Idaho Administrative Code
Title IDAPA 35 - Tax Commission, State
Rule 35.01.03 - PROPERTY TAX ADMINISTRATIVE RULES
Section 35.01.03.804 - TAX LEVY - CERTIFICATION - URBAN RENEWAL REVENUE ALLOCATION AREAS
Universal Citation: ID Admin Code 35.01.03.804
Current through September 2, 2024
Sections 50-2908, 50-2033, 50-1903, 50-2903A, 50-2905A, 50-2913, 63-803, 63-811, 63-317A, 33-909, 67-1076, 63-802, 63-602Y, Idaho Code
01. Definitions.
a. Revenue allocation area as referred to in Section 50-2908, Idaho Code, is the area defined in Section 50-2903, Idaho Code, in which base and increment values are to be determined. A new urban renewal plan is required when an urban renewal agency establishes a new revenue allocation area. Revenue allocation areas are not taxing districts.
b. The current base value does not include value found on the occupancy roll. Current base value includes the previous year's non-prorated value of current taxable property subject to assessment under Section 63- 602Y, Idaho Code during the year the initial base value was established.
c. The initial base value for each parcel is the sum of the net taxable value of each category of property in the parcel for the year the revenue allocation area is established. In the case of annexation to a revenue allocation area, initial base value of each annexed parcel shall be the value of that parcel as of January 1 of the year in which the annexation takes place. The initial base value includes any prorated value added for property subject to Section 63-602Y, Idaho Code.
d. The increment value is the difference between the current net taxable value of each parcel of taxable property in the revenue allocation area and that parcel's current base value, provided such difference is a positive value. Newly constructed improvements with value listed on the occupancy roll within a newly formed revenue allocation area or within an area newly annexed to an existing revenue allocation area are added as increment value in the year following the year of formation or annexation.
02. Establishing and Adjusting Base and Increment Values.
a. Establishing initial base value. If a parcel's legal description has changed prior to computing initial base value, the value that best reflects the prior year's net taxable value of the parcel's current legal description constitutes the initial base year value for such parcel. The initial base value includes the net taxable value, as of the effective date of the ordinance adopting the urban renewal plan. Initial base value does not include value found on the occupancy roll.
b. Adjustments to base value - general value changes. Adjustments to base values are calculated on a parcel by parcel basis, each parcel being a unit and the total value of the unit being used in the calculation of any adjustment. Base values are to be adjusted downward when the current net taxable value of any parcel in the revenue allocation area is less than the most recent base value. In the case of parcels containing some categories of property which increase in value and some which decrease, the base value for the parcel will only decrease provided the sum of the changes in category values results in a decrease in total parcel value. Any adjustments are by category and may result in increases or decreases to base values for given categories of property for any parcel. Adjustments to base values for any real, personal, or operating property establish new base values from which future adjustments may be made.
c. Adjustments to base value - splits and combinations. Before other adjustments can be made, the most recent base value must be adjusted to reflect changes in each parcel's legal description. This adjustment is calculated as described in the following subsections:
i. When a parcel has been split, the most recent base year value is transferred to the new parcels, so that the new total equals the most recent base year value. Proportions used to determine the amount of base value assigned to each of the new parcels are based on the value of the new parcels had they existed in the year preceding the year for which the value of the new parcels is first established;
ii. When a parcel has been combined with another parcel, the most recent base year values are added together; and
iii. When a parcel has been split and combined with another parcel in the same year, the value of the split is calculated as set forth in Subparagraph 804.02.c.i. and then the value of the combination calculated as set forth in Subparagraph 804.02.c.ii.
