FINAL BILL REPORT

HB 1283

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background:

In order to file a plat for record, or any document with the county auditor (auditor) that results in a division, alteration, or adjustment of property boundary lines, both current and delinquent taxes and assessments on the property must be paid. Additionally, taxes not yet levied and certified must be collected as an advance tax.

Any person recording a plat after May 31 and prior to the date that taxes are collected must pay a deposit, also referred to as an advance tax deposit, to the county treasurer (treasurer). The deposit is an amount equal to the county assessor's (assessor) latest valuation on the unimproved property in the subdivision, multiplied by the current year's tax rate increased by 25 percent.

The treasurer must use the advance tax deposit to pay the taxes and assessments on the property when the levy rates are certified by the assessor. If the amount of the deposit exceeds the amount necessary to pay the taxes and assessments, the treasurer must return the excess deposit.

For each lot on which an advance tax deposit has been paid, the assessor must investigate, assess the lot, and ascertain the true and fair value of the lot. The valuation and assessment must be completed by October 30 of the year following recording of the plat. The value established is the value of the lot as of January 1 of the year the original parcel was last revalued. Additional property tax is not due on the land until the calendar year following the year for which the advance tax deposit was paid, provided the deposit was sufficient to pay the full amount of taxes due on the property.

Summary:

The requirement that advance taxes must be collected at the time a person submits a document with the auditor which results in the division, alteration, or adjustment of real property boundary lines is eliminated. Additionally, the requirement that an advance tax deposit must be paid by any person recording a plat after May 31, and prior to the date that taxes are collected, is repealed.

Votes on Final Passage:

House	98	0
Senate	49	0