The Idaho State Tax Commission has set higher homeowner exemption thresholds for 2014, the first increase since 2009.
The commission announced today that the maximum exemption for 2014 will increase to $83,920, up from $81,000 for 2013.
“The current (price) 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 primary dwellings and up to one acre of land. The law exempts 50 percent of the assessed value from taxation.
The state homeowner's exemption began in 1980, when the maximum was $10,000. It remained at that level until 1983, when it was raised to $50,000 by voter initiative. In 2006, the Idaho Legislature raised the exemption to $75,000 and tied future limits to the Idaho House Price Index.