The bill amends Section 63-602G of the Idaho Code to revise the homestead exemption from property taxation, establishing that for each tax year, the first $125,000 of a homestead's market value, or 50% of its market value—whichever is lesser—shall be exempt from property taxation. It specifies that the homestead must be owner-occupied and used as the primary dwelling place of the owner, while also clarifying definitions related to "primary dwelling place" and "occupied." The exemption will take effect as of January 1 of the tax year in which a complete application is submitted and approved, rather than being prorated.

Additionally, the bill introduces provisions for the recovery of improperly claimed property tax exemptions, requiring county assessors to investigate claims and notify taxpayers of any refusals or assessments. It establishes penalties for taxpayers claiming multiple homestead exemptions and outlines an appeal process for contesting assessor decisions. The bill also clarifies the process for recording liens on real property due to unpaid recovered property taxes, ensuring protections for homesteads that previously qualified for exemption, particularly in cases of military service or death. A new database will be created to track active exemptions and prevent multiple claims by the same individual, with the bill set to take effect immediately upon passage and approval, retroactively to January 1, 2026.

Statutes affected:
Bill Text: 63-602G