IDAPA 35.01.03.709 — PROPERTY TAX REDUCTION BENEFIT PROGRAM - SPECIAL SITUATIONS

Section 63-701, Idaho Code
01.
Scope. This rule addresses issues relating to the property tax reduction benefit program as it applies
to certain unusual factual situations. It states general principles applicable to unusual cases and provides some
illustrative examples. The rule cannot address every conceivable situation that may arise, but the principles
established may apply to the resolution of situations not addressed in the rule. The following examples apply to
qualified property tax reduction claimants.
(7-1-24)
02.
General Principles. Benefits under the property tax reduction program are only available to
owners of property that have first qualified for the homestead exemption under Section 63-602G, Idaho Code. See
Rule 610 of these rules.
(7-1-24)
03.
Dual Residency Couples. The definition in Rule 610.02 of these rules applies to this rule. (7-1-24)
a.
Case 1 -- Both residences are community property. Property tax reduction is available in regard
only to the residential improvement qualifying for the homestead exemption. See Rule 610.04 of these rules.(7-1-24)
b.
Case 2 -- One (1) residence is community property, the other is separate property. Property tax
reduction is available in regard only to the residential improvement qualifying for the homestead exemption. See
Rule 610.05 of these rules.
(7-1-24)
c.
Case 1 -- Both residences are separate property. Property tax reduction is available in regard to both
residential improvements. See Rule 610.06 of these rules.
(7-1-24)
d.
Household income. In the three (3) cases in Subsection 709.03, the household income upon which
qualification is determined is the total of one-half (1/2) the community income plus any separate income of the
spouse residing in the residence.
(7-1-24)
04.
Apportionment of Property Tax Reduction Benefits by Dual Residency Couples. If a dual
residency couple makes the election provided in Subsection 610.07 of these rules and the applicable county assessor
provided the Tax Commission with a copy of the election required under that rule, each spouse is entitled to one-half
(1/2) of the amount of any property tax reduction available to that spouse alone. The household income of the spouse
is one-half (1/2) of the community income plus any separate income of the spouse residing in the residence. The total
property tax reduction benefit will not exceed the amount of benefit available to the individual spouse with the least
household income if no election were made.
(7-1-24)
05.
Multiple Ownerships Including Community Interests as Partial Owners. Example: A deed
conveys title to real property to a married couple and to an adult child of theirs. The married couple holds a
community property interest in the improvement and the child is a tenant-in-common, provided ownership interests
are not specified in the deed. The parents collectively hold a one-half (1/2) partial interest and the child holds a one-
half (1/2) partial interest in the property. Ownership interests specific in the deed supersede this guidance. For
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.03
State Tax Commission
Property Tax Administrative Rules
Section 717
Page 62
clarification of the calculation of the net taxable value, see Rule 700.04.b. of these rules. Qualification for the
property tax reduction is as follows:
(7-1-24)
a.
If the residential improvement is the primary dwelling of the married couple but not of the child,
the claimant qualifies for full benefits applied on one-half (1/2) of the value of the property less the homestead
exemption. Household income is the total of the community and separate income of the spouses.
(7-1-24)
b.
If the residential improvement is the primary dwelling of the qualifying child, but neither spouse,
the claimant qualifies for full benefits applied on one-half (1/2) of the value of the property less the homestead
exemption. Household income is the total of the child's income.
(7-1-24)
c.
If the residential improvement is the primary dwelling of the married couple and a qualifying child,
the claimant qualifies for the full benefits applied on full value of the property less the homestead exemption.
Household income is the total of the community and separate income of the spouses and the income of the child.
(7-1-24)
d.
If the residential improvement is the primary dwelling of one (1) spouse but of neither the other
spouse nor the child, the claimant qualifies for full benefits applied on one-half (1/2) of the value of the property less
the homestead exemption unless the residential improvement of the other spouse has qualified for the homestead
exemption. Household income is the total income of both spouses.
(7-1-24)
e.
If the residential improvement is the primary dwelling of one (1) spouse and a qualifying child, the
claimant qualifies for the full benefits applied on the full value of the property less the homestead exemption unless
the residential improvement of the other spouse has previously qualified for the homestead exemption. Household
income is the total income of both spouses plus the income of the child.
(7-1-24)