Tax season is upon us! That means we not only need to file taxes by April 15th, but also to file for the homeowners exemption.
If you’re not sure if you qualify or where to file, we are here to help!
What Is The Homeowners Exemption
This exemption is provided by Idaho state law, for the purpose of reducing the taxable value of your home up to $100,00 or 50%, whichever is less. For example, if your home is worth $400,000, you may only pay tax on $300,000. As a result, this exemption will save you money and reduce you property taxes!
A home owner can file the exemption if they are an Idaho resident and they occupy the home for more than 6 month out of the year (Primary Residence). It can only be filed on the primary residence, it can not be put on a second home or a rental.
When To File
New Construction you must file within 30 days of purchasing the home.
For Existing Homes, the deadline to file for the homeowners exemption is April 15th for THIS year’s exemptions.
File one time per house. After you file, the exemption stays with the house until you sell the house. Then you will need to file it again on your next home.
Where To File
Filing must be done at the county’s assessors office where the house is located. Every county does it a little differently, but you have to file each one in person, it can not be done online. Below are a list of the addresses of nearby counties:
Kootenai: 451 Government Way, Coeur d’Alene
Shoshone: 700 Bank St #100, Wallace
Boundary: 6452 Kootenai St, Bonners Ferry
Bonner: 1500 US-2 #205, Sandpoint
Benewah: 701 College Ave # 7, St Maries
Do Not Share Sales Price
Idaho is a non disclosure state. That means you do not disclosure the purchase price of the home with the county or on any external sites like Zillow because it is not required. This is a good thing! If the county has the home assessed at a lower value than what you purchased it at, you will continue to be taxed at the lower rate. If you share the higher purchase price with them, they will start taxing you at that higher level.
Below are a few other exemptions you can file on your property. Click on the links to learn more about how it works in Kootenai county. You would file each of the below exemptions the same way as a homeowners exemption, at the county’s assessor’s office where the land is located.
Agricultural: This program will reduce the taxable value on agricultural land.
Timber: This program will reduce the taxable value of the private land used to primarily harvest timber.
Property Tax Reduction Program (Formally known as Circuit Breaker): This program reduces property taxes for individuals who meet age and income requirements.
If you have any questions, concerns or confusion, never hesitate to contact us! We are here to address any roadblocks you have and point you in the right direction so that you can save some money on your taxes.
Check out our video below regarding important tax information for home owners. Also, subscribe to our YouTube page to keep up with all things real estate!