The House has voted to remove the indexing of the homeowner’s exemption from property taxes, instead setting it at a fixed maximum level of $90,000 or 50 percent of home value, whichever is less. In 2006, the Legislature raised the exemption from its previous cap of $50,000 to $75,000 and indexed the maximum amount to the Idaho Housing Index, so it would go up and down with the market. Since then, the exemption has risen to a high of more than $104,000 in 2009, and dropped back down to $81,000 in 2012.
Rep. Janet Trujillo, R-Idaho Falls, said the time lag between the index and market changes posed problems. “During the recent housing collapse … the index did create some very negative consequences for taxpayers,” she told the House. “As home values were dropping, the taxes were actually increasing. … I believe that removing the index makes good sense for the state of Idaho.”
The House vote was 54-16 in favor of the bill, HB 594, which now moves to the Senate side; the House has now recessed until 1:30 p.m. The Senate remains in session; it’s debating SB 1314, the payday loan bill.