Committee Close To Action On Property Tax Bill Batt’s Measure Takes Top Spot Over Competing Proposals

The House tax committee is expected to take final action Monday on Gov. Phil Batt’s bill to cut property taxes by $40 million.

It appeared Friday the measure would take priority over competing tax measures.

First, a subcommittee of House Revenue and Taxation approved Batt’s bill, which would cut property taxes by $40 million by trimming local school taxes and replacing the revenue with state funding.

If the measure becomes law, it would be retroactive to Jan. 1 and property owners would notice the cut in tax bills that go out late this year. The cut would be $1 for each $1,000 in taxable property value.

Later Friday, the full Revenue and Taxation panel rejected four proposals from Rep. Ken Robison, D-Boise, that would grant tax cuts to the elderly, home owners and lowincome families.

Before the day ended, Robison introduced them as personal bills with several cosponsors. But they face a doubtful future because they will be referred to a committee that already has rejected them.

A competing property tax bill, sponsored by the Association of Idaho Cities, was withdrawn so a revised version can be considered next week.

The first version would have used $57 million in income tax revenue to allow city and counties $38 million for property tax cuts and additional spending, and $19 million to schools to help cover bonds for school construction.

The new version would cut $10 million each in city and county property taxes and give $20 million to schools to pay for bonds or part of the cost of new construction.

But it was evident after Friday’s action that the preferred bill is the one prepared at the request of Batt to carry out a campaign promise.

“We met with the governor yesterday,” said Rep. Golden Linford, R-Rexburg, subcommittee chairman. “The governor wants to move ahead with this bill fairly rapidly.”

“I think we’d better find out where we are and how much money we have” before considering tax bills other than the governor’s, said Rep. Dave Bivens, R-Boise.

Batt also asked for some sort of limit on budgets, and the current administration bill sets a 3 percent limit on property tax increases from one budget to the next.