tax.idaho.gov

Idaho Property Taxes

Kathlynn IrelandProperty Tax Policy SpecialistIdaho State Tax Commission

October 21, 2019

tax.idaho.gov

Idaho Property Tax Essentials

• Current Market Value: $249.6 Billion in 2019

• All property assessed annually

• Current Net Taxable Value: $175.3 Billion in 2019

$153.2 Billion in 2018

• Net Taxable Value is the value used in the levy rate calculation

2

tax.idaho.gov

Property Tax Essentials

• Property Tax is levied on real and business personal property First $100,000 PP exempt per company per county

• Property Tax is generated and used locally

• 2019 Total property tax to local units of government: $2.035 Billion - 6.5% increase over 2018 or $125

Million

• Urban renewal agencies: $73.5 Million (2018)

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tax.idaho.gov

Net Taxable Value Changes by Major Property Category

4

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$110,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Residential

Commercial

Agricultural

Timber

Mining

Public Utilities

tax.idaho.gov

Primary Residential Property –Owner Occupied

• Subset of residential category as a whole

• 2018:

Largest share of property value in Idaho at 45.2%

Total Net Taxable Value (minus homeowner’s exemption) increased 13.4% from 2017 to 2018

Excluding new construction - existing homes increased in value about 10.6% from 2017 to 2018

Taxes on existing homes increased by 6.1%

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tax.idaho.gov

Increases in Existing Property Values & Taxes: 2017 – 2018

Category of Property Overall Percent change in Value

Existing Property Value % Change

Existing Property Tax % Change

Primary Residential (eligible for homeowner’s exemption)

+ 13.4% + 10.6% + 6.1%

Other Residential + 11.1% + 9.1% + 5.4%

Commercial and Industrial

+ 7.0% + 4.0% + 0.2%

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tax.idaho.gov

Who Paid the Property Tax in 2018?

0%5%

10%15%20%25%30%35%40%45%50% 46.8%

19.0%

27.2%

2.6%0.5% 0.2%

3.8%

Owner occupied residential Non-owner occupied residentialCommercial / Industrial AgriculturalTimber MiningOperating (Utilities)

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tax.idaho.gov

Maximum Homeowner’s Exemption

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$110,000

$120,000

$130,000

$140,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Current Projected 2020 Indexed

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tax.idaho.gov

Idaho Total Statewide Property Taxes by Major Categories

Adjusted for Inflation 1978 - 2018 by Intervals

0.

50.

100.

150.

200.

250.

300.

350.

400.

450.

500.

1978 1982 1988 1994 2000 2006 2012 2018

PRO

PERT

Y TA

XES

ADJU

STED

TO

197

8 DO

LLAR

S

Millions of Dollars

Intervals of 6 years except period of 1978 - 1982 which is a 4-year period.

Total

Residential

Commercial

Ag & Operating Property

9

tax.idaho.gov10

School M & ORemoved from P-Tax

5.21%

4.16%

3.30%

0.37%

2.25%

3.08%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

1988 1994 2000 2006 2012 2018

Aver

age

Perc

ent C

hang

e

Idaho Total Statewide Property Taxes Adjusted for Inflation1982 - 2018 by Intervals

Intervals of 6 years

Removal of School M&O from P-Tax

Idaho Rate of Change of Property Taxes Adjusted for Inflation 1982 - 2018 by Intervals

tax.idaho.gov

Property Tax Growth by District Type

50

150

250

350

450

550

650

Mill

ions

of D

olla

rs

County City School Highway* Other

* Highway district totals include county road and bridge funds.

11

tax.idaho.gov

2019 Property Tax Use

12

Highway 5.8%$119.0 Mill

School 30.5%$619.9 Mill

City 26.5%$538.5 Mill

County 26.7%$543.0 Mill

Other 10.5%$214.6 Mill

3.2% $6.9 MillCemetery

15.4% $33.0 Mill Jr. College

39.3% $84.4 MillFire

42.2% $90.3 MillMiscellaneous

TOTAL

OTHER 10.5%

tax.idaho.gov

How Do Property Tax Budget Limits Work?

• Apply only to property taxes used for Non-Exempt Funds (mostly general operations)

• Permit increases in property tax $: Up to 3% over highest of last three years Plus a calculation for new construction value and annexation Plus forgone amount (i.e.: amount of previously allowable

increases not taken)

• Allowed only if result does not create levy rate that exceeds statutory limit

• Exempt Funds – No 3% cap – Usually voter approved

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tax.idaho.gov

Levy Rate Calculation

Cemetery District• 2019 Total Approved Budget $49,380• Minus Other Revenue $27,380• Total requiring P-Tax $22,000 (Property Tax

Portion of District’s Budget)

------------------------------------------------------------------------

Levy Rate: $22,000 = 0.000117021$188 Million (Net Taxable Value)

Cemetery District’s Statutory Levy Limit: 0.0004

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tax.idaho.gov

Causes of Budgeted Property Tax Increases 2017 – 2018

Increase of 6.4% in 2018, or $114.4 Million

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3% Increase

School Exempt Funds

Boise School M&O

Non-School Exempt Funds

New Construction

Annexation

Forgone

tax.idaho.gov

Forgone Amounts - 2018

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Mill

ions

of D

olla

rs

County City Highway Other Total

16

tax.idaho.gov

2019 Property TaxesExempt* vs. Non-Exempt

Non-Exempt Funds$1,399.4 Mill 68.8%

Exempt* Funds$515.7 Mill 25.3%

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Exempt funds usually voter approved, such as bonds and overrides.

