TITLE 63

REVENUE AND TAXATION

CHAPTER 7

PROPERTY TAX RELIEF

63-724.  homeowner property tax relief. (1) It is the intent of the legislature to provide property tax relief on owner-occupied properties in Idaho receiving the homestead property tax exemption pursuant to section 63-602G, Idaho Code, as of the second Monday in July each year by providing state moneys as replacement funding as provided in this section. This section does not apply to occupancy taxes levied pursuant to section 63-317, Idaho Code.

(2)  For the purpose of this section:

(a)  "Eligible property taxes" means all property tax levies on homes receiving the homestead property tax exemption pursuant to section 63-602G, Idaho Code, as of the second Monday in July each year, except for bonds, school district levies, plant facility levies, and any voter-approved temporary levy for a specific duration. When calculating the eligible property taxes for the purpose of this section, the taxable value of each property shall include the value of no more than one (1) acre.

(b)  "Homeowner property tax relief homestead" means a property receiving the homestead property tax exemption pursuant to section 63-602G, Idaho Code, as of the second Monday in July each year.

(3)  There is hereby created in the state treasury the homeowner property tax relief account. Moneys in this account shall consist of moneys transferred from the general fund and are continuously appropriated for homeowner property tax relief pursuant to the provisions of this section.

(4)  The county assessor shall prepare a homeowner property tax relief roll, which shall be in addition to all other property rolls. By no later than the first Monday of September each year, the homeowner property tax relief roll shall be certified by the county assessor to the county auditor in the manner prescribed by rules promulgated by the state tax commission. The homeowner property tax relief roll shall show:

(a)  The name of the taxpayer;

(b)  An accurate description of the homeowner property tax relief homestead; and

(c)  The property’s current market value for assessment purposes.

(5)(a)  The county auditor shall complete the homeowner property tax relief roll by adding the following information:

(i)   The immediate prior year’s eligible levy for the tax code area in which the property is situated;

(ii)  The estimated amount of eligible property taxes calculated by applying the levy in subparagraph (i) of this paragraph to the current year’s market value for assessment purposes on each qualifying homestead; and

(iii) The total estimated amount of eligible property taxes on all properties within the county that are receiving the homestead property tax exemption as of the second Monday in July of the current year.

(b)  By no later than the second Monday of September each year, the county auditor shall certify the completed homeowner property tax relief roll to the state tax commission in the manner prescribed by rules promulgated by the state tax commission.

(6)  The state tax commission shall determine the total number of homeowner property tax relief homesteads to be allowed in each county, the dollar amount of eligible property taxes for each homeowner property tax relief homestead allowed, and the total dollar amount of eligible property taxes for all homeowner property tax relief homesteads within each county from the amounts certified on the homeowner property tax relief roll. Such amounts shall be summed for all eligible property tax relief homesteads in all counties to determine the total amount of estimated eligible property taxes. This sum shall be divided into the amount of moneys in the homeowner property tax relief account as of August 1 of each year. The result shall be multiplied by the total amount of estimated eligible property taxes on such homesteads in each county. This amount shall be certified to the county auditor and tax collector by the state tax commission no later than the third Monday in September. By no later than December 20 of each year, the state tax commission shall pay to the county tax collector of each county the first half of the amount due to each county as reimbursement for homeowner property tax relief as provided in this section and shall pay the second half of such amount by no later than June 20 of the following year.

(7)  The state tax commission may audit each and every property on the homeowner property tax relief roll. If the state tax commission determines that a homeowner property tax relief homestead credit is erroneous, the state tax commission shall disapprove as much of the credit as necessary in order to conform with statutory standards. The state tax commission shall provide the homeowner written notice of the state tax commission’s intent to disapprove all or a portion of the credit. The homeowner shall have twenty-eight (28) days to make written protest to the state tax commission of the intended action. The homeowner may submit additional information and may request an informal hearing with the state tax commission. If the homeowner fails to make written protest within twenty-eight (28) days, the state tax commission shall provide written notice of disapproval to both the homeowner and the county auditor of the county in which the property is situated by December 20. Any homeowner whose claim is disapproved in whole or in part by the state tax commission may appeal such disapproval to the board of tax appeals or to the district court of the county of residence of the taxpayer within thirty (30) days.

(8)  Each county treasurer shall apply the moneys received pursuant to subsection (6) of this section to the eligible property taxes levied on the properties listed on the certified homeowner property tax relief roll that year. The moneys shall be designated as a line item credit against the total of all eligible property taxes on the property tax bill for each property receiving the tax relief provided by this section. Such moneys shall be distributed in the same manner as property tax revenues.

(9)  The amount of property tax relief for a homeowner’s property taxes shall be applied after the homestead exemption pursuant to section 63-602G, Idaho Code, has been applied. The property tax relief amount cannot exceed the actual amount of current eligible property taxes due on the homeowner’s property tax notice. No delinquent property taxes, penalties, interest, or fines may be paid with moneys from this program.

(10) Nothing in this section shall prevent a homeowner from applying for or receiving any other property tax relief provided pursuant to this chapter. The property tax relief provided pursuant to this section shall be credited to the homeowner’s property tax bill before any other property tax relief is applied, up to a maximum of the actual property taxes due on the homeowner property tax relief homestead.

(11) Any amount of homeowner property tax relief moneys distributed by the state tax commission to a county that exceeds the total amount of all eligible property taxes due from all homeowner property tax relief homesteads in the county shall revert to the state general fund. The county treasurer shall deposit such moneys with the state treasurer by the fourth Monday in July each year for the preceding property tax year.

(12) Within three (3) years of payment, the state tax commission may recover any erroneous or incorrect payment made to any homeowner receiving relief under this section. The deficiency determination, collection, and enforcement procedures provided in chapter 30, title 63, Idaho Code, shall apply and be available to the state tax commission for enforcement and collection under this section. Wherever liens or any other proceedings are defined as income tax liens or proceedings, they shall, when applied in enforcement or collection under this section, be described as tax relief liens and proceedings. In connection with this section, a deficiency shall consist of any amount erroneously paid on behalf of a homeowner under this section.

History:

[63-724, added 2023, ch. 200, sec. 11, p. 547; am. 2024, ch. 237, sec. 26, p. 835.]