The bill amends various sections of the Idaho Code concerning property taxes, particularly focusing on market value assessments, appeals from the county board of equalization, and the homestead exemption. It introduces new requirements for assessors to determine market value using recognized appraisal methods, ensuring that the median ratio of assessed value to market value remains between 90% and 110%. Additionally, the bill 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. The homestead exemption provisions are also revised, maintaining the exemption limit at $125,000 or 50% of the market value, whichever is lesser, while detailing the conditions for granting the exemption.

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, and mandates 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. The act is set to take effect on January 1, 2026.

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