BOISE — The maximum homeowner’s exemption for 2014 will increase to $83,920, according to calculations by the Idaho State Tax Commission. The maximum exemption for 2013 was $81,000.
The maximum exemption amount is based on the Idaho House Price Index – All Transactions, which is published by the Federal Housing Finance Agency.
“The current index shows a 3.6 percent increase in house prices for Idaho,” said Alan Dornfest, property tax policy bureau chief for the Tax Commission. “This is the first increase following four years of decreases.”
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.
“The impact of the exemption on property taxes will depend on 2014 taxing district budgets, as well as how much 2014 property values change for homes and other properties,” said Dornfest. He added that the Tax Commission will provide an online calculator to help the public estimate their property taxes. The estimator will be available once 2014 assessments are set in June of 2014.
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.