Whether you already own property in Idaho or you are planning to purchase here there are several important things about property taxes that you should know.
1. Homeowners Exemption. The Homeowners Exemption is the single most important resource that can save you money on property taxes. The exemption allows for 50% of the value of your home (and up to one acre of land) to be exempted from taxes up to a maximum amount. The maximum amount changes from year to year based on the Idaho Price Index. For example, in 2014 the maximum amount a taxable home value could be reduced by was $83,920. For 2015 that amount was raised to $89,580. In order to qualify for this exemption you must own and occupy the home you are applying for before the application deadline of April 15th of that year. This means that investment properties and second homes do not qualify. If the April 15th deadline is missed, the exemption will not go into effect until the following tax year.
2. Due dates. Property tax bills in Idaho are mailed out on the 4th Monday in November each year. However, only the first half of the bill is due by December 20th of that same year. This means that while you may be current on paying your taxes you are also most likely 6 months behind in what you actually owe. This is known as paying in arrears. Generally speaking this will not impact you in any way until it comes time to sell your property. At the time of sale the title company will usually prorate the portion of taxes that have not yet been paid in full for the year you are selling in. This means the seller will have that portion taken out of their proceeds and it will be given to the buyer’s side to be paid out when that portion of the tax bill comes due.
3. Assessed Value. Many people wonder how the assessed value of their property is determined. Each year as mandated by law the Assessor is required to place a current market value on each property. The process is complex and takes into consideration current construction costs and recent home sales. This information is gathered from appraisers, real estate agents, builders, property owners, the MLS and property developers. Occasionally an actual visit to the subject property is warranted as well. If you think that your home has been valued at a higher amount than you could realistically sell it for then you have the option having an informal review. If that process does not yield satisfactory results an appeal form can be filed. This form must be filed on or before the 4th Monday of June.
At first glance property tax rules can seem a little overwhelming. But having a basic knowledge of how they work can save you frustration and even money. Take advantage of your resources and visit your local county assessor webpage for more information on these points as well as many others. Dianna Bentley email@example.com