IDAHO TAX COMMISSION SETS 2010 HOMEOWNER’S EXEMPTION

BOISE, IDAHO — Sept. 21, 2009 — The maximum homeowner’s exemption for 2010 will decrease to $101,153, according to calculations by the Idaho State Tax Commission. The maximum exemption for 2009 is $104,471.

“The decrease reflects the current state of the real estate market for residential property,” said Alan Dornfest, property tax policy supervisor for the Tax Commission.

Idaho provides a partial property tax exemption to qualified homeowners for their primary dwelling and up to one acre of land. The law exempts 50 percent of the assessed value from taxation; however, the exemption can’t exceed a maximum value that changes each year based on the Idaho Housing Price Index. That index is published by the Federal Housing Finance Agency.

“There will be no change in the amount of the homeowner’s exemption for anyone whose home has a 2010 market value under $202,000,” explained Dornfest. “The impact of the exemption on property taxes will depend on how much 2010 property values change.”

Idaho’s homeowner’s exemption began in 1980, with a maximum of $10,000. It remained at that level until 1983, when it was raised to $50,000 by voter initiative. The 2006 Idaho Legislature raised the exemption to $75,000 and tied future numbers to the Housing Price Index.

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