Posted May 15, 2018 09:30:47 Idaho residents will be able to deduct up to $25,000 of their income taxes from their property tax bills next year under a new tax law, but the state won’t offer homeowners a tax break to buy their homes outright.
The measure, which will go into effect on June 30, takes aim at a housing affordability crisis that has seen the average property value in the state fall from $8.9 million in 2012 to $2.5 million in 2019.
It will also allow homeowners to deduct more than $50,000 in property taxes from property taxes.
The new tax is the result of months of public debate and a campaign launched by the Idaho Democratic Party and its allies to bring about change.
“I think it’s great to see people are paying attention,” said Idaho Senate leader Tom Pileggi.
A new state income tax law that takes effect in June will allow Idaho to pay the mortgage and property taxes on a homeowner’s home to help fund the construction of a new home, rather than simply deducting it from the property tax bill.””
It was very good to see the governor and the legislature make some good decisions, but I’m disappointed that there was not a better way to address this issue.”
A new state income tax law that takes effect in June will allow Idaho to pay the mortgage and property taxes on a homeowner’s home to help fund the construction of a new home, rather than simply deducting it from the property tax bill.
“We’re going to be able [to] pay our property taxes for a home,” said Governor Robert L. Stowe.
The new income tax will also provide homeowners with a break for property taxes, which are paid by a property tax levy on the value of a home.”
What we’re going do is say we’re really looking at the homeowner’s tax burden.”
The new income tax will also provide homeowners with a break for property taxes, which are paid by a property tax levy on the value of a home.
Under the new law, owners of homes worth less than $3 million will pay an income tax credit of $250, but that credit is capped at $1 million and will only apply to the first $250 of a homeowner�s income.
Homeowners who pay property taxes will pay the full tax.
If a homeowner doesn�t pay property tax, the credit will be reduced by 10% of the total assessed value of the home.
The Idaho Economic Development Authority, the state�s agency responsible for creating jobs, estimates that nearly 1,500 Idaho homes will be built to accommodate the new tax break.
The governor said he hopes the new income-tax tax will help create more jobs, but opponents say it will increase property taxes in the future and that it will drive up property values in Idaho.
“It�s just not fair to the homeowners,” said Bob DeWitt, a political consultant in Boise.
“They�re the ones who will end up paying the bills and are going to get hit with the higher taxes.”
If you can buy your home, you can deduct it, and it�s going to help the economy, but you can�t just deduct your property taxes.
“A similar tax break was passed in Idaho in 2018, but voters rejected it in the November general election, prompting a new effort by the Democratic Party to get it on the ballot.
The bill also includes a $2,500 tax credit for first-time homebuyers.