The Tax Commission has voted unanimously in favor of its two proposed rules to define real and personal property for purposes of property tax, despite objections from railroads, utilities and similar interests. Commissioner Ken Roberts said, “There’s a lot of water under the bridge over the last several years in this. I used to wear a different hat (as a legislator), and was involved in those discussions as well. What’s interesting is until the $100,000 exemption took place, it really didn’t matter – and now all of a sudden it matters what’s real and what’s personal.”
Legislation passed this year exempts from taxation the first $100,000 worth of personal property for each taxpayer, in each county.
Roberts said the question of where the line lies between the two should have been answered by the Legislature, but it wasn’t. “Void of that direction … somebody has to make a decision about what and where that line is,” he said. “I’m sad to say that this decision has kind of found its way to the Tax Commission. … If we get it wrong, the Legislature, who are the policy setters in the state of Idaho when it comes to tax policy, can change it.”
Commissioner Rich Jackson noted that the definition affects an overall tax system, and who pays more and who pays less. “I think sometimes we have to back up and say, what should this structure do, and what should be assessed to the different players?” he said. “But realize, as we play with those pieces, we start moving who pays what.”
Commissioner David Langhorst, who like Roberts is a former state legislator, said, “I think they made good arguments, the taxpayers today.” But he said the rule takes a conservative approach. “And if the Legislature really did intend for this to be more liberally applied or a broader exemption created, then they can affirm that.”