With some significant events happening in the world, this year’s legislative session came and went with only a few laws garnering much media attention. However, some rules were enacted that flew under the radar, not getting much publicity. Some of the legislation that was passed and signed by the governor has a direct effect on homeowners or those who are interested in buying a home.
Let’s take a look at some of those laws and see what they mean for you.
HO 552 – Veterans Property Tax Exemption
This law affects disabled homeowners who served our country. Veterans who have a service-connected disability of 100% or a disability rating based on individual unemployability rating that is compensated at the 100% disability rate as certified by the US Department of Veterans Affairs, can receive a tax credit of $1,320 or for the amount of the veteran’s actual property taxes as applicable, whichever is less. The combined tax reduction cannot exceed the actual amount of the veteran’s property taxes on his/her homestead (includes homeowner’s exemption).
The tax exemption will stay with a surviving spouse until they remarry, die, or no longer has property tax levied on the homestead.
This bill was signed into law and was retroactive to January 1st, 2020.
HO 562 – Homeowner’s Tax Exemption Deadline
This law removes the April 15th deadline for Idahoans to file a homeowner’s tax exemption with their county assessor’s office. Current law says any homes that are purchased before April 15th and are going to be the primary residence can have a homeowner’s exemption, which removes up to $100,000 in taxable value from the home. If someone takes possession of a home after the deadline or buys a house that was used as an investment property, they would have to wait a year to realize the tax savings.
HO 562 removes the deadline, allowing the new homeowner to file for the tax savings as soon as they’re able.
This bill was passed and signed into law by the governor, and it goes into effect on January 1st, 2021.
HO 589 – First Time Homebuyer’s Savings Account
This bill allows first-time homebuyers to put up to $15,000 a year for individuals or $30,000 a year for couples filing jointly into a savings account to save towards putting down on a qualified home purchase. Annual interest earned and contributions can be deducted on Idaho state income taxes. A maximum of $100,000 can be deposited into the account during the lifetime of the account, and the account cannot be withdrawn by anyone other than the account holder to buy a home unless, of course, the account owner dies. Then the account is distributed to beneficiaries less any taxes that are owed. The account is otherwise non-transferable.
This bill was signed into law and was retroactive to January 1st, 2020.
Photo Credit: iStock.com/vkbhat
