It's that time in Idaho again, and you have probably already received your property tax bill for the 2014 tax year. It's hard not to notice a healthy increase in the tax bill this year, thanks to the strength of the Boise real estate market and all of the appreciation we have realized over the past few years. Although it's tough to write out that check, just remember that your equity is increasing and so is your net worth. Idaho property taxes are paid in arrears and although the bill is considered annual, Idaho allows homeowners to pay in two installments but for those that are overachievers, feel free to pay the entire bill on December 20th, your county will appreciate it! Don't forget to pay the first half of your bill no later than December 20th and the second half is due June 20th of 2015.
Many Boise first time home buyers, as well as those that are relocating to Boise and retiring to Boise do know and fully understand the awesome Idaho homeowner's tax exemption they receive on their primary residence. This homeowner's exemption only applies to owner-occupied homes and each Idaho homeowner gets only one exemption at a time. The exemption includes the home, and up to one acre of land that the home sits on. The good news is that the maximum homeowner's exemption increased from $83,290 for tax year 2014 to a maximum of $89,580 for tax year 2015.
The current value of the Idaho homeowner's exemption exempts 50% of the value of the property, up to the previously mentioned maximum limits, the value exemption is subject to change from year to year.
Remember to ask your real estate agent if the house you are interested in making an offer on has a homeowner's exemption on it. If the sellers are still living in the house there is a good chance that it does and that MAY reduce the amount of taxes you pay for the first year you live in the house. If the property does not have the homeowner's exemption on it then you will pay the higher rate until your homeowner's exemption kicks in the following year if you purchased the house after the April 15th deadline.
It's extremely important for Boise home buyers to understand that regardless of whether a property currently has a homeowner's exemption on it or not, all homebuyers must file for the exemption after they purchase, it is not automatically applied to your tax bill. Once a homeowner files for the tax exemption they don't have to file again until they buy a new Boise home.
You can apply for the Idaho homeowner's exemption at the county assessor's office and the only requirement for your exemption to be granted is that a new homeowner must own and occupy the property before April 15th of the current year and must apply for the exemption by April 15th. If the deadline is missed then the homeowner is required to wait until the following year which will result in a much higher tax bill! I highly recommend that Boise homebuyers file for their tax exemption within one week of purchase so they don't forget, and remember to get a receipt because without it you will not be able to prove that you paid by the deadline should the County make any errors in their records.