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Yahoo
05-04-2025
- Business
- Yahoo
Dominated by a series of tax cuts, Idaho Legislature adjourns 2025 legislative session
The Idaho State Capitol building in Boise on May 5, 2021. (Otto Kitsinger for the Idaho Capital Sun) As expected, the Idaho Legislature wrapped up its business Friday and adjourned the 2025 legislative session after 89 days at the Idaho State Capitol in Boise. The 2025 session was dominated by a series of tax cuts that also reduce the amount of state revenue that is available to pay for the state budget. House Bill 40 lowers both the individual and corporate income tax from 5.695% to 5.3% and reduces state revenue by $253 million. House Bill 304 shifts money to a state property tax reduction fund and a fund to pay for school facilities. To pay for the shifts, the new law reduces state revenue by $100 million. House Bill 231 increases the grocery tax credit that is designed to offset the sales tax Idahoans pay for food to $155 per year for everyone. To pay for the increased grocery tax credit, House Bill 231 reduces state revenue by $50 million. Another new law, House Bill 93, provides a refundable tax credit for education expenses for families, including tuition and private, religious schools. To pay for the tax credits, House Bill 93 reduces state revenue by $50 million. House Speaker Mike Moyle, R-Star, said the tax cuts were among the biggest, most enduring accomplishments of the year. 'We have over $400 million in tax relief this year,' Moyle said Friday afternoon. 'We touched income tax, we touched property tax, we touched sales tax and we did a good job of adjusting all of those in a downward trend, which is good for the state of Idaho,' Moyle said. Each of the laws reduces the taxes Idahoans pay, help pay down school bonds and levies that are paid for by property taxes or provides a tax credit. But to do so, those four laws reduce state revenue by a combined $453 million. Democratic legislative leaders had a different perspective on the tax cuts, saying that they worry the Idaho Legislature cut too much revenue and could stretch the state thin in the event of an economic downturn. House Minority Leader Ilana Rubel, D-Boise, also said that to make room for tax cuts, Republican legislators walked away from grant programs and zeroed out a series of initiatives from Gov. Brad Little. Rubel said legislators walked away from $15 million from the affordable housing fund, $22 million for road and bridge repair, almost $25 million in home energy rebates that will now go to other states, cut a requested expansion of a rural physician loan repayment program, cut workforce training programs at Idaho colleges and more. 'These are debts that are going to be left for our children and grandchildren to pay with a shrunken pot of revenue to cover it,' Rubel said Friday. 'This is the textbook opposite of fiscal conservatism, folks.' In a statement issued late Friday afternoon, Little congratulated legislators on what he called 'a productive 2025 legislative session.' 'America wants what Idaho has – safe communities, bustling economic activity, increasing incomes, tax relief, fewer regulations, fiscal responsibility, and common sense values,' Little wrote. 'I thank my partners in the Idaho Legislature for working so hard for the people of Idaho. I am especially proud of the record tax relief, support for law enforcement, ongoing money for water infrastructure, additional support for rural school facilities and literacy, full funding for Launch, and the billions in additional capacity for roads. The list of successes is long, and there is still more we can and should do for Idahoans.' While there is no doubt the 2025 legislative session was contentious and divisive, legislators from both parties did come together at times. On March 5, the Idaho House voted unanimously to pass Senate Bill 1001, a new law designed to protect free speech and combat frivolous strategic lawsuits against public participation, or SLAPP, lawsuits. Little signed the anti-SLAPP bill into law March 10. The Idaho House and Idaho Senate also voted unanimously to pass House Bill 158, a new media shield law that protects sources who provide confidential information or documents to journalists. Little signed the shield protections into law on March 27. The Idaho Legislature also passed House Bill 445, the 2026 Idaho Department of Water Resources budget that includes $30 million in funding for water infrastructure projects. Following a 2024 water curtailment order that sent shockwaves through Idaho's agricultural community, some legislators called House Bill 445 the most important bill of the 2025 session This year's legislative session was marked by a sharp increase in the volume of legislation that was prepared. According to data compiled by the nonpartisan Idaho Legislative Services Office, as of Friday staffers prepared 1,036 pieces of legislation this year – by far the most pieces of legislation in the past six years. For comparison, over the same time period in 2023, staffers had only prepared 861 pieces of legislation. Idaho legislators missed the Republican leadership team's original adjournment target date of March 21 because the 2026 budget was unfinished and because of ongoing disagreements between leaders of the Idaho House and Idaho Senate. Legislators nearly wrapped up their business for the year Thursday, when they passed key unfinished elements of the 2026 budget. But Senate leaders said they were short-staffed and the procedures required to wrap up the session would have kept them too late last night. Friday was the 89th day of the 2025 legislative session, which began Jan. 6. The 2024 legislative session adjourned sine die on April 10, after 94 days in session. 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Yahoo
