Idaho Property Taxes? (Boise, Eagle: for sale, rental, assessor)

[burdell]

I was hoping someone could shed a kittle light on property taxes.

I was looking at two listings in Boise a realtor had sent me, both houses about the same size and price. Looking at the Ada Co web-site I found that between '04-'05 the taxes on one had gone up almost 75% and the other about 30%. 30% is a pretty significant difference in one year but 75%?
Nothing in the listings or County site indicates any major expansion/renovation.

Is this type of increase normal?

[micrguy]

I noticed the same thing when I was up in Boise a few weeks ago looking at houses. One explanation that I heard is that there is an exemption if the house is occupied by the homeowner. So if there are two houses about the same size and worth about the same, first one had been a rental house, a second house or vacant and the other owner occupied, the taxes on the first house would be more. If you buy the first house, you just apply for the homeowners exemption and it should kick in the next tax year.

[idahomama]

Idaho property taxes are based on actual market value which is a subjective method here to say the least. We have seen significant market value increases over the past few years and therefore significant property tax increases as well. The problem has been that some houses are seeing bigger increases than others even in the same neighborhood. Many homes saw increases over 50%. You should be able to search Idaho Satesman articles for specific information after last years increases were received by home owners..(All information is public on ada county assessor's site) Some older folks were being taxed right out of their homes. In response to these outrageous increases, a new plan was approved that removed school funding from our proprerty taxes and a one cent sales tax increase was initiated in order to fund schools. (from 5-6%) With decreasing sales prices this period, no doubt we will see a decrease in our next year's home value. I probably shouldn't hold my breath. Property taxes are high here and they certainly have the potential to get higher.

[burdell]

micrguy-That's interesting about the difference between owner occupied and rental property, I'll have to do a bit more reseaech.

idahomama-Do they actually assign a value to every property every year and base taxes on that? What I found strange was a property currently listed at $189K had taxes of $2100+, that was the one that rose 75% from '04-'05. Another property currently listed at $199K had taxes of $1400+ and had risen 30% from '04-'05.

I'm curious. I'm in NJ. here they just raise 'em every year and dare you to leave, I'm ready

[idahomama]

I would assume the tax differences lie within the assessed value of the home. If you go to adacountyassessor.org you can enter the address and see what the assessed value/taxes of each home is as well as for previous years. We see/saw huge differences within our own neighborhood as far as valuations and increases, in very comparable homes. Many areas have seen 60% increases in their valuations, but NOT ALL houses in those areas saw the exact same increases. Also I suppose like Micronguy said, if one year homestead exemption was claimed (75,000) and the next year it was not due to non-owner occupied, there would be a greater increase as well in taxes. Our taxes went up 35% last year (we are in Boise foothills), a friend in Eagle had their valuation go up I think 65%. I think some of the western areas of Boise have been playing catch-up as far as the valuations go, Boise has been a bit more stable. It just doesn't surprise me that similar homes with have 75 and 30% respective increases, it just doesn't make sense and that is what was getting people fired up.

When we moved we asked the county assessor how frequently values were assigned and they said historically maybe every five years. That has not been the case these past few years. Valuations are changing every year. Things are cooling off here now, so many homes on the market, hopefully tax valuations will follow suit.

[burdell]

Originally Posted by idahomama

. Also I suppose like Micronguy said, if one year homestead exemption was claimed (75,000) and the next year it was not due to non-owner occupied, there would be a greater increase as well in taxes. Our taxes went up 35% last year (we are in Boise foothills), a friend in Eagle had their valuation go up I think 65%. I think some of the western areas of Boise have been playing catch-up as far as the valuations go, Boise has been a bit more stable. It just doesn't surprise me that similar homes with have 75 and 30% respective increases, it just doesn't make sense and that is what was getting people fired up.

.

I think maybe the owner/tenant difference may be it, the listing I had that had higher taxes did say there was a tenant in residence whose lease must be honored.

