IDAPA 35.01.03.966 — RECAPTURE OF DEFERRED TAXES ON LANDS DESIGNATED UNDER SECTION 63-1706,

IDAHO CODE.
Section 63-1703, Idaho Code
01.
Ownership Interest/Deferred Taxes. Where forestland is held in joint ownership, a transfer of
ownership for purposes of recapturing deferred taxes will occur when any one (1) of the legal entities holding an
ownership interest in the subject property will convey, transfer, or otherwise dispose of their ownership interest or
portion thereof. Any such transfer of ownership will subject the entire parcel to recapture of deferred taxes, unless the
new owner timely redesignates their ownership interest under Section 63-1706, Idaho Code.
(7-1-24)
02.
Deferred Tax Responsibility. Deferred taxes will be the responsibility of the selling landowner.
Deferred taxes will constitute a lien on the land.
(7-1-24)
03.
Change in Use/Deferred Taxes. For forestland designated under Section 63-1706, Idaho Code, but
subject to recapture of deferred taxes as provided in Section 63-1703, Idaho Code, because of a change in use with no
change in ownership, recapture of deferred taxes will be calculated in the following manner:
(7-1-24)
a.
The difference between the current bare land value for the correct class of land in the forest value
zone in which the parcel lies and the current market value for assessment purposes of the property during the current
year;
(7-1-24)
b.
Multiplied by the current levy for the tax code area or areas in which the parcel lies;
(7-1-24)
c.
Multiplied by the number of years, including the entire current year, the lands have been subject to
designation under Section 63-1706, Idaho Code, not to exceed ten (10) years. Additionally, a credit will be allowed
for any yield tax paid up to the amount of the deferred taxes.
(7-1-24)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.03
State Tax Commission
Property Tax Administrative Rules
Section 982
Page 83
04.
Transfer of Ownership/Deferred Taxes. For forestland designated under Section 63-1706, Idaho
Code, but subject to recapture of deferred taxes as provided in Section 63-1703, Idaho Code, because of a change in
ownership or a removal of the designation, recapture of deferred taxes will be calculated in the following manner:
(7-1-24)
a.
The difference between the current bare land value for the correct class of land in the forest value
zone in which the parcel lies and the current productivity value for the correct class of land in the forest value zone in
which the parcel lies, for the current year;
(7-1-24)
b.
Multiplied by the current levy for the tax code area or areas in which the parcel lies;
(7-1-24)
c.
Multiplied by the number of years, including the entire current year, which the lands have been
subject to designation under Section 63-1706, Idaho Code, not to exceed ten (10) years. Additionally, a credit will be
allowed for any yield tax paid up to the amount of the deferred taxes.
(7-1-24)
05.
Investment Lands. Investment lands are defined as those in secondary categories 1, 2, 3, 4, 5, and
9, as defined in Rule 510 of these rules.
(7-1-24)