idaho property taxes...2019/10/21 · tax.idaho.gov • property tax deferral must apply annually...
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tax.idaho.gov
Idaho Property Taxes
Kathlynn IrelandProperty Tax Policy SpecialistIdaho State Tax Commission
October 21, 2019
tax.idaho.gov
Idaho Property Tax Essentials
• Current Market Value: $249.6 Billion in 2019
• All property assessed annually
• Current Net Taxable Value: $175.3 Billion in 2019
$153.2 Billion in 2018
• Net Taxable Value is the value used in the levy rate calculation
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tax.idaho.gov
Property Tax Essentials
• Property Tax is levied on real and business personal property First $100,000 PP exempt per company per county
• Property Tax is generated and used locally
• 2019 Total property tax to local units of government: $2.035 Billion - 6.5% increase over 2018 or $125
Million
• Urban renewal agencies: $73.5 Million (2018)
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tax.idaho.gov
Net Taxable Value Changes by Major Property Category
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$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Residential
Commercial
Agricultural
Timber
Mining
Public Utilities
tax.idaho.gov
Primary Residential Property –Owner Occupied
• Subset of residential category as a whole
• 2018:
Largest share of property value in Idaho at 45.2%
Total Net Taxable Value (minus homeowner’s exemption) increased 13.4% from 2017 to 2018
Excluding new construction - existing homes increased in value about 10.6% from 2017 to 2018
Taxes on existing homes increased by 6.1%
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tax.idaho.gov
Increases in Existing Property Values & Taxes: 2017 – 2018
Category of Property Overall Percent change in Value
Existing Property Value % Change
Existing Property Tax % Change
Primary Residential (eligible for homeowner’s exemption)
+ 13.4% + 10.6% + 6.1%
Other Residential + 11.1% + 9.1% + 5.4%
Commercial and Industrial
+ 7.0% + 4.0% + 0.2%
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tax.idaho.gov
Who Paid the Property Tax in 2018?
0%5%
10%15%20%25%30%35%40%45%50% 46.8%
19.0%
27.2%
2.6%0.5% 0.2%
3.8%
Owner occupied residential Non-owner occupied residentialCommercial / Industrial AgriculturalTimber MiningOperating (Utilities)
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tax.idaho.gov
Maximum Homeowner’s Exemption
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
$120,000
$130,000
$140,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Current Projected 2020 Indexed
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tax.idaho.gov
Idaho Total Statewide Property Taxes by Major Categories
Adjusted for Inflation 1978 - 2018 by Intervals
0.
50.
100.
150.
200.
250.
300.
350.
400.
450.
500.
1978 1982 1988 1994 2000 2006 2012 2018
PRO
PERT
Y TA
XES
ADJU
STED
TO
197
8 DO
LLAR
S
Millions of Dollars
Intervals of 6 years except period of 1978 - 1982 which is a 4-year period.
Total
Residential
Commercial
Ag & Operating Property
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tax.idaho.gov10
School M & ORemoved from P-Tax
5.21%
4.16%
3.30%
0.37%
2.25%
3.08%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
1988 1994 2000 2006 2012 2018
Aver
age
Perc
ent C
hang
e
Idaho Total Statewide Property Taxes Adjusted for Inflation1982 - 2018 by Intervals
Intervals of 6 years
Removal of School M&O from P-Tax
Idaho Rate of Change of Property Taxes Adjusted for Inflation 1982 - 2018 by Intervals
tax.idaho.gov
Property Tax Growth by District Type
50
150
250
350
450
550
650
Mill
ions
of D
olla
rs
County City School Highway* Other
* Highway district totals include county road and bridge funds.
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tax.idaho.gov
2019 Property Tax Use
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Highway 5.8%$119.0 Mill
School 30.5%$619.9 Mill
City 26.5%$538.5 Mill
County 26.7%$543.0 Mill
Other 10.5%$214.6 Mill
3.2% $6.9 MillCemetery
15.4% $33.0 Mill Jr. College
39.3% $84.4 MillFire
42.2% $90.3 MillMiscellaneous
TOTAL
OTHER 10.5%
tax.idaho.gov
How Do Property Tax Budget Limits Work?
• Apply only to property taxes used for Non-Exempt Funds (mostly general operations)
• Permit increases in property tax $: Up to 3% over highest of last three years Plus a calculation for new construction value and annexation Plus forgone amount (i.e.: amount of previously allowable
increases not taken)
• Allowed only if result does not create levy rate that exceeds statutory limit
• Exempt Funds – No 3% cap – Usually voter approved
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tax.idaho.gov
Levy Rate Calculation
Cemetery District• 2019 Total Approved Budget $49,380• Minus Other Revenue $27,380• Total requiring P-Tax $22,000 (Property Tax
Portion of District’s Budget)
------------------------------------------------------------------------
Levy Rate: $22,000 = 0.000117021$188 Million (Net Taxable Value)
Cemetery District’s Statutory Levy Limit: 0.0004
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tax.idaho.gov
Causes of Budgeted Property Tax Increases 2017 – 2018
Increase of 6.4% in 2018, or $114.4 Million
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3% Increase
School Exempt Funds
Boise School M&O
Non-School Exempt Funds
New Construction
Annexation
Forgone
tax.idaho.gov
Forgone Amounts - 2018
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Mill
ions
of D
olla
rs
County City Highway Other Total
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tax.idaho.gov
2019 Property TaxesExempt* vs. Non-Exempt
Non-Exempt Funds$1,399.4 Mill 68.8%
Exempt* Funds$515.7 Mill 25.3%
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Exempt funds usually voter approved, such as bonds and overrides.
