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Yahoo
05-03-2025
- Business
- Yahoo
Idaho Senate passes bill to cut income taxes, reduce state revenue by $253 million
State senators listen to legislative proceedings from the Idaho Senate floor on Jan. 7, 2025. (Pat Sutphin for the Idaho Capital Sun) The Idaho Senate, in a 27-8 vote, passed a bill on Tuesday to cut Idaho's income tax rate, reducing state revenue by $253 million. House Bill 40, sponsored by Sen. Doug Ricks, R-Rexburg, would do three things to cut taxes in Idaho, including: Reduce income tax for individuals and corporations from 5.695% to 5.3%, costing $240 million annually; Expand the income tax exemption to military pensions, at a cost of $12 million; Eliminate capital gains tax for gold bullion sales, at a cost of $1 million. House Bill 40 is one of three bills introduced this legislative session to cut taxes, the Idaho Capital Sun previously reported. Other bills aimed to cut taxes include House Bill 61, which would increase the sales tax credit on groceries for Idaho taxpayers from $120 a year to $155, and House Bill 74 which would offer $100 million of property tax relief to Idahoans. If all three bills are passed into law, it would offer up to $403 million in reductions to state revenues, more than the $100 million in tax reductions Idaho Gov. Brad Little called for in his State of the State address at the start of the legislative session. Ricks said the bill would help Idaho families pay less in taxes, keep their money and ultimately stimulate the economy. But opponents criticized it as irresponsible under times of economic uncertainty nationwide. The Idaho Senate voted largely along party lines to advance the bill. Sen. Melissa Wintrow, D-Boise, was the first to speak against the bill. She said the bill is 'irresponsible,' and would betray working families in a time of economic uncertainty. 'Here we go, chopping off this revenue (when) we couldn't even pay our employees,' Wintrow said, recalling that it took weeks for legislators to agree on a pay raise rate for state employees. 'We thought about it for weeks and then we gave them a buck to a buck 55. When they see that, how are they going to feel?' Wintrow cited a study from the nonpartisan Idaho Center for Fiscal Policy, which said an Idaho family earning between $55,000 and $91,000 would expect to see a tax break of about $127 under House Bill 40. Idaho Gov. Brad Little concerned about magnitude of tax cuts that reduce state revenue 'I don't know last time you went to the grocery, but I could barely get out with $127,' Wintrow said. Sen. Jim Guthrie, R-McCammon, was one of two Republicans to vote against the bill — the other being Sen. Jim Woodward, R-Sagle. While Guthrie said he supports tax cuts, House Bill 40 does not meet his requirements for balance and fairness. 'We are in some unique times that carry with them some incredible unknown. We must think beyond today,' Guthrie told the floor, noting the federal government has aggressively cut federal employees, federal programs and implemented significant tariffs on countries including Mexico, Canada and China. 'I'm not here to say that the actions at the federal level are a good or bad thing, and what kind of effect it'll have on our economy,' Guthrie said. 'Who knows? But the point is, we are in uncertain times.' In response to concerns about an economic recession, legislators supporting the bill said letting Idahoans keep money would boost the economy. 'If there are hard economic times for the people of Idaho, the best thing this body can do is cut as many taxes and fees as possible,' freshman Sen. Joshua Kohl, R-Twin Falls, said. House Bill 40 already passed the Idaho House of Representatives in a 63-7 vote. It now heads to Gov. Brad Little's desk, who can sign it into law, allow it to pass without his signature or veto it. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
21-02-2025
- Business
- Yahoo
Revised property tax cut bill introduced in Idaho Legislature
Idaho House Majority Leader Jason Monks, R-Meridian, (center) answers a question from a reporter at a press conference on Jan. 6, 2025, at the Statehouse in Boise. Also pictured are House Speaker Mike Moyle, R-Star, (left) and House Assistant Majority Leader Josh Tanner, R-Eagle. (Pat Sutphin for the Idaho Capital Sun) A revised property tax reduction bill surfaced Friday in the Idaho Legislature. The new bill, House Bill 304, is a revised version of House Bill 74, a property tax bill that the Idaho Legislature introduced on Jan. 28. Both bills would spend $50 million for a fund to build or renovate public school district facilities and another $50 million for the state's homeowners property tax relief fund. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX The main difference between the two bills is that under the first bill the $50 million for the homeowners property tax relief fund was a one-time transfer. Under the new bill, the funding for school district facilities and the homeowners property tax relief fund would be ongoing every year. On Friday, the Idaho Legislature's House Revenue and Taxation Committee voted to hold the old House Bill 74 in committee and then recommended sending the new House Bill 304 straight to the floor of the Idaho House of Representatives. House Majority Leader Jason Monks, R- Meridian, co-sponsored and presented the new bill Friday. 