Tax & Accounting Blog

Personal Property Exemption Changes in Idaho

Blog, ONESOURCE, ONESOURCE Property Tax, Software April 12, 2013

Idaho legislation has enacted House Bill H315 (effective retroactive to  1/1/2013), which provides an exemption from property taxes for the first $100,000 of a taxpayer’s personal property that is not otherwise exempt from taxation, except for certain vehicles that a registration fee has not been paid. Taxpayers must file an application for the exemption. Previously, there were provisions for an exemption from property taxes for the first $100,000 of a taxpayer’s personal property that was located in the taxing county and was not operating property, but those provisions could only take effect if certain state revenue requirements were met.

This bill also creates a tax exemption for any item of taxable personal property that is purchased on or after January 1, 2013 and has an acquisition price of $3,000 or less. An “item of taxable personal property” means equipment, machinery, furniture or other personal property that is functioning at its highest and best use for the purpose it was designed and constructed, and is generally capable of performing that function without being combined with other items of personal property. An “item of taxable personal property” does not include an individual component part of a piece of equipment, machinery, furniture, or other personal property as a whole, or an improvement to real property, a part that will become an improvement, or anything defined as a fixture.