Important information for Idaho homeowners!
During the 2020 legislative session the statute establishing the April 15th deadline (63-602G) for application to qualify for the homeowners exemption was changed with H562 removing the arbitrary deadline. Starting in 2021, applications for the homeowners exemption will be processed based on the date of application.
What this means for individuals purchasing a primary residence is a few things:The big take away with this change is that it will in all cases be more important than ever to apply for the exemption as soon as possible after closing. The good new is that for someone buying a home that did not have it they will be able to use a tax billing amount inclusive of the exemption for loan qualification purposes instead of the higher nonexempt amount.
However, if anyone forgets to file the application for a couple of months after closing even if the property had the exemption, they will lose it until the application is processed.
1. If the property purchased did not previously have a homeowners exemption and it is purchased after April 15th the new owner can still apply for and receive the exemption for theremainder of the year after the application has been accepted by the county.
2. If the property purchased did previously have the homeowners exemption it is critical that thenew owner apply for the exemption immediately upon closing as any delay in applying willreduce the time the exemption is in place for the year of the transaction.
3. If the property purchased is new construction the same deadlines apply (30 days) forapplication of the exemption to reduce the occupancy tax owed for the first year. After the first calendar change the home will go on the regular property tax rolls just as it currently does.