IDAPA 35.01.03.700 — DEFINITIONS FOR PROPERTY TAX REDUCTION BENEFIT

Section 63-701, Idaho Code
01.
Blind. A person for whom there exists the medically documented opinion that the person is
functionally blind as defined in Section 67-5402(2), Idaho Code.
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IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.03
State Tax Commission
Property Tax Administrative Rules
Section 700
Page 60
02.
Claimant's Income. All income defined in Section 63-701(5), Idaho Code, that is received by
either spouse is included in household income even if one spouse lives in a medical care facility or otherwise lives
outside the home except as provided in Rule 709 of these rules. For the purposes of excluding from claimant's income
any return of principal paid by the recipient of an annuity, follow these guidelines.
(7-1-24)
a.
An annuity means a contract sold by an insurance company to the claimant or claimant's spouse
and designed to provide payments to the holder at specified equally spaced intervals or as a lump sum payment with
the following conditions:
(7-1-24)
i.
The annuity must not be part of any pension plan available to an employee;
(7-1-24)
ii.
No tax preference is given to the money spent to purchase the annuity;
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iii.
The buyer must have purchased the annuity voluntary and not as a condition of employment or
participation in an employer provided pension system; and
(7-1-24)
iv.
Earnings from investments in the annuity must be tax-deferred prior to withdrawal.
(7-1-24)
b.
Annuities do not include KEOGH plans, Individual Retirement Accounts (IRAs), employer
provided pensions, and similar financial instruments. Life insurance premiums will not be treated as the principal of
an annuity.
(7-1-24)
c.
The recipient of the annuity payment(s) must provide proof that the income is the principal paid by
the recipient. Such proof includes copies of the holder's annuity contract and any other documentation clearly
indicating the conditions listed in Subparagraphs 700.02.a.i. through 700.02.a.iv. of this Rule are met. IRS form 1099
does not provide sufficient proof.
(7-1-24)
03.
Fatherless/Motherless Child. Means a child judicially determined to be abandoned, as defined by
Sections 16-1602 or 16-2005, Idaho Code, by the child's parent or a child whose parent has had his parental rights
terminated pursuant to court order or is deceased.
(7-1-24)
04.
Proportional Reduction of Value. Is required for partial ownership of otherwise eligible property.
(7-1-24)
a.
There is no reduction of value for community property with no other interests except as provided in
Rules 610.07 and 709.04 of these rules. Additionally, there is no reduction in value for the ownership interests of a
partner of a limited partnership, a member of a limited liability company or a shareholder of a corporation when that
person has no less than a five percent (5%) interest in the entity unless any interests are shared by any entity other
than the limited partnership, limited liability company or corporation.
(7-1-24)
b.
In other cases, benefits are to be calculated by applying the claimant's property tax reduction
benefit to the eligible net taxable value of the claimant's share of the property. This value is determined by
multiplying the market value of the land and the improvement times the claimant's percent of ownership and
subtracting the claimant's homestead exemption.
(7-1-24)
c.
See examples of proportional reduction of value of property tax reduction claimants at https://
tax.idaho.gov.
(7-1-24)
05.
Physician. Is defined in Section 54-1803(3), Idaho Code.
(7-1-24)
06.
Widow/Widower. A person who has not remarried after the death of their spouse or whose
subsequent marriage has been annulled.
(7-1-24)
07.
Cross Reference. See Chapter 79, Title 67, Idaho Code, for requirements relating to lawful
presence in the United States. See IDAPA 35.02.01, "Tax Commission Administration and Enforcement Rules,"
Subsection 702.02.c. for information concerning authorization to release applicant information to a state or federal
elected official.
(7-1-24)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.03
State Tax Commission
Property Tax Administrative Rules
Section 702
Page 61