Idaho State tax revenues come from a mix of individual and corporate income, sales, and property taxes. This "three legged stool" approach provides a stable base with which to fund public services without burdening any sector.
Property taxes provide the majority of tax revenues used to fund local government services. The average property tax levy rate in Kootenai County is 1.4% of the taxable value of property. A homeowner's exemption is available on a primary residence; this exemption reduces the taxable value of a house by 50 percent up to a maximum of $94,745.
Corporate income tax applies at the rate of 7.4% on Idaho taxable income. Personal state income tax is based on the taxable income of individuals. With limited exceptions, taxable net income is as defined in the Internal Revenue Code. Tax rates for individuals vary from 1.6 to 7.4% based on their taxable net income.
A tax is imposed on Idaho taxable income of individuals, estates and trusts. Personal income tax ranges from 1.6% on the first $1,000 ($2,000 on a joint return) of net taxable income to 7.8% on net taxable income over $20,000 ($40,000 on a joint return). Credits include the Grocery Tax Credit, Investment Tax Credit and credits for certain contributions, e.g. education and rehabilitation.
Permanent Building Fund — This $10 tax is paid by everyone required to file a tax return, except for people who are blind or receiving public assistance at the close of the tax year. Spouses filing joint returns do not have to pay double the amount
Retail sales and rentals of tangible personal property in Kootenai County are taxed at 6%. If a sales tax is not applied at the point of purchase, a 6% use tax is due from the consumer. Sales tax also applies to admission charges, recreation fees, hotel/motel/campground accommodations (except for stays of more than 30 consecutive days), subscriptions, intrastate charter flights, and fabricating and printing labor.
Exemptions from the Idaho sales and use tax include, but are not limited to:
• Production Exemption — This applies to farming, manufacturing, processing, mining and fabricating operations. Exempt items include materials that become part of the end product; chemicals used in the product, equipment that is necessary and essential to the production process and is primarily and directly used in that process.
• Pollution Control — Equipment for pollution control is exempt if an authorized state or fed air and water quality standards.
Other exemptions include: logging, utilities, heating materials, and irrigation. There are limitations on most of these exemptions. For more details on these or other exemptions from sales and use tax, contact any Idaho State Tax Commission office.
Property taxes are collected by individual counties for taxing districts which provide local services. These revenues are for local, not state, use. However, the state does have the responsibility of overseeing property taxing procedures to make sure they comply with Idaho laws. In addition, the State Tax Commission is responsible for centrally assessing utilities which, collectively, are called operating property.
Property taxes apply to homes (including manufactured housing), farms, businesses, industry, warehouses, offices and all privately owned real estate, operating property, and business personal property such as machinery and equipment, farm implements and office furniture and equipment. Most property is taxed on its full market value less eligible exemptions. Taxes on real and non-movable personal property are due by December 20; however, they can be paid in two installments half by December 20 and half by the following June 20.
Full exemptions from property tax include inventories, livestock, stored property in transit, pollution control facilities, household belongings, clothing, properly licensed motor or recreational vehicles, and religious, fraternal and educational organizations and institutions. Partial exemptions are available for residential improvements and agricultural land.
Tax credits are available to elderly, widowed and disabled homeowners through the Circuit Breaker Program
Tax rates are governed by the needs of taxing authorities and local economic conditions. County commissioners, city councils and school trustees hold public budget hearings and approve or adjust budgets annually. Voter approval is required to exceed certain limits.
Kootenai Country Treasurer 208/446-1005, email: [email protected]
For further information, contact the Idaho State Tax Commission:
Boise Coeur d’Alene
800 Park Blvd., Plaza IV (P.O. Box 36) 1910 Northwest Blvd., S
Boise, ID 83722 Coeur d’Alene, ID 8381
208/334-7660 or 800/972-7660 208/769-1500
Rathdrum Chamber of Commerce
8184 Main St.
Rathdrum, ID, 83858