It's that time of year again when we remind our clients who purchased a home in the past year to make sure they have applied to receive their Kootenai County Homeowners Property Tax Exemption.
April 15th isn't just the deadline to file your tax returns with the IRS, it's also the deadline with the county for application to have up to $100,000 deducted from the county tax assessor's value of your residence. Your deduction will be 1/2 of your home's value, up to a maximum of $100,000.
Folks, that's $100,000 that you don't have to pay property tax on!
Here's how it works:
If your home's assessed value is $190,000.00 you will pay property taxes on half of the assessed value, or $95,000.00. If your home's value is $375,000.00 you will deduct the maximum exemption of $100,000 and pay taxes on $275,000.
If your home is newly constructed and no one has ever lived in the home prior to you, the April 15th deadline doesn't apply.
In this case you must apply for the homeowner's exemption within 30 days of being notified by the Assessor that the home has been appraised. Otherwise, the homeowners exemption will take affect the following tax year.
Once you have filed for the exemption, you don't have to refile as long as you own the home and occupy it as your primary residence. The exception could be if you place your property into a trust. If that's the case, check with the county.
Keep in mind, Idaho is a non-disclosure state. By law, the amount you paid for your home is confidential unless you choose to tell the assessor. Most people do not tell. This is because in most cases the assessed value is significantly lower than the purchase price. If you tell the assessor what you paid, your assessed value will then increase to your purchase price.
WHAT IS THE HOMEOWNER'S EXEMPTION?
The Homeowners Exemption is an exemption provided by Idaho State law that saves the property owner money on their property taxes. This happens because the exemption deducts 1/2 of the assessed value of the buildings and up to a one-acre home site up to a maximum of $100,000 for 2019, for taxation purposes. See Idaho Codes 63-602G and 63-701.
A property owner who occupies the home as their primary residence and is an Idaho resident qualifies for this exemption.
HOW DO YOU QUALIFY?
A valid Idaho drivers license (if you drive). Vehicle is licensed in Idaho (if you own a vehicle). Registered Idaho voter (if you vote). If you file income tax, at the appropriate time the property owner would file a full year Idaho resident income tax return. You reside in Idaho for a majority of the year. If the property is in a trust, bring the entire trust with you.
WHEN TO FILE?
On new homes, owner must apply within thirty (30) days of occupying the home. On existing homes the deadline for applying is April 15th of the year that you occupied the home. We suggest that the property owner file as soon as home is owned and occupied.
WHERE DO I FILE?
The Homeowners Exemption Applications are available and must be filed in the Assessor's Office. The Assessor's Office is located at 451 Government Way on the main floor of the Administration building, next to the information desk.
Call the Assessor's Office at (208) 446-1500