IDAPA 35.01.03.619 — PROPERTY EXEMPT FROM TAXATION -- FACILITIES FOR WATER OR AIR POLLUTION

CONTROL.
Section 63-602P, Idaho Code
01.
Exempt Property. Only portions of installations, facilities, machinery, or equipment devoted
exclusively to elimination, control, or prevention of water or air pollution are exempt.
(7-1-24)
02.
Calculation of Partial Exemption. The exemption does not include the percentage of the value for
any portion of the facility used for the production of marketable by-products. The exempted value is the difference
between the market value of the pollution control facilities and the present value of the net income from the sale of
by-products. Net income is determined by subtracting the expenses of sale, raw materials required to produce
by-products, and transportation to F.O.B. point from gross sales of recovered by-product.
(7-1-24)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.03
State Tax Commission
Property Tax Administrative Rules
Section 620
Page 49
03.
Ineligibility. Landfills, toxic waste dumps, or storage facilities deriving revenue from processing or
storing pollution or pollution by-products generated by other persons or businesses are ineligible for this exemption.
(7-1-24)
04.
Filing Procedure. Application for exemption is made annually in the following manner:
(7-1-24)
a.
The property owner obtains the application form issued by the Tax Commission from the county
assessor or the Tax Commission.
(7-1-24)
b.
The property owner completes the application reporting an itemized listing of all installations,
facilities, machines or equipment qualifying for exemption. Each component part of the system must be identified by
a brief description, the date of original acquisition, dollar amount of the original cost, and the percentage of the
component devoted exclusively to pollution control. The application must be signed by the owner or duly authorized
agent. Lack of required information may be grounds for denial.
(7-1-24)
c.
The completed application must be filed with the county commissioners by April 15 for locally
assessed property or with the Tax Commission by April 30 for centrally assessed property.
(7-1-24)
05.
Inspection. The county or Tax Commission representative may inspect the property or audit the
owner's records to identify components for which the exemption is applied. Those components listed on the
application must be identifiable as capital assets of the property.
(7-1-24)
06.
Exemption Reported on Abstracts. For locally assessed property, exempt value is reported on the
property abstracts.
(7-1-24)
07.
Exemption for Portion of Water Corporation Property. A portion of water corporation property
may be exempt from taxation.
(7-1-24)
a.
On or before April 30, each year, the Tax Commission will receive a notice from the Idaho Public
Utilities Commission listing the value of the investment percentage of the total plant of each water company devoted
exclusively to the elimination, control, or prevention of water pollution or air pollution.
(7-1-24)
b.
In estimating the market value of the company for assessment purposes, the Tax Commission will
take into consideration the investment as certified by the Public Utilities Commission that such equipment bears to
the total invested plant of the company.
(7-1-24)
c.
The Tax Commission will notify the water company of the estimated market value, gross assessed
value, and the amount of exemption allowed under Section 63-602P, Idaho Code, on or before July 15.
(7-1-24)
d.
Any person or party wishing to contest the percentage of exemption reported to the Tax
Commission by the Public Utilities Commission may submit a written request for a public hearing to the Tax
Commission by August 1 of the current tax year. The request for a hearing will state the petitioner's grounds for
contesting the percentage reported by the Public Utilities Commission. On or before the second Monday of August
the Tax Commission will notify the petitioner of the hearing time and place.
(7-1-24)