What Is The Idaho Homeowner's Exemption?
Many Idaho first time home buyers as well as home buyers that are relocating to Idaho are unaware of the generous Idaho homeowner's tax exemption they receive on their property tax bill each year on their primary residence. The Idaho homeowner's exemption only applies to owner-occupied homes that are deemed a primary residence. The exemption includes the home, and up to one acre of land that the home sits on.
Idaho property taxes, unlike most other states, are paid in arrears and can be paid in two installments. The first payment is due and payable no later than December 20th and the second installment is due and payable no later than June 20. Although the bill is annual, the state allows property owners to pay in two installments.
The current value of the Idaho homeowner's exemption exempts 50% of the value of the property, up to a maximum of $101,153 for the home and up to one acre of land. The value of the homeowner's exemption is subject to change.
If the property being purchased is owner occupied then it will probably already have the Idaho homeowner's exemption applied to it, however a buyer will need to file for the exemption themselves or it will automatically drop off. In today's market many homes are vacant or bank owned therefore no longer carry the tax exemption so a new homeowner will need to apply for the exemption themselves. Once a homeowner files for the tax exemption they do not need to file again, it will run with the property as long as the homeowner continues to reside in the home as their primary residence.
A homeowner can apply for the Idaho homeowner's exemption at the county assessor's office. There are no restrictions on the exemption aside from only qualifying for the exemption on one primary residence at a time. In order to qualify at the time of application the new homeowner must own and occupy the home before April 15th of the current year and must apply for the exemption by April 15th. If the deadline is missed then the homeowner is required to wait until the following year.
It is highly recommended that the homeowner keep the receipt they receive at the county assessor's office to prove they filed for the exemption. It is possible for county records to be incorrect and in such cases without the receipt the homeowner will not be able to validate the exemption.
For more information about the Idaho homeowner's exemptioncontact Keith Vermilyea, your Boise Idaho real estate agent for life.