Let’s talk tax exemptions

Have you ever heard the term “tax exemption” and wonder who the lucky dogs are that receive them?

I am not talking about exemptions from sales tax or tax relief programs, I am talking about property tax exemptions. We all know the dreaded April 15 deadline, but April 15 is also the deadline for most property tax exemptions in the state of Idaho.

All property in Idaho is subject to taxation, unless expressly exempted (government property, schools, etc.) Exemptions are never presumed and the burden is solely on the applicant to establish a right to the exemption, in other words the taxpayer must show a clear entitlement to an exemption.

Navigating and applying for exemptions can be extremely confusing, but finding the right office to help you is key. The Bonner County Commissioner’s Office and the Bonner County Assessor’s Office are the two main offices that process various property exemption applications.

The Bonner County Commissioner’s Office is responsible for all non-profit exemptions such as churches, religious corporations, religious societies, fraternal, benevolent, or charitable organizations, public libraries, public cemeteries, and various other non-profit organizations. However, just because your organization is registered with the IRS as a 501(c)3 does not mean you are automatically exempt from property taxes, submitting an application is the best way to figure that out. The Commissioner’s Office also assists with agricultural exemptions (under five acres), developer’s discount (Idaho Code 63-602W) and some business exemptions (Idaho Code 63-602NN).

The Bonner County Assessor’s Office is responsible for timber and agricultural exemptions, homeowner’s (homestead) exemptions, and Circuit Breaker exemptions. The timber and agricultural exemptions are common, but have complex rules that you must prove you are abiding by to continuously receive one, the other, or both. The homeowner’s exemption is a fairly general exemption that almost all homeowners qualify for, the biggest caveat is that you must reside in your home for at least six months out of the year.

The Circuit Breaker is an exemption, but also a form of tax relief for qualified applicants. The amount of the reduction is based on household income for the previous calendar year. If you qualify, the property taxes on your home and up to one acre of land may be reduced. You may be eligible in one or more categories, including: Age 65 or older, widow(er), blind, veteran with a service connected disability and/or disabled (as recognized by the Social Security Administration). Please contact the Bonner County Assessor’s Office if you feel you may qualify at 208-265-1440.

Within Idaho Statute Title 63, Chapter 6 there are multiple other instances for property tax exemptions. All of the requirements are complex and could potentially require legal assistance to navigate.

As always sho

uld you have questions regarding this information or other Bonner County related questions please feel free to contact me at 208-265-1438 or jessi.webster@bonnercountyid.gov.