6 Property Tax Exemptions You Need To Know About
We all know that our taxes go back to the community to provide civil services and repairs that are usually badly needed. The taxes on our homes and land are collected by the county and go back to schools and city services. As a home or land owner there are some exemptions or tax reductions that you might qualify for.
The Idaho State Tax Commission has a guide that adds some clarity to the how’s and why’s and what for’s of property tax. Understanding Property Tax , including how your property tax assessment is determined and what to do if you disagree with it. Below is a short list of the most common Tax programs available in Kootenai County.
Homeowner’s Exemption
If you occupy and own your home and it is your primary residence, this is the tax exemption that can allow you to be exempt 50% of the value of your home and up to one acre of land (maximum: $100,000) from property tax.
We recommend filing for your exemption the SAME DAY that you sign for your home that way you start saving from day one. The following are the conditions that will cause you to become INELIGIBLE:
- The home is no longer your primary residence or you’ve moved
- You no longer own the home
- The home’s ownership changes (e.g., you put the home in a trust; you start to share ownership with someone else)
Property tax reduction program
The Property Tax Reduction program can reduce the property tax owed on your home and up to one acre of land. Applications must be submitted annually between January 1 and April 15 at your county assessor’s office. You might qualify if you meet the following conditions.
- Owned and lived in a home or mobile home in Idaho that was your primary residence before April 15, 2021 (You may qualify if you lived in a care facility or nursing home. Contact your county assessor for information.), and
- Had income of $31,900 or less for 2020, and
- Met one or more of the following status requirements as of January 1, 2021:
- Age 65 or older
- Widow(er)
- Blind
- Fatherless or motherless child under 18 years of age
- Former prisoner of war/hostage
- Veteran with a 10% or more service-connected disability or receiving a pension from Veterans Affairs (VA) for a non-service-connected disability
- Disabled as recognized by the Social Security Administration, Railroad Retirement Board, or Federal Civil Service. If you’re not covered by the listed agencies, then disabled as recognized by a public employee retirement system
Additional Property Tax Reduction resources:
Property Tax Deferral program
The program does NOT reduce your property tax, it only defers your payments. The qualifying factors are similar to the Reduction Program above. As above, applications must be submitted annually between January 1 and April 15 with your county assessor’s office.You might qualify if you meet the following conditions.
- Owned and lived in a home or mobile home in Idaho that was your primary residence before April 15, 2021 (You may qualify if you lived in a care facility or nursing home. Contact your county assessor for information.), and
- Had income of $31,900 or less for 2020, and
- Met one or more of the following status requirements as of January 1, 2021:
- Age 65 or older
- Widow(er)
- Blind
- Fatherless or motherless child under 18 years of age
- Former prisoner of war/hostage
- Veteran with a 10% or more service-connected disability or receiving a pension from Veterans Affairs (VA) for a non-service-connected disability
- Disabled as recognized by the Social Security Administration, Railroad Retirement Board, or Federal Civil Service. If you’re not covered by the listed agencies, then disabled as recognized by a public employee retirement system.
Additional Tax Deferral Resources
Benefit for veterans with a 100% service-connected disability
This program is exclusively for the veteran who has 100% service connected disability. This cannot be transferred to other home owners, but upon the service members death, it can pass to the surviving spouse. Applications must be submitted annually between January 1 and April 15 at your county assessor’s office. You might qualify if you meet the following conditions.
You may qualify for Veterans Property Tax Reduction in 2021 if both of these apply:
- You are recognized as a 100% service-connected disabled veteran or receive 100% compensation due to individual unemployability by the U.S. Department of Veterans Affairs as of January 1, 2021.
- You owned and lived in a home in Idaho that was your primary residence before April 15, 2021.
- The property must have a current homeowner’s exemption.
- The home can be a mobile home
Additional Veteran resources:
- Service Connected Tax Program brochure
Agricultural Exemption
Land “actively devoted” to agriculture may qualify for the Agricultural Exemption, which aims to assess agricultural land at a value commensurate with what it will produce, rather than the price it will sell for. There are two different distinctions between Ag Land and those are dependent on the size of the parcel- less than 5 acres or more than 5 acres.
If your land is greater than 5 acres, the following are the criteria you must meet to qualify:
- It is used to produce field crops (and/or)
- It is used by the owner or bona fide lessee for grazing livestock to be sold as part of a net for-profit* enterprise
- It is in a cropland retirement or rotation program.
If your land is less than 5 acres, these are the qualifications you must meet:
- It agriculturally produces for sale or home consumption the equivalent of fifteen percent (15%) or more of the owner’s or lessee’s annual gross income; or
- It agriculturally produced gross revenues in the immediately preceding year of one thousand dollars ($1,000) or more.
- Landowner must provide proof of these minimum incomes annually to remain in qualifying status, due April 15th.
Additional Ag Land Exemption Resources:
- AS-30 Application for lands larger than 5 acres (pdf or online application)
- AS-30 Application for lands less than 5 acres (pdf or online application)
- AS-32 AGDEC Annual Proof of Income (online form)
Timber land exemption
Is a great tax program for property owners who have at least 5 acres of timbered land (excluding the land the home is built on, if any). The purpose of the Timber land exemption is to assess forest land for its value for its capacity to produce merchantable timber, rather than the market value of the land. The primary qualifying factor is that the land MUST have at least FIVE (5) *CONTIGUOUS, FULLY-STOCKED ACRES of timber that aligns with the definition of “FORESTLAND”.
Further, there are two options for your timberland exemption- The Land Productivity option and the Bare Land & Yield Option. The two options differ in how and when the land is assessed and taxed. Following is a short list of resources you’ll need when applying for the timber land exemption.
- AS-31 Printable Application or an Online Application
- Forestry Consultants
- AS-32 Printable Forest Management Plan or an Online Application
- Check if your land qualifies
Other property tax resources