Non-Exempt funds are general operating funds.

School Budget Stabilization$35.4 Mill 1.7%

Boise School M&O$84.6 Mill 4.2%

tax.idaho.gov

Non-Exempt Property Tax FundsGenerally Grow Uniformly

050

100150200250300350400450500550600

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Mill

ions

of D

olla

rs

County City School Highway Other

School Funds do not include Boise M&O and Budget Stabilization Funds.

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tax.idaho.gov

Patterns of Use of Exempt Funds

050

100150200250300350400450500

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Mill

ions

of D

olla

rs

Year

Non-School Taxing Districts School

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tax.idaho.gov

Schools Are the Predominant Users of Exempt Funds (bonds, overrides, etc.)

School$496.7 Million

Other$21.7 Million or 4.3%

County$8.3 Million

All Other$6.1 Million

City$7.3 Million

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2019 Exempt Funds

tax.idaho.gov

School Supplemental Levies

• Most voter approved for 1-2 years (may be longer for charter school districts and permanent for some school districts)

21

50

75

100

125

150

175

200

225

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Mill

ions

of D

olla

rs

Fiscal Year

Supplemental Levies

0

10

20

30

40

50

60

70

80

90

100

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Num

ber o

f Dis

tric

ts

Fiscal Year

Number of School Districts with Supplemental Levies

tax.idaho.gov

Estimated 2017 TaxesPer Family of three - various incomes

1,065

2,922

4,591

1,050 1,2371,562

1,207

2,086

3,293

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000

$50,000 $75,000 $100,000

$ IncomeIncome Sales Property

22

Percentages show Boise compared to U.S. average of 51 cities.

Estimates for Boise, based on District of Columbia studies of largest cities in each state.

+ 1% - 34%+ 4% - 3% - 26%- 7% + 9% - 14%- 7%

tax.idaho.gov

FY 2016 Property Tax BurdenIdaho vs. Neighbor States – Idaho Ranked 38th

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

75.0%

110.2%

71.9%

100.4%

78.3% 84.0%

134.2%

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Idaho WyWaUtOrNvMtBased on taxes compared to income.

tax.idaho.gov

Idaho Property TaxPer $1,000 Personal Income

2525 25

292928 28

29 29 2929 2929

30

31

30

31

2526

2425

27

26

27

25

26

26

26

2626

$20

$25

$30

$35

1981

1983

1985

1987

1989

1991

1993

1995

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

24

tax.idaho.gov

Per Capita Property TaxesIdaho vs U.S. – Idaho Ranked 42nd

$289

$246$220$233

$246$267

$281$301$304$308$311 $308 $312

$307$320

$343

$348

$355$368 $373$373

$385 $380

$367

$366

$366

$380 $384

$205$204 $154$145

$159

$180$189

$193$194$202$221$224 $232

$232

$236$246 $248

$250

$215

$214

$219

$225

$222 $225

$225 $232

$239$233

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

1977197919811983198519871989199119921995199719981999200020022004200520062007200820092010201120122013201420152016

US Average Idaho

25

Adjusted for Inflation

Based on U.S. Census Information Amounts adjusted to January 1977

tax.idaho.gov

• Property Tax Deferral Must apply annually with county assessor by April 15 Over age 65, disabled, widows, and widowers Income up to $45,756 - 2020 No reverse mortgage, home equity line of credit Taxes and interest must eventually be repaid to the state of Idaho

• 100% Service-Connected Disabled Veterans Program 2019 - $1,320 credit for 100% service-connected disabled veterans Occupancy tax is eligible No income limit

• Circuit Breaker (Property Tax Reduction Program)

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State Aided Property Tax Relief

tax.idaho.gov

Circuit Breaker (Property Tax Reduction Program)

• Up to $1,320 credit for eligible homeowners: Over age 65, disabled, widows and widowers Income up to $31,280 for 2020 program

• Must annually apply with county assessor by April 15• 2018 claims

27,078 approved $665 tax relief per claim average $18 Million paid by state to tax districts

• State funded, so no loss of revenue to any taxing district• Occupancy tax eligible - 2019• Not an exemption, so no property tax shifted to other

property taxpayersNot subject to repayment

27

tax.idaho.gov28

$0

$500

$1,000

$1,500

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Avg Benefit per Claimant Max Benefit

Circuit Breaker (PTR)

tax.idaho.gov29

25,00026,00027,00028,00029,000

30,000

31,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of Claimants Max Income

Circuit Breaker (PTR)

tax.idaho.gov

Percent of Taxes Paid - Circuit Breaker (PTR)

40.00%45.00%50.00%55.00%60.00%65.00%70.00%75.00%80.00%85.00%90.00%

Perc

ent

Years

100% TaxesPaid

% of TaxesPaid

30