26-03-2025
- Business
- Yahoo
Gov. Little signs Idaho property tax cut bill, raising total cuts this year to over $400M
Idaho Gov. Brad Little, center, holds a signed copy of House Bill 304, a property tax cut bill, standing between Idaho House Speaker Mike Moyle, left, and Senate Pro Tempore Kelly Anthon, right. (Courtesy of Idaho governor's office) Idaho Gov. Brad Little signed into law a bill that cuts property taxes and bolsters school districts' bond issues and levies. Joined by Idaho Republican legislative leaders at a livestreamed news conference in a Boise neighborhood on Wednesday, Little signed House Bill 304 into law. The new law reduces Idaho's state tax revenue by $100 million every year, shifting funds in two ways: It transfers $50 million to a state fund to reduce property taxes for Idaho homeowners. And it sends another $50 million to a state fund that helps pay off school districts' bond issues and levies. Little called the bill a 'win-win,' saying it builds on $4.6 billion in recent tax relief by the Legislature and Idaho's 'historic public education investments.' 'America wants what Idaho has: safe communities, strong schools, a bustling economy that offers tremendous opportunities for our people to prosper,' Little said at the news conference. 'I'm proud to join the dedicated leaders in the House and Senate for the signing of this important bill.' The average Idahoan homeowner should see property taxes reduced by 14.6%, said Sen. Scott Grow, R-Eagle, who co-chairs the Legislature's powerful budget committee. Senate President Pro Tempore Kelly Anthon, R-Rupert, said when he came to the Legislature, he told his constituents he'd see if every bill he looked at is good for the Idaho family. And that's true for this bill, he said. 'We're seeing taxes cut historically this year in the Idaho Legislature,' Anthon said. '… These are things that really impact people's lives.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX The bill is the third major tax cut bill the Idaho Legislature passed this year, totalling $403 million in annual reductions to Idaho's state revenue. House Bill 40 reduces the corporate and individual income tax rates from 5.695% to 5.3% and reduces state revenue by $253 million per year. When Little signed the bill, the governor's office described the bill as the largest income tax cut in state history. House Bill 231 increases the grocery tax credit used to offset the sales tax Idahoans pay on food to $155 per year. To increase the grocery tax credit, House Bill 231 reduces state revenue by $50 million every year. Another new law this year, House Bill 93, provides a refundable tax credit for education expenses for families, including tuition at private, religious schools. That bill reduces revenue by $50 million – bringing total revenue reductions from those four bills to $453 million. In February, Little told reporters he was concerned by the amount of revenue that will be reduced by the three major tax cuts and the education tax credit. In his State of the State address in January, Little called for $100 million in tax cuts. 'If I would have thought we could do $450 (million), I would have proposed $450 (million),' Little said Feb. 25. Asked on Wednesday if he had concerns there were too many tax cuts this legislative session, Little replied 'we'll see.' And he referenced praise from Florida Gov. Ron DeSantis, who visited Idaho earlier this week. 'He made the point that Florida is doing great. But the only state doing better than Florida is Idaho,' Little said. 'And as long as we keep growing our gross domestic product. … We'll need to watch it. We'll need to be vigilant.' House Bill 304, the property tax cut bill, takes effect immediately through an emergency clause. The Idaho Legislature unanimously passed the bill in the House and Senate. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
18-03-2025
- Business
- Yahoo
‘Help with housing': Idaho Senate passes property tax reduction bill
Members of the Idaho Senate work from the Senate floor on the morning of March 10, 2025, at the Idaho Capitol Building in Boise. (Pat Sutphin for the Idaho Capital Sun) The Idaho Senate voted unanimously Monday to pass a bill that seeks to reduce property taxes and pay down school districts' bond issues and levies. The Idaho Senate voted 35-0 to pass House Bill 304. If passed into law, House Bill 304 would do a couple of things. The bill would transfer $50 million to a state fund to reduce property taxes for Idaho homeowners. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX It also would send another $50 million to a state fund that helps pay off school districts' bond issues and levies. To make those two transfers, the bill reduces state revenue by $100 million every year. Sens. Scott Grow, R-Eagle, and Doug Ricks, R-Rexburg, co-sponsored the bill in the Idaho Senate. 'These amounts help with housing,' Grow said. 'The monthly mortgage payment gets reduced by a reduction in property taxes,' Grow added. 