Homeowner's exemptions will be decreasing in 2013
The maximum homeowner’s exemption for 2013 will decrease this year thanks to falling house prices.
The new limit is $81,000, according to calculations by the Idaho State Tax Commission. The maximum exemption for 2012 is $83,974.
“The decrease is smaller than last year’s,” said Alan Dornfest, property tax policy supervisor for the Tax Commission. “This reflects the fact that housing prices trended downward, but at a slower pace than last year.”
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.
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 $162,000. “The impact of the exemption on property taxes will depend on how much 2013 property values change,” he said.
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.