Idaho Homeowners Set to Enjoy Lower Property Taxes Due to New State Law
In November, Idaho homeowners are on track to find out the exact amount they will save on their property taxes due to a new state law. The state has devised a homeowner’s tax relief program, which is aimed at alleviating the financial burden on homeowners by reducing the property taxes that are due.
Each homeowner’s savings will be meticulously calculated and will be displayed on the individual property tax notices dispatched by counties on or before the fourth Monday of November. Alan Dornfest, the Idaho State Tax Commission’s policy chief, emphasized that while the precise figures remain uncertain as levy rates in many of the over 1,000 taxing districts will fluctuate, initial calculations based on 2022 property tax totals revealed that the relief fund amounts to 17.2% of last year’s total homeowners’ property taxes.
This figure roughly aligns with earlier predictions made by legislators and Governor Brad Little, who envisaged reductions between 10% to 20%. Despite the uncertainties revolving around the exact numbers, Dornfest assures the residents that “there is real money there.” He reassured that the commission is not lagging but is steadfastly working towards achieving the goal by November.
As per House Bill 292, which legislated this tax relief, the saving would reflect as a credit on the property tax notices, effectively diminishing the amount owed by the homeowners. This initiative requires no additional action or paperwork from those homeowners who have availed the homeowner’s exemption by the second Monday of July. However, it is important to note that this benefit is not applicable to rental, secondary, or vacation homes.
This procedure is facilitated through a collaborative effort where the state directs the funds to the counties, which in turn allocate them to various local taxing entities such as library districts, sewer districts, and more. But Dornfest pointed out that the funds do not go directly to the taxpayers but to the taxing districts to ease the fiscal load on the homeowners.
Dornfest projected a substantial pool of $192 million set aside for this relief program, supplemented by an additional $24.5 million aimed at facilitating broader tax relief. Moreover, there could be an available $106 million reserved for tax deductions associated with school district facilities, though this is contingent upon the outcomes of local school district elections that took place in late August.
Working hand in hand, county and state officials including Ada County Treasurer Elizabeth Mahn have been tirelessly coordinating to implement these tax cuts efficiently. Mahn confirmed the inevitability of the tax reductions while stressing that the exact figures are yet to be determined. The authorities are currently engaged in a detailed analysis involving programming and reports to ensure accurate calculation of the potential savings for each taxpayer.
Homeowners are urged to maintain patience as the State Tax Commission undertakes the meticulous process of reviewing all local tax levies once submitted, after which they will develop a factor to calculate each homeowner’s savings. The Commission plans to remit the funds to the counties in two separate payments, with the first installment expected by December 20 and the subsequent by June 20, as delineated in House Bill 292.
It is a considerable task, considering Idaho encompasses 44 counties, over 1,000 taxing districts, and roughly 480,000 homeowners who stand eligible for these tax cuts. Yet the officials remain optimistic and committed to providing relief to homeowners, eagerly anticipating the savings that the year 2023 will usher in for the residents of Idaho.
