Rankin To Fight Tax Relief Transