Property Tax Reduction Program
Some homeowners qualify for Idaho's property tax reduction program also known as the Circuit Breaker Exemption.
Applications are accepted between January 1st and April 15th.
About the Property Tax Reduction Program
The Idaho Property Tax Reduction Program (formally known as the Circuit Breaker) reduces property taxes for qualified applicants. The amount of reduction is based on the total household income for the previous calendar year. If you qualify, the property taxes on your primary home and up to one acre of land may be reduced by as much as $1,320.00. Solid Waste, irrigation or other fees cannot be reduced by the Property Tax Reduction benefits. The state pays a portion of a homeowner's property taxes, and qualified recipients don't repay the state.
How to Qualify for the Property Tax Reduction Program
You may qualify for a property tax reduction if you meet the following requirements.
1. You must qualify for the Homeowners Exemption. You may qualify if you live in a
care facility or nursing home. For more information contact the Assessor's Office and
2. For your total household income for the prior year see the State Tax Commission Web Site.
3. You are in one or more of the following categories as of January 1st of the qualifying year:
· Age 65 or older
· Widow(er) of any age
· Fatherless or Motherless minor
· Former prisoner of war or hostage
· Disabled (as recognized by the Social Security Administration, Veterans Affairs,
Railroad Retirement Board, or Federal Civil Service, if not covered under one
of these, then disabled as recognized by a public employee retirement system.)
Income Guidelines for the Property Tax Reduction Program
When you complete your application, you must report all household income received in the prior year by:
· Your spouse (even if you are legally separated)
You must include:
· Interest (including taxable and nontaxable)
· Capital gains
· Business, farm and rental net income
· Social security/SSI (Supplemental Security Income)
· Railroad Retirement
· Unemployment/workers compensation
· Pensions, IRA's and annuities (except qualified rollovers)
· Military retirement benefits
· VA pensions and compensations (excluding VA Pension received for 40% and higher service
connected disability,proof of rating required)
· Department of Health and Welfare payments (including Aid for Dependent Children and
· Child support and alimony
· Strike benefits
· "Loss of earnings" insurance payments
· Disability income from any source
· Gambling winnings
You may deduct the following items from your prior year household income:
· Medical/dental and related expenses not reimbursed by Medicare or other insurance (including
vision, dental, prescription, drugs, and mileage for trips relating to your health care)
· Medical insurance premiums (home & auto insurance are NOT deductible for this program)
· Payment or prepayment of funeral expenses for you and your spouse only
· Business and farm losses (you must submit a copy of the appropriate federal schedule)
· Alimony paid
Charitable Donations are NOT deductible for this program
Documentation needed for the Property Tax Reduction Program
You must provide the assessor's office with the following documents when filing your application.
If you file an income tax return, please provide the following:
· Federal income tax return
· Documents showing income not reported on your income tax return
· Proof of deductions:
o Provide a copy of federal schedule A, if you itemized your deductions.
o If you did not file a schedule A, please provide the following:
* Completed Medical Expense form and Proof of payment of non-reimbursed medical expenses
* Proof of all other deductions you are claiming
If you do not file a tax return, provide the following:
· Social Security/Railroad Retirement and all other 1099 forms you received
· Any other documents showing income not already reported
· A completed medical expense statement and proof of payment of non-reimbursed Medical expenses. Statements from your medical providers with totals are preferred. (documentation must show amount actually paid not just amount billed)
· Proof of all other deductions you are claiming (see below for a list of all allowable deductions)
You also along with the above must provide the following:
· Social Security/Railroad Retirement 1099 or
· Social Security Card, Birth Certificate, valid Idaho Driver's license or an Idaho identification card
· If disabled, provide certification of disability from Social Security or other agency (or show proof that your claim is being processed or appealed); If VA disabled provide certification from VA annually.
· If blind, provide certification from your doctor.
How to Apply for the Property Tax Reduction Program
The Assessor's office prefers that application be made in person at the County Assessor's Office.
However, an application can be mailed upon request.
Complete the application and mail back to the Assessor's office with copies of all of the supporting documentation. If you need help, the Assessor's Office staff will assist you. You can contact them at 208-529-1320.· Applications are available at the Assessor's office or the State Tax Commissions web site.
You can apply for your property tax reduction only between January 1st and April 15th, to receive this benefit; you must apply and qualify each year. It is not renewed automatically.
You will be required to show proof of your income, deductions, status and US residency when you file your application. If you are missing some of this information, complete as much of the form as possible, sign and return it to the assessor's office by the April 15th deadline. Extensions can not be filed on the Property Tax Reduction Program even if you filed an extension on your income taxes. Once your application is accepted and approved at the county level, it is sent to the state for final approval. You will be notified if you are disqualified. Questions regarding the status of your application at that point should be directed to the State Tax Commission. If your application is approved by the state, your reduction will appear on the property tax notice sent in December by the County Treasurer.
For more information, you should contact the county assessor's office or the Idaho Tax Commission toll free at (800) 334-7756. You can also visit the Tax Commission Web site at tax.idaho.gov.