Bill > H0406

This bill amends Idaho law to modify property tax exemptions for low-income housing owned by nonprofit organizations, introducing several key changes. The bill revises the qualification requirements for nonprofit organizations, removing the previous language about state incorporation and eliminating the provision about tax benefits. It expands ownership structures that can qualify for the exemption, now allowing properties owned by limited partnerships or limited liability companies with qualified nonprofit organizations as general partners. The bill modifies income and rental requirements, now mandating that housing units be rented to tenants earning an average of 60% or less of the area median income, consistent with federal tax credit standards. Additionally, the bill introduces a new annual compliance reporting requirement where property owners must submit a certification to the county assessor confirming their continued adherence to low-income housing guidelines. The exemption will not apply to properties with financing already closed or properties in service as of July 1, 2025, unless they are being rehabilitated or already receiving the exemption. Importantly, the bill also includes a provision that exempted properties shall not be included on new construction rolls. The changes aim to provide more flexible and standardized guidelines for nonprofit organizations providing low-income housing while maintaining strict eligibility criteria.

Budget and Finance

Revenue and Taxation Committee (H)

https://legislature.idaho.gov/sessioninfo/2025/legislation/H0406/