Boise area real estate and rental management blog
There’s no question that home values in and around Boise, have been on the rise. Just about anyone can attest to the hot market here in Boise, whether they’re from Treasure Valley, the West coast or the County Assessor’s office.
The question homeowners ask is about their property taxes. That figure doesn’t hit mailboxes until the end of the year, but the property assessment notices are heading our way now and they are a big part of the equation.
You may recall the days when assessed values seemed to lag behind market values.
The operative word of today is accuracy. The Ada County assessors are mandated to be within plus or minus 10% of the true market value at end of the year, and their data says they’re getting close, but closing a gap. And that gap likely got bigger last year by steps taken to reduce taxes during the pandemic, which is something that Idaho did, where other states did not.
“A $60,000 - $80,000 increase in single family home values is not unheard of,” said Dan Curtis, from the Ada County Assessor’s office. His office struggles to keep pace, has some new assessors on staff, and is willing to address any inevitable errors that arise in their value numbers. Ada County includes Boise, Eagle, Garden City, Kuna, Meridian, and Star.
When you receive your assessment notices, here are some steps to take.
1. Remove jaw from floor.
2. If you think the value is above your true market value, immediately start steps for an informal appeal.
3. If you are not sure, contact your agent at Boise Investment Properties,who can help you determine if it is, and help provide data to support an appeal.
4. If you wish to play an active role in the impact this will have on your property taxes, attend the budget hearing meetings listed on the back of your assessment notice.
The Tax Formula
Property Taxes = Assessed Value x Levy Rate.
Assessed property values are a key part of the formula that’s used to create your property tax bill. The other part, the levy rate, is determined by the budget hearings, where they figure out how much money they need. Those hearings are public, although few attend.
The Assessed Value Appeal
Gather supporting sold property comps and adjust for time to 12/31/2020.
Your real estate agent at Swope Investment Properties can help with that. Call the assessor listed on your assessment notice.
Informal appeals may be advantageous, but should be done early.
June 28th is a firm deadline for any appeal, formal or informal.
Estimated Ranges for Assessed Value Increases in Ada County
1 unit/single family: 10-40% increase with a 25%-28% median. Older properties could reflect larger increases due to wider gap to close. Be sure to file for Homeowners and Circuit Breaker exemptions, if eligible.
2 -4 units/multi-family: 10-40% increase with a 30% median for duplexes, and 20% median for triplexes and 21-22% median for fourplexes.
5+ units/multi-family: 27% median increases in values with some as high as 45%+. These apartments are being reappraised this year, for the first time since 2016. Their rent study shows a 1% spread between market and current rents. With appeals, they’ll ask for trailing 3 year and January 1st rent rolls, said Craig Church.
Industrial: 27% median increase
Office: 10% median increase
Stacy McBain, Association Broker, Swope Investment Properties
Your Boise Investment Properties Team