School District. Each applicable county auditor will provide to the Tax Commission abstracts of the net taxable value of all property within the portion of the Boise School District in that county. These abstracts are submitted in the same manner and at the same time as provided for county abstracts of value.
05.
Exception from Requirement for at Least One Observation for Use of Secondary Category in Adjusted Value Determination. When there is an adjustment to be made to the net taxable values in the residential designation, such adjustment applies to any net taxable value in secondary category 10, provided there is at least one (1) observation (sale) of property identified in either secondary category 12 or 15. Such adjustment will also be applied to any net taxable value in secondary category 31, provided there is at least one (1) observation (sale) of property identified in either secondary category 34 or 37.
06.
Certification of Values. The Tax Commission certifies values under Section 63-315, Idaho Code, by publication on the Tax Commission's web site or in an alternate format on request.
07.
Cross References. See rules 130, 510, 511, and 512 of these rules.
