Idaho Code 63-602 states that all exemptions shall be approved annually by the county board of equalization.

Beginning in 2006, exempt property owners must complete an application that documents ownership, nature of the use of the property, and, if applicable, purpose and source of revenue for the owning organization. This standardized process will also be applied to all new requests for exemption this year and in the future. Beginning in 2007, owners of property that is already exempt will re-apply annually by completing a simple one-page form certifying that the ownership and use of the property remains unchanged.

The Latah County Board of Commissioners grant or deny all property tax exemptions.

The Commissioners consider exemption applications through April 15th.

If an application is not submitted within the applicable time limits, your property will be subject to property taxes.

Idaho Code sets forth what property is exempt from taxation. Most of these exemptions are found in title 63, chapter 6 of the Idaho Code. Examples are government property, schools, churches, charitable, fraternal and service organizations, hospitals and cemeteries.

Idaho Code title 63, chapter 6 is available on the web or at the Latah County Courthouse in the Assessor's office.

Under Idaho Code 63-602B, property is exempt from taxation if it is owned by a religious corporation or society and is used "exclusively" for religious worship, educational purposes, or recreational activities. The question has come up, will a church lose its exemption from property taxation if the church allows a non-profit, non-church related group to use its building. While a strict interpretation of this statute may lead to that conclusion, the Latah County Board of Commissioners (BOCC) recognizes the value most, if not all, churches in Latah County provide to the local communities by allowing non-profit, non-church related groups to use their buildings as a meeting place. Many times, a church is the only affordable or available meeting place for an organization. Thus, in recognizing the value that churches provide to the local community by allowing local non-profit community groups to use the church building, the BOCC recognizes this use as falling within the uses that qualify for tax exemption under the charitable organization tax exemption, Idaho Code 63-602C. However, the BOCC does not believe that allowing a for-profit business (examples include, but are not limited to, an oriental rug business, Amway, Mary Kay, etc.) to use the building qualifies for this exemption. Thus, if your church allows a for profit business, or an individual for a business purpose, to use the property, the church runs the risk of losing its property tax exemption. Therefore, if your church allows non-profit, non-church related groups to use the church building, apply for the property tax exemption under both Idaho Code 63-602B, the religious exemption, and Idaho Code 63-602C, the charitable exemption.

If the church charges a nominal fee intended to cover the out of pocket expenses, such as insurance, electricity, cleaning, etc., that the church may incur in allowing a non-profit, non-church related group to use the church property, the property will still qualify for exemption under Idaho Code 63-602C, the charitable exemption.

For questions about your application for exemption, contact the Assessor's office at 883-5710, or email to assessor.