2018 Tax Assessments are out!

This past week, both home owners and property investors alike found a little gift in their mailbox… the 2018 Idaho Property Tax Assessment. These notices over the last six or eight years have soured each Memorial holiday without fail because values have been on a steady rise. For example, the year-over-year 2018 assessment increases in my mailbox, ranged from 5% to 25%!

Thus the perception that so too the taxes will rise! (which is kinda true if I’m honest)

Also included in the envelopes was a little tax “love” note from the assessor’s office explaining the relationship between these assessments and the actual taxes. And despite the dry reading, it was a pretty good summary.

Idaho employs a budget-driven system and these assessments will eventually be “merged” with the approved budgets to arrive at a tax levy which will most likely not look anything like the 25% assessment increase you may have received.

Simply put, do not fret these figures too much, but I do recommend giving your notice an honest assessment of your own. Is your house or investment property really worth that much? It’s a simple question and I’m guessing that without fail, the assessment is low.

Yes, one property had an increase of over 25%, but after winding myself up, I remembered last year I chuckled at the ridiculously low assessment. That particular tax district was simply catching up, but even with that increase, they were still low to what is happening in the market.

So, relax and make that honest assessment. (and of course Anfield Realty is happy to help : -) )

For you investors, property taxes are usually the largest expense category on your Schedule E or K1. So, take this opportunity to chat with your property manager about a strategy to pass along these added costs to the tenants!

I mean, this is America, right?