Idaho Code — Title 63 (Revenue and Taxation)

Idaho Code § 63-405

Assessment of operating property

Official textlegislature.idaho.govlast amended 202615 subsections

# (1)

The state tax commission must assess taxable operating property at a meeting of the commission convening on the second Monday of August in each year and must complete the assessment of such property on the fourth Monday in August.

# (2)

The state tax commission shall determine the system value and calculate the allocation and apportionment of the system value for taxable operating property and specifically determine:

# (a)

The number of miles and the value per mile of each railroad in the state and for each taxing district in which such railroad may exist.

# (b)

The number of miles and the value per mile of each telephone corporation in the state and for each taxing district in which such telephone corporation may exist.

# (c)

The number of miles and the value per mile of each pipeline in the state and for each taxing district in which such pipeline may exist.

# (d)

The number of miles and the value per mile of each water company under the jurisdiction of the public utilities commission in the state and for each taxing district in which such water company may exist. The value per mile of any line included in this subsection, except railroads, shall be determined by dividing the total value of such line within the state by the number of miles of such line within the state. The value per mile of railroad line shall be determined by apportionment of the total value of line within the state. The apportionment shall be based twenty percent (20%) on the ratio of line miles in the state to line miles in the county; forty percent (40%) on the ratio of net ton miles in the state to net ton miles in the county; and forty percent (40%) on the ratio of station revenues in the state to station revenues in the county. All operating property of railroads shall be apportioned to the counties as part of the railroad line in the county. The apportionment for taxing districts shall be the same as the apportionment among counties.

# (e)

The system value of private railcar fleets entering or standing in Idaho in the year preceding the constituted lien as provided in section 63-411 (3), Idaho Code.

# (f)

The system value and calculate the allocation and apportionment of the system value for all other taxable operating property.

# (3)

For rate-regulated electric utility companies, rate-regulated affiliated gas companies, and rate-regulated gas companies subject to taxation as provided in section 63-3502B (3) or (4), Idaho Code, the state tax commission shall determine the amount of such tax to be apportioned to each county separately in proportion to the property tax levied by all eligible taxing districts and units and amounts allocated to each urban renewal agency statewide in tax year 2025 on the operating property of rate-regulated electric utility companies, rate-regulated affiliated gas companies, and rate-regulated gas companies. The 2025 property tax amounts levied or allocated shall be certified by each county auditor to the state tax commission no later than January 12, 2026. The state tax commission shall calculate proportions by dividing the total amount so reported for each county by the sum of all such amounts for all eligible taxing districts and units and urban renewal agencies statewide. Taxing districts, units, and urban renewal agencies are eligible for a proportion of this tax and are included in the calculation of these proportions, provided they levied property tax against the operating property of rate-regulated electric utility companies, rate-regulated affiliated gas companies, and rate-regulated gas companies or received an allocation of property tax paid by such companies for tax year 2025. In the event that a taxing district or unit or urban renewal revenue allocation area dissolves or is no longer present in a county, or a voter approved bond expires, the proportions for each taxing district in each affected county shall be changed as follows:

# (a)

The state tax commission shall reapportion the kilowatt-hour and thermal energy tax revenue that would have accrued to the dissolving district or revenue allocation area or expiring voter approved bond. The reapportioned tax shall be distributed to each otherwise eligible taxing district and revenue allocation area in the county with boundaries that overlapped the dissolved district or revenue allocation area or expired voter approved bond. The proportionate share for each taxing district and revenue allocation area shall be determined by dividing the current distribution to that district and revenue allocation area by the total distribution to all districts and revenue allocation areas that overlap the dissolving district or revenue allocation area.

# (b)

Such reapportionment shall be made in the year immediately following the year of the dissolution or expiration and the county auditor shall be notified of the changed proportions no later than the first Monday in March of that year.

# (c)

The proportions used to determine the amount of kilowatt-hour tax and thermal energy tax to be billed to rate-regulated electric utility companies, rate-regulated affiliated gas companies, and rate-regulated gas companies and payable to each county pursuant to section 63-3503C (2), Idaho Code, shall not change.

# (4)

Once every five (5) years, commencing with the five (5) year period beginning January 1, 2026, the state tax commission shall examine and verify the investment of each rate-regulated electric utility company, rate-regulated affiliated gas company, and rate-regulated gas company in each county and shall submit a report to the legislature that details each county’s investment in relation to the total statewide investment. On or before January 31 of the year in which the state tax commission requires such report for the applicable five (5) year period, the state tax commission shall notify each rate-regulated electric utility company, rate-regulated gas company, and rate-regulated affiliated gas company of the requirement to submit the report by April 15 of that year for the investment in each county as of the end of the preceding calendar year.

# (5)

If the value of property of any company assessable under this section is of such a nature that it cannot reasonably be apportioned on the basis of rail, wire, and pipeline mileage, such as microwave and radio relay stations, the tax commission may adopt such other method or basis of apportionment to the county and taxing districts in which the property is situate as may be feasible and proper.

# (6)

Any departure from market value in an assessment of operating property made to ensure compliance with federal law or precedent shall be considered an exemption. The state tax commission shall identify such departures from market value in their appraisals and no application need be made by a taxpayer to receive such exemption.

Amendment history

63-405, added 1996, ch. 98, sec. 5, p. 338; am. 1997, ch. 117, sec. 17, p. 317; am. 1998, ch. 400, sec. 3, p. 1252; am. 2004, ch. 105, sec. 1, p. 379; am. 2006, ch. 302, sec. 3, p. 935; am. 2025, ch. 188, sec. 2, p. 874; am. 2026, ch. 187, sec. 1, p. 838.

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