Property Tax Deferral Program

State

Idaho

Year

2022

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

The benefit is a deferral of property tax plus interest, which constitutes a lien on the property.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

The property may consist of a part of a multi-dwelling or multi-purpose building. The exemption extends to the land surrounding the homestead which is necessary for its use as a home, but may not exceed 1 acre. A homestead does not include personal property such as furniture, furnishings, or appliances, but a manufactured home may qualify as a homestead. The property must not be security for a reverse mortgage, home equity loan, line of credit, or any similar loan.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Veteran

Surviving Spouse

Other Criteria

Description of Eligibility Criteria

The claimant must meet all eligibility requirements for the circuit breaker tax reduction except for income limitations, have proof of adequate insurance, and own and occupy the residence as their primary dwelling. To apply for a 2022 deferral, 2021 income must be less than $50,650. The Secretary of Health and Human Services adjusts the income limit annually for any changes in the cost of living. The applicant must 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 the Office of Management and Budget; E) a disabled veteran; F) a person who was taken by a hostile force; or G) blind. The homeowner must have sufficient equity, which means 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.

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 20 December of each year, the state tax commission shall pay 1/2 of the amount due as reimbursement for property taxes deferred to each county tax collector. The second 1/2 of the reimbursement is paid by 20 June of the following year. However, claims are subject to approval and disapproval by the state tax commission. The total amount of reimbursement payable to all counties shall not exceed $5,000,000 for one calendar year. If the total amount of deferrals exceeds $5,000,000, the amount of taxes deferred for each qualifying property shall be reduced proportionately.

Record ID

ID102_RR22

Footnotes

Deferred taxes accrue interest at an annual rate of 2% plus the midterm federal rate as it applies on 15 September of the immediately preceding calendar year rounded to the nearest whole number. 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 Homeowner's Exemption; (e) a determination by the state tax commission that the deferral of property tax payments was erroneously granted to a person or property who is not qualified. 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. Applications are due annually on the first Monday in September.

Sources

Idaho Code Ann. § 63-712 ~ § 63-718 (in effect for 2022)
Idaho Tax Commission, Property Tax Deferral Program (2022)
[https://tax.idaho.gov/wp-content/uploads/pubs/EBR00067/EBR00067_11-29-2021.pdf Accessed 02/22/2023]
View Archived Source
Idaho State Tax Commission, Property Tax Deferral
[https://tax.idaho.gov/taxes/property/homeowners/deferral/ Accessed 02/22/2023]
View Archived Source

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