IDAPA 35.01.03.626 — PROPERTY EXEMPT FROM TAXATION -- CERTAIN PERSONAL PROPERTY

Sections 63-105(A), 63-201, 63-302, 63-308, 63-602Y, 63-602KK, Idaho Code
01.
Locally Assessed Property - Application Required.
(7-1-24)
a.
The filing of one (1) or more of the lists of taxable personal property as required by Section 63-302
or Section 63-602Y, Idaho Code, constitutes application if the total market value of the property to be listed is greater
than two hundred fifty thousand dollars ($250,000).
(7-1-24)
b.
Taxpayers establishing initial eligibility for the exemption provided in Section 63-602KK(2), Idaho
Code, may, in lieu of a list, file only an application attesting to ownership of otherwise taxable personal property
having a cost of two hundred fifty thousand dollars ($250,000) or less. The application must be filed no later than
April 15th of the first year for which the exemption is claimed.
(7-1-24)
02.
Locally Assessed Property - Taxpayers' Election of Property Location.
(7-1-24)
a.
Multiple Locations Within A County. In cases where the taxpayer has personal property located in
multiple places within the county, the taxpayer may elect the location of the property to which the exemption will
apply by filing the "Idaho Personal Property Exemption Location Application Form" available from the Tax
Commission for this purpose. To make the election for property required to otherwise be listed as provided in Section
63-302, Idaho Code, the form must be filed with the county assessor by April 15. For taxpayers with personal
property required to be listed as provided in Section 63-602Y, Idaho Code, any application specifying the location of
the property to which the exemption provided for in Section 63-602KK(2) will apply, must be filed by the first
Monday in November. Should the taxpayer not make an election as to where to apply the exemption, the county will
have discretion regarding the property to which the exemption will apply. However, to the extent possible and
assuming the assessor is not aware of any changes in eligibility, the exemption first applies to the same property as in
the immediate prior year.
(7-1-24)
b.
Multiple locations in different counties. If the taxpayer owns qualifying personal property in more
than one county, the limit is two hundred fifty thousand dollars ($250,000) in market value per county.
(7-1-24)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.03
State Tax Commission
Property Tax Administrative Rules
Section 626
Page 51
03.
Centrally Assessed Property - Application Required.
(7-1-24)
a.
Except for private railcar fleets, the taxpayer may file a list of personal property located in Idaho
with the operator's statement filed pursuant to Rule 404 of these rules. The filing of such a list will constitute the
filing of an application for this exemption. Except as provided in Subsections 626.03.b. and 03.c. of this rule, for such
personal property to be considered for the exemption, the operator's statement must include:
(7-1-24)
i.
A description of the personal property located in Idaho;
(7-1-24)
ii.
Cost and depreciated cost of the personal property located in Idaho.
(7-1-24)
b.
For private railcar fleets subject to assessment by the Tax Commission, the Idaho taxable value is
reduced by subtracting the lesser of the Idaho taxable value before the exemption or the product of two hundred fifty
thousand dollars ($250,000) times the number of counties in Idaho in which the fleet operates. Provided that the
remaining taxable value is five hundred thousand dollars ($500,000) or more, this value is to be apportioned to each
taxing district and urban renewal revenue allocation area in accordance with procedures described in Rule 415 of
these rules.
(7-1-24)
c.
After subtraction of the personal property exemption calculated as provided in Subsection
626.03.b. of this rule, for private railcar fleets subject to assessment by the Tax Commission, and having an Idaho
taxable market value of less than five hundred thousand dollars ($500,000), neither the final amount of the exemption
nor the taxable value of the fleet is subject to apportionment, and the remaining taxable value is taxed as provided in
Rule 415 of these rules.
(7-1-24)
d.
When operating property companies have locally assessed property, any exemption pursuant to
Section 63-602KK(2), Idaho Code must be applied to the locally assessed property first. In this case, the county
assessor must notify the Tax Commission of the value of the exemption granted. If such an exemption is entered on
the property roll, such notification must be made by the third Monday in July. The Tax Commission will then reduce
the amount of the exemption otherwise to be granted to the centrally assessed operating property of the company by
the exemption value reported by the assessor. The Tax Commission will notify the company of the reduction in
exemption by the fourth Monday in July.
(7-1-24)
04.
Valuation Assessment Notice. The valuation assessment notice required by Section 63-308, Idaho
Code, must show the taxable market value before granting the exemption provided in Section 63-602KK(2), Idaho
Code, the exempt market value pursuant to the exemption provided in Section 63-602KK(2), Idaho Code, and the net
taxable market value of the personal property. If the net taxable market value is zero (0), no valuation assessment
notice is required.
