property taxes Archives - Teton Realty Blog

Unless you were living under a rock for the past 2 years (which might have been nice) you probably know that property values are up significantly. Until now, we haven’t seen County assessed values follow suit. With the recent release of 2022 assessed values, many are concerned that property tax increases are soon to follow. However, this doesn’t necessarily mean that your tax bill is going to go up proportionately.

In Idaho, each county is allowed to increase its property tax budget by up to 3% of the highest property tax budget of the past 3 years. The county can also increase their budget to account for new growth.

In order to calculate the tax rate, each taxing district within the county (Teton County has 18 taxing districts that each have slightly different budgets and needs) determines a levy, or the rate of which the county will multiply the assessed value to determine each property’s annual tax bill.

As an example, let’s say that district 1 has a total budget of $900k. In 2021, the total market value of every property in district 1 is $70m. To determine the levy, we would simply divide 900k by 70m, or 1.287%. If your assessed value is $300k, we simply multiply that by 1.287% to arrive at your 2021 tax amount of $3,861.

Now, let’s run a hypothetical based on what we are seeing today. We know that the total budget is going to increase with the new growth and the state’s allowance to increase the budget by up to 3% (ahem, inflation). Let’s assume that the new budget is $990k, and the collective value of all properties has risen to a whopping $110m. Using the same math, we divide $990k by $110m and arrive at 0.9%. Your value went from $300k to $450 this year. The math puts your 2022 tax bill at $4,050. While your tax bill has risen, it hasn’t risen 150% like your assessed value has.

The good news? Property values are up, and I know an agent that would love to sell your house.

Key Dates:

Mid-November – Current year tax bills mailed
December 20th – FIRST HALF TAX PAYMENT DUE
March 15th – Agricultural Exemption Applications Due
April 15th – Application deadline for Hardship Tax Relief or Circuit Breaker Program
April 15th – Application deadline for Homeowner’s Exemption
June 20th – SECOND HALF TAX PAYMENT DUE
First Monday in June – Assessment notices sent out
Last Monday in June – Last day to appeal current year’s property values
Summer – County begins planning budget for following year
Second Monday in September – County certifies budget

Application for Agricultural Exemption

Agricultural Lease Agreement

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!

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