With property taxes being due no later than December 20th, it is time for an update on what has changed. People are always complaining of higher taxes; however there has been very little press about the changing in the tax calculations in Ada County.
For homeowner’s actually living in their home in 2007, the homeowner’s exemption allows for a 50% exemption of the improvements (house not lot) up to a maximum of $89,325. For example, if you live in a $300,000 home with a lot valued at $75,000, your taxable value would only be $225,000. Investors get to pay taxes on the full $300,000.
For 2008, the news for homeowner’s is even better. The Ada County Assessor has increased the exemption up to a maximum deduction of $100,928. Therefore, in 2008, the same home with a homeowner’s exemption will only have a taxable value of $199,072!
Being a skeptic, I figured they were increasing the tax levy codes to offset this new deduction, but I was glad to be wrong. Property value increases allowed for a decrease in the levy rates. Every single tax levy code throughout Ada County had a decrease from 2006 to 2007 ranging from roughly 5 -12%. Ada County 2007 tax levy rates (by code area) range from about .008 - .014. Keep in mind that there are separate taxing districts and 99 unique tax levy codes in Ada County.
To try to put all this in perspective, I pulled up my own home in SW Boise. In 1997, I was paying $1,152 in taxes for this property which in 2007 has a tax burden of $1,625. This is only a difference of $473 a year while the property value has appreciated over $100,000. On my home, my taxes are less than $1 a month higher than in 2005. I can live with that rate of increase.