Informed decisions vital in property taxes

There are several items that we felt the taxpayers may need more information about in order to make informed decisions that can affect their property taxes.

n Timber redesignation year — Every 10 years anyone with a timber exemption has an opportunity to change the way they are taxed and 2012 is a redesignation year. If you do not want to change your designation, you do not need to do anything.

If you want to change the designation, you must complete an “Owners designation of Forest Tax Options” form. Those forms are available in the Assessor’s office and must be completed by Dec. 31, 2012. You would need to bring in your tax notice to show ownership and the legal description. All owners must sign.

We also have a “Forestland Taxation Law 2012 Redesignation” brochure available from the Idaho Tax Commission that explains your options.

n Trusts — If you decide to deed your property from your individual names into a trust that is considered, by law, the same as a sale. You would have to re-apply for all exemptions in the name of the trust.

We are required to have a copy of certain pages of your trust on file. If it is for an agricultural or timber exemption, we require the page of the trust identifying the beneficiaries of the trust and the beneficiaries would have to sign all paperwork. Beneficiaries in a trust are not the same as beneficiaries in a will, but are rather the persons deriving income from the trust.

If is for a homeowner’s exemption, we are required to have a copy of certain pages of your trust on file showing that you are the beneficiary of the trust. You will need to fill out a trust affidavit, have the affidavit notarized and supply a copy of the title page, the page of the trust showing the beneficiary of the trust and the signature page.

We need the page listing you as the beneficiary, or the page that explains who is entitled to the income of the trust. (Not the trustees) The affidavit can be obtained at the Assessor’s Office.

You will also have additional forms that will need to be filled out and signed for whichever exemption it will affect. Before considering a trust you may want to contact our office to find out what you would need to do to keep any exemptions you may have.

n Vacation rentals — All vacation rentals are subject, by law, to paying personal property tax on the furnishing of the vacation rental.

You have the obligation to contact our office and fill out a form showing your furnishing and their value. If that is not done, we are obligated to estimate the value based on industry standards.

Properties that are rented on a yearly basis or a month-to-month basis are not considered vacation rentals and not subject to the tax. Vacation rentals are properties rented out on a daily or weekly basis. If you have property in a city, there may also be city requirements.

One of our responsibilities is to help taxpayers take advantage of all exemptions and follow the tax laws that apply to their property. Please feel free to call our office with any questions and you will be directed to a staff person who can help you.