Sarah owns a residential rental fourplex in Caldwell, Idaho that she purchased for $400,000. She also owns an adjacent vacant lot that she holds for future development. The county assessor assessed the fourplex at $380,000 and the vacant lot at $60,000. Sarah claims the Idaho Homeowner's Exemption on her primary residence located in a different part of the city. Regarding the property tax treatment of these two Caldwell properties, which of the following statements is most accurate under Idaho law?
Correct Answer
B) Neither the fourplex nor the vacant lot qualifies for the Homeowner's Exemption because neither is Sarah's owner-occupied primary residence
Under Idaho Code § 63-602G, the Homeowner's Exemption applies only to an owner-occupied primary residence. Sarah already claims the exemption on her primary residence elsewhere in the city. The fourplex is a rental investment property — Sarah does not occupy it as her primary residence — so it does not qualify. The vacant lot is undeveloped land held for investment and also does not qualify. Both properties are subject to full assessed value taxation with no homeowner's exemption benefit.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
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