Are you interested in purchasing a home in Idaho or selling your Idaho house? If so, you will need to know all about Idaho property tax laws and how high your property tax bill will reach.
Property tax pays for numerous public services, from schools and local law enforcement to roads/highway construction and fire departments. Some property owners are qualified for a property tax reduction and other forms of property tax relief.
To learn the information you need about the value of your property and the property tax rates in your region, keep reading the summary below.
Idaho Property Tax Laws
The local government in each Idaho county manages local property tax processes to ensure everything aligns with Idaho law. Furthermore, the Idaho State Tax Commission assigns property tax rates and the assessed value of each piece of property for homeowners, business owners, and those operating property, such as railroads and public utilities.
The laws from the Idaho legislature have set up a system of taxing homeowners, those who own farms, and business owners depending on the size of their property and the county they reside in. Each county has its own tax rates, and the taxing district includes an assessor who regularly determines the market value of each property.
Your property taxes fund specific taxing districts such as your local school district. The regulations also allow for a property tax reduction among certain qualified homeowners where their property taxes can drop by at least $250 to as much as $1,500 on their house and up to one acre of land.
Boise ID Tax Laws
In Boise, Idaho, the tax laws allow taxing districts to raise the taxes by as much as 3 percent each year on top of spending for new construction. If any districts look to increase property taxes above that amount, voters must approve the higher levy rate.
The Ada County Assessor’s Office provides an assessment notice to each homeowner in Boise and assesses the property every calendar year. However, the tax laws allow those who own their home and use it as their primary residence to get a homeowners exemption.
That means you may not have to pay taxes on 50 percent of the taxable value of your home up to $100,000. In 2019, the Boise levy rate was at its lowest in a decade and reached only 0.014.
To determine what you would owe in property taxes, you will need to subtract exemptions from your home’s assessed value to get the taxable value. Then, you will need to multiply the levy rate by your taxable value to get the amount you owe.
Idaho Property Tax Relief
Earlier in 2022, the Idaho Legislature introduced new legislation that would decrease property taxes, which has significantly impacted homeowners.
The bill means that all property taxes taken from a primary homeowner’s residence will only get put toward school levies and bonds. However, the sales tax would grow from 6 percent to 7.85 percent.
Furthermore, many Idaho homeowners can qualify for a property tax relief program. You can get as much as $1,500 in property tax relief through Idaho’s Property Tax Reduction program set up by the Idaho State Tax Commission.
You can apply for the program through their county’s assessor’s office. All applications need to get filed by April 18th to get approval for the relevant year. The basic qualifications for property tax relief include:
- Having primary residence in Idaho
- Having an income of $32,230 or less after paying for medical bills
- The value of the home or mobile home not exceeding a limit set by law in June 2022
Some other qualifications that could make you eligible include being 65 years or older, having blindness, having a disability, or having a fatherless or motherless child.
Idaho Property Tax Programs
There are very specific eligibility requirements that allow you to gain property tax relief through the Property Tax Reduction program, which can include:
- Becoming a widower
- Being a former POW or hostage
- Having a disability that the Veterans Affairs, public employment agencies, Social Security Administration, Federal Civil Service, or Railroad Retirement Board recognizes
When you apply for the Idaho property tax program to gain tax relief, you will need to show proof of income, payment of medical or funeral bills, proof of all requirements, and home ownership information.
You can apply for the program anytime from January 1st through April 18th of the calendar year. If approved, your property tax reduction will show up on your next property tax bill, which you should get in December. You must apply for the program every year to get a tax reduction.
Another option is to apply for the Property Tax Deferral Program. That will allow you to defer paying taxes on your home and up to one acre of land. You can either apply for the program separately or apply alongside the Property Tax Reduction program.
Who Is Responsible for Setting Taxes
Who sets tax rates in Idaho? You will find that the local government plays a significant part in developing property tax in Idaho counties. Furthermore, The Idaho Legislature handles passing tax-related legislation for the entire state. That includes deciding on property tax revenue and sales tax.
In addition, the federal government is responsible for setting federal taxes, such as those funding Veteran’s Affairs and infrastructure. The U.S. Constitution gives Congress the power to levy and collect taxes. Congress has broad powers when it comes to taxation and can even regulate a business in any state to tax it more successfully.
While Congress is responsible for passing all tax legislation, the executive branch or the President has the power to sign a bill into law or to veto a bill. Both the executive and legislative branches work together to pass federal tax laws.
What Are Your Tax Rights
The IRS includes ten essential and fundamental rights for taxpayers when paying their taxes, handling late payments, and more. These fundamental tax rights, known as the Taxpayer Bill of Rights, include:
- The right to be informed
- The right to quality service
- The right to pay no more than the accurate tax amount
- The right to oppose the IRS’s position and get a hearing
- The right to appeal an IRS decision through an independent assembly
- The right to finality
- The right to privacy
- The right to confidentiality
- The right to maintain representation
- The right to a fair and just tax system
These rights will allow taxpayers to have a just system for paying only their required taxes and gaining all exemptions and tax reductions.
Now that you have learned what you need to know about Idaho property tax laws, you can more successfully buy or sell property in Idaho. You can now figure out what type of tax reduction and tax relief programs you are eligible for, as well as the tax rights you have.
Once you have decided to sell your Idaho home, you will need to pay the capital gains tax in ID if you sell your property for a larger price than what you originally paid. Furthermore, if you want to sell a house fast in Idaho, you should consider looking for real estate investors and cash home buyers in Boise.
Cash buyers don’t need to wait on a mortgage loan approval and can purchase your home in only a few short weeks. We buy houses Meridian owners are looking to sell, so contact us today!