(Bannock County Press Release, October 2, 2026)
I can hardly believe it’s already October! Halloween isn’t necessarily my favorite holiday, but it is my daughter’s, so I do my best to decorate and get into the Halloween spirit with her! We have already visited the Spirit Halloween store!!
Last month, I invited readers to send me topics or questions they would like me to address. I was so happy to receive a response from one reader with two questions! I hope this discussion, along with future topics, helps provide a little more insight into the assessment process and why property values can sometimes look different from what we see in the real estate market.
Why Is There a Difference Between the County’s Assessed Value and What a Realtor Says a Property Could Sell For?
This is a great question, and there are several reasons why the two numbers may be different.
To make this a little easier to understand, I’m going to break the discussion into two parts: bare land and homes. This month, we’ll take a closer look at bare land.
Bare Land
Especially in the rural areas of the county, we have a wide variety of land, including residential, agricultural, and recreational properties. How a property is classified and how it is being used can make a significant difference in how it is valued for property tax purposes.
1. Agricultural Land
Agricultural land that is more than five acres and is actively being used for agricultural purposes—such as grazing livestock, irrigated or non-irrigated cropland, or meadowland—is valued differently from other types of property.
One of the most important things to understand is that the County assesses property based on its use. When land qualifies for and is being assessed as agricultural property, its assessed value may be lower because of that agricultural use. Idaho code 63-604 directs us to value Ag land at a lesser value.
This can create a noticeable difference when comparing the County’s assessed value to a listing or sale price. For example, agricultural parcels may sell for considerably more than its assessed value because the sale reflects what a buyer is willing to pay in the current market, while the County’s assessment is used for property taxation purposes.
2. Recreational and Residential Land
Recreational and residential bare land are generally valued by looking at current market sales of comparable properties. Simply put, we look at what similar properties have sold for and use that information to help determine market value. Something to also be aware of is that we value property as of January 1 of the current year. So, in other words if a home sells in April of this year we can’t use that information until the next assessment cycle. Here is a clear way of describing it.
Idaho law and the Idaho State Tax Commission set strict rules for how property values are calculated. The Assessor must:
- Establish market value as of January 1 of the current tax year
- Use only valid property sales occurring between:
- October 1, two years prior to the tax year, and
- September 30, the year before the tax year
- Adjust sales prices when necessary to reflect market conditions as of January 1
- Use the previous year’s value as a starting point when determining new values
- So be aware that based on these date guidelines, in and appreciating or depreciating market we could fall behind.
So, for this year (2027), we will be looking at data between October 1 of 2025 and September 30 of 2026.
In assessing the recreational land in the southern part of Bannock County it has experienced some higher sales. There are several factors that may contribute to those prices, including demand from out-of-state buyers who are interested in owning property in Idaho and may be willing to pay more for the opportunity to do so.
Another factor we consider is the value associated with a homesite. Some properties may have the opportunity or requirement for a one-acre home site. That homesite can add value to the property, even if there is not currently a home there. We look at comparable sales and current market activity to help determine that value.
Residential bare land can be a little more complicated as well.
For example, if a property owner has multiple parcels that are contiguous or otherwise related, we may consider those parcels together when determining value. Depending on the total acreage or square footage, this can result in an appraised value that looks different from what someone might expect based on a listing or a recent sale.
We also use land tables to help distinguish between larger parcels and smaller parcels within subdivisions. These tables help us account for differences in size and characteristics when determining value. Also, be aware that when a parcel increases in size it can also in some cases cause the price per square foot to go down.
Just like the real estate market, property values and market conditions change over time. Each year, we review our land tables and valuation methods and look for ways to improve them and provide the most equitable and accurate values possible.
Two Different Purposes
One of the most important things to remember is that the County’s assessed value and a property’s potential selling price serve two different purposes.
The County’s assessed value is determined for property taxation, while a real estate listing or sale price reflects what a buyer may be willing to pay in the current market.
Because of these different purposes, it is not unusual for the two values to be different.
I hope this helps explain some of the reasons you may see a difference between a property’s assessed value and what you hear it could sell for.
Next month, I’ll continue this discussion by taking a closer look at homes and some of the factors that can cause a difference between a county assessment and a property’s potential market value.
And, of course, if you have a question about property assessment, valuation, or something you would like me to explain in a future newsletter, please feel free to reach out. I really appreciate hearing from you and learning what topics would be helpful to explain!
Until next month, enjoy the beautiful fall weather—and maybe a little Halloween fun along the way!
~ Anita Hymas
Bannock County Assessor
