Amends existing law to eliminate proration of the homestead property tax exemption.

LEGISLATURE OF THE STATE OF IDAHO
Sixty-eighth Legislature Second Regular Session - 2026
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 843
BY REVENUE AND TAXATION COMMITTEE
AN ACT	1
RELATING TO TAXATION; AMENDING SECTION 63-602G, IDAHO CODE, TO REVISE PROVI-	2
SIONS REGARDING THE HOMESTEAD EXEMPTION; AND DECLARING AN EMERGENCY AND	3
PROVIDING RETROACTIVE APPLICATION.	4
Be It Enacted by the Legislature of the State of Idaho:	5
SECTION 1. That Section 63-602G, Idaho Code, be, and the same is hereby	6
amended to read as follows:	7
63-602G. PROPERTY EXEMPT FROM TAXATION -- HOMESTEAD. (1) For each tax	8
year, the first one hundred twenty-five thousand dollars ($125,000) of the	9
market value for assessment purposes of the homestead as that term is defined	10
in section 63-701, Idaho Code, or fifty percent (50%) of the market value	11
for assessment purposes of the homestead as that term is defined in section	12
63-701, Idaho Code, whichever is the lesser, shall be exempt from property	13
taxation.	14
(2) The exemption allowed by this section may be granted only if:	15
(a) The homestead is owner-occupied and used as the primary dwelling	16
place of the owner. The homestead may consist of part of a multidwelling	17
or multipurpose building and shall include all of such dwelling or	18
building except any portion used exclusively for anything other than	19
the primary dwelling of the owner. The presence of an office in a home-	20
stead, which office is used for multiple purposes, including business	21
and personal use, shall not prevent the owner from claiming the exemp-	22
tion provided in this section; and	23
(b) The state tax commission has certified to the board of county com-	24
missioners that all properties in the county subject to appraisal by the	25
county assessor have, in fact, been appraised uniformly so as to secure	26
a just valuation for all property within the county; and	27
(c) The owner has certified to the county assessor that:	28
(i) He is making application for the exemption allowed by this	29
section;	30
(ii) The homestead is his primary dwelling place; and	31
(iii) He has not made application in any other county for the ex-	32
emption and has not made application for the exemption on any other	33
homestead in the county.	34
(d) For the purpose of this section, the definition of "owner" shall be	35
the same definition set forth in section 63-701(7), Idaho Code. When an	36
owner, pursuant to the provisions of section 63-701(7), Idaho Code, is	37
any person who is the beneficiary of a revocable or irrevocable trust,	38
or who is a partner of a limited partnership, a member of a limited lia-	39
bility company, or a shareholder of a corporation, he or she may provide	40
proof of the trust, limited partnership, limited liability company, or	41
corporation in the manner set forth in section 63-703(4), Idaho Code.	42

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(e) Any owner may request in writing the return of all copies of any	1
documents submitted with the affidavit set forth in section 63-703(4),	2
Idaho Code, that are held by a county assessor, and the copies shall	3
be returned by the county assessor upon submission of the affidavit in	4
proper form.	5
(f) For the purpose of this section, the definition of "primary	6
dwelling place" shall be the same definition set forth in section	7
63-701(8), Idaho Code means the single place where an owner has his	8
true, fixed and permanent home and principal establishment, and to	9
which whenever such owner is absent he has the intention of returning.	10
(g) For the purpose of this section, the definition of "occupied" shall	11
be the same definition set forth in section 63-701(6), Idaho Code.	12
(3) The county assessor of each county shall prescribe and make avail-	13
able forms to be used by a homeowner to apply for the homestead exemption pro-	14
vided in this section. The homeowner shall provide on such forms the home-	15
owner's full name, date of birth, complete address, and most recent previ-	16
ous complete address. The homeowner shall also provide, as applicable, such	17
homeowner's Idaho state-issued driver's license number or Idaho state-is-	18
sued identification card number, except that such requirement shall not ap-	19
ply to a homeowner in active military service for the initial application for	20
the exemption and during such time as the homeowner meets the qualifications	21
provided in subsection (8) of this section. If the homeowner applying for	22
the exemption provided in this section has not been domiciled in Idaho for	23
at least ninety (90) days and does not have an Idaho state-issued driver's	24
license or Idaho state-issued identification card, the homeowner shall pro-	25
vide an Idaho state-issued driver's license number or an Idaho state-issued	26
identification card number to the county assessor within ninety (90) days of	27
submitting such homeowner's initial application for the exemption.	28
(4) An owner need make application for the exemption described in sub-	29
section (1) of this section only once, as long as all of the following condi-	30
tions are met:	31
(a) The owner has received the exemption during the previous year as a	32
result of making a valid application as set forth in subsection (2)(c)	33
of this section.	34
(b) The owner or beneficiary, partner, member or shareholder, as appro-	35
priate, still occupies the same homestead for which the owner made ap-	36
plication.	37
(c) The homestead described in paragraph (b) of this subsection is	38
owner-occupied or occupied by a beneficiary, partner, member or share-	39
holder, as appropriate, and used as the primary dwelling place of the	40
owner or beneficiary, partner, member or shareholder, as appropriate.	41
(5)(a) The exemption allowed by this section shall be effective on the	42
date of eligibility status change provided on the approved application for	43
the current tax year and must be taken before the reduction in taxes provided	44
by sections 63-701 through 63-710, Idaho Code, is applied The full amount	45
of the exemption allowed by this section shall be in effect as of January 1	46
of the tax year in which a complete application is submitted and approved,	47
and shall be taken before the reductions in taxes provided in sections 63-701	48
through 63-710, Idaho Code, are applied. The exemption allowed by this sec-	49
tion shall not be prorated. In order to receive the exemption for the cur-	50

