Property Assessment - Frequent Questions
Am I required to pay property taxes on personal property?
All nonexempt property, including personal property, is subject to property taxation. Any nonexempt furniture, fixtures, equipment, or machinery used in a business or to generate income is subject to assessment and property taxation. Contact your county assessor for specific exemptions and the form to declare your personal property.
Are different types of property taxed at different rates?
All property types are assessed at 100 percent of current market value, less statutory exemptions. Generally, property types within the boundaries of the same taxing district have the same property tax rate. If the property tax rate is different, with a few exceptions, the property is within the boundaries of a different taxing district.
Does the law limit the amount property taxes can increase from one year to the next?
The law does not limit the increase in the property taxes on an individual property but does limit the amount taxing districts (local governmental units) can increase the generally nonvoter approved revenue to be received from property taxes. Each taxing district can increase the generally nonvoter approved property tax revenue it will receive by 3 percent plus a growth factor for new construction and annexation. If the rate of increase in property tax revenue is less than the rate of increase in total taxable value of all property within the taxing district, the property tax rate will decrease. However, property taxes may increase on individual properties if the rate of change in value of that specific property exceeds the rate of change in value of all properties. Additionally, voter-approved issues like bonds and overrides may exceed the limitation.
Does the law limit the amount property value can increase from one year to the next?
No. The law requires current market value as of Jan. 1 each year. This may mean a large or a small decrease or increase in value from the previous year. The market value of all properties in your neighborhood may have increased or decreased from the previous year, or the assessor may have discovered better information resulting in the decrease or increase in the estimated value of your property.
How are my property taxes determined?
The amount of property tax is based on the budget needs of the taxing districts (local governmental units like the county, city, school district, fire district, etc.) where the property is located. Officials for each taxing district decide the annual budget needed to provide services. The part of the approved budget to be funded by property taxes is divided by the total applicable taxable value of all properties within the district. This same calculation is made for each taxing district where your property is located and the resulting tax rate for each district is added together. The total property tax rate is multiplied by 100% of the market value of your property less statutory exemptions to calculate the taxes you owe.
Selected city’s budget funded by property taxes is $8,960,868.00. The total taxable value of all property within the selected city is $1,232,686,220.00.
$8,960,868 ÷ $1,232,686,220 = .00727 city tax rate
Each applicable taxing district’s tax rate is calculated using the same procedure and the tax rates are totaled to equal a total property tax rate of .0167.
|100% of house market value||=||$96,000|
|100% of lot market value||=||$22,000|
|Less homeowner's exemption|
(50% of $118,000, assuming eligibility)
|Total taxable value||=||$59,000|
$59,000 x .0167 = $986 (Total property taxes owed to all taxing districts where the property is located.)
How is property assessed in Idaho?
Each year all taxable property must be assessed at 100% of current market value less statutory exemptions. The county assessor must estimate how much a typical buyer would pay for the property on Jan. 1. To do this the assessor generally uses sales prices from properties in the county to develop guidelines for the assessment of each property. The assessor considers the features that influence what a buyer would pay for property. Some of these features are size, location, quality, age, and condition.
What if I disagree with (or want to appeal) the assessed value for my property?
Your county assessor maintains a file of information about your property. If you have questions about the assessment, contact your county assessor.
Contact your county clerk to file an appeal with the board of equalization. (The board of county commissioners meets as the board of equalization.) Most appeals must be filed by the fourth Monday in June. For most assessments, the board of equalization meets to hear appeals between the fourth Monday in June and the second Monday in July.
If you disagree with a decision from the board of equalization, you may appeal that decision within 30 days to the state board of tax appeals or to the district court. Your county clerk has information to help you file such an appeal.
What is the property tax rate in Idaho?
The property tax rates applied to a property’s assessed value vary by location and change each year. The statewide average property tax rate for each year from 2008 to 2012 is as follows:
|2012 Average Urban||1.631%|
|2012 Average Rural Rate||1.048%|
|2011 Average Urban||1.526%|
|2011 Average Rural Rate||0.983%|
|2010 Average Urban||1.441%|
|2010 Average Rural Rate||0.932%|
|2009 Average Urban||1.275%|
|2009 Average Rural Rate||0.832%|
|2008 Average Urban||1.179%|
|2008 Average Rural Rate||0.781%|
These figures are only a general guide. Please contact the county treasurer for the tax rate information.
What property is taxed?
Counties collect property taxes levied by themselves and taxing districts to provide local services. The state is responsible for overseeing property tax procedures to ensure they comply with state laws, but none of the money goes to the state. Property taxes apply to homes (including manufactured housing), farms, businesses, industry, warehouses, offices, and most privately owned real estate, as well as personal property such as machinery and equipment, and office furniture and equipment. Taxpayers must pay at least half of their property taxes by Dec. 20 and the other half by June 20. However, partial payments in increments of no less than $25.00 may be arranged with the County Treasurer. Contact the county assessor for specific information about valuation and the county treasurer about payments.
Why does the property assessment show a value for improvements when I haven't made any changes to the property?
For property tax assessment purposes, the term improvement refers to all buildings, paving, or other structures that add value to the land, regardless of when they were constructed.