Residential properties that are occupied full-time by the owner or a tenant may be eligible to receive a property tax exemption of 45% of market value. A qualifying property is assessed and taxed based on the remaining 55% of market value. The exemption applies only to the qualified improvements and up to one acre of land. In order to receive the exemption the owner must apply. To download or print an application click on the following link, Primary Residential Application.
The exemption is limited to one per household. If a household occupies more than one residence during a given year, the assessor determines which one qualifies as the primary residence. In making that determination, the assessor consults Administrative Rule R884-24P-52.
Below is an example of the effect the primary residential exemption can have. For the example we will assume the subject property is 1 acre in size, has a total market value of $250,000 and a tax rate of 1%.
Example of property tax without residential exemption:
$250,000 market value = $250,000 assessed value
$250,000 assessed value x 1% tax rate = $2,500.00 property tax
Example of Property tax with residential exemption:
$250,000 market value x 55% taxable portion = $137,500 assessed value
$137,500 assessed value x 1% tax rate = $1,375.00 property tax
Short term rentals, vacation homes, time-shares, or other types of transitory housing do not qualify for the exemption.