I qualified for a property tax reduction. Will I owe any property taxes?
The Property Tax Reduction program provides a credit toward property taxes on a qualified applicant’s primary residence and up to one acre of land. If a qualified applicant owns more than one acre of land or has additional outbuildings, they remain responsible for the property taxes on the excess land and any additional improvements, even if they have not used the full amount of their approved benefit.
For example, if an applicant qualifies for a maximum benefit of $600 and owns one acre or less where their primary residence is located, and the total property tax bill is less than $600, no property taxes will be owed. However, the applicant may still be responsible for other fees or special assessments, such as irrigation taxes.
If the total property tax bill exceeds the maximum benefit amount (for example, $600), the applicant is responsible for paying the remaining balance after the Property Tax Reduction credit has been applied, in accordance with Idaho Code § 63-704.
Property tax bills are calculated and mailed in November, so the exact amount owed is not known until that time. Questions regarding property tax bills should be directed to the Treasurer’s Office. Questions about the Property Tax Reduction program may be directed to the Assessor’s Office at 208-587-2126 or the Idaho State Tax Commission at 208-334-7736.
Why do I have to apply for a Homeowners Exemption? Shouldn’t it be applied automatically?
The Homeowner’s Exemption is available only to individuals who own and occupy their home as their primary residence. Because not all homeowners live in the properties they purchase, the exemption requires an application to confirm that the home is your primary residence. Submitting a Homeowner’s Exemption application notifies the Assessor’s Office of your intent to occupy the property as your primary residence.
If you currently receive a Homeowner’s Exemption on another residence—even if it is located in a different county or state—you must notify that Assessor’s Office before applying for a Homeowner’s Exemption on your new home. For additional information, please refer to Idaho Code § 63-602G.
The application is a single-page form and typically takes about five minutes to complete.
If I buy my home after April 15th, can I still get the exemption this year?
Yes. Beginning with the 2021 tax year, the April 15 application deadline was removed. Depending on when a Homeowner’s Exemption application is submitted, an approved application may result in a reduction in taxable value or a partial cancellation of property taxes.
Why does the Assessor’s office need to see my Trust or LLC Papers?
When you transfer ownership of your property to a Trust or LLC, that entity becomes the legal owner of the property.
If you wish to qualify for a Homeowner’s Exemption or Property Tax Reduction (Circuit Breaker), the Assessor’s Office must have copies of certain pages from the Trust or LLC documents. Idaho law requires that you both own and occupy the home as your primary residence to qualify for these programs. When a Trust or LLC owns the home, the Assessor’s Office retains specific pages from these documents to maintain a record of the entity’s ownership. (See Idaho Code § 63-703(4))
The Assessor’s Office may also request these documents to process the transfer of ownership for a manufactured home.
For more information or questions, please contact the Assessor’s Office at 208-587-2126.
What is the Agricultural Program, and how do I apply?
Reference: Idaho Code § 63-604
The Agricultural Program provides a reduction in the taxable value of land that is actively used for agricultural purposes.
Under Idaho law, agricultural land is defined as land:
Actively devoted to agriculture, and
Part of a bona fide, profit-making agricultural venture.
Examples of qualifying agricultural land include:
Land used to produce field crops, and/or
Land used by the owner or a bona fide lessee for grazing livestock intended for sale as part of a profit-making enterprise.
Land does not qualify as agricultural if:
It is part of a platted subdivision with restrictions prohibiting agricultural use.
It is used for grazing horses or other animals kept primarily for personal use or recreation rather than for profit.
Agricultural Land Eligibility Requirements
Owners of agricultural land may qualify for the Agricultural Property Tax Program if their land meets certain size and use requirements:
Land over five acres:
Includes the home site and may consist of multiple parcels with common boundaries.
Owners may submit an initial application for the program.
To maintain the agricultural classification in future years, the land must continue to be used for agriculture or be part of a crop retirement or rotation program.
Land five acres or less:
Presumed to be non-agricultural until the owner demonstrates it meets program requirements.
The owner must submit an initial application and show that the land has been actively devoted to agriculture for the last three growing seasons.
Income Requirements for All Eligible Land:
The land must produce agricultural goods for sale or personal use that meet one of the following thresholds:
At least 15% of the owner’s or lessee’s annual gross income, or
Gross agricultural revenues of $1,000 or more in the preceding year, including net income from the sale of livestock.
Landowners must provide proof of these minimum income requirements each year to maintain eligibility for the program.
How to Apply for Agricultural Land Classification
Initial Application:
Landowners must submit their initial application at the Assessor’s Office by April 15 of the year they are requesting the agricultural classification.
For Land Five Acres or Less:
Landowners must provide proof of agricultural income from the previous year by March 15 each year to maintain eligibility.
Agricultural Land Classifications and Assessment
When a property is approved for the Agricultural Program, it is assigned one of the following classifications:
Dry Cropland
Irrigated Cropland
Dry Grazing
Irrigated Grazing
Each classification has specific assessment rates based on the land’s ability to produce crops or support grazing. The taxable value is calculated by multiplying the number of acres in the program by the appropriate assessment rate. These rates are lower than the per-acre rates used for full market value, providing a reduction in property taxes for qualifying agricultural land.