House Revenue and Taxation committee approves four rule dockets, changes agricultural land valuation method

The Idaho House Revenue and Taxation Committee approved four administrative rule dockets at its morning meeting, including a rule that revises how agricultural land is assessed for property tax.

The measures approved covered: docket 3501032401 (property tax rule revising agricultural land assessment), docket 3501032402 (housekeeping changes to property tax administrative rules), docket 3501052401 (motor fuel tax regulation rewrite), and docket 3501102401 (cigarette and tobacco tax regulation rewrite). Each docket was approved by voice vote with no opposition recorded on the transcript.

Vice Chairman Representative John Weber introduced docket 3501032401 and said the rule “clarifies the calculation and updates it regarding ag land assessment and value, changing it from acre per income to income per acre.” Kathleen Ireland of the Idaho State Tax Commission told the committee the commission worked with Russ Hendricks of the Farm Bureau and “many county assessors” to draft the amendments. Ireland said the change moves to a standard income approach to value: after calculating gross income per acre, allowable expenses are deducted to reach a net operating income that is then capitalized into an assessed value. “The math in the original rule was just wrong,” Ireland said, asserting the amendment corrects that calculation.

Representative Raybould had asked who the tax commission consulted; Ireland identified the Farm Bureau representative and county assessors as collaborators during the drafting process.

Representative Weber described docket 3501032402 as removing language “that’s no longer used or necessary” and aligning rule language with statute; that docket drew no substantive questions before approval.

On docket 3501052401, an overhaul of the Idaho motor fuel tax administrative rule, Representative Shepherd asked about record-retention requirements cited in the draft rule. Elena Gonzales of the Idaho State Tax Commission pointed the committee to the draft’s Rule 270 (general and bulk documentation), saying the record-retention provisions specify four years in certain cases and otherwise follow the standard three-year statute of limitations.

Representative Weber introduced docket 3501102401, described as a rewrite to eliminate duplicate language and align the cigarette and tobacco tax rules with statute; the committee approved the docket by voice vote with no recorded opposition.

Votes at a glance

- Docket 3501032401 — Property tax (agricultural land assessment change). Motion to approve moved by Representative Raybould; approved by voice vote; no recorded opposition.

- Docket 3501032402 — Property tax (clean-up/align with statute). Motion to approve moved by Representative Andrus; approved by voice vote; no recorded opposition.

- Docket 3501052401 — Idaho motor fuel tax (regulation rewrite). Motion to approve moved by Representative Cheatham; approved by voice vote; no recorded opposition.

- Docket 3501102401 — Cigarette and tobacco tax (regulation rewrite). Motion to approve moved by Representative Raymond; approved by voice vote; no recorded opposition.

The committee chair closed the meeting after the votes and noted the committee is scheduled to meet the following morning at 9 a.m.