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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
610
BY
REVENUE
AND
TAXATION
COMMITTEE
AN
ACT
1
RELATING
TO
TAXATION;
AMENDING
SECTION
63
-
602G,
IDAHO
CODE,
TO
REVISE
A
PRO
-
2
VISION
REGARDING
THE
HOMESTEAD
TAX
EXEMPTION;
DECLARING
AN
EMERGENCY
3
AND
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
1
1
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
2
(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.
8
(g)
For
the
purpose
of
this
section,
the
definition
of
"occupied"
shall
9
be
the
same
definition
set
forth
in
section
63
-
701(6),
Idaho
Code.
10
(3)
The
county
assessor
of
each
county
shall
prescribe
and
make
avail
-
1
1
able
forms
to
be
used
by
a
homeowner
to
apply
for
the
homestead
exemption
pro
-
12
vided
in
this
section.
The
homeowner
shall
provide
on
such
forms
the
home
-
13
owner's
full
name,
date
of
birth,
complete
address,
and
most
recent
previ
-
14
ous
complete
address.
The
homeowner
shall
also
provide,
as
applicable,
such
15
homeowner's
Idaho
state
-
issued
driver's
license
number
or
Idaho
state
-
is
-
16
sued
identification
card
number,
except
that
such
requirement
shall
not
ap
-
17
ply
to
a
homeowner
in
active
military
service
for
the
initial
application
for
18
the
exemption
and
during
such
time
as
the
homeowner
meets
the
qualifications
19
provided
in
subsection
(8)
of
this
section.
If
the
homeowner
applying
for
20
the
exemption
provided
in
this
section
has
not
been
domiciled
in
Idaho
for
21
at
least
ninety
(90)
days
and
does
not
have
an
Idaho
state
-
issued
driver's
22
license
or
Idaho
state
-
issued
identification
card,
the
homeowner
shall
pro
-
23
vide
an
Idaho
state
-
issued
driver's
license
number
or
an
Idaho
state
-
issued
24
identification
card
number
to
the
county
assessor
within
ninety
(90)
days
of
25
submitting
such
homeowner's
initial
application
for
the
exemption.
26
(4)
An
owner
need
make
application
for
the
exemption
described
in
sub
-
27
section
(1)
of
this
section
only
once,
as
long
as
all
of
the
following
condi
-
28
tions
are
met:
29
(a)
The
owner
has
received
the
exemption
during
the
previous
year
as
a
30
result
of
making
a
valid
application
as
set
forth
in
subsection
(2)(c)
31
of
this
section.
32
(b)
The
owner
or
beneficiary,
partner,
member
or
shareholder,
as
appro
-
33
priate,
still
occupies
the
same
homestead
for
which
the
owner
made
ap
-
34
plication.
35
(c)
The
homestead
described
in
paragraph
(b)
of
this
subsection
is
36
owner
-
occupied
or
occupied
by
a
beneficiary,
partner,
member
or
share
-
37
holder,
as
appropriate,
and
used
as
the
primary
dwelling
place
of
the
38
owner
or
beneficiary,
partner,
member
or
shareholder,
as
appropriate.
39
(5)(a)
The
exemption
allowed
by
this
section
shall
be
effective
on
the
40
date
of
eligibility
status
change
provided
on
the
approved
application
41
for
the
current
tax
year
and
must
be
taken
before
the
reduction
in
taxes
42
provided
by
sections
63
-
701
through
63
-
710,
Idaho
Code,
is
applied.
43
(b)
If
the
eligibility
status
of
the
property
eligible
for
the
exemp
-
44
tion
changes
during
the
tax
year,
the
property
taxes
shall
be
prorated
45
based
on
the
property's
eligibility
status
during
the
year.
The
levy
46
rate
shall
be
multiplied
against
the
market
value
for
assessment
pur
-
47
poses
of
the
property,
and
the
resulting
tax
due
shall
be
divided
by
48
three
hundred
sixty
-
five
(365)
days,
or
by
three
hundred
sixty
-
six
49
(366)
days
if
the
tax
year
is
a
leap
year,
for
the
daily
tax
amount
and
50
3
then
multiplied
by
the
number
of
days
of
the
year
such
property
has
a
1
given
exemption
eligibility
status.
