Legislation prompts assessment changes

There are some changes coming this year in certain assessments that will affect some taxpayers and we wanted to take this time to discuss those changes.

The first is a new law (HB 315) regarding the Personal Property tax for business. Basically, the first $100,000 in assessed value on business equipment/furnishings will be exempted and no tax paid on that amount. If you have more than $100,000 in business equipment you will only be taxed on the assessed value over $100,000.

If you have been assessed for business personal property in the past we will simply reduce your assessed value by $100,000 or all of your value if less than $100,000. If you open a new business you will have to complete an application in order to receive the exemption. If you own more than one business in Bonner County you can choose which business or businesses get the deduction up to the total of $100,000. If you have more than one business you will need to complete a form that we have to show the businesses you want the exemption applied to. You can get up to the $100,000 exemption in any county in Idaho where you have a business.

The county will be reimbursed by the state for the taxes lost because of this exemption and 2013 is the base year that will determine the reimbursement amount. This is important so that other taxpayers will not have to make up the shortfall with higher taxes.

We suspect that in years to come all personal property will be exempted but we don’t know how or if any increased reimbursement would be made over the base year. We will just have to wait and see what the Legislature does in the future.

The other change to discuss will affect anyone with an agricultural exemption on their land. Each year we receive agricultural values for various crops from the Tax Commission. We then multiply the values given to us by the acreage to arrive at the assessed value for the agricultural land. The price per acre is based on soil type and crop prices based on a 5 year rolling average. This year a low crop value year was taken off and a higher value year put into the equation. This resulted in an average increase in assessed value of about 14%. This is quite an increase in assessed value but for several years the values have been fairly low.

Please understand that the assessor, commissioners, clerk or treasurer do not set these values. They are set by a five-year average of crop prices by law. The assessed values are not subject to being changed or successfully appealed.

It is always dangerous to talk about real estate values in general but I will try.

Overall real estate values in the last year here and in most parts of the country have stayed constant or increased. Whether or not your property value goes down, up or stays the same depends on the type of property you own and its condition and location and most importantly what other similar properties sold for last year.

You will receive your 2013 assessment notice around the first of June and if you have any questions please call our office at 208/265/1440 or come in and speak to the appraiser for your area.

As always, it is our pleasure to serve the taxpayers of Bonner County.