Committee sends senior property tax-deferral bill to general orders after treasurers raise implementation concerns

BOISE, Idaho — The House Revenue and Taxation Committee moved House Bill 355 to general orders on Thursday to allow more time for amendment after county treasurers raised procedural and fiscal concerns about the bill’s language clarifying property tax deferral for older homeowners.

Representative Matthew Wisniewski introduced the one-page bill as a clarification of an existing state program, in place since 2006, that allows qualified owners age 65 and older with limited income to defer property taxes in exchange for a lien recorded by the State Tax Commission. Wisniewski told the committee the draft seeks to resolve an ambiguity over what “any property tax due” means — whether it refers only to the current tax year or also includes past-due taxes — and to clarify application timing so county treasurers and assessors interpret the program consistently.

Annette Dygert (transcribed as “Daigert”), speaking for the Idaho Association of County Treasurers, opposed the bill as written and asked that the committee hold it. Dygert said the treasurers’ main concern centers on language in lines 11–12 that would include delinquencies, interest, fees and costs in the deferred amount. She said that if a deferral covering delinquencies delayed or extended the county tax-deed (sheriff sale) timeline, treasurers’ statutorily required notice and certification schedules could be disrupted. Dygert described that the county-level tax-deed calendar requires working backward from a scheduled hearing and said the change could delay tax-deed proceedings by six months to a year while counties re-notify owners and complete statutory steps. She recommended the bill specify it applies only to the current tax year and current-year delinquencies, which would make the measure workable for treasurers.

Representative Wisniewski said he had discussed the matter with county officials and disagreed about what “any tax due” means; he stated his interpretation that the phrase can include past taxes. He also noted existing statutes require payments to be applied to the oldest taxes first, which could mean paying the current year could reduce prior arrears and remove a taxpayer from a three-year delinquency that triggers a tax deed process.

Testimony and committee discussion included these factual points drawn from testimony and the fiscal note: the tax-deferral program requires claimants to be 65 or older, meet income limits defined in law, carry insurance and have sufficient equity in the property; the program typically applies to the house and one acre; interest on the lien is currently about 6 percent (statutorily described as a federal rate plus 2 percent); county treasurers reported that in a recent year roughly 10 people applied statewide and that Ada County currently has four active cases in its office; a fiscal note noted an estimated $40,000 system/software change cost if processes must be changed.

Representative Raybould moved that the committee send the bill to general orders to allow negotiation and amendment. Representative Wisniewski said he would be amenable to that step. The committee approved the motion by voice vote.

The committee did not adopt substantive changes at the hearing. Sending the bill to general orders preserves time this session to resolve the definitional ambiguity and to consider amendments (for example, limiting the deferral to current-year taxes and current delinquencies), per treasurers’ recommendations.