Idaho State Tax Commission

Idaho State Tax Commission

Tax Commission News Release

Idaho homeowner’s exemption limit may affect taxable value of homes

BOISE, IDAHO — May 31, 2012 — As counties are mailing annual assessment notices to homeowners, the Idaho State Tax Commission is issuing a reminder that the homeowner’s exemption limit may affect the taxable value of their homes. The taxable value is the market value minus the amount of the homeowner’s exemption.

The maximum homeowner’s exemption for 2012 is $83,974—a decrease from $92,040 in 2011. Idaho exempts from taxation 50 percent of the assessed value of a primary dwelling and up to one acre of land, but there is a dollar limit on the exempt amount.

“We’ve been receiving calls from taxpayers who are surprised that the taxable value of their home on the assessment notice went up for 2012, even though the market value stayed about the same,” said Alan Dornfest, property tax policy supervisor for the Tax Commission. “That happens because the homeowner’s exemption dollar limit is lower than last year, so not as much of the property’s value is exempt for tax purposes,” he explained.

Dornfest said the lower homeowner’s exemption only affects homes worth more than $167,948 in 2012. For example, he said, if a home’s market value remained at $200,000 from 2011 to 2012, its taxable value would increase from $107,960 in 2011 to $116,026 in 2012, based on the change in the homeowner’s exemption.

“The end result on taxes depends on how much 2012 property values change in a homeowner’s taxing districts, as well as changes in property tax budgets and levies of those districts,” said Dornfest.

He said the Tax Commission will post a tax estimator on its website in early June, which will let homeowners in participating counties find out roughly how much they’ll owe in property taxes for 2012.
 

Posted 05-31-2012

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