'I believe property taxes is one of those important issues that our constituents have demanded that we address, and I think this is a fair way of addressing it,' Monks said. To provide money for school facilities and the homeowners property tax relief fund, the bill shifts money generated from the sales tax, which otherwise would have gone to the state's general fund. The bill reduces the general fund by $100 million every year, money that otherwise would be available to fund government programs such as public schools, Idaho Department of Health and Welfare services, state parks or fighting wildfires on state lands. CONTACT US Rep. Steve Berch, D-Boise, voted to introduce the new property tax bill but expressed concern with continuing to direct sales tax revenue away from the general fund. This year, a series of tax cut proposals and a bill that would allow Idaho families to receive a refundable tax credit from the state for expenses including tuition at private and religious schools would reduce the general fund by more than $453 million if all of those bills pass. 'That money is coming out of the bucket that funds public education and vital services and other activities of the state,' Berch said. 'And my concern is that we need to step back and look at a bigger picture here.' Berch voted to introduce the new bill because he said high property taxes is one of the main concerns he hears from his constituents. House Bill 304 was sent to the House floor Friday morning and could come up for a vote in the Idaho House as early as Monday morning. If a majority of members of the Idaho House vote to pass the bill, it would be sent to the Idaho Senate for consideration. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
28-01-2025
- Business
- Yahoo
Idaho Legislature introduces new property tax reduction bill
The rotunda at the Idaho Capitol in Boise on Jan.17, 2022. (Otto Kitsinger for Idaho Capital Sun) House Speaker Mike Moyle is sponsoring a new bill in the Idaho Legislature that seeks to reduce property taxes. On Monday, Moyle, R-Star, unveiled House Bill 74 in the House Revenue and Taxation Committee. If passed into law, Moyle's new bill would send $50 million a year annually – ongoing – to the state's school district facilities fund to help local schools pay for a portion of new buildings and school renovations that would be paid for using property taxes. The bill also takes another $50 million in one-time funding and transfers it to the state's homeowners property tax relief fund to reduce property taxes for homeowners. In a series of polls and public policy surveys, Idahoans have consistently said the cost of housing and property taxes are among their top issues for the Idaho Legislature to address. 'There's more to do in property tax relief, but this is a start to get us there,' Moyle said. Although the Idaho Legislature does not receive or spend money collected from Idaho property taxes, school districts and local governments do. Property taxes pay for school operations and school construction; police, fire and emergency services; libraries; sewers; highways; weed control and more. Moyle told the House Revenue and Taxation Committee that cutting taxes is part of his strategy to reduce government spending. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX This is the third bill aimed at cutting different types of taxes that the Idaho Legislature has introduced in recent days. On Thursday, the House Revenue and Taxation Committee introduced House Bill 40, which would reduce Idaho's corporate and individual income tax rates from 5.695% to 5.3%. House Bill 40 also eliminates the capital gains tax for selling gold and silver and expands the income tax exemption to military pensions. Idaho Legislature introduces bill to reduce income taxes On Monday, the House Revenue and Taxation Committee introduced House Bill 61, which would increase the sales tax credit on groceries for Idaho taxpayers from $120 a year to $155. 'We try to touch on each of the three tax types and provide relief across the board,' Moyle said Tuesday. The fiscal notes attached to the three recent tax cut bills total $403 million in reductions to state revenues if all three bills are passed into law. That's more than four times the $100 million in tax cuts that Gov. Brad Little proposed in conjunction with his Jan. 6 State of the State address. Rep. John Gannon, D-Boise, supported introducing Moyle's latest tax cut bill Tuesday, but he wondered if the state can afford the revenue reductions that would come from passing all three tax cuts, plus additional state funding from proposed bills that would allow Idaho families to be reimbursed or receive a tax refund for tuition or fees at private schools or private religious schools. 'I do think that we need to be careful,' Gannon said. Introducing House Bill 74 clears the way for the bill to return to the House Revenue and Taxation Committee for a full public hearing at an unspecified later date. The House Revenue and Taxation Committee will not be accepting remote, virtual testimony this year, Chairman David Cannon, R-Blackfoot, said Monday. Idahoans who are not able to travel to the Idaho State Capitol in Boise, may send emailed testimony to the committee by sending an email to hrev@ by 4 p.m. the day before a public hearing on a bill. Cannon said emails should include email testimony in the subject line, include the person's full name, the legislative district they live in, any groups or organizations they represent, the bill number they would like to provide written testimony over and whether they support or oppose the bill, followed by their written testimony. SUPPORT: YOU MAKE OUR WORK POSSIBLE
