TAXATION – Amends existing law to revise provisions regarding a certain property tax exemption for low-income housing.

LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
760
BY
REVENUE
AND
TAXATION
COMMITTEE
AN
ACT
1
RELATING
TO
PROPERTY
TAXES;
AMENDING
SECTION
63
-
602GG,
IDAHO
CODE,
TO
REVISE
2
PROVISIONS
REGARDING
PROPERTY
TAX
EXEMPTIONS
FOR
LOW
-
INCOME
HOUSING
3
OWNED
BY
NONPROFIT
ORGANIZATIONS;
AND
DECLARING
AN
EMERGENCY
AND
PRO
-
4
VIDING
AN
EFFECTIVE
DATE.
5
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
6
SECTION
1.
That
Section
63
-
602GG,
Idaho
Code,
be,
and
the
same
is
hereby
7
amended
to
read
as
follows:
8
63
-
602GG.
PROPERTY
EXEMPT
FROM
TAXATION
-
-
LOW
-
INCOME
HOUSING
OWNED
9
BY
NONPROFIT
ORGANIZATIONS.
(1)
As
provided
in
this
section,
the
board
of
10
county
commissioners
may,
at
its
discretion,
exempt
all
or
a
portion
of
low
-
1
1
income
housing
owned
by
nonprofit
organizations
shall
be
exempt
from
taxa
-
12
tion.
13
(2)
In
order
to
qualify
as
a
nonprofit
organization
under
this
section,
14
an
organization
must
demonstrate
that:
15
(a)
It
is
organized
as
a
nonprofit
corporation
pursuant
to
chapter
30,
16
title
30,
Idaho
Code
,
or
pursuant
to
equivalent
laws
in
the
applicable
17
state
of
incorporation
;
and
18
(b)
It
has
received
an
exemption
from
taxation
from
the
internal
rev
-
19
enue
service
pursuant
to
section
501(c)(3)
of
the
Internal
Revenue
20
Code
;
and
.
21
(c)
No
proceeds
or
tax
benefits
of
the
organization
or
from
the
low
-
in
-
22
come
housing
property
owned
by
the
organization
shall
inure
to
any
indi
-
23
vidual
or
for
-
profit
entity
other
than
normal
employee
compensation.
24
(3)
In
order
to
qualify
for
the
exemption
provided
in
this
section,
25
the
low
-
income
housing
property
shall
meet
the
following
qualifications
:
26
provided
in
this
subsection.
27
(a)
Both
legal
and
equitable
title
to
the
property
is
solely
owned
by
28
the
nonprofit
organization
seeking
the
exemption
and
is
managed
by
the
29
owner
or
a
related
nonprofit
organization
qualifying
for
the
exemption
30
set
forth
in
section
63
-
602C,
Idaho
Code;
and
The
property
shall
be
31
owned
and
operated
by,
or
shall
be
a
wholly
owned
subsidiary
of,
a
quali
-
32
fied
nonprofit
organization
pursuant
to
subsection
(2)
of
this
section,
33
or
shall
be
owned
by
a
limited
partnership,
limited
liability
limited
34
partnership,
or
limited
liability
company
in
which
a
general
partner
or
35
a
managing
member,
as
applicable,
is
a
qualified
nonprofit
organization
36
pursuant
to
subsection
(2)
of
this
section
or
a
single
-
purpose
entity
37
that
is
wholly
owned
by
one
(1)
or
more
qualified
nonprofit
organiza
-
38
tions
pursuant
to
subsection
(2)
of
this
section.
39
(b)
Tenants
shall
not
be
evicted
based
upon
on
their
inability
to
pay
40
for
a
period
of
three
(3)
months
if
such
inability
is
due
to
a
cata
-
41
strophic
event
that
is
not
under
the
tenant's
control.
For
purposes
42

2
of
this
subsection,
"catastrophic
event"
means
a
medical
condition
or
1
injury
in
which
sudden,
serious
and
unexpected
symptoms
of
illness
or
2
injury
are
sufficiently
severe
to
render
the
tenant
unable
to
partici
-
3
pate
in
employment
and
such
illness
or
injury
has
been
certified
by
one
4
(1)
or
more
licensed
physicians
and/or
psychiatrists
or
psychologists.
