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Posts tagged: homeowner's exemption

Homeowner’s exemption to rise in ‘14 after four years of decreases

Idaho’s homeowner’s exemption from property tax is going up, after dropping for the last four straight years, the Idaho State Tax Commission announced today. The maximum exemption for an owner-occupied Idaho home in 2014 will increase to $83,920, from the 2013 level of $81,000. It’s a sign of recovery in Idaho’s housing market, as the exemption is tied to the Idaho House Price Index, reflecting sales. “The current index shows a 3.6 percent increase in house prices for Idaho,” said Alan Dornfest, property tax policy bureau chief for the Tax Commission. “This is the first increase following four years of decreases.” Click below for the commission’s full announcement.

Top homeowner’s exemption for next year set at $81K, way down from peak of $104K

Idaho has set the maximum homeowner's exemption from property tax for next year: It will decline from the current $83,974 to $81,000. “The decrease is smaller than last year’s,” said Alan Dornfest, property tax policy supervisor for the Tax Commission. “This reflects the fact that housing prices trended downward, but at a slower pace than last year.”

The exemption, which is for 50 percent of the assessed value up to the maximum amount, was $50,000 from 1983 to 2006, when it was increased to $75,000 and tied to housing prices. That caused it to hit a high of $104,471 in 2009, after the state's housing prices soared, but to decline back down as prices collapsed.

Homeowner’s exemption drops again, this time to $83,974 for 2012

The state Tax Commission has set the maximum homeowner's exemption from property taxes for 2012, and it's dropping again, this time down to $83,974. That's down from $92,040 this year. The exemption is tied to the Idaho Home Price Index, so it goes up and down with Idaho home values, under a 2006 law. The maximum exemption hit a high of $104,471 in 2009, then began declining as Idaho home values dropped.

The homeowner's exemption exempts 50 percent of the value of an owner-occupied home from property taxes, but it's capped at the annually-adjusted maximum. That maximum was set at a fixed $50,000 for 23 years, from 1983 to 2005 - causing a big property tax shift onto homeowners as home values escalated but the exemption stayed the same - before the 2006 Legislature decided to raise it to $75,000 and tie it to future ups and downs in home prices.

The drop in the maximum from 2011 to 2012 won't make any difference for owners of lower-priced homes, according to Alan Dornfest, property tax policy supervisor for the Tax Commission, who noted, “There will be no change in the amount of the homeowner’s exemption for anyone whose home has a 2012 market value under $167,948.” Click below for the Tax Commission's full announcement and a table showing changes in the maximum exemption over the years.

Homeowner’s exemption to fall in 2011

Idaho’s homeowner’s exemption from property tax will drop in 2011 to a maximum of $92,040, from the current $101,153. “The drop reflects the recent state of the housing market,” said Alan Dornfest, property tax supervisor for the Idaho State Tax Commission. In 2006, Idaho lawmakers tied the homeowner’s exemption to the Idaho Housing Price Index, which goes up and down, reflecting housing price values in the state. That year, lawmakers raised the exemption to a maximum of $75,000; before that, it had been at a $50,000 maximum since voters put it there by initiative in 1983. You can read the Tax Commission’s full announcement here.

Homeowner’s exemption going down

When Idaho lawmakers raised the homeowner’s exemption from property tax from a maximum of $50,000 to a maximum of $75,000 in 2006, they also tied future changes in the exemption to the Idaho Housing Price Index, which tracks home prices in Idaho. That’s meant it’s gone up substantially in the last few years, hitting a maximum of $104,471 this year - but it also means it’ll go down next year. The Idaho Tax Commission announced today that the maximum homeowner’s exemption 2010 will drop to $101,153.

“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. The homeowner’s exemption exempts from taxes half the assessed value of the home and up to one acre of land for an owner-occupied home, up to the maximum value. The maximum was first set at $10,000 in 1980, then raised to $50,000 by voter initiative in 1983, where it stayed until 2006.

Dornfest noted that the decrease for 2010 isn’t unexpected; according to Tax Commission figures, residential property values already have dropped across the state. “It’s hard to say how much effect this really has, because if it tracks along with your home’s assessed value going down, it may have no effect,” Dornfest noted. “That’s impossible to say (now), because it’s dependent on the 2010 values.” The first tax bill to be affected by the change will be the one that comes due in December of 2010, he noted. “The intent of the Legislature, I think, was to keep it level, basically, with respect to market changes, and I think this just reflects that.”

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Betsy Z. Russell covers Idaho news from The Spokesman-Review's bureau in Boise.

Named best state-based political blog in Idaho for 2013 by The Fix

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