What is an occupancy tax?

What is an occupancy tax?

Newly constructed and occupied residential, commercial or industrial structures, including manufactured housing, except additions to existing improvement are structures that may be added to the Occupancy roll. These structures are prorated for tax purposes for the portion of the year for which the structure was occupied after January 1st.


A newly constructed home is built and becomes occupied August 1st.  The home will go on the occupancy roll with the value being prorated from August 1st - December 31st.  An assessment notice for the newly constructed home will be sent out no later than the 3rd Monday in November.

A separate occupancy tax bill will be sent in late December/early January with just the prorated value and tax of the newly constructed structure.

You will also get a tax bill in November for the land and any existing structures, which is a result of the values placed on the property as of January 1st each year that are reflected on the assessment notice sent out each June. This is considered to be the Primary Roll Tax Assessment. 

  • Full Value of the Home: $325,000.00 
  • Prorated Value
    August to December (Value divided by 12 months multiplied by 4 months) = $108,333.33
    Multiply by the Tax Levy Rate - 0.017412084
     Equals the Occupancy Tax For the Home = $1,886.31

See Idaho Code 63-317

Show All Answers

1. What is an occupancy tax?
2. Can I see a map of my property?
3. How are the taxes on my property determined?
4. What does the category on my assessment notice mean?
5. How does the Assessor determine the value on my property?
6. If my assessed home values drop, will my property taxes do the same?
7. What is the Homeowner's Property Tax Exemption?
8. Is there a program that can help with paying my property taxes?