Property Tax Deferral Program

State

Idaho

Year

2021

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

The benefit is a deferral of property tax. During the period of deferral interest shall accrue on the amount deferred at the annual rate of 2 percent plus the midterm federal rate as it applies on September 15 of the immediately preceding calendar year rounded to the nearest whole number. The amount of taxes deferred constitute a lien on the property for the total amount of taxes plus interest. Applicants must qualify and apply for the tax deferral every year with the County Assessor's office.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

Only homesteads are eligible for this benefit. A “homestead” is defined as the owner-occupied primary dwelling place of the claimant. It may consist of a part of a multidwelling or multipurpose building. The exemption extends to land surrounding the homestead which is necessary for its use as a home. This may not exceed one acre. Homestead does not include personal property such as furniture, furnishings or appliances, but a manufactured home may be a homestead.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Veteran

Surviving Spouse

Other Criteria

Description of Eligibility Criteria

Claimant must meet all eligibility requirements for circuit breaker tax reduction except for income limitations. To apply for 2021 deferral, 2020 income must be less than $50,000. Requirements include that the applicant be at least one of the following: A) 65 or older; B) A child under 18 who has no parent or guardian; C) A widow or widower; D) A disabled person recognized by the social security administration, railroad retirement board, or by the Office of Management and Budget; E) a disabled veteran; F) A person who was taken by a hostile force; G) Blind. The homeowner must have sufficient equity, which includes that the property is not security for a reverse mortgage and that the total encumbrances on the property do not exceed 80% of the current year's market value. The homeowner must also have proof of adequate insurance to receive the benefit. Applications for 2021 deferrals are due on 7 September 2021.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

By December 20th of each year, the state tax commission shall pay to each county tax collector 1/2 of the amount due as reimbursement for property taxes deferred. They shall pay the second 1/2 of the reimbursement by June 20th of the following year. However, claims are subject to approval and disapproval by the state tax commission. The payments may be combined with payments for the property tax reduction. The total amount of reimbursement payable to all counties shall not exceed $5,000,000 for one calendar year. In the event that the amount of deferral exceeds $5,000,000, the amount of taxes deferred for each qualifying property shall be reduced proportionately.

Record ID

ID102_RR21

Footnotes

Effective retroactively starting 01 January 2021, the interest rate is changed from 6 percent to the sum of 2 percent and the midterm federal rate as it applies on September 15 of the immediately preceding calendar year rounded to the nearest whole number. The total reimbursement payable to all counties is increased from $500,000 to $5,000,000. The income ceiling base is changed from $40,000 in 2007 and adjusted for inflation to $50,000 in 2021 and adjusted for inflation. These changes are pursuant to 2021 Idaho Sess. Laws p. 238 (HB309). Because of the COVID-19, application date for filing a request has been extended to ---------------- A deferral of property tax payments shall terminate on the earlier of: (a) voluntary payment of the full amount of deferred tax and interest to the state tax commission; (b) the death of the qualified claimant. In the case of more than one qualified claimant, the death of the last surviving qualified claimant; (c) a sale or other transfer of title to the property or any part of the property except a transfer of title to a surviving spouse of a deceased qualified claimant; (d) the property no longer qualifies for the exemption due to residential improvements; (e) a determination by the state tax commission that the deferral of property tax payments was erroneously granted to a person who is not a qualified claimant or in regard to property that is not qualified property. Income is defined as federal adjusted gross income, less deductions for certain medical and funeral expenses, business losses, early withdrawal penalties, and alimony. Income also includes social security and similar benefits, as well as most non-taxable income.

Sources

Idaho Code Ann. § 63-712 ~ § 63-718 (in effect for 2021)
Idaho Tax Commission Deferral
[https://tax.idaho.gov/pubs/EBR00067_07-01-2021.pdf Accessed 10/04/2021]
View Archived Source
2021 Idaho Sess. Laws p. 238 (HB309)

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