Idaho Real Estate Practice Exam

If you are four days late paying the 2nd half of your property taxes because you were on vacation, what penalty will apply?

1. A penalty of 5% plus interest of 10%

2. A penalty of 2% plus interest of 8%

3. A penalty of 2% plus interest of 12%

4. No penalty will apply

The correct answer is: A penalty of 2% plus interest of 12%

When property taxes in Idaho are not paid by the due date, there are penalties that can apply, which are based on how late the payment is. In this scenario, being four days late specifically falls under Idaho's guidelines regarding late property tax payments. For property tax payments that are less than 15 days late, Idaho applies a penalty of 2%. Additionally, for any late payment, there is typically interest accrued on the outstanding amount. While the specific rate of interest can vary, it is often around 12% for property taxes that are delinquent. Thus, if you are four days late, the 2% penalty applies, along with the interest, making this option the accurate representation of the consequences for a late property tax payment in this case. This understanding of the timeline and the associated penalties is critical for property owners to manage their tax obligations efficiently.