BOISE — Many Idaho homeowners will be getting a smaller tax break on their primary residences come 2011, but it doesn’t necessarily mean their property tax bills will go up.
Due to the moribund housing market and falling values, the maximum homeowner’s exemption next year will decrease to $92,040, from $101,153 this year.
The Idaho State Tax Commission’s Alan Dornfest said today, “The decrease reflects the recent state of the housing market.”
The law exempts 50 percent of the assessed value from taxation, but the exemption can’t exceed a maximum value that changes each year based on the Idaho Housing Price Index.
So how will this affect individuals?
Because property tax levy rates change annually, impact on taxpayers’ bills will vary depending on local government budgets and changes in the value of other classes of property, including commercial.