Business Personal Property

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Idaho implemented new laws for Business Personal Property that were effective January 1, 2013 and applies to personal property as described below.

The First Provision:

This provision states that any stand-alone asset purchased after January 1, 2013, with a total acquisition cost of $3000.00 or less, does not need to be reported and will not be taxed. If an asset cannot perform its function independent of other pieces of equipment, the items must be reported as a ‘system’ and must include the total purchase price of all components (for example: a computer tower, monitor, keyboard, speakers, printers, software, etc. These items cannot typically perform a task independent of the system and therefore are not stand-alone. They should be reported as a computer system and the total acquisition price must fall below $3000.00 to qualify. Another example might be an implement attached to or used with a tractor.) Any asset purchased prior to January 1, 2013 must be reported regardless of total purchase cost. An application for this provision is not required.

The Second Provision:

This provision is an Exemption that exempts the first $250,000.00 of depreciated value from taxation. The exemption is available one per tax payer per county, meaning that if you own multiple businesses within a county you may only receive one total $250,000.00 exemption. An application for this provision is required. See below for how and when to qualify, to apply and to maintain this exemption.

How and When to Qualify and Apply for this Personal Property

Pursuant to Idaho Code 63-602KK, an exemption from taxation may be granted on personal property if eligible.

Beginning in 2014, for locally assessed property, taxpayers in order to establish initial eligibility for the exemption provided in the above Idaho Code, must, by March 15th pursuant to  Idaho Code 63-302, Idaho Code 63-313, and  Idaho Code 63-602Y do one of the following:

File one (1) or more of the lists (Declaration form provided by the Assessor’s Office) of otherwise taxable personal property as required by the above Idaho Codes  and an application for the exemption if the total value of such property is greater than $250,000.00. The application will be deemed valid provided the exemption provided in Idaho Code 63-602KK is granted and not later deemed improperly claimed.
File an application attesting to ownership of otherwise taxable personal property having a value of $250,000.00 or less. In providing such value, personal property exempt pursuant to Idaho Code 63-602KK(1) whose link is provided above, shall not be included.

Maintaining the Personal Property Exemptions:

Unless the exemption has been deemed improper, for all years following the initial establishment of eligibility for the exemption, the taxpayer may continue to file the list(s) (Declaration) required by the Idaho Code Sections listed above with the links, or, if applicable for property otherwise reportable as required in Idaho Code 63-302, may file the affidavit provided in Idaho Code 63-602KK(6) whose link is also listed above.
If, after receiving the exemption, the taxpayer fails in any subsequent year to timely file the required list(s) (Declaration) of personal property or, if applicable, the affidavit provided in Idaho Code 63-602KK(6), the taxpayer can re-establish future eligibility for the exemption by means of filing the list(s) (declaration) required by Idaho Code 63-302, 63-33 and 63-602Y whose links are listed above.
For the duration of the period during which recapture could apply, the affidavit option shall not be available for taxpayers who elect to designate property to be included in the exemption provided for in Idaho Code 63-3029B.

Taxpayers’ Election of Property Location:

In cases where the taxpayer has personal property located in multiple locations within the county, the taxpayer may elect the location of the property to which the exemption will apply on or before March 15th. Should the taxpayer not make an election as to where to apply the exemption, the county shall have discretion regarding the property to which the exemption shall apply. If a taxpayer with personal property located in multiple locations within the county files one (1) affidavit provided in Idaho Code 63-602KK(6) whose link is listed above, the county shall prorate the exemption to the last known locations of the eligible property based on lasts list(s) (Declarations filed.

For questions concerning the above Business Personal Property laws or any other Business Personal Property questions call
(208) 529-1323.

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