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Update on Property Tax Relief Bills

Picture of Kim Wickstrum
Bill H 74 Property Tax Relief has been replaced with H 304
 

The key difference between Idaho Bills 304 and 74 lies in how the $100 million property tax relief is funded, specifically the $50 million allocated to the Homeowner Property Tax Relief account:

  • Bill 304:

    • Provides $100 million in ongoing property tax relief, split evenly between the School Facilities Fund and the Homeowner Property Tax Relief account.
    • The $100 million comes from the State General Fund every year, starting in fiscal year 2025.
    • This bill funds the entire 100 million dollars from the general fund.

  • Bill 74:

    • Also provides $100 million in property tax relief, split the same way.
    • However, the $50 million for the Homeowner Property Tax Relief account in the first year (FY25) comes from a one-time transfer of excess cash from an expired account, rather than the general fund.
    • After the first year, The school facilities fund will recieve its 50 million from the general fund. Thus, the general fund impact is a 50 million dollar reduction starting in FY25, and continuing.
    • Therefore this Bill reduces the amount of general fund money needed in the first year by using found funds.

In essence, Bill 74 uses a one-time source of funds to cover the Homeowner Property Tax Relief portion in the first year, which lessens the immediate impact on the State General Fund compared to Bill 304.

https://legislature.idaho.gov/wp-content/uploads/sessioninfo/2025/legislation/H0304.pdf

 

This bill builds on the 2024 bill H 292 that passed during the last legislative session and
needed money for repairs in public school buildings.
 
Half of these funds go to school facilities, either to help pay down existing bonds and levies. If a school district does not have facility debt, they may use it for future building & repair needs. 
 
The other half of the money goes to local governments to reduce property tax directly. 
 
 

It is important to recognize the understandable demand for enhanced property tax relief. However, it is equally essential to explore the establishment of a property tax system that is both fair and consistent. Such a system would help prevent individuals from facing financial strain that could lead to the loss of their homes.

 
Ex: Property tax equals 1.25% of the sales price of the home when you purchase, and then has a limit of a 2% growth of that amount each year.  That way, you purchase a home you can afford, and years later when your neighbor buys a home in your neighborhood that costs a lot more than what you paid previously, they get taxed on their sales price, which is what they can afford, without raising your property taxes to their affordability!  And, there is no more guesswork on your property tax bill!  Everyone knows exactly what they will be charged, based on their sales price, and every year after that!
 
But, even though another state has done this for years with great success...Idaho legislators are greatly resistant to this idea.  Sigh...
 
So...we take what we can get...as with this bill.