Non-Exempt funds are general operating funds.
School Budget Stabilization$35.4 Mill 1.7%
Boise School M&O$84.6 Mill 4.2%
tax.idaho.gov
Non-Exempt Property Tax FundsGenerally Grow Uniformly
050
100150200250300350400450500550600
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Mill
ions
of D
olla
rs
County City School Highway Other
School Funds do not include Boise M&O and Budget Stabilization Funds.
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tax.idaho.gov
Patterns of Use of Exempt Funds
050
100150200250300350400450500
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Mill
ions
of D
olla
rs
Year
Non-School Taxing Districts School
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tax.idaho.gov
Schools Are the Predominant Users of Exempt Funds (bonds, overrides, etc.)
School$496.7 Million
Other$21.7 Million or 4.3%
County$8.3 Million
All Other$6.1 Million
City$7.3 Million
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2019 Exempt Funds
tax.idaho.gov
School Supplemental Levies
• Most voter approved for 1-2 years (may be longer for charter school districts and permanent for some school districts)
21
50
75
100
125
150
175
200
225
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Mill
ions
of D
olla
rs
Fiscal Year
Supplemental Levies
0
10
20
30
40
50
60
70
80
90
100
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Num
ber o
f Dis
tric
ts
Fiscal Year
Number of School Districts with Supplemental Levies
tax.idaho.gov
Estimated 2017 TaxesPer Family of three - various incomes
1,065
2,922
4,591
1,050 1,2371,562
1,207
2,086
3,293
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,000
$50,000 $75,000 $100,000
$ IncomeIncome Sales Property
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Percentages show Boise compared to U.S. average of 51 cities.
Estimates for Boise, based on District of Columbia studies of largest cities in each state.
+ 1% - 34%+ 4% - 3% - 26%- 7% + 9% - 14%- 7%
tax.idaho.gov
FY 2016 Property Tax BurdenIdaho vs. Neighbor States – Idaho Ranked 38th
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
160.0%
75.0%
110.2%
71.9%
100.4%
78.3% 84.0%
134.2%
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Idaho WyWaUtOrNvMtBased on taxes compared to income.
tax.idaho.gov
Idaho Property TaxPer $1,000 Personal Income
2525 25
292928 28
29 29 2929 2929
30
31
30
31
2526
2425
27
26
27
25
26
26
26
2626
$20
$25
$30
$35
1981
1983
1985
1987
1989
1991
1993
1995
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
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tax.idaho.gov
Per Capita Property TaxesIdaho vs U.S. – Idaho Ranked 42nd
$289
$246$220$233
$246$267
$281$301$304$308$311 $308 $312
$307$320
$343
$348
$355$368 $373$373
$385 $380
$367
$366
$366
$380 $384
$205$204 $154$145
$159
$180$189
$193$194$202$221$224 $232
$232
$236$246 $248
$250
$215
$214
$219
$225
$222 $225
$225 $232
$239$233
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
1977197919811983198519871989199119921995199719981999200020022004200520062007200820092010201120122013201420152016
US Average Idaho
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Adjusted for Inflation
Based on U.S. Census Information Amounts adjusted to January 1977
tax.idaho.gov
• Property Tax Deferral Must apply annually with county assessor by April 15 Over age 65, disabled, widows, and widowers Income up to $45,756 - 2020 No reverse mortgage, home equity line of credit Taxes and interest must eventually be repaid to the state of Idaho
• 100% Service-Connected Disabled Veterans Program 2019 - $1,320 credit for 100% service-connected disabled veterans Occupancy tax is eligible No income limit
• Circuit Breaker (Property Tax Reduction Program)
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State Aided Property Tax Relief
tax.idaho.gov
Circuit Breaker (Property Tax Reduction Program)
• Up to $1,320 credit for eligible homeowners: Over age 65, disabled, widows and widowers Income up to $31,280 for 2020 program
• Must annually apply with county assessor by April 15• 2018 claims
27,078 approved $665 tax relief per claim average $18 Million paid by state to tax districts
• State funded, so no loss of revenue to any taxing district• Occupancy tax eligible - 2019• Not an exemption, so no property tax shifted to other
property taxpayersNot subject to repayment
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$0
$500
$1,000
$1,500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Avg Benefit per Claimant Max Benefit
Circuit Breaker (PTR)
tax.idaho.gov29
25,00026,00027,00028,00029,000
30,000
31,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Number of Claimants Max Income
Circuit Breaker (PTR)
tax.idaho.gov
Percent of Taxes Paid - Circuit Breaker (PTR)
40.00%45.00%50.00%55.00%60.00%65.00%70.00%75.00%80.00%85.00%90.00%
Perc
ent
Years
100% TaxesPaid
% of TaxesPaid
30