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rent tax year, the homeowner shall make application on or before the end of	1
the county's normal business hours on the last business day of the year. Ap-	2
proved applications received after the second Monday in July will be granted	3
as tax cancellations based on the amount of the exemption for which the prop-	4
erty qualified pursuant to subsection (1) of this section.	5
(b) If the eligibility status of the property eligible for the exemp-	6
tion changes during the tax year, the property taxes shall be prorated	7
based on the property's eligibility status during the year. The levy	8
rate shall be multiplied against the market value for assessment pur-	9
poses of the property, and the resulting tax due shall be divided by	10
three hundred sixty-five (365) days, or by three hundred sixty-six	11
(366) days if the tax year is a leap year, for the daily tax amount and	12
then multiplied by the number of days of the year such property has a	13
given exemption eligibility status. For an owner who qualifies for the	14
homeowner exemption, the property taxes shall be calculated using the	15
market value for assessment purposes, reduced by the exemption amount	16
provided in subsection (1) of this section. The levy rate shall be	17
multiplied against such value and divided by three hundred sixty-five	18
(365) days, or by three hundred sixty-six (366) days if the tax year is	19
a leap year, and then multiplied by the number of days such person is	20
eligible for the exemption.	21
(c) If the eligibility status of the property changes during the tax	22
year, the taxable value of the homestead or the tax amount shall be ad-	23
justed in one (1) of the following ways:	24
(i) If the property becomes eligible before the second Monday of	25
July, the reduced taxable value shall be entered on the property	26
roll pursuant to section 63-301, Idaho Code, and the homeowner	27
property tax relief roll pursuant to section 63-724(4), Idaho	28
Code;	29
(ii) If the property becomes eligible on or after the second Mon-	30
day of July, property taxes due shall be calculated as provided	31
in paragraph (b) of this subsection and any reduction in property	32
tax will result in a cancellation or refund as provided in section	33
63-1202, Idaho Code;	34
(iii) If the property becomes ineligible for the exemption before	35
the second Monday of July, any additional taxable value shall be	36
entered on the property roll pursuant to section 63-301, Idaho	37
Code, and the homeowner property tax relief roll pursuant to sec-	38
tion 63-724(4), Idaho Code;	39
(iv) If the property becomes ineligible for the exemption on or	40
after the second Monday of July but no later than the fourth Monday	41
of November, the additional value shall be assessed and entered on	42
the subsequent or missed property roll pursuant to the provisions	43
of section 63-301, Idaho Code; or	44
(v) If the property becomes ineligible for the exemption on or af-	45
ter the fourth Monday of November, the tax on the additional value	46
may be calculated as provided in paragraph (b) of this subsection	47
and billed as provided for the recovery of the property tax exemp-	48
tion pursuant to this subsection.	49

