Property Tax Reduction Bill Clears First Floor Of Legislature

Gov. Phil Batt’s $40 million property tax reduction bill won overwhelming approval from the Idaho House on Thursday and headed toward expected quick action in the Senate.

The measure, which would trim $40 million in local school property taxes and replace the revenue with cash from the state general fund, is expected to come up for discussion Monday in the Senate Local Government Committee.

Senate leaders have promised “fast-track” handling of the measure.

After a 75-minute debate, the House voted 57-12 for the bill, with constant reminders that it fulfilled the GOP governor’s promise to grant property tax relief.

“If this bill becomes law, it will be the largest tax reduction effort in the state of Idaho’s history,” said sponsor Rep. Golden Linford, R-Rexburg.

Opponents argued it was just a pittance, and there are better ways to cut taxes.

Rep. Kathleen Gurnsey, R-Boise, co-chairman of the budget committee, warned lawmakers that if they voted for the Batt bill they should commit themselves to voting for the governor’s tight public schools and college-university budgets.

Batt proposed a public school budget $36 million under the adjusted request from an education coalition. Gurnsey said if lawmakers take $40 million out for property tax cuts, there will be little left for other budgets, including higher education.

Voting against the bill were Democrats John Alexander, Pete Black, Millie Flandro, Elaine Hofman, Wendy Jaquet, Carol Pietsch and Marv Vandenberg and Republicans Mark Stubbs, Doug Jones, Tim Ridinger, Don Pischner and Gurnsey. Boise Republican Max Black was absent.

Stubbs said that after deductions and offsets, the average homeowner would get $30 to $50 per year cut from property taxes, or little more than a dime a day. “The policy flaws in this bill are numerous. I believe there are much better alternatives around than this bill,” he said.

Since property taxes are deductible from federal and state income tax returns, Stubbs said up to one-third of the tax cut would go to government, not individual taxpayers.

But Linford and other floor sponsors said Batt and other candidates promised a property tax reduction in the last election.

“This bill already has had a hearing,” said Rep. Dave Bivens, R-Boise. “The hearing was Nov. 8 (Election Day).”