This bill amends various sections of the Idaho Code concerning property taxes, with a focus on market value assessment, appeals from the county board of equalization, and the homestead exemption. Key provisions include a requirement for assessors to utilize recognized appraisal methods to ensure that the median ratio of assessed value to market value remains between 90% and 110%. The bill also clarifies the burden of proof in appeals, stating that if a property’s taxable value increases by more than 10% due to improper assessment methods, the burden shifts to the party seeking the increase. Additionally, it revises the homestead exemption, maintaining that the first $125,000 of market value or 50% of the market value (whichever is lesser) is exempt from property taxation, and introduces new stipulations for prorating property taxes based on changes in eligibility status during the tax year.

Moreover, the bill establishes penalties for taxpayers who do not comply with exemption requirements, equal to the amount of property tax recovered, and outlines the notification process for these penalties. It allows for appeals to the county board of equalization regarding exemption refusals and tax assessments, while mandating the state tax commission to provide relevant information to county officials to validate exemption claims. The bill also emphasizes timely assessment and collection of recovered property taxes, which must occur within seven years of the initial assessment notice, and specifies that unpaid recovered property taxes will become a lien on the real property. Additionally, it ensures that exemptions for properties owned by individuals in active military service or deceased individuals are maintained, and requires the establishment of a searchable database for active exemptions by July 1, 2023, to prevent multiple claims and verify residency for voting purposes.

Statutes affected:
Bill Text: 63-208, 63-511, 63-602G, 63-903