Bill > H0885

This bill amends existing Idaho law to revise provisions concerning the homestead property tax exemption, which allows homeowners to reduce their property tax burden on their primary residence. Key changes include requiring applicants to provide their Idaho driver's license or state ID number, or proof of filing an Idaho income tax return, to verify their residency, with exceptions for those in active military service. The bill also clarifies that an owner cannot claim a similar homestead exemption in another U.S. state to receive the Idaho exemption and expands the use of information from the state tax commission to verify residency for voting and candidacy purposes. Furthermore, it introduces new provisions for recovering improperly claimed exemptions, including penalties for first-time offenders and misdemeanor charges for subsequent violations within seven years, and establishes a searchable database of active exemptions to prevent multiple claims and ensure residency consistency. The bill also includes provisions for prorating exemptions when eligibility changes during the tax year and allows for the exemption to continue for a deceased owner's estate for a limited time. Finally, it declares an emergency, making the changes effective retroactively to January 1, 2026.

Budget and Finance

Revenue and Taxation Committee (House)

https://legislature.idaho.gov/sessioninfo/2026/legislation/H0885/