Lawmakers explain homeowner's exemption
The Legislature has been addressing a number of tax bills aimed at providing property tax relief. One of these bills, House Bill 421 (H B421), increases the homeowner's exemption from the present $50,000 total exemption to $75,000. HB421 also includes land in determining the full benefit of the exemption whereas the current homeowner's exemption does not.
A short time ago there was an article in the Daily Bee discussing HB421. Unfortunately there was some confusion as to who benefited from the increase, lower valued homes or higher valued homes. Some of this confusion was created by not understanding that the new homeowner's exemption included land value, whereas the existing homeowner's exemption only includes the value of the improvements (ie. the house).
We asked the Idaho State Tax Commission to provide us with their opinion on what the estimated savings would be by raising the homeowner's exemption to $75,000 from the present $50,000. The following is a comparison of property taxes paid by owner-occupied residential property for various value ranges in Bonner County if the homeowner's exemption is increased to $75,000 and includes land.
The accompanying chart shows the analysis of effects of homeowners' exemption proposed legislation on typical homes in Bonner County (2005 data).
This is just one bill in a package of many that are being worked on and debated in the legislature to provide property tax relief. If all bills were to pass that are under consideration substantial property tax relief would occur for all property tax payers. We remain committed to this goal.
SEN. SHAWN KEOUGH
REP. GEORGE ESKRIDGE
REP. ERIC ANDERSON