Idaho Homeowners Exemption saves you the Big Bucks…Here’s how!

Did you know that you may be eligible to save BIG bucks on your property taxes for your Idaho home just by living in it?  Yes, its true...  It is called the homeowners exemption and it applies to your primary residence and up to one acre of land. 

Just how much money can you save?  Well, each year it varies.  In 2011, the amount you can exempt is 50% of the assessed value up to $92,040.  In 2010, the exempted amount was 50% up to $101,153.  The best way to illustrate this savings is to provide an example on a Boise home located in area 01 (largest area in Boise with a levy rate of .017122994). Please note the levy rates are determined by the taxing districts and can vary greatly for different areas.

1. Boise home’s assessed value in 2010 is $100,000.
2. Property taxes on $100,000 Boise homes are the assessed value multiplied by the levy rate (.017122994).  Total Taxes due:  $1,712.29
3. With the homeowners exemption you would be taxed on just $50,000 (50% of 100,000= 50,000)  Taxes would be $856.15

Total savings of $856.15!  In this example, the exempted amount was only $50,000 but if the house was assessed higher, you could eligible to exempt up to $92,040 (or 50% of value, which ever is less).

So how do you get in on this savings?  It is simple.  Here’s what you need to do:

1. You must own and occupy the property as your primary dwelling before April 15^th and apply for the exemption by April 15^th of the year you are applying with the county assessor’s office.
2. You only have to apply once and it stays with the property as long as you own and live in it.  Make sure you keep your receipt with your records to document the filing (just in case they lost the record).
3. Upon change of ownership, the new owner must apply for a new exemption.  You are only allowed to claim one Idaho property at a time as your primary residence.

That is all there is to it!  The important thing is to remember to file your homeowner exemption on your Idaho home with the county assessor’s office prior to April 15^th for the year you are claiming.  Typically, at closing the escrow officer will give you the form to file.  It is always a good idea to file right after closing while it is still fresh in your mind.  Then all you have to do is figure out what you are going to do with all the money you saved!  As always, if you have any questions about your taxes, please consult with a tax attorney or accountant.