What is a Homeowner's Exemption in Idaho?
April 2, 2018 |
Resale homes - if the property has a homeowner's exemption already in place and the buyer of the property files their application in a timely fashion after closing, they will retain that exemption.
If the house was a rental, or the previous owner moved to another house and removed the exemption to be able to use it on their current house (in Idaho) the property taxes would revert to a non-homeowner exempted value and full taxes due. If the
new buyer closes before April 13 and files before April 15th, they will be granted the exemption.
If that buyer purchases after April 15th on any year and files for the exemption later in the year it won't take effect until December of the following year and they will have to pay the higher non-exempted rate.
New Construction - You have 30 days after closing to get the exemption filed to qualify for the exemption.
Examples - if a person is buying a house for $150,000 we would divide that amount by two to determine what would be deducted from the total to leave $75,000 to be taxed. If that person goes above $200,000, say $250,000 and you divide by two to equal
$125,000, but the rule of law shows we can only get $100,000 total deduction. So in this case, the person would have to pay taxes on $150,000.
Let me know if you have any questions. Call Tim Burroughs, eXp Realty, LLC 208-409-7653