For
an
owner
who
qualifies
for
the
2
homeowner
exemption,
the
property
taxes
shall
be
calculated
using
the
3
market
value
for
assessment
purposes,
reduced
by
the
exemption
amount
4
provided
in
subsection
(1)
of
this
section.
The
levy
rate
shall
be
5
multiplied
against
such
value
and
divided
by
three
hundred
sixty
-
five
6
(365)
days,
or
by
three
hundred
sixty
-
six
(366)
days
if
the
tax
year
is
7
a
leap
year,
and
then
multiplied
by
the
number
of
days
such
person
is
8
eligible
for
the
exemption.
9
(c)
If
the
eligibility
status
of
the
property
changes
during
the
tax
10
year,
the
taxable
value
of
the
homestead
or
the
tax
amount
shall
be
ad
-
1
1
justed
in
one
(1)
of
the
following
ways:
12
(i)
If
the
property
becomes
eligible
before
the
second
Monday
of
13
July,
the
reduced
taxable
value
shall
be
entered
on
the
property
14
roll
pursuant
to
section
63
-
301,
Idaho
Code,
and
the
homeowner
15
property
tax
relief
roll
pursuant
to
section
63
-
724(4),
Idaho
16
Code;
17
(ii)
If
the
property
becomes
eligible
on
or
after
the
second
Mon
-
18
day
of
July,
property
taxes
due
shall
be
calculated
as
provided
19
in
paragraph
(b)
of
this
subsection
and
any
reduction
in
property
20
tax
will
result
in
a
cancellation
or
refund
as
provided
in
section
21
63
-
1202,
Idaho
Code;
22
(iii)
If
the
property
becomes
ineligible
for
the
exemption
before
23
the
second
Monday
of
July,
any
additional
taxable
value
shall
be
24
entered
on
the
property
roll
pursuant
to
section
63
-
301,
Idaho
25
Code,
and
the
homeowner
property
tax
relief
roll
pursuant
to
sec
-
26
tion
63
-
724(4),
Idaho
Code;
27
(iv)
If
the
property
becomes
ineligible
for
the
exemption
on
or
28
after
the
second
Monday
of
July
but
no
later
than
the
fourth
Monday
29
of
November,
the
additional
value
shall
be
assessed
and
entered
on
30
the
subsequent
or
missed
property
roll
pursuant
to
the
provisions
31
of
section
63
-
301,
Idaho
Code;
or
32
(v)
If
the
property
becomes
ineligible
for
the
exemption
on
or
af
-
33
ter
the
fourth
Monday
of
November,
the
tax
on
the
additional
value
34
may
be
calculated
as
provided
in
paragraph
(b)
of
this
subsection
35
and
billed
as
provided
for
the
recovery
of
the
property
tax
exemp
-
36
tion
pursuant
to
this
subsection.
37
(6)
Recovery
of
property
tax
exemptions
allowed
by
this
section
but
im
-
38
properly
claimed
or
approved:
39
(a)(i)
Prior
to
granting
an
exemption,
the
county
assessor
shall
40
investigate
whether
an
applicant
for
the
exemption
has
claimed
the
41
exemption
for
another
homestead
and
shall
not
grant
the
exemption
42
where
it
appears
the
exemption
has
been
improperly
claimed.
The
43
applicant
shall
be
notified
of
the
county
assessor's
refusal
to
44
grant
the
exemption.
45
(ii)
Upon
discovery
of
evidence,
facts
or
circumstances
indicat
-
46
ing
any
exemption
allowed
by
this
section
was
improperly
claimed
47
or
approved,
the
county
assessor
shall
decide
whether
the
exemp
-
48
tion
claimed
should
have
been
allowed
and,
if
not,
notify
the
tax
-
49
payer
in
writing,
assess
a
recovery
of
property
tax
and
notify
the
50
4
county
treasurer
of
this
assessment.