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(6) Recovery of property tax exemptions allowed by this section but im-	1
properly claimed or approved:	2
(a)(i) Prior to granting an exemption, the county assessor shall	3
investigate whether an applicant for the exemption has claimed the	4
exemption for another homestead and shall not grant the exemption	5
where it appears the exemption has been improperly claimed. The	6
applicant shall be notified of the county assessor's refusal to	7
grant the exemption.	8
(ii) Upon discovery of evidence, facts or circumstances indicat-	9
ing any exemption allowed by this section was improperly claimed	10
or approved, the county assessor shall decide whether the exemp-	11
tion claimed should have been allowed and, if not, notify the tax-	12
payer in writing, assess a recovery of property tax and notify the	13
county treasurer of this assessment. If the county assessor de-	14
termined that an exemption was improperly approved as a result of	15
county error, the county assessor shall present the discovered ev-	16
idence, facts or circumstances from the improperly approved ex-	17
emption to the board of county commissioners, at which time the	18
board may waive a recovery of the property tax and notify such tax-	19
payer in writing.	20
(iii) Upon the first instance of a taxpayer being discovered to	21
have claimed more than one (1) homestead exemption, the taxpayer	22
shall be subject to a penalty, payable to the county treasurer, in	23
an amount equal to the amount of property tax recovered pursuant	24
to subparagraph (ii) of this paragraph, which shall be paid in ad-	25
dition to such recovery amount. The taxpayer shall be notified of	26
the assessment of such penalty at the same time as the notice of the	27
assessor's refusal to grant the exemption in subparagraph (i) of	28
this paragraph.	29
(iv) Any subsequent violation within seven (7) years of an in-	30
stance pursuant to subparagraph (iii) of this paragraph shall be a	31
misdemeanor, subject to the penalties provided in section 18-113,	32
Idaho Code. The county assessor shall notify the county prosecut-	33
ing attorney of any conduct that would constitute a misdemeanor	34
pursuant to this subparagraph.	35
(v) Nothing in this paragraph shall prohibit a taxpayer from	36
claiming a homestead exemption after January 1 for a property	37
that is not already subject to the homestead exemption, provided	38
any claim for an exemption is consistent with the requirements of	39
subsection (2)(c)(iii) of this section. If a taxpayer claims a	40
homestead exemption after January 1 and is receiving a homestead	41
exemption claimed on a separate property in a prior tax year, the	42
exemption on such separate property shall be removed the following	43
tax year.	44
(b) Upon request by a county assessor conducting an investigation under	45
paragraph (a) of this subsection, or when information indicating that	46
an improper claim for the exemption allowed by this section is discov-	47
ered by the state tax commission, the state tax commission shall dis-	48
close relevant information to the appropriate county assessor, board	49
of county commissioners, county clerk, and county treasurer and to the	50

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secretary of state. Information disclosed to county officials and the	1
secretary of state by the state tax commission under this subsection:	2
(i) May be used to decide the validity of any entitlement to the	3
exemption provided in this section;	4
(ii) Shall, as necessary, be used to determine a person's resi-	5
dence for voting purposes under title 34, Idaho Code; and	6
(iii) Is not otherwise subject to public disclosure pursuant to	7
chapter 1, title 74, Idaho Code.	8
(c) The assessment and collection of the recovery of property tax must	9
begin within the seven (7) year period beginning the date the assessment	10
notice reflecting the improperly claimed or approved exemption was re-	11
quired to be mailed to the taxpayer.	12
(d)(i) An applicant for an exemption under this section may appeal	13
to the county board of equalization the county assessor's refusal	14
to grant an exemption pursuant to paragraph (a) of this subsection	15
within thirty (30) days of the date the county assessor sent notice	16
of the refusal.	17
(ii) The taxpayer may appeal to the county board of equalization	18
the decision by the county assessor to assess the recovery of prop-	19
erty tax within thirty (30) days of the date the county assessor	20
sent the notice to the taxpayer pursuant to this section. The	21
board may waive the collection of all or part of any costs, late	22
charges, and interest in order to facilitate the collection of the	23
recovery of the property tax.	24
(iii) The taxpayer may appeal the imposition of the penalty pro-	25
vided in paragraph (a)(iii) of this subsection within thirty (30)	26
days of the date the county assessor sent the notice to the tax-	27
payer pursuant to this section.	28
(e) For purposes of calculating the tax, the amount of the recovered	29
property tax shall be for each year the exemption allowed by this sec-	30
tion was improperly claimed or approved, up to a maximum of seven (7)	31
years. The amount of the recovery of property tax shall be calculated	32
using the product of the amount of exempted value for each year multi-	33
plied by the levy for that year plus costs, late charges, and interest	34
for each year at the rates equal to those provided for delinquent prop-	35
erty taxes during that year.	36
(f) Any recovery of property tax shall be due and payable no later than	37
the date provided for property taxes in section 63-903, Idaho Code, and	38
if not timely paid, late charges and interest, beginning the first day	39
of January in the year following the year the county assessor sent the	40
notice to the taxpayer pursuant to this section, shall be calculated at	41
the current rate provided for property taxes.	42
(g) Recovered property taxes shall be billed, collected and dis-	43
tributed in the same manner as property taxes, except each taxing dis-	44
trict or unit shall be notified of the amount of any recovered property	45
taxes included in any distribution.	46
(h) Thirty (30) days after the taxpayer is notified, as provided in	47
paragraph (a) of this subsection, the assessor shall record a notice	48
of intent to attach a lien. Upon the payment in full of such recov-	49
ered property taxes prior to the attachment of the lien as provided in	50

