IDAPA 35.01.03.630 — TAX EXEMPTION FOR NEW CAPITAL INVESTMENTS

Section 63-4502, Idaho Code
01.
Notification of New Capital Investment - Locally Assessed Property.
(7-1-24)
a.
Prior to receiving the benefit of the tax exemption, the taxpayer will notify the county in which the
project site is located that the taxpayer expects to meet the criteria of the New Capital Investments Tax exemption.
Notification is accomplished by submitting a written declaration or notification with the board of county
commissioners containing the following information:
(7-1-24)
i.
The name and address of the taxpayer;
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ii.
A description of the new capital investment project;
(7-1-24)
iii.
The assessor's parcel number(s) identifying the location of the project site;
(7-1-24)
iv.
The date that the qualifying period began;
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IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.03
State Tax Commission
Property Tax Administrative Rules
Section 630
Page 55
v.
A statement that the taxpayer will make a qualified new capital investment of at least one billion
dollars ($1,000,000,000) within the qualifying period.
(7-1-24)
b.
The notification required hereunder may be submitted by the taxpayer to the board of county
commissioners at any time after the qualifying period begins. However, if the notification is submitted after April 15
in a given year, a taxpayer may receive the benefit of the exemption only for tax years following the year in which the
notification is filed. Submittal of the notification required hereunder will constitute application for the exemption in
compliance with Section 63-602, Idaho Code. Until the taxpayer meets all the requirements for the New Capital
Investments Tax exemption, for each year after the first year in which the exemption is granted, the notice must
identify the name and address of the taxpayer and the location of the project site, but does not need to provide
additional information as required in Paragraph 630.01.a. of this rule.
(7-1-24)
02.
Notification of New Capital Investment - Centrally Assessed Operating Property. For
taxpayers applying for the exemption for operating property subject to assessment by the Tax Commission, the
taxpayer will provide notice to the Tax Commission no later than April 30 of the first year the exemption is sought, as
part of the operator's statement required pursuant to Section 63-404, Idaho Code, and Rule 404 of these rules, that the
taxpayer expects to meet the criteria of the New Capital Investments Tax exemption.
(7-1-24)
a.
To be eligible for the exemption, information to be provided on the operator's statement must
include:
(7-1-24)
i.
A description of the new capital investment project;
(7-1-24)
ii.
The location of the project site, including county and tax code area(s);
(7-1-24)
iii.
The date that the qualifying period began;
(7-1-24)
iv.
A statement that the taxpayer will make a qualified new capital investment of at least one billion
dollars ($1,000,000,000) within the qualifying period.
(7-1-24)
b.
The notification required hereunder may be submitted by the taxpayer to the Tax Commission at
any time after the qualifying period begins. However, if the notification is submitted after April 30 in a given year, a
taxpayer may receive the benefit of the exemption only for tax years following the year in which the notification is
filed. Submittal of the operator's statement including notification information required hereunder will constitute
application for the exemption in compliance with Section 63-602, Idaho Code. Until the taxpayer meets all the
requirements for the New Capital Investments Tax exemption, for each year after the first year in which the
exemption is granted, the notice must identify the location of the project site, but does not need to provide additional
information as required in Paragraph 630.02.a. of this rule.
(7-1-24)
03.
Notification of New Capital Investment - Taxpayers Applying on Behalf of both Locally and
Centrally Assessed Property. A taxpayer may apply for this exemption on behalf of both locally and centrally
assessed property located in the same county.
(7-1-24)
a.
The taxpayer must comply with notice requirements in Subsection 630.01 of this rule for locally
assessed property, and for centrally assessed property, the April 30 filing deadline found in Paragraph 630.02.b.
(7-1-24)
b.
Once the taxpayer notifies the Tax Commission as provided in Subsection 630.02 of this rule, the
Tax Commission will notify the county commissioners and county assessor by the second Monday in May of the
taxpayer's new capital investment project property to be locally assessed and of the taxpayer's filing an application
for the exemption. By the later of the fourth Monday in July or the conclusion of the county board of equalization, as
provided in Section 63-501, Idaho Code, the county clerk must provide to the Tax Commission a statement of the
equalized assessed value of the taxpayer's locally assessed property.
(7-1-24)
c.
The exemption is granted by the Tax Commission, which will notify the county commissioners and
taxpayer by the first Monday in September of the amount of the exemption and the remaining taxable value of the
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.03
State Tax Commission
Property Tax Administrative Rules
Section 630
Page 56
centrally assessed operating property of the taxpayer. This remaining value is to be calculated so that the sum of the
centrally and locally assessed property of the taxpayer in the county in which the exemption is being granted does not
exceed four hundred million dollars ($400,000,000).
(7-1-24)
d.
