Tax Commission staff outline Idaho property‑tax system, assessed‑value trends and recent relief measures

Cathlyn Ireland, a property tax policy research specialist with the Idaho State Tax Commission, presented an overview of Idaho’s property‑tax system to the Senate Local Government and Taxation Committee, updating members on assessed values, levy calculations, assessment practice and recent legislative tax relief.

Ireland told the committee that assessors must appraise or index property annually, that assessors operate on a five‑year reappraisal cycle (with at least 20% of parcels physically inspected each year), and that Idaho’s lien date for assessment is January 1. She said the state tax commission provides technical support, including a team of consulting appraisers who work regionally with county assessors.

Using 2024 numbers, Ireland reported total statewide assessed value at roughly $363,000,000,000, an increase from $342,000,000,000 in 2023. She described sharp growth between 2021 and 2022 — roughly a $110,000,000,000 increase — driven in part by population movement during the COVID period.

Ireland explained how taxing districts set budgets and levy rates: districts produce a full budget, remove other revenue sources, and divide the remainder by net taxable value in the district to compute the levy rate. She emphasized that higher assessed value does not automatically yield more tax revenue because levy rates are adjusted; in many districts increased taxable value has led to lower levy rates.

She summarized who pays property taxes: in 2024 primary residences (owner‑occupied homes receiving the homeowner’s exemption) accounted for about 48% of property taxes before relief; when coupled with other residential property the residential sector accounted for more than 70% of property taxes statewide. She also said schools accounted for roughly 20% of total property taxes statewide after relief measures, counties about 29%, and cities about 30%.

Ireland reviewed recent relief measures. For school district facilities funds and homeowner relief the presentation listed allocations from enacted bills: House Bill 292 directed roughly $107 million to the school district facilities fund (about $97.7 million used to lower levy rates), and House Bill 521 directed about $128.4 million to the same fund. Homeowner tax relief totaled nearly $200 million in 2023 and fell to about $118 million in 2024 after HB 521, she said. Ireland also noted an additional, temporary relief measure enacted in February 2023 that was removed and reallocated under HB 521.

She described long‑standing Idaho programs: the circuit‑breaker credit (up to $1,500 for eligible homeowners over 65, disabled, or surviving spouses; 2025 income limit listed as $37,810; home value limits at 200% of county median assessed value or $400,000, whichever applies), a $1,500 service‑connected disabled veterans credit (25,371 approved claimants in 2023, averaging about $952 per claimant at a total cost of $24 million), and the tax deferral program (created in 2006, income limit for 2025 cited as $60,170; in 2024 there were 27 applications and 11 approvals; total state cost $18,344). She clarified the veteran and circuit‑breaker programs are state funded and do not shift tax burdens to local taxing districts.

When Senator Growe asked whether tax bills itemize both the school district relief and the homeowner credit, Ireland said yes, both programs were itemized on the 2023 tax bills and that the forms were adjusted after legislative changes in 2024. Ireland offered to provide a screenshot to Senators to show the itemization.

Ireland also summarized ratio studies and quality assurance: the commission collects sales data (around 26,000 sales statewide for the most recent study, with roughly 20,500 residential sales and only ~524 commercial sales) and runs statistical analyses to verify assessors’ compliance with statutory market‑value requirements.

She closed by answering procedural questions about the commission’s role working with county assessors and agreed to provide contact information to committee members for follow‑up.