Bill description: HB 390 requires that a recent appraisal or arms-length transaction be considered the fair market value of property.
Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?
HB 390 amends Section 63-208, Idaho Code, to require that if a piece of "property assessed has had a fee appraisal completed by a certified appraiser or has been sold in an arms-length transaction, or both, within the previous twelve months, the fee appraisal value or sales price, whichever is less, shall be considered the market value for assessment purposes of the property." This could reduce the property taxes owed in cases where the fee-appraisal value or sales price is less than the county assessment.
HB 390 says, "The owner must provide the county assessor with the appraisal or cooperate with the county assessor in disclosing documentation of the sale." By declaring that the property owner must do these things, the owner is not allowed to decline submitting potentially personal information. A disclosure could also increase the property taxes owed in cases where the county assessment is less than the fee-appraisal value or sales price.
Of additional concern, applying this statute only to arms-length transactions inserts a degree of subjectivity into the law that could disqualify some buyers from benefiting from reduced property taxes.
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