Article originally published on KTVB
Idaho’s maximum homeowner exemption changed to flat cap in 2016. If the indexed rate was still in place, the maximum exemption would increase by nearly $100,000.
The Idaho State Tax Commission (ISTC) released a memo in early October documenting the state’s maximum homeowner’s property tax exemption dating back 1980.
Idaho law allows qualifying homeowners to exempt up to 50% of their home’s assessed value from property taxes until hitting the maximum limit. From 2007 to 2016, the House Price Index (HPI) dictated the maximum limit. The maximum exemption would increase or decrease depending on the housing market.
Idaho lawmakers changed the maximum exemption in 2016 to a stagnant number. The ISTC’s memo shows the stagnant 2023 maximum exemption is nearly $100,000 less than it would have been if the law did not change.
“I think we have enough numbers to pass a bill, it’s getting a bill heard that’s the problem,” Necochea said. “I’ve brought personal bills. I’ve co-sponsor bills with Republicans to address the homeowners exemption. We can’t get a hearing, because republican leaders don’t want us to go back to an indexed exemption.”
“This is a top priority to me,” Necochea said. “I’m talking to my Republican colleagues one-on-one whenever I can.”