HB 559 Summary

• Creates a provisional property tax exemption for property under construction or renovation intended for a tax-exempt purpose, allowing owners to apply when building permits are obtained or construction begins.

• Properties with provisional exemptions are excluded from the county assessor's new construction roll and no taxes are assessed during the exemption period.

• Upon construction completion, the board of county commissioners must review whether the property qualifies for permanent tax exemption; if it does not qualify, the exemption is revoked and back taxes become due.

• Property owners may apply for refunds of property taxes collected during the provisional exemption period within five years; refunds must be issued within 45 days and may be paid as credits against future taxes.

• Refunded taxes and amounts recovered from revoked exemptions are excluded from budget limitation calculations under Idaho Code sections 63-802 through 63-807, with retroactive application to January 1, 2016.