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Idaho Property Tax Assessments - Explained
3. Your property taxes are calculated using this formula.
To determine your tax bill, the county assessor multiplies
your property’s assessed value (minus your homeowner’s
exemption) by your county’s tax levy. The tax levy is that
portion of taxing district budgets (schools, highways,
libraries, etc.) not funded by other revenues and therefore
funded by property taxes.
(assessed property value - homeowner’s exemption) x (tax levy)
= tax bill amount
If you own a home in Idaho, you’ll receive your yearly
Assessment Notice in the mail between late May and early
June. This is the notice your county tax assessor sends you
to explain the current assessed value of your property.
If you haven’t received yours, you can contact your county
assessor’s office to get a copy. (In Ada County, you can
access your notice online at www.adacountyassessor.org.)
It’s easy to get confused or misunderstand these notices
and their impact on your property taxes. Here are a few
important things to keep in mind:
1. Your assessment is not an accurate appraisal.
Once every five years, appraisers hired by the assessor’s
office drive by your house and make a quick determination
of your property value. Keep in mind that for all of Ada
County there are about 20 assessors, so each one is
looking at thousands of homes each year.
During the other four years, they adjust your value based on
home sales in your neighborhood and other factors. Their
goal is to get close to “true value” without going over. The
good news (as far as taxable value is concerned) is that
your assessment is often well below true market value.
2. Your assessment is not a tax bill.
You’ll be billed for your property taxes in late November of
each year. The assessment notice you receive in June is
not a bill — but it does influence how much you will be billed
in November.
Taxes in Idaho are paid in arrears, which means that in
November you’re billed for the previous 12 months. Your
mortgage company might pay your taxes every month
through an escrow. Otherwise, you have the option to pay
your taxes in whole or twice per year (half in December, half
in June).
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For example, if your property is assessed at $250,000 and
your homeowner’s exemption is $100,000, then your taxable
property value is $150,000. ($250,000 - 100,000 =
$150,000.) That’s the amount that will be multiplied by the
tax levy.
Inside each county, there are multiple tax districts that bill
you for a fraction of their tax levy. Total tax levies may differ
by property, because your neighbor across the street might
be in a different tax district.
The overall tax levy rate around Boise is about 1.6 or 1.7
percent. In Canyon County, rates tend to be higher,
sometimes over 2 percent. When property prices drop, as
they did in the 2007 housing market crash, tax levy rates
often rise to compensate for lower property values. Idaho
state law caps tax levy increases at a maximum 3 percent
per year.
If you haven’t filed for your homeowner’s exemption, that’s
costing you a fair amount of money. Your Assessment
Notice will show if you’re receiving the exemption. If you’re
not, file for it with your assessor’s office (it must be filed
before April 15 to apply to your current year’s assessment).
You only need to apply once — it grants you a permanent
exemption as long as you own the property.
If you’re 65 or older, a widow or widower, blind or disabled of
any age and meet income and residence requirements, you
may also qualify for the Circuit Breaker tax reduction.
Contact your county assessor’s office for more information
on this reduction — it could save you a significant amount on
your property taxes. This one also must be filed by April 15
to reduce your current year’s tax.
4. You can appeal your property tax assessment.
If your home is assessed below its true value, then do
nothing and enjoy your lower taxes. Even if you believe your
home is assessed up to 5 percent over its true value, do
nothing — the money you might possibly save will likely not