If
the
county
assessor
de
-
1
termined
that
an
exemption
was
improperly
approved
as
a
result
of
2
county
error,
the
county
assessor
shall
present
the
discovered
ev
-
3
idence,
facts
or
circumstances
from
the
improperly
approved
ex
-
4
emption
to
the
board
of
county
commissioners,
at
which
time
the
5
board
may
waive
a
recovery
of
the
property
tax
and
notify
such
tax
-
6
payer
in
writing.
7
(iii)
Upon
the
first
instance
of
a
taxpayer
being
discovered
to
8
have
claimed
more
than
one
(1)
homestead
exemption,
the
taxpayer
9
shall
be
subject
to
a
penalty,
payable
to
the
county
treasurer,
in
10
an
amount
equal
to
the
amount
of
property
tax
recovered
pursuant
1
1
to
subparagraph
(ii)
of
this
paragraph,
which
shall
be
paid
in
ad
-
12
dition
to
such
recovery
amount.
The
taxpayer
shall
be
notified
of
13
the
assessment
of
such
penalty
at
the
same
time
as
the
notice
of
the
14
assessor's
refusal
to
grant
the
exemption
in
subparagraph
(i)
of
15
this
paragraph.
16
(iv)
Any
subsequent
violation
within
seven
(7)
years
of
an
in
-
17
stance
pursuant
to
subparagraph
(iii)
of
this
paragraph
shall
be
a
18
misdemeanor,
subject
to
the
penalties
provided
in
section
18
-
113,
19
Idaho
Code.
The
county
assessor
shall
notify
the
county
prosecut
-
20
ing
attorney
of
any
conduct
that
would
constitute
a
misdemeanor
21
pursuant
to
this
subparagraph.
22
(v)
Nothing
in
this
paragraph
shall
prohibit
a
taxpayer
from
23
claiming
a
homestead
exemption
after
January
1
for
a
property
that
24
is
not
already
subject
to
the
homestead
exemption,
provided
any
25
claim
for
an
exemption
is
consistent
with
the
requirements
of
sub
-
26
section
(2)(c)(iii)
of
this
section.
27
(b)
Upon
request
by
a
county
assessor
conducting
an
investigation
under
28
paragraph
(a)
of
this
subsection,
or
when
information
indicating
that
29
an
improper
claim
for
the
exemption
allowed
by
this
section
is
discov
-
30
ered
by
the
state
tax
commission,
the
state
tax
commission
shall
dis
-
31
close
relevant
information
to
the
appropriate
county
assessor,
board
32
of
county
commissioners,
county
clerk,
and
county
treasurer
and
to
the
33
secretary
of
state.
Information
disclosed
to
county
officials
and
the
34
secretary
of
state
by
the
state
tax
commission
under
this
subsection:
35
(i)
May
be
used
to
decide
the
validity
of
any
entitlement
to
the
36
exemption
provided
in
this
section;
37
(ii)
Shall,
as
necessary,
be
used
to
determine
a
person's
resi
-
38
dence
for
voting
purposes
under
title
34,
Idaho
Code;
and
39
(iii)
Is
not
otherwise
subject
to
public
disclosure
pursuant
to
40
chapter
1,
title
74,
Idaho
Code.
41
(c)
The
assessment
and
collection
of
the
recovery
of
property
tax
must
42
begin
within
the
seven
(7)
year
period
beginning
the
date
the
assessment
43
notice
reflecting
the
improperly
claimed
or
approved
exemption
was
re
-
44
quired
to
be
mailed
to
the
taxpayer.
45
(d)(i)
An
applicant
for
an
exemption
under
this
section
may
appeal
46
to
the
county
board
of
equalization
the
county
assessor's
refusal
47
to
grant
an
exemption
pursuant
to
paragraph
(a)
of
this
subsection
48
within
thirty
(30)
days
of
the
date
the
county
assessor
sent
notice
49
of
the
refusal.
50
5
(ii)
The
taxpayer
may
appeal
to
the
county
board
of
equalization
1
the
decision
by
the
county
assessor
to
assess
the
recovery
of
prop
-
2
erty
tax
within
thirty
(30)
days
of
the
date
the
county
assessor
3
sent
the
notice
to
the
taxpayer
pursuant
to
this
section.