I look at Boise newspaper/TV sites almost daily and have seen a lot of mention of tax issues. Do you feel like it is a problem being dealt with? Do you know of anyone's taxes actuallu going down due to decreased market value?

[idahomama]

I have not heard of anyone that has had a decrease in valuation as per the assessor's office but I have only been in Boise during an up market. Might be worth a telephone call in the spring!

Taxes are a huge issue here, mostly for people that have been long term residents, prior to any boom. I still think that market valuation per the assessor are still probably lower than true market value, but I am not complaining! I think many people are concerned since there is no sort of capping system in place and if growth continues as it has and property values continue to rise some people (mainly fixed income folks)could be taxed right out of their homes. I don't see that job growth/ average incomes are increasing enough to truly support the property values we are seeing in some areas.

I think the 2006 tax reform that increased homestead exemption to $75,000 and removed school funding from property taxes is probably only a short term fix, but hopefully that is not the case. It has pacified alot of people for the time being. Property taxes are still high here, compared with states like Colorado. Especially on newer homes that are probably valued closer to actual values than some of the older homes. With a 1% sales tax increase I don't think you are probably saving that much money on a yearly basis, but at least it doesn't come in one big bill!!! I really think there needs to be a more consistent methods for determining property values because as it stands it just doesn't make sense. Idaho is a non-disclosure state as far as sales prices go and perhaps that lends to part of the squirrelliness.

Everyone has an opinion about taxes but I am not sure there is one true solution.

[burdell]

Originally Posted by micrguy

I noticed the same thing when I was up in Boise a few weeks ago looking at houses. One explanation that I heard is that there is an exemption if the house is occupied by the homeowner. So if there are two houses about the same size and worth about the same, first one had been a rental house, a second house or vacant and the other owner occupied, the taxes on the first house would be more. If you buy the first house, you just apply for the homeowners exemption and it should kick in the next tax year.

The only owner's exemption I've been able to find also had a number of qualifiers like Max income and Min age(65) and/or disabilities. Am I missing something or?

While the tax $ amounts are still fairly reasonable compared to some areas it's a little scary seeing the percentage increase in one year on some properties.

[idahomama]

Homeowners Exemption was recently raised from $50,000 to $75,000. There are no age/income qualifiers.................. Here are details from Ada County Assessors office.......

ABOUT THE HOMEOWNERS EXEMPTION

A homeowner’s primary residence is eligible upon application for an exemption that is the lesser of $75,000 or 50% of the combined assessed value of the home and land up to one acre. . Taxes are computed on the remaining value.

WHO QUALIFIES?

To qualify, applicants must own, occupy and use the dwelling as of January 1 but before April 15. Although there are no income or age restrictions to qualify for the Homeowner's Exemption, taxpayers can qualify for an exemption on only one home.
The actual statute governing qualification for the Homeowner's Exemption is found here.

HOW DOES ONE APPLY?

Go here to download a Homeowners Exemption application, or click here to have one mailed to you (please provide name and address of recipient).

WHAT HAPPENS AFTER MY APPLICATION IS APPROVED?

When the application is approved, the exemption is permanent as long as one owns and occupies the property. If the property is sold, the new owner must file a new application.

WHAT IS THE APPLICATION DEADLINE?

The deadline for applying for the Homeowner's Exemption is April 15th at 5 p.m. (if the 15th falls on a weekend, the deadline becomes the next immediate business day thereafter).

WHAT ELSE DO I NEED TO KNOW ABOUT THE HOMEOWNER'S EXEMPTION?

Many taxpayers wait until the last minute to apply for these exemptions. Others fail to qualify because they misunderstand the law's guidelines and deadlines.

Applying now can ensure the taxpayer spends less waiting time in line and provides assurance that all supporting documentation was obtained in time.

[idahomama]

Also, it is possible that the properties you are looking at are still not assessed at a true market value, many property valuations still have not caught up. After you close on a property you will receive a form from Ada county asking for sales price. Since ID is a non-disclosure state you are not obliged to fill in any figure.