IdahoH 08432026 regular legislative sessionHouseWALLET

TAXATION – Amends existing law to eliminate proration of the homestead property tax exemption.

Sponsored By: REVENUE AND TAXATION COMMITTEE

Signed by Governor

TAXATION

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

7 provisions identified: 3 benefits, 1 costs, 3 mixed.

Lower property taxes on primary homes

Beginning January 1, 2026, your home’s taxable value is cut by the smaller of $125,000 or 50% of its assessed value. This applies only to an owner‑occupied primary home. When you submit a complete application and it is approved in that tax year, the full exemption applies as of January 1 and is not prorated. To get it for the current year, apply by the end of business on the last business day of the year. If approval comes after the second Monday in July, the county processes it as a tax cancellation.

Local boards can offset large exemptions

A taxing district’s board may deduct from next year’s new construction roll the part of each approved homestead exemption that is over $100,000. The board may do this only to the extent it exceeds the same deduction it took last year. This changes how new growth is counted and can affect future budgets and tax rates. The effect on your bill depends on local board choices.

Penalties and payback for improper claims

If you wrongly claim the exemption, you must pay back the taxes plus costs, late charges, and interest. The county can recover up to seven years. A first violation also owes a civil penalty equal to the tax recovered. A repeat violation within seven years is a misdemeanor. Unpaid amounts can become a lien on the property starting January 1 of the year after the notice. You have 30 days to appeal to the county board of equalization.

Keep exemption during service or after death

If your home qualified last year, it stays exempt while you are away on active military service, even if you lease it. You must apply each year by your county’s deadline or the county may stop the exemption. After an owner dies, the home stays exempt for the year of death and the next year if it remains in the estate. After that, the new owner must apply and qualify.

State database checks homestead exemptions

Starting July 1, 2023, the State Tax Commission keeps a searchable list of active homestead exemptions by name and address. County and state officials use it to spot duplicate exemptions and check against voting residence records. This improves verification but does not change who qualifies or the exemption amount.

Taxes adjust day-by-day if you move

When your home’s exemption status changes mid‑year, taxes are figured per day. The daily tax uses your local levy rate and your assessed value minus any exemption, divided by 365 (or 366 in a leap year). Officials use different steps before and after the second Monday in July and late in the year. This can mean you owe more or get a refund based on the days you qualified.

Who qualifies and how to apply

Only an owner‑occupied primary home can get this exemption. You must apply and certify it is your main home and you did not apply elsewhere. You must give your name, birth date, current and prior address, and an Idaho driver’s license or ID number. New Idaho residents have 90 days from first applying to provide an Idaho ID number. Active‑duty military do not need to provide the ID number for the first application while they qualify. You apply once and keep the exemption in later years if you still live in the same home and it stays your primary, owner‑occupied home. The state tax commission must confirm your county’s appraisals are uniform before counties grant exemptions.

Sponsors & Cosponsors

Sponsor

REVENUE AND TAXATION COMMITTEE
Affiliation unavailable

Cosponsors

Treg A. Bernt
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 32 • No: 0

House vote • 3/26/2026

House Floor Vote