The
4
board
may
waive
the
collection
of
all
or
part
of
any
costs,
late
5
charges,
and
interest
in
order
to
facilitate
the
collection
of
the
6
recovery
of
the
property
tax.
7
(iii)
The
taxpayer
may
appeal
the
imposition
of
the
penalty
pro
-
8
vided
in
paragraph
(a)(iii)
of
this
subsection
within
thirty
(30)
9
days
of
the
date
the
county
assessor
sent
the
notice
to
the
tax
-
10
payer
pursuant
to
this
section.
1
1
(e)
For
purposes
of
calculating
the
tax,
the
amount
of
the
recovered
12
property
tax
shall
be
for
each
year
the
exemption
allowed
by
this
sec
-
13
tion
was
improperly
claimed
or
approved,
up
to
a
maximum
of
seven
(7)
14
years.
The
amount
of
the
recovery
of
property
tax
shall
be
calculated
15
using
the
product
of
the
amount
of
exempted
value
for
each
year
multi
-
16
plied
by
the
levy
for
that
year
plus
costs,
late
charges,
and
interest
17
for
each
year
at
the
rates
equal
to
those
provided
for
delinquent
prop
-
18
erty
taxes
during
that
year.
19
(f)
Any
recovery
of
property
tax
shall
be
due
and
payable
no
later
than
20
the
date
provided
for
property
taxes
in
section
63
-
903,
Idaho
Code,
and
21
if
not
timely
paid,
late
charges
and
interest,
beginning
the
first
day
22
of
January
in
the
year
following
the
year
the
county
assessor
sent
the
23
notice
to
the
taxpayer
pursuant
to
this
section,
shall
be
calculated
at
24
the
current
rate
provided
for
property
taxes.
25
(g)
Recovered
property
taxes
shall
be
billed,
collected
and
dis
-
26
tributed
in
the
same
manner
as
property
taxes,
except
each
taxing
dis
-
27
trict
or
unit
shall
be
notified
of
the
amount
of
any
recovered
property
28
taxes
included
in
any
distribution.
29
(h)
Thirty
(30)
days
after
the
taxpayer
is
notified,
as
provided
in
30
paragraph
(a)
of
this
subsection,
the
assessor
shall
record
a
notice
31
of
intent
to
attach
a
lien.
Upon
the
payment
in
full
of
such
recov
-
32
ered
property
taxes
prior
to
the
attachment
of
the
lien
as
provided
in
33
paragraph
(i)
of
this
subsection,
or
upon
the
successful
appeal
by
the
34
taxpayer,
the
county
assessor
shall
record
a
rescission
of
the
intent
to
35
attach
a
lien
within
seven
(7)
business
days
of
receiving
such
payment
36
or
within
seven
(7)
business
days
of
the
county
board
of
equalization
37
decision
granting
the
appeal.
If
the
real
property
is
sold
to
a
bona
38
fide
purchaser
for
value
prior
to
the
recording
of
the
notice
of
the
in
-
39
tent
to
attach
a
lien,
the
county
assessor
and
treasurer
shall
cease
the
40
recovery
of
such
unpaid
recovered
property
tax.
41
(i)
Any
unpaid
recovered
property
taxes
shall
become
a
lien
on
the
real
42
property
in
the
same
manner
as
provided
for
property
taxes
in
section
43
63
-
206,
Idaho
Code,
except
such
lien
shall
attach
as
of
the
first
day
of
44
January
in
the
year
following
the
year
the
county
assessor
sent
the
no
-
45
tice
to
the
taxpayer
pursuant
to
this
section.
46
(j)
For
purposes
of
the
limitation
provided
by
section
63
-
802,
Idaho
47
Code,
moneys
received
pursuant
to
this
subsection
as
recovery
of
prop
-
48
erty
tax
shall
be
treated
as
property
tax
revenue.
49
(7)
The
legislature
declares
that
this
exemption
is
necessary
and
just.
