Property Tax Deferral Program

State

Idaho

Year

2007

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 6% annually.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

Only homesteads are eligible for this benefit. “Homestead” means the dwelling, owner-occupied by the claimant and used as the primary dwelling place of the claimant. The homestead may be occupied by any members of the household as their home, and so much of the land surrounding it, not exceeding one acre, as is reasonably necessary for the use of the dwelling as a home. It may consist of a part of a multidwelling or multipurpose building and part of the land upon which it is built. 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 be meet eligibility requirements for circuit breaker tax reduction with income limitations of $28,000 for 2007. No application for deferral of property taxes shall be granted if: (a) the application fails to show sufficient equity in that property to secure the payment of all existing deferrals granted in the property; (b) the application fails to show proof of insurance of an amount adequate for the amount of the deferred tax and interest; or (c) the total of all deferrals and interest would exceed 50% of the qualified claimant's proportional share of the market value of the qualified property.

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 no later than 20 December of each year, the state tax commission shall pay to the county tax collector of each county 1/2 of the amount due each county as reimbursement for property taxes deferred as shown on the property tax reduction roll, as modified by actions of the state tax commission relating to claims approved or disapproved by the state tax commission, and shall pay the second 1/2 of such amount by not later than 20 June of the following year. The payments may be combined with payments made for property tax reduction. The total amount of reimbursement payable to all counties under this section shall not exceed $500,000 in regard to property taxes for one calendar year. In the event that the amount of taxes approved for deferral exceeds $500,000, the amount of taxes deferred for each qualifying property shall be reduced proportionately and the balance of property tax not deferred shall be entered on the property tax notice. The state tax commission shall file with the county recorder of the county in which the property is located a notice of lien for deferred property taxes. The lien for deferred taxes and interest shall not be a first and prior lien, but shall take its priority from the date and time of filing of the notice of lien.

Record ID

ID102_RR07

Footnotes

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. For this program and the circuit breaker tax reduction, a claimant must be an owner of the homestead and as of 1 January of year which claimant applies for the deferral, must be: (a) over 65 years old; (b) a fatherless or motherless minor; (c) a widow or widower; (d) a qualified disabled person or veteran; (e) a former POW; or (f) blind. A disabled person is one who is recognized as disabled by the Social Security Administration, the Railroad Retirement board, or the Office of Management and Budget. A disabled veteran of any war engaged in by the United States is one whose disability is recognized as a service-connected disability of a degree of 10% or more, or who has a pension for non-service-connected disabilities. 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.

Sources

Idaho Code Ann. § 63-712 ~ § 63-718 (in effect for 2007)

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