d. Adjustments to base values when exempt parcels become taxable. Base values are adjusted as follows:
i. When a parcel that was exempt at the time the revenue allocation area was established becomes taxable, the base value is adjusted upwards to reflect the estimated value of the formerly exempt parcel as it existed at the time the revenue allocation area was established;
ii. Except as provided in Subparagraph 804.02.d.v. of this rule, when a partially exempt parcel within the revenue allocation area becomes fully taxable, the base value of the revenue allocation area is adjusted upwards by the difference between the value that would have been assessed had the parcel been fully taxable in the year the revenue allocation area was established and the net taxable value of the parcel included in the base value of the RAA revenue allocation area;
iii. For partially exempt properties that do not lose an exemption, but for which the amount of the exemption changes, there is no adjustment to the base value, unless the current taxable value is less than the most recent base value for the property;
iv. Except as provided in Subparagraph 804.02.d.v. of this rule, when a parcel that is taxable and included in the base value at the time the revenue allocation area is established subsequently becomes exempt, the base value is reduced by the most current value of the parcel included in the base value. If this parcel subsequently becomes taxable, the base value is adjusted upward by the same amount that was originally subtracted; and
v. Assignment of expiring exemption value to base or increment in revenue allocation areas:
(1) When a parcel is part of the base value of a new revenue allocation area and subsequently receives the exemption provided in Section 63-602NN, Idaho Code, the exempt value is added to increment value upon loss of the exemption;
(2) If the parcel were annexed into a revenue allocation area while the plant investment was exempt under Section 63-602NN, Idaho Code, once the exemption expires, the value of the plant investment is added to the base assessment roll; and
(3) If the plant's development was initiated or completed before the formation of the revenue allocation area, the value of the taxable improvement is added to the base assessment roll upon loss of the exemption.
e. Base values are adjusted downward for real, personal, and operating property removed from the revenue allocation area. Property is considered removed under the following conditions:
i. For real property, the entire improvement is removed from the revenue allocation area without replacement during the year the original improvement was removed. If said improvement is replaced during the year of removal, the reduction in base value is calculated by subtracting the value of the new improvement from the current base value of the original improvement, provided that such reduction is not less than zero (0);
ii. For personal property, all personal property associated with one (1) parcel is removed from the revenue allocation area or any of the personal property associated with a parcel becomes exempt; and
iii. For operating property, any of the property under a given ownership is removed from the revenue allocation area.
f. When property is annexed into a revenue allocation area, the base value in the revenue allocation area is adjusted upwards to reflect the value of the annexed property as of January 1 of the year in which the annexation takes effect.
g. For operating property, the original base value is apportioned to the revenue allocation area on the same basis as is used to apportion operating property to taxing districts and units.
03. Levy Computation for Taxing Districts Encompassing Revenue Allocation Areas. Levies are computed in one (1) of two (2) ways.
a. For taxing district or taxing unit funds other than those meeting the criteria listed in Section 50- 2908, Idaho Code, and the levies authorized pursuant to Sections 33-317A and 33-909, Idaho Code, the property tax levy is computed by dividing the dollar amount certified for the property tax portion of the budget of the fund by the net taxable value within the taxing district or unit, including the base value, but excluding the increment value.
b. For taxing district or taxing unit funds meeting the criteria listed in Section 50-2908, Idaho Code, and the levies authorized pursuant to Sections 33-317A and 33-909, Idaho Code, the property tax levy is computed by dividing the dollar amount certified for the property tax portion of the budget of the fund by the net taxable value within the taxing district or unit, including applicable increment value as prescribed in Section 50-2908, Idaho Code.
04. Modification of an Urban Renewal Plan. Except as described in Paragraphs 804.04.a., b., c., or d. of this rule, when an authorized municipality passes an ordinance modifying an urban renewal plan containing a revenue allocation area, for the tax year immediately following the year in which the modification occurs, the base value of property in the revenue allocation area is reset to reflect the current net taxable value of the property.
a. Modification by consolidation of revenue allocation areas. If such modification involves combination or consolidation of two (2) or more revenue allocation areas, the base value is determined by adding together current base values for each of the areas. The current net taxable value of property in an area not previously included in any revenue allocation area is included in the current base value for the consolidated revenue allocation area.
b. Modification by annexation.
i. If a revenue allocation area is modified by annexation, the current net taxable value of property in the area annexed is included in the most current base value determined for the revenue allocation area prior to the annexation;
ii. For bond levies approved prior to December 31, 2007, and included within the boundaries of a revenue allocation area by a change in the boundaries of either the revenue allocation area or the area subject to the bond levy after December 31, 2007, the levy will be computed as described in Paragraph 804.03.b. of this rule;
iii. An annexation permitted pursuant to Section 50-2033, Idaho Code, to a revenue allocation area in existence prior to July 1, 2016, does not change the status of the revenue allocation area regarding inapplicability of the base reset or attestation provisions found in Section 50-2903A, Idaho Code.