50
6
(8)
A
homestead
that
previously
qualified
for
exemption
under
this
sec
-
1
tion
in
the
preceding
year
shall
not
lose
such
qualification
due
to:
the
2
owner's,
beneficiary's,
partner's,
member's
or
shareholder's
absence
in
the
3
current
year
by
reason
of
active
military
service
or
religious
mission
or
be
-
4
cause
the
homestead
has
been
leased
because
the
owner,
beneficiary,
partner,
5
member
or
shareholder
is
absent
in
the
current
year
by
reason
of
active
mil
-
6
itary
service
or
religious
mission.
For
purposes
of
this
subsection,
"reli
-
7
gious
mission"
means
service
performed
for
a
religious
organization,
where
8
the
owner,
beneficiary,
partner,
member,
or
shareholder
is
required
to
relo
-
9
cate
from
the
homestead
for
the
duration
of
the
mission
but
intends
to
return
10
to
the
homestead
upon
the
completion
of
the
mission
.
An
owner
subject
to
the
1
1
provisions
of
this
subsection
must
apply
for
the
exemption
with
the
county
12
assessor
every
year
on
or
before
a
deadline
date
as
specified
by
the
county
13
assessor
for
the
county
in
which
the
homestead
is
claimed.
If
an
owner
fails
14
to
apply
on
or
before
the
established
deadline,
the
county
may,
at
its
dis
-
15
cretion,
discontinue
the
exemption
for
that
year.
16
(9)
A
homestead
that
previously
qualified
for
exemption
under
this
17
section
in
the
preceding
year
shall
not
lose
such
qualification
due
to
the
18
owner's,
beneficiary's,
partner's,
member's
or
shareholder's
death
during
19
the
year
of
the
owner's,
beneficiary's,
partner's,
member's
or
share
-
20
holder's
death
and
the
tax
year
immediately
following
such
death,
provided
21
that
the
homestead
continues
to
be
a
part
of
the
owner's,
beneficiary's,
22
partner's,
member's
or
shareholder's
estate.
After
such
time,
the
new
owner
23
shall
reapply
to
receive
the
exemption
pursuant
to
this
section
and
shall
24
meet
the
qualification
criteria
contained
in
this
section.
25
(10)
The
amount
by
which
each
exemption
approved
under
this
section
ex
-
26
ceeds
one
hundred
thousand
dollars
($100,000)
may,
in
the
discretion
of
the
27
governing
board
of
a
taxing
district,
be
deducted
from
the
new
construction
28
roll
for
the
following
year
prepared
by
the
county
assessor
in
accordance
29
with
section
63
-
301A,
Idaho
Code,
but
only
to
the
extent
that
the
amount
ex
-
30
ceeds
the
same
deduction
made
in
the
previous
year.
31
(11)
By
July
1,
2023,
the
state
tax
commission
shall
establish
a
data
-
32
base
of
all
active
exemptions
claimed
under
this
section,
which
database
33
shall
be
searchable
by
a
person's
name
and
by
the
address
of
the
homestead
34
for
which
the
exemption
is
claimed.
The
database
shall
be
made
accessible
35
to
officials
listed
in
subsection
(6)(b)
of
this
section
for
the
purpose
of
36
verifying
that:
37
(a)
Multiple
active
exemptions
have
not
been
claimed
by
the
same
per
-
38
son;
and
39
(b)
A
person's
residence
for
voting
purposes
is
the
same
as
the
home
-
40
stead
for
which
such
person
has
an
active
exemption
pursuant
to
this
41
section,
if
an
exemption
is
so
claimed.
42
(12)
Increases
in
taxable
value
resulting
from
any
change
in
status
of
43
a
property
formerly
or
newly
receiving
the
homeowner
exemption
shall
be
in
-
44
cluded
by
the
county
assessor
on
the
property
roll
or
subsequent
property
45
roll
required
pursuant
to
section
63
-
301,
Idaho
Code.
46
SECTION
2.
An
emergency
existing
therefor,
which
emergency
is
hereby
47
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
its
48
passage
and
approval,
and
retroactively
to
January
1,
2026.
49