I figured it was high time to write something about the Idaho homeowners exemption, what it is, and how to take advantage of it.
Like most States, you receive a discounted rate for your property taxes for your primary residence located in Idaho. If you are taking advantage of the Idaho homeowners exemption in Idaho, you obviously can’t take advantage of a tax exemption for a primary residence in another state, and vice versa.
How much will you save?
In a nutshell, you will not be taxed on either 50% of the total assessed value of your home, or $100,000, whichever is less. No, this does not mean you will save $100,000 worth of property taxes.
How much you will save specifically depends on the rate of Taxation (the Mill Levy) in your area. Teton County Idaho has 16 Districts that range from about .6% to about 1% depending where you live for the most recent year and at the time of this article.
So, let’s assume that you have a home that is assessed at $300,000 (the County’s value, not what you paid ie. the market value) and you live in an area where the Mill Levy is 1%. Since $100,000 of the total value is less than 50% of the total value (or $150,000), you are going to save 1% of $100,000, or about $1,000.00 worth of property taxes for that year. Remember, if your home has a higher assessed value, you aren’t going to save any more than that $1,000.
When is the deadline for me to file the exemption to receive the discount for that year?
On existing construction it’s April 15th. For new construction, that deadline is moved to sometime towards the end of November, this year it’s November 26th.
What if there are multiple owners of the house?
An example here would be two people who live together that are not married. As long as both of the occupants can prove residency, they will receive 100% of the exemption allowance. If only one can prove occupancy, you’ll get half.
How do I prove residency?
The county used to accept different forms of proof of ownership such as a utility bill. That requirement has recently changed, you actually have to have the address of the home where you are claiming the exemption printed on your Idaho license.
How do I file for the exemption?
After updating your license with the new address, bring your license or licenses in to the assessor’s office which is located at the second floor of the County Courthouse next to the DMV. Don’t be fooled, you update your license at the Sheriff’s Office, not the DMV!
If we are currently in new construction and look to finish 1st quarter of 2019, do we file this November or wait until construction is complete?
Tayson Rockefeller says
Good question. You cannot file for the homeowner’s exemption until the certificate of occupancy is issued, so I would plan on filing before the regular cut-off date of April 15th 2019 to be safe. April 15th is the deadline for most owners to file (otherwise you will miss out on the discount for the rest of the year) though they will likely extend that date into November for new construction, so it is likely you will still get the exemption next year even if you miss the April 15th deadline since the home is new.