Bill Description: House Bill 717 would shift the burden of proof from the property owner to the assessor in disputes over property tax assessments, specifically, when the homeowner introduces evidence that the assessment is inaccurate. The bill would also create a new formula for calculating property tax levy rates and the homestead exemption.
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NOTE: House Bill 717 combines elements of House Bill 625 and House Bill 701, introduced earlier this session. Unfortunately, House Bill 717 is not as advantageous for homeowners as House Bill 625.
Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?
Under Idaho law, when a property owner files an appeal of a property tax assessment with the board of equalization, the burden of proof lies with the property owner, who must prove the assessment is incorrect.
House Bill 717 would shift the burden of proof to the assessor in property tax assessment disputes where the homeowner "introduces evidence that the assessment is not an accurate representation of fair market value, regardless of whether or not the evidence is offered by an appraiser or other expert witness."
(House Bill 625 would be more beneficial to taxpayers because it shifts the burden of proof to the assessor in all property tax assessment disputes; it does not require the homeowner seeking redress to introduce evidence against the assessment.)
Under House Bill 717, a similar standard would apply if a property tax assessment dispute escalates from the board of equalization to "the board of tax appeals or the district court." In such cases, "if a taxpayer introduces evidence that the assessment is not an accurate representation of fair market value, regardless of whether or not the evidence is offered by an appraiser or other expert witness, the burden of proof shall shift to the assessor to establish the correct market value of the property."
It is a step in the right direction to shift the burden of proof from the homeowner to the government in some circumstances. But it would be far better for the burden of proof to rest solely on the government in all cases. The government should have to prove its tax assessments are correct rather than put the onus on taxpayers to prove they are incorrect.
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In Idaho, an owner-occupied primary residence is eligible for a homestead exemption of up to 50% of the home's assessed value or $125,000, whichever is less.
Under current law, a homeowner can receive 100% of the value of the exemption if the county receives the application by April 15; the amount is 75% if the application is received between April 16 and June 30 and 50% if received between July 1st and Sept. 30. If the county receives the application between Oct. 1 and Dec. 31, the homeowner can receive 25% of the value.
House Bill 717 would amend Section 63-602G, Idaho Code, (as amended by Section 1 of House Bill 449, if enacted by the Legislature) to prorate the property taxes and homestead exemption based on the exact number of days "such property is subject to a given exemption eligibility status."
The bill also clarifies how "the taxable value of the homestead or the tax shall be adjusted" if "the eligibility status of the property changes during the tax year."
This change may help to streamline the calculation process for determining how much the exemption is worth.
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