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Idaho’s fixed value law is a unique provision in Idaho Code. A question often asked is how long does a Board of Tax Appeals (BTA) decision stay in effect? The short answer is that it depends on the type of appeal. A decision of the BTA concerning an income, sales, use, and fuels tax appeal applies only to the tax year(s) at issue. The same holds true for a decision rendered in a property tax exemption appeal. On the other hand, for an appeal regarding a market value assessment, a final decision of the BTA that changes the value determined by the county board of equalization generally remains in effect for the assessment year under appeal and the subsequent assessment year. This is commonly referred to as Idaho’s “fixed-value” law and was enacted in 2002. Idaho Code Section 63-3813 provides in pertinent part,
In all cases which are not appealed to the district court within the prescribed time, the decision of the board of tax appeals shall be conclusive and all records shall be corrected to comply with the decision of the board. A final decision or order of the board of tax appeals directing a market value change for taxable property that is not further appealed shall be fixed for the current year appealed and there shall be no increase in value for the subsequent assessment year when no physical change occurs to the property; provided however, that annual trending or equalization applied to all properties of a property class or category within the county or a clearly defined area shall still apply. If the order requires repayment, or refund of taxes these shall be repaid or refunded by the property authorities and, if the order affirms or establishes a liability for the payment o taxes, the usual procedure for collection of such taxes shall continue or commence. (Emphasis added).
Instead of requiring a property owner to file an appeal each year, the fixed value law provides some stability and consistency in the assessment of an owner’s property by fixing the value for effectively a two (2) year period. The value is not fixed however, when a physical change occurs to the property. And, because Idaho requires all property be assessed at market value each year, any broad market trending or indexing applied to a particular property type or defined market area is also applicable to a value ordered by the BTA.
Importantly, the fixed value law does allow the county assessor to reduce a “fixed value” the subsequent assessment year, and nothing in the statute prohibits a property owner from appealing a “fixed value” in the subsequent assessment year and seeking another change in value.
For questions regarding Idaho’s fixed value law or the BTA’s general appeal process, please contact the Boise office at 208-334-3354. Be advised staff cannot provide legal advice or guidance.