The exemption will apply to the combined total value of the locally and centrally assessed property
of the taxpayer within the county in which the project site is located. For continuation of the exemption for both
locally and centrally assessed property, Subsections 630.07 and 630.08 of this rule will apply, and, upon satisfaction
of the requirements therein, the Tax Commission will notify the county of the continuing exemption.
(7-1-24)
04.
Property of the Taxpayer. Property of a taxpayer includes all real, personal, or operating property
that is owned by or leased to the taxpayer under an agreement that makes the taxpayer responsible for the payment of
any property taxes on the property.
(7-1-24)
05.
New Construction. Property taxable under Section 63-4502, Idaho Code, and that qualifies for
listing on the new construction roll as described by Section 63-301(A)3, Idaho Code, may be listed on the new
construction roll.
(7-1-24)
06.
Failure to Make the Qualifying New Capital Investment.
(7-1-24)
a.
If the taxpayer fails to make the qualifying new capital investment during the qualifying period, the
property will lose the exemption granted by this section at the conclusion of the qualifying period.
(7-1-24)
b.
In the event that, at any time during the qualifying period, the taxpayer receiving the exemption for
locally assessed property no longer intends to fulfill the qualified new capital investment requirements, the taxpayer
must notify the county commissioners who will notify the county assessor. Upon receipt of such notification, the
property previously granted the exemption is taxable for the remainder of the year in which the notification is
provided, pursuant to Section 63-602Y, Idaho Code. Failure of the taxpayer to provide such notice does not prevent
the county assessor from discovering the taxpayer's intent through alternate procedures and then notifying the county
commissioners that the requirements for the exemption are no longer met. In such an instance, the taxpayer must be
notified and may appeal loss of the exemption to the county board of equalization as provided in Section 63-501A,
Idaho Code.
(7-1-24)
c.
In the event that, at any time during the qualifying period, the taxpayer receiving the exemption for
operating property no longer intends to fulfill the qualified new capital investment requirements, the taxpayer must
notify the Tax Commission. Upon receipt of such notification, the property previously granted the exemption is
taxable. If the notification is received before the Tax Commission has completed the assessment of the operating
property for a given year, the exemption will not be granted for that year. If the notification is received after the
assessment is completed, the exemption is rescinded beginning the following tax year. If the taxpayer owns centrally
and locally assessed property, the Tax Commission will also notify the county commissioners and assessor of the
rescinding of the exemption.
(7-1-24)
07.
Continuation of Tax Exemption Following the End of the Qualifying Period - Locally
Assessed Property.
(7-1-24)
a.
At any time during the qualifying period, but not later than ninety (90) days after the conclusion of
the qualifying period, the taxpayer must provide notice to the county commissioners with sufficient evidence to prove
that the required qualifying new capital investment has been made.
(7-1-24)
b.
Once the taxpayer has successfully met all the requirements pursuant to Section 63-4502, Idaho
Code, and provided notice to the county commissioners pursuant to Paragraph 630.07.a. of this rule, the county
commissioners will notify the county assessor and taxpayer of the taxpayer's continuing qualification for the
exemption for all years thereafter. The county assessor will retain this notice.
(7-1-24)
c.
After the year in which the taxpayer has been notified of continuing qualification as provided in
Paragraph 630.07.b. of this rule, the taxpayer must continue to notify the county annually to identify the property to
be exempted pursuant to Subsection 630.07. Failure to make such notification will not invalidate the exemption; the
county assessor must then apply the exemption against the assessed value of the taxpayer's highest value parcel
IDAHO ADMINISTRATIVE CODE
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State Tax Commission
Property Tax Administrative Rules
Section 631
Page 57
within the county.
(7-1-24)
08.
Continuation of Tax Exemption Following the End of the Qualifying Period - Centrally
Assessed Operating Property.
(7-1-24)
a.
At any time during the qualifying period after the requirements for this exemption have been met,
but not later than ninety (90) days after the conclusion of the qualifying period, the taxpayer must provide notice to
the Tax Commission with sufficient evidence to prove that the required qualifying new capital investment has been
made.
(7-1-24)
b.
Once the taxpayer has successfully met all the requirements pursuant to Section 63-4502, Idaho
Code, and provided notice to the Tax Commission pursuant to Paragraph 630.08.a. of this rule, the Tax Commission
will notify the taxpayer that the exemption will continue to be granted in perpetuity, and will notify the taxpayer
annually prior to the due date for the operator's statement that they must identify the property qualifying for the
exemption in these statements. Failure to provide either notification will not invalidate the exemption; the Tax
Commission must then apply the exemption against the assessed value of the taxpayer's operating property within the
county. Centrally assessed taxable property otherwise permitted to be included on the new construction roll is
reported to the county assessor for inclusion on the next available new construction roll.
(7-1-24)
09.
Cross Reference. See Sections 63-802 and 63-301A, Idaho Code, and Rule 802 of these rules.
(7-1-24)