Idaho committee clears bill setting daily proration for homeowners exemption, shifts burden for big countywide value changes

State Representative Dustin Manwaring introduced House Bill 354 on Thursday, telling the Idaho House Revenue & Taxation Committee the bill would (1) establish a countywide market-value ratio requirement in statute and shift the burden of proof for some property tax appeals, and (2) put a daily proration method for homeowners (homestead) exemptions into statute when eligibility changes during the tax year.

The bill’s sponsor, Representative Dustin Manwaring, identified two primary elements: a statutory ratio for countywide market value and a burden-of-proof shift to the county for appeals when a county’s market value increases more than 10 percent and the county failed to use equalization methods. He said the proration language would require calculating a daily tax rate by dividing the tax-year levy times market value by 365 (or 366 in leap years) and multiplying that daily rate by the number of days the exemption applied.

Why it matters: committee members and witnesses said the measure addresses inconsistent county practices that followed the 2020 removal of the April 15 deadline to apply for the homestead exemption. Proponents said the bill creates a uniform, implementable approach to prorating the exemption when a property’s eligibility changes mid-year and clarifies when the burden of proof shifts in appeals.

County and industry groups told the committee they had negotiated language with the sponsor. Sarah Westbrook of the Idaho Association of Counties said, “we feel like it's implementable and it's fair,” and urged the committee to send the bill to the floor with a due-pass recommendation. Max Pond, government affairs director for the Idaho Realtors, also testified in support and thanked the sponsor and counties for working on the proposal.

Ada County’s chief deputy assessor, Brad Smith, submitted remote testimony raising operational concerns and advocating quarterly proration instead of daily. His written statement, read into the record, said Ada County has “nearly 140,000 homestead exemptions” and that “on average, 20,000 residences undergo ownership changes annually in Ada County,” adding that a daily proration “would create a significant administrative burden.” The committee record shows the bill does not require counties to change every internal procedure; it requires calculations to use a daily rate when computing prorations.

Committee members who spoke on the motion described the change as primarily a mathematical adjustment. Representative Monks said dividing by 365 instead of by quarters did not appear to materially increase work; Representative Ehlers said he built a spreadsheet and viewed it as “just a change in math.” Representative Shepherd moved to send House Bill 354 to the floor with a due-pass recommendation; the committee voice vote passed and the bill will go to the full House.

What the bill would do (as presented): - Insert into statute a countywide market-value ratio standard (intended to keep counties’ assessed values within a 90–110 ratio) and tie that standard to a burden-of-proof shift in appeals when an increase above 10 percent occurs and equalization methods were not used. - Require daily proration of homestead exemption benefits when eligibility begins or ends mid-year using a 365/366 divisor for the annual tax rate and multiplying by days of eligibility; also outline treatment for dates around the second Monday in July and treatment of December changes after tax notices issue.

Committee action and next steps: the committee voted by voice to send House Bill 354 to the floor with a due-pass recommendation. The sponsor asked the full House to consider the negotiated language; counties and realtors said they supported the current draft, while at least one county assessor suggested quarterly proration as an alternative to reduce administrative burden.

The record includes both the sponsor’s explanation and county operational concerns that could be raised again on the House floor or during subsequent floor debate.