Tax Commission News Release
Idaho Tax Commission sets 2012 homeowner’s exemption
BOISE, IDAHO — Oct. 3, 2011 — The maximum homeowner’s exemption for 2012 will decrease to $83,974, according to calculations by the Idaho State Tax Commission. The maximum exemption for 2011 is $92,040.
“The decrease reflects falling housing prices in 2010 and through the second quarter of 2011,” said Alan Dornfest, property tax policy supervisor for the Tax Commission. He added, “The exemption ceiling is tied by law to changes in the Idaho House Price Index calculated by the Federal Housing Finance Agency.”
Idaho provides a partial property tax exemption to qualified homeowners for their primary dwelling and up to one acre of land. The law exempts 50 percent of the assessed value from taxation; however, the exemption can’t exceed the maximum value that changes each year.
“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,” explained Dornfest. “The impact of the exemption on property taxes will depend on how much 2012 property values change.”
Idaho’s homeowner’s exemption began in 1980, with a maximum of $10,000. It remained at that level until 1983, when it was raised to $50,000 by voter initiative. The 2006 Idaho Legislature raised the exemption to $75,000 and tied future numbers to the House Price Index.
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