c. Other modifications - attestation requirements. Modification resulting in adjustment of base value to reflect the current net taxable value of the property within the revenue allocation area is not deemed to have occurred when the urban renewal agency attests to having made no modifications to a plan or is not required to attest to plan modifications. Urban renewal agencies required to attest annually to having made or not made plan modifications include:
i. Urban renewal agencies that establish new revenue allocation areas on or after July 1, 2016, with regard to any new revenue allocation area; and
ii. Urban renewal agencies that enact new plans including a revenue allocation area on or after July 1, 2016.
d. Modifications when there is outstanding indebtedness. When any urban renewal agency attests to having had a plan modification that is not an exception identified in Paragraphs 804.04.a.,r b., or c. of this rule or fails to provide the required attestation, the base value is determined without regard to the modification, provided that the agency certifies to the Tax Commission by June 30 of the tax year that there is outstanding indebtedness as defined in Section 50-2903A(2), Idaho Code. In this case, the allocation of revenue to the urban renewal agency is the amount certified as necessary to pay the indebtedness. Any additional revenue is distributed to each taxing district or unit in the same manner as property taxes. Such revenue is considered property tax revenue for the purpose of the limitations in Section 63-802, Idaho Code. The county clerk will notify the Tax Commission of the amount so distributed for each year beginning July 1 of the prior year and ending June 30 of the current tax year.
e. For any urban renewal agency subject to the requirements of Section 50-2903A, Idaho Code, except as provided in Paragraph 804.04.d. of this rule, if such agency fails to provide the required attestation by the first Monday of June each year, the Tax Commission will reset the base value or limit allocation of property tax to the urban renewal agency as required in Section 50-2903A, Idaho Code. Provided there is no new plan, an urban renewal agency with a plan including one (1) or more revenue allocation areas in existence prior to July 1, 2016, will only be required to provide this attestation or be subject to base resetting or other limitations for failure to submit this attestation with respect to new revenue allocation areas formed on or after July 1, 2016.
f. Notice of actions related to base reset or revenue allocation limitations.
i. The Tax Commission will notify any urban renewal agency, and affected county and city officials, within thirty (30) days of the time the Tax Commission receives an attestation that an urban renewal plan has been modified, or by July 30 in any year in which an attestation is required but none is received, of the Tax Commission's intent to initiate the process to reset the base value in the following tax year;
ii. In the case of base reset due to failure to provide the required attestation, the Tax Commission will notify the agency, county and city officials that the base is to be reset in the immediate following year if the Tax Commission has not received the attestation by December 31 of the current tax year;
iii. In the case of a revenue allocation limitation pursuant to Section 50-2913, Idaho Code, notice is provided to the agency, county, and city officials including the county assessor and county clerk, within thirty (30) days of the due date of the plan or plan update;
iv. In the case of a revenue allocation limitation due to a plan modification but outstanding indebtedness, notice is provided to the agency and county and city officials, including the county assessor and county clerk, within thirty (30) days of receipt by the Tax Commission of the certification of the amount needed to repay the indebtedness;
v. Once decisions about base reset or revenue allocation limitations are final, additional notice is sent to the agency and county and city officials, including the county assessor and county clerk, within thirty (30) days of any such final decision. Said notice will include an identification of the year in which the reset or revenue allocation limitation will take effect and the amount of any revenue allocation limitation.
05. Setting Levies When There is a De-annexation From a Revenue Allocation Area. In any de- annexation from a revenue allocation area, levies are set using the base value and, as indicated in Subsection 804.03 of this rule, the appropriate amount of increment value associated with the parcels and operating property remaining in the revenue allocation area after the de-annexation, provided that the de-annexation is in effect no later than September 1 of the current tax year.
06. Setting Levies When There is a Refinancing of Bonded Indebtedness. Refinancing of bonded indebtedness in existence as of December 31, 2007, does not create new bonded indebtedness for any taxing district with respect to the levy setting criteria in Subsection 804.03 of this rule.
07. Cross Reference. See Rule 802 and 805 of these rules.
Effective July 1, 2024
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