by Logan Finney, Idaho Reports

Idaho lawmakers introduced a bill Wednesday that would allow counties to collect back property taxes from illegally claimed homeowner’s exemptions and would make it a misdemeanor offense for repeat offenders.

“Right now, property owners are only allowed to take one homeowner’s exemption on their primary residence,” Rep. Jeff Ehlers, R-Meridian, told members of the House Revenue and Taxation Committee. “It is illegal currently to take two, however there isn’t really a penalty or anything like that if they get caught for taking two.”

The homeowner’s exemption applies only to primary dwellings, or the residential address that a resident uses for voting purposes. Lawmakers passed legislation in 2022 that authorized county assessors to investigate and ensure that Idaho residents are not claiming multiple homeowner’s exemptions in multiple counties. It also created a statewide database to assist in those investigations.

The bill introduced on Wednesday would allow assessors to collect back taxes from any improperly claimed homeowner’s exemptions, as well as create a fine that is equal to the amount of unpaid tax.

“Not only will they have to repay what they actually owed, they will also have to pay a penalty which will be at the same amount of the taxes that were recovered,” Ehlers said. “If you got away with another $500 in property taxes, you would pay that $500 plus another $500 as a penalty. Now, after that if you have another subsequent violation after the first instance, it would be subject to a misdemeanor.”

The bill must return to House Revenue and Taxation for a full public hearing before moving forward.

“It’s a good bill, it should pass,” Rep. Ned Burns, D-Bellevue, told Idaho Reports.

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