Senate sends property tax relief bill to Little

BOISE — The Idaho Senate on Monday approved a bill that puts $100 million toward lowering property tax bills. The bill heads to the governor and will bring the total of tax relief bills passed this session to more than $400 million.

Senators unanimously approved House Bill 304, which puts $50 million in an existing School Facilities Fund — which is then distributed to school districts based on average daily attendance for use to pay off bonds and levies — and another $50 million to a Tax Relief Fund — which goes toward reducing property tax bills on owner-occupied homes.

Senate Sponsor Sen. Scott Grow, R-Eagle, said taxpayers can expect to see around 5% reduction on school facility bonds and levies and about 9% in total in homeowners reductions, including the total reductions already created through previous property tax legislation passed in 2023 — House Bill 292 was a sweeping piece of legislation that used a variety of funds to reduce property tax bills and send money to school districts.

Senate Minority Leader Melissa Wintrow, D-Boise, spoke in reluctant support of the bill. She said that she thought property tax relief was a primary issue she heard about from her constituents, but she was worried about the ongoing revenue reductions from the total tax cut bills passed this session.

“What I hope is next year, we don’t forget that, and we don’t do another income tax rebate that really only benefits the wealthiest at the top,” Wintrow said. “I’m happy to do the property tax relief, but I think this should have been first and foremost right out of the gate, not the last one, because now we’re adding on more permanent revenue reduction that will potentially be harmful to the very people that demand the services we need in our state.”

Majority Leader Lori Den Hartog, R-Meridian, said she also heard from her constituents that they wanted relief from their growing property tax burdens. She also underscored that the state doesn’t set or collect property taxes.

“I think this is important, but I also think it’s important, as we visit with our constituents, to remind them that many of the property tax, property taxes that they pay, they vote for themselves, and have been voting for themselves,” Den Hartog said. “So it feels a little bit like an endless cycle that we can’t quite figure out how to get out of.”

Wintrow stood up again after Den Hartog to respond, highlighting a recent report that found the state doesn’t adequately fund school districts for higher-need students, and those districts often must turn to levies to cover the gap.

“So we have created the cycle and that there are ways to reduce property taxes,” Wintrow said.

Senators unanimously passed the bill, which was also passed unanimously by present House members March 4. HB 304 will go to Gov. Brad Little for consideration.

Little in his State of the State address in January proposed $100 million in his recommended budget for tax relief. The Legislature this year advanced $400 million in income, property and grocery sales tax relief, as well as a $50 million school choice tax credit.

Little in February told reporters, “If I thought we could do $450 (million), I would’ve proposed $450 (million).”

The income tax reduction, which also eliminated the capital gains tax on precious metal bullion and expanded tax exemptions to some retired military benefits, will result in an estimated $253 million in ongoing reduced revenue to the state. The increase to the grocery sales tax credit cost a total of approximately $50 million.

Little signed the income tax bill, HB 40, on March 6, and the bill to increase the annual grocery tax credit to $155, HB 231, on March 13.

Guido covers Idaho politics for the Lewiston Tribune, Moscow-Pullman Daily News and Idaho Press of Nampa. She may be contacted at lguido@idahopress.com and can be found on Twitter @EyeOnBoiseGuido.

How they voted

Yes: Cindy Carlson-R, Dan Foreman-R, Phil Hart-R