(7-1-24)
05.
Limitation on Eligibility for the Exemption.
(7-1-24)
a.
Except for taxpayers claiming and receiving the exemption provided for in Section 63-4502, Idaho
Code, taxpayers receiving the personal property exemption provided in Section 63-602KK, Idaho Code, may be
eligible for other applicable exemptions.
(7-1-24)
b.
Personal property exempt in accordance with statutes other than Section 63-602KK, Idaho Code,
will not be included in determining when the two hundred fifty thousand dollars ($250,000) limit provided in Section
63-602KK(2) is reached.
(7-1-24)
c.
Taxpayers with requirements to annually apply for, or list personal property for which other
statutorily provided personal property exemptions are sought, must continue to comply with the requirements of these
statutes.
(7-1-24)
d.
Improvements, as defined or described in Sections 63-201 and 63-309, Idaho Code, will not be
eligible for the exemption provided in Section 63-602KK. Improvements include mobile and manufactured homes
and float homes, regardless of whether such property is considered personal property. Leasehold real properties and
other leasehold improvements that are structures or buildings are improvements, and therefore ineligible for the
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.03
State Tax Commission
Property Tax Administrative Rules
Section 626
Page 52
exemption. Structures, such as cell towers, are improvements and are not eligible for the exemption.
(7-1-24)
06.
Special Rules for the Exemption Provided in Section 63-602KK(1), Idaho Code.
(7-1-24)
a.
Newly acquired items of personal property, exempt as provided in Section 63-602KK(1), Idaho
Code, require no application or inclusion on any list otherwise required pursuant to Sections 63-302 or 63-602Y,
Idaho Code.
(7-1-24)
b.
The exemption provided in Section 63-602KK(1), Idaho Code, is in addition to the exemption
provided in Section 63-602KK(2), Idaho Code.
(7-1-24)
07.
Limitation on Replacement Money.
(7-1-24)
a.
There may be changes and reductions as follow:
(7-1-24)
i.
If a taxing district dissolves, the state will make no payment of the amount previously certified for
that district, and when a revenue allocation area terminates and the urban renewal agency is no longer receiving any
allocation of property tax revenues, the state will discontinue payment of amounts previously certified for that
revenue allocation area, beginning with the next scheduled distribution.
(7-1-24)
ii.
If taxing districts or revenue allocation areas are consolidated, the amounts of replacement money
attributed to each original district or revenue allocation area are summed and, in the future, distributed to the
consolidated district.
(7-1-24)
iii.
For replacement money based on the exemption provided by Section 63-602KK, Idaho Code, in
2013, no urban renewal agency will receive replacement money based on exempt personal property within any
revenue allocation area established on or after January 1, 2013, or within any area added to an existing revenue
allocation area on or after January 1, 2013.
(7-1-24)
iv.
For replacement money based on the exemption provided by Section 63-602KK, Idaho Code, in
2022, no urban renewal agency will receive replacement money based on exempt personal property within any
revenue allocation area established on or after January 1, 2022, or within any area added to an existing revenue
allocation area on or after January 1, 2022.
(7-1-24)
v.
Any payment made to the Idaho Department of Education, as provided in Subsection 626.08 of this
rule is discontinued if the state authorized plant facilities levy is not certified in any year. Certification in subsequent
years will not cause any resumption of this payment.
(7-1-24)
08.
Special Provision For Replacement Money For State Authorized Plant Facilities Levy. The
amount of replacement money calculated based on any 2013 or 2022 state authorized plant facilities levy is remitted
directly to the Idaho Department of Education.
(7-1-24)
09.
Special Provision For Exempt Personal Property Within Urban Renewal Revenue Allocation
Areas (RAAs). When personal property subject to the exemption in Section 63-602KK(2), Idaho Code, is within an
RAA, there is no adjustment to the base value of the RAA unless the remaining taxable market value of the parcel is
less than the most current base value of the parcel. In that case, the base value is reduced in accordance with
procedures found in Rule 804 of these rules.
(7-1-24)
10.
No Reporting of Exempt Value. Taxing district values submitted to the Tax Commission as
required in Section 63-510, Idaho Code, will not include or indicate value exempt pursuant to Section 63-602KK(2),
Idaho Code.
(7-1-24)
11.
Cross Reference. See Rule 627 of these rules.Taxpayer means the claimant of the exemption
pursuant to Section 63-602KK(2), Idaho Code, and must be a person, as that term is defined in Section 63-201, Idaho
Code.
(7-1-24)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.03
State Tax Commission
Property Tax Administrative Rules
Section 627
Page 53