RS30728 / H0379

This legislation addresses the enormous inflation in property values, often caused when a neighbor sells a property for an inflated price. Inflation in assessed values is causing a hardship for property owners. Assessed value inflation results in a sudden increase in property taxes, and makes property taxes less predictable. Presently, the value of property on January 1 of the tax year is used as the assessed value. This legislation provides that the assessed value of all property will be based upon a 5 year rolling average of January 1 assessments. If the current assessed value is less than the 5 year rolling average, the current year value is used. If a property usage is changed or the square footage of an improvement upon the property increased by 10%, then the new assessed value is used and subsequent values are used to compute the rolling average. If a property is sold, the sale value is used as the assessed value and subsequent annual values are used to compute the rolling average.

There is no fiscal impact to the general fund.

Bill Text

Statement of Purpose / Fiscal Note

Bill on Idaho Legislature site