In early June, each property owner in Bonner County will receive their 2018 assessment notice. This notice is a reflection of the estimated current market value of your property; in other words, the most probable price your property would sell for on the open market. That value is found each year by physically inspecting parcels and studying the local real estate market.
There are many reasons you may see a change in your assessment. The most obvious would be a property characteristic change. Properties are physically inspected on a five-year cycle, and more frequently if there is an open building permit, or if the property has sold. At this inspection, Idaho State Certified Property Tax Appraisers verify the measurements, quality, and condition of structures. We update our photo database and also note land characteristics, access, views, etc. Any adjustments or corrections of a property characteristic could trigger a value change.
The most frequent cause of a value change, however, is a change in the market. Idaho State Code 63-314 requires that assessments are set at the current market value using mass appraisal methods. Each year we analyze recent sales to determine what properties are selling for in a given area. Real estate in Bonner County has been experiencing steady growth over the last few years, but the study of 2016 and 2017 sales revealed a much healthier market increase. In 2017, we received 1,595 sales, which after studying, showed that some areas are experiencing an explosion in value while others are showing moderate increases or are remaining reasonably level. As such, many property owners will see a change in their upcoming assessment as the local market continues to grow.
In 2010, a 25 percent reduction was placed on all commercial properties to account for the market decrease in commercial and industrial values. Since then, we are slowly removing these adjustments as we have seen the market improve, vacancy rates decline, and commercial construction pick back up. For the 2018 assessment, the last of these mandated adjustments will be removed.
It is important when you receive your notice, to open your assessment, look it over, and call if you have questions. We are happy to explain any change in your valuation. It is the goal of the Assessorís Office to establish equity and fairness for all taxpayers and to provide the most accurate assessment possible.
For more information on property taxes and the assessment process, please visit:
• Idaho State Tax Commission: https://tax.idaho.gov/i-1129.cfm
• Idaho State Tax Commission Property Tax guide: https://tax.idaho.gov/pubs/EBR00062_03-06-2018.pdf
• IAC Video on Property Tax and Assessments: https://youtu.be/SOI-tNU07Hc
• Bonner County Assessor: https://www.bonnercountyid.gov/assessor/
Jerry Clemons is Bonner County assessor and can be reached at bonnercountyid.gov/assessor.