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paragraph (i) of this subsection, or upon the successful appeal by the	1
taxpayer, the county assessor shall record a rescission of the intent to	2
attach a lien within seven (7) business days of receiving such payment	3
or within seven (7) business days of the county board of equalization	4
decision granting the appeal. If the real property is sold to a bona	5
fide purchaser for value prior to the recording of the notice of the in-	6
tent to attach a lien, the county assessor and treasurer shall cease the	7
recovery of such unpaid recovered property tax.	8
(i) Any unpaid recovered property taxes shall become a lien on the real	9
property in the same manner as provided for property taxes in section	10
63-206, Idaho Code, except such lien shall attach as of the first day of	11
January in the year following the year the county assessor sent the no-	12
tice to the taxpayer pursuant to this section.	13
(j) For purposes of the limitation provided by section 63-802, Idaho	14
Code, moneys received pursuant to this subsection as recovery of prop-	15
erty tax shall be treated as property tax revenue.	16
(7) The legislature declares that this exemption is necessary and just.	17
(8) A homestead that previously qualified for exemption under this sec-	18
tion in the preceding year shall not lose such qualification due to: the	19
owner's, beneficiary's, partner's, member's or shareholder's absence in the	20
current year by reason of active military service or because the homestead	21
has been leased because the owner, beneficiary, partner, member or share-	22
holder is absent in the current year by reason of active military service.	23
An owner subject to the provisions of this subsection must apply for the ex-	24
emption with the county assessor every year on or before a deadline date as	25
specified by the county assessor for the county in which the homestead is	26
claimed. If an owner fails to apply on or before the established deadline,	27
the county may, at its discretion, discontinue the exemption for that year.	28
(9) A homestead that previously qualified for exemption under this	29
section in the preceding year shall not lose such qualification due to the	30
owner's, beneficiary's, partner's, member's or shareholder's death during	31
the year of the owner's, beneficiary's, partner's, member's or share-	32
holder's death and the tax year immediately following such death, provided	33
that the homestead continues to be a part of the owner's, beneficiary's,	34
partner's, member's or shareholder's estate. After such time, the new owner	35
shall reapply to receive the exemption pursuant to this section and shall	36
meet the qualification criteria contained in this section.	37
(10) The amount by which each exemption approved under this section ex-	38
ceeds one hundred thousand dollars ($100,000) may, in the discretion of the	39
governing board of a taxing district, be deducted from the new construction	40
roll for the following year prepared by the county assessor in accordance	41
with section 63-301A, Idaho Code, but only to the extent that the amount ex-	42
ceeds the same deduction made in the previous year.	43
(11) By July 1, 2023, the state tax commission shall establish a data-	44
base of all active exemptions claimed under this section, which database	45
shall be searchable by a person's name and by the address of the homestead	46
for which the exemption is claimed. The database shall be made accessible	47
to officials listed in subsection (6)(b) of this section for the purpose of	48
verifying that:	49

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(a) Multiple active exemptions have not been claimed by the same per-	1
son; and	2
(b) A person's residence for voting purposes is the same as the home-	3
stead for which such person has an active exemption pursuant to this	4
section, if an exemption is so claimed.	5
(12) Increases in taxable value resulting from any change in status of	6
a property formerly or newly receiving the homeowner exemption shall be in-	7
cluded by the county assessor on the property roll or subsequent property	8
roll required pursuant to section 63-301, Idaho Code.	9
SECTION 2. An emergency existing therefor, which emergency is hereby	10
declared to exist, this act shall be in full force and effect on and after its	11
passage and approval, and retroactively to January 1, 2026.	12

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