5
The
term
"catastrophic
event"
does
not
apply
to
individuals
who
volun
-
6
tarily
remove
themselves
from
the
workforce
;
and
.
7
(c)
Except
for
a
the
manager's
unit
units
,
all
of
the
housing
units
in
8
the
low
-
income
housing
property
are
shall
be
dedicated
to
low
-
income
9
housing
in
the
following
manner:
Fifty
-
five
percent
(55%)
of
the
units
10
and
shall
be
rented
to
those
earning
an
average
of
sixty
percent
(60%)
or
1
1
less
of
the
area
median
gross
income
for
the
county
in
which
the
housing
12
is
located;
twenty
percent
(20%)
of
the
units
shall
be
rented
to
those
13
earning
fifty
percent
(50%)
or
less
of
the
median
income
of
the
county
in
14
which
the
housing
is
located;
and
twenty
-
five
percent
(25%)
of
the
units
15
shall
be
rented
to
those
earning
thirty
percent
(30%)
or
less
of
the
me
-
16
dian
income
for
the
county
in
which
the
housing
is
located
as
determined
17
in
a
manner
consistent
with
26
U.S.C.
42(g),
and
rents
on
such
housing
18
units
shall
meet
the
requirements
of
26
U.S.C.
42
(g)(2)
.
19
(d)
In
each
year
following
a
year
in
which
the
exemption
was
allowed
un
-
20
der
this
section,
the
owner
of
a
low
-
income
housing
property
shall
sub
-
21
mit
to
the
county
assessor
of
the
county
in
which
such
property
is
lo
-
22
cated
a
statement
certifying
that
the
low
-
income
housing
property
is
in
23
compliance
with
the
provisions
of
paragraph
(c)
of
this
subsection.
If
24
the
owner
of
such
low
-
income
housing
property
fails
to
submit
the
state
-
25
ment
required
by
this
paragraph,
the
low
-
income
housing
property
shall
26
not
be
eligible
for
the
exemption
provided
in
this
section
for
the
imme
-
27
diately
succeeding
tax
year.
28
(4)
An
application
for
the
low
-
income
property
tax
exemption
provided
29
for
in
this
section
shall
be
filed
no
later
than
April
15
pursuant
to
section
30
63
-
602,
Idaho
Code,
and
shall
include,
at
a
minimum,
the
following
informa
-
31
tion:
32
(a)
A
general
description
of
the
low
-
income
housing
property
project,
33
including
but
not
limited
to
the
number
of
low
-
income
housing
units
34
available
and
the
number
of
units,
if
any,
offered
at
market
rate;
35
(b)
A
description
of
the
ownership
interest
of
the
applicants
and
the
36
nonprofit
organization
partnering
with
the
applicants;
and
37
(c)
The
duration
of
the
affordability
period.
For
the
purposes
of
this
38
section
"affordability
period"
means
the
period
of
time
in
which
the
39
housing
units
in
the
low
-
income
housing
property
are
required
to
comply
40
with
the
restrictions
on
tenant
eligibility
and
rent
levels
set
forth
41
in
a
land
use
restrictive
agreement
executed
with
the
Idaho
housing
42
and
finance
association
for
the
purpose
of
qualifying
for
the
federal
43
low
-
income
housing
tax
credit
pursuant
to
26
U.S.C.
42.
44
(5)(a)
In
addition
to
the
application
required
pursuant
to
subsection
45
(4)
of
this
section,
the
owner
of
a
proposed
low
-
income
housing
property
46
project
that
has
not
received
all
required
local
land
use
or
zoning
ap
-
47
provals
may
request
from
the
county
a
written
preliminary
determination
48
as
to
whether
the
project,
if
developed
as
proposed,
will
qualify
for
49

3
the
exemption
authorized
by
this
section.
Such
request
may
be
submitted
1
prior
to
filing
any
land
use
or
zoning
application.
2
(b)
A
request
for
preliminary
determination
shall
include
sufficient
3
information
to
demonstrate
compliance
with
the
requirements
of
this
4
section,
including
the
information
described
in
subsection
(4)(a)
5
through
(c)
of
this
section.
6
(c)
A
written
preliminary
determination
issued
pursuant
to
this
sub
-
7
section
shall
be
binding
on
the
county,
provided
the
project
is
devel
-
8
oped
substantially
in
accordance
with
the
materials
submitted
with
the
9
request.
Any
material
change
to
the
project,
other
than
modifications
10
required
or
approved
through
the
applicable
local
land
use
approval
1
1
process,
shall
require
a
new
request
for
preliminary
determination.
12
(d)
A
preliminary
determination
issued
pursuant
to
this
subsection
13
shall
not
relieve
the
owner
of
the
obligation
to
file
a
timely
appli
-
14
cation
pursuant
to
subsection
(4)
of
this
section
in
order
to
receive
15
the
exemption
for
any
tax
year
after
the
low
-
income
housing
property
16
project
is
complete.
17
(6)(a)
Nothing
in
this
section
shall
be
construed
to
require
a
board
of
18
county
commissioners
to
grant
a
property
tax
exemption
pursuant
to
this
19
section
for
low
-
income
housing
property.
20
(b)
A
decision
of
the
board
of
county
commissioners
to
deny
an
applica
-
21
tion
for
the
exemption
provided
for
in
this
section
shall
be
final
and
22
shall
not
be
subject
to
judicial
review.
23
(c)
If
at
any
time
the
use
of
the
property
no
longer
meets
the
criteria
24
of
the
exemption
or
the
affordability
period
on
the
low
-
income
housing
25
property
changes,
the
board
of
county
commissioners
shall
remove
the
26
property
tax
exemption
provided
for
in
this
section.
27
(4)
(7)
The
exemption
provided
in
this
section
shall
not
apply
:
to
any
28
property
on
which
financing
has
already
closed
as
of
July
1,
2026,
or
to
a
29
property
that
is
already
in
service
and
housing
tenants
as
of
July
1,
2026,
30
unless
such
property
is
being
rehabilitated
pursuant
to
26
U.S.C.
42
or
is
31
already
receiving
the
exemption
pursuant
to
this
section
on
or
before
July
1,
32
2026.
33
(a)
If
the
project
is
financed
after
the
effective
date
of
this
act
and
34
applicable
law
permits
the
payment
of
property
taxes
with
federal
or
35
state
funds,
grants,
loans
or
subsidies;
or
36
(b)
If
the
property
is
receiving
federal
project
-
based
assistance,
37
as
provided
by
42
U.S.C.
sections
1437f(d)(2),
1437f(f)(6)
and
38
1437f(o)(13);
or
39
(c)
To
any
property
used
by
a
taxpayer
to
qualify
for
tax
credits
under
40
the
provisions
of
26
U.S.C.
chapter
42
or
any
successor
programs
until
41
such
time
as
the
property
is
solely
owned
by
a
nonprofit
organization
as
42
defined
in
this
section
and
is
no
longer
utilized
to
receive
federal
tax
43
credits.
44
(5)
(8)
Notwithstanding
any
other
provision
of
this
section,
a
low
-
in
-
45
come
housing
property
shall
be
exempt
from
taxation
due
to
undue
hardship
if:
46
(a)
The
property
was
financed
prior
to
the
effective
date
of
this
act;
47
and
48
(b)
Such
financing
was
dependent
upon
the
tax
-
exempt
status
of
the
49
property;
and
50

4
(c)
The
law
does
not
allow
additional
federal
or
state
revenues
to
be
1
available
for
the
payment
of
property
taxes.
2
(6)
(9)
Nothing
in
this
section
shall
affect
the
qualification
of
prop
-
3
erties
for
tax
-
exempt
status
under
other
provisions
of
title
63,
Idaho
Code.
4
(10)
Property
exempt
under
this
section
shall
not
be
included
on
any
new
5
construction
roll
prepared
by
the
county
assessor
in
accordance
with
sec
-
6
tion
63
-
301A,
Idaho
Code,
unless
the
exemption
is
removed
or
the
property
no
7
longer
qualifies
for
the
exemption.
8
SECTION
2.
An
emergency
existing
therefor,
which
emergency
is
hereby
9
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
10
July
1,
2026.
1
1