ID H0564

Homestead exemption exempts the first $125,000 of market value or 50% of market value, whichever is lesser, from property taxation for owner-occupied primary dwellings.

Exemption eligibility requires state tax commission certification of uniform county property appraisals, owner occupancy as primary dwelling, and owner certification that no other homestead exemptions are claimed elsewhere.

Property taxes shall be prorated daily if exemption eligibility status changes during the tax year, calculated by dividing the levy rate by 365 or 366 days and multiplying by the number of days the property qualifies for exemption.

Recovery procedures for improperly claimed exemptions include county assessor investigation, written notice to taxpayer, potential penalties equal to recovered taxes on first violation, and misdemeanor charges for subsequent violations within seven years.

Exemption automatically continues for properties previously qualified if owner is absent due to active military service or if owner dies during the year of death and following tax year, provided homestead remains part of the estate; new owners must reapply.

Act becomes effective July 1, 2024, and is declared an emergency measure.