The Idaho Tax Commission has set the maximum homeowner’s tax exemption for 2013 at $81 thousand, down from $83,974 for 2012.
Tax Commission property tax policy supervisor Alan Dornfest said the change reflects the fact that housing prices trended downward over the past year, although at a slower pace than last year. Dornfest said there would be no change in the amount of the homeowner’s exemption for anyone whose home has a 2013 market value under $162 thousand. “The impact of the exemption on property taxes will depend on how much 2013 property values change,” he said.
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.
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 limits to the House Price Index.