Okay, I am going to tackle something that everyone likes to talk about. Money!! Did you immediately start singing, “Money money money money MONAY.” No? Just me?
But in all seriousness, it’s important that you know what options may be out there that you can take advantage of to save you money in the long run. While this topic can essentially go on for the rest of our lives, I thought that today I would just address the homeowner’s exemption in Kootenai County.
What is a homeowner’s exemption? Essentially, a homeowner’s exemption on a property reduces the amount of property taxes paid on a person’s primary residence.
On May 12, 2021, the House passed Bill 389 which increased the maximum allowable exemption for homeowners from $100,000 to $125,000.
How does this work? Let’s say that your total assessed value is $300,000. Since the maximum exemption is $125,000, your net taxable value would therefore be lowered to $175,000 and you would be taxed on $175,000.
Now, there is one catch. Let’s say your total assessed value is only $150,000. Since the maximum amount allowed in exemptions is $125,000, you are not allowed to apply all of that to your taxable value. I mean, I personally would like to live in a world where I am only being taxed on $25,000 but in Kootenai County, it’s not allowed. The good news is that they still let you claim half of the value of the property, which would still cut the tax bill in half! So instead of paying on $150,000, you’re paying on $75,000.
Interested in learning more? Keep checking back for more blogs on topics just like this!