'It helps young people trying to get into homes. It helps the older people who are retired that are trying to stay in their homes.' House Bill 304 is the third major tax cut the Idaho Legislature has passed this year. House Bill 40 reduces the corporate and individual income tax rates from 5.695% to 5.3% and reduces state revenue by $253 million per year. House Bill 231 increases the grocery tax credit used to offset the sales tax Idahoans pay on food to $155 per year. To increase the grocery tax credit, House Bill 231 reduces state revenue by $50 million every year. Combined, the three bills reduce state revenue by $403 million. CONTACT US Another new law this year, House Bill 93, provides a refundable tax credit for education expenses for families, including tuition at private, religious schools. That bill reduces revenue by $50 million – bringing total revenue reductions from those four bills to $453 million. Senate Minority Leader Melissa Wintrow, D-Boise, voted in favor of the bill because she said property taxes and housing affordability are two of the issues her constituents are most concerned about. But Wintrow said she is worried about the amount of state revenue that will be reduced to pass all of the tax cuts. 'We're over $400 million in revenue reductions as we go forward,' Wintrow said.'And this bill is continuously appropriated, so every year, $100 million is going to go this way. And so what I would hope is that next year we don't forget that, and that we don't do another income tax rebate that really only benefits the wealthiest at the top.' Wintrow said she wished legislative leaders acted on the property tax bill before passing the income tax cut and grocery tax credit increase this year. 'I'm happy to do the property tax relief, but I think this should have been the first and foremost (tax cut) right out of the gate, not the last one,' Wintrow said. 'Because now we're adding on more permanent revenue reductions that will potentially be harmful to the very people that demand the services that we need in our state.' The Idaho House of Representatives has already voted 68-0 to pass House Bill 304. House Bill 304 heads next to Gov. Brad Little for final consideration. Once the bill reaches his desk, Little will have five days to sign it into law or veto it. If Little does not take action within five days, the bill will become law without his signature. During a breakfast with reporters in February, Little said he was concerned by the amount of revenue that will be reduced by the three major tax cuts and the education tax credit. 'If I would have thought we could do $450 (million), I would have proposed $450 (million),' Little said Feb. 25. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
14-03-2025
- Business
- Yahoo
Idaho's tax cuts proposed by the Legislature are a risk to our children's future
The rotunda at the Idaho Capitol as seen on Jan. 17, 2022, in Boise. (Otto Kitsinger for Idaho Capital Sun) The Idaho Legislature is at a crossroads. With over $450 million in proposed tax cuts on the table — more than four times what Gov. Brad Little set aside in his budget — lawmakers must decide whether these cuts serve the best interests of Idaho's children. At the heart of the debate is whether Idaho can afford these sweeping tax cuts without jeopardizing the programs and services that directly impact kids' education, health care and overall well-being. Idaho Gov. Brad Little concerned about magnitude of tax cuts that reduce state revenue Last week, on the 59th legislative day, the Joint Finance-Appropriations Committee (JFAC) finally set a revenue target for fiscal year 2026. The governor recommended a revenue target of $6.407 billion, closely aligned with the Economic Outlook and Revenue Assessment Committee's (EORAC) projection of $6.4 billion. However, when JFAC attempted to vote on the matter in January, it failed to pass the revenue target. The committee ultimately passed a revenue target on March 5, just two and a half weeks before its target adjournment date of March 21. This uncertainty raises a critical question: How could legislators justify massive tax cuts when they hadn't even established the revenue framework until so late in the legislative session? Is this responsible legislating? If these tax cuts pass without corresponding budget adjustments, Idaho's children will bear the consequences. Education funding could face significant reductions, forcing larger class sizes, fewer resources and reduced support for teachers. Health care programs for low-income children could see cutbacks, leaving many families struggling to afford essential care. Infrastructure projects, including safe school facilities and community services, could be left underfunded. Let's break down the proposed tax cuts: House Bill 40 reduces the income tax rate from 5.8% to 5.3%, exempts certain precious metals from capital gains tax and excludes certain military benefits from income taxation. Cost: $253 million. House Bill 260 increases the grocery tax credit from $120 to $155 per person (up to $250 if itemizing). Cost: $50 million. House Bill 304 allocates an additional $50 million to the Homeowner Tax Relief Fund and another $50 million to the School District Facilities Fund. Cost: $100 million. House Bill 93 introduces a parental choice tax credit for private education expenses. Cost: $50 million. While tax relief is a popular talking point, responsible governance requires balance. The state must fund critical services that support children and their futures. Slashing taxes without a plan to offset lost revenue puts these essential functions at risk. Some lawmakers argue that lower taxes will spur economic growth and eventually offset the lost revenue. But that theory is speculative at best. Idaho already enjoys a competitive tax climate, and drastic cuts could deplete reserves needed to weather economic downturns, leaving children's services particularly vulnerable. Instead of rushing into nearly half a billion dollars in tax cuts, the Legislature should focus on sustainable tax relief that aligns with realistic revenue projections. A more measured approach — one that considers both taxpayer relief and the state's long-term financial stability — would better serve Idaho's children and their future. The question lawmakers must answer is this: Are they building a better future for Idaho's children, or are they gambling with their well-being? Editor's note: Fred Wood, Cindy Wilson and Julie Yamamoto are writing on behalf of Idaho Children are Primary. ICAP is a nonprofit 501(c)4 organization led by a group of child care experts with the common goal of advocating for the well-being of children and families in the state of Idaho. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
25-02-2025
- Business
- Yahoo
Idaho Gov. Brad Little concerned about magnitude of tax cuts that reduce state revenue
Idaho Gov. Brad Little walks out of the House chamber after delivering his State of the State address on Jan. 6, 2025, at the Statehouse in Boise. (Pat Sutphin for the Idaho Capital Sun) Idaho Gov. Brad Little said Tuesday he is worried about the amount of revenue that major tax cut packages proposed by legislative leaders would remove from the state's general fund. In conjunction with his Jan. 6 State of the State address, Little recommended setting aside $100 million in tax reductions. But Republican legislative leaders are proposing to reduce revenue by more than $400 million through a combination of bills that would increase the sales tax credit Idahoans receive for buying food, reduce the state's income tax and shift money to funds to reduce homeowners property taxes and provide funding for school facilities. House Bill 40, which lowers the individual and corporate income tax, reduces state revenue by $253 million. House Bill 304, which shifts money to a state property tax reduction fund and a fund to pay for school facilities, reduces state revenue by $100 million. House Bill 231, which increases the so-called grocery tax credit to offset the sales tax Idahoans pay for food, reduces state revenue by $50 million. Each of those bills would reduce taxes Idahoans pay. But in order to pay for the tax cuts, the proposals permanently remove money from the state's general fund revenue stream that would otherwise be available to pay for government programs, fund public schools, improve roads and bridges, fight wildfires on state lands, provide raises for state employees or pay for Idaho Department of Health and Welfare programs. 'I love the signal that every year in Idaho your tax burden is going to get less, but you've got to temper that with all those other things,' Little said Tuesday morning during a breakfast with reporters sponsored by the Idaho Press Club. 'So they know, I'm not very happy about it.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX Little told reporters that major government cuts and reductions are coming forward from President Donald Trump's administration, and that the states and public need to be prepared to absorb some of those cuts and adjust to a smaller federal government. CONTACT US Federal cuts have already come in the form of large scale federal layoffs – including those that cut wildland firefighters and support personnel – and overall program reductions and cutbacks spearheaded by billionaire Elon Musk and the Department of Government Efficiency, or DOGE. 'I have great confidence that we in Idaho will be able to get through this,' Little said. 'But I also think that prudence dictates that we be prepared for … all these things… all of them have a nexus to my fundamental belief that we need to be light on our feet, if things change, about how we handle those shocks coming from the federal government.' Little told reporters Tuesday that he will not publicly comment about how he will act on bills before he takes action. (Once a bill reaches his desk, Little may sign it into law, veto it or allow it to become law without his signature.) But Little was clear something might have to give. Little's fiscal year 2026 budget proposal included $100 million for tax cuts and $50 million for some sort of private school choice initiative, such as a tax credit or scholarship that would state general fund money to refund or reimburse families for education expenses such as tuition at a private, religious school. Little also left an ending cash balance of about $200 million to guard against economic uncertainty. But unless the Idaho Legislature cuts some of Little's recommended programs or builds its fiscal year 2026 budget around a much larger revenue projection than Little and the Division of Financial Management issued, there may not be enough money to pay for all of the Idaho Legislature's proposed tax cuts, fund government programs at levels Little recommended, launch a private school choice program to refund families for tuition at private religious schools and pass a balanced budget. The Idaho Constitution requires the Idaho Legislature to pass a balanced budget where revenues do not exceed expenses. As of Tuesday, the Idaho Legislature has not yet set a revenue projection to build its fiscal year 2026 budget around, although several budgets and tax cuts are advancing in the Idaho Legislature. 'I said $100 (million, in tax cuts) they're saying $450 (million),' Little told reporters. 'If I would have thought we could do $450 (million), I would have proposed $450 (million),' Little added. SUPPORT: YOU MAKE OUR WORK POSSIBLE
