The following property is exempt from property taxation: business inventory. For the purpose of this section, “business inventory” means all items of tangible personal property or other property, including site improvements, described as:
(1) All livestock, fur-bearing animals, fish, fowl and bees.
(2) All nursery stock, stock-in-trade, merchandise, products, finished or partly finished goods, raw materials, and all forest products subject to the provisions of chapter 17, title 63, Idaho Code, supplies, containers and other personal property that is held for sale or consumption in the ordinary course of the taxpayer’s manufacturing, farming, wholesale jobbing, or merchandising business.
(3) Residential improvements never occupied. Once residential improvements are occupied as defined in section 63-317, Idaho Code, they shall be subject to the tax provided by section 63-317, Idaho Code. The provisions of section 63-602Y, Idaho Code, shall not apply to the exemption provided by this subsection. The exemption provided by this subsection applies only to improvements to real property, and only until first occupied. For purposes of this section, the term “residential improvements” means only: Single family residences; or
(4) Residential townhouses; or
(5) Residential condominium units.
The nonresidential portion of an improvement to real property that is used or is to be used for residential and nonresidential purposes does not qualify for the exemption provided by this section. If an improvement contains multiple residential units, each such unit shall lose the exemption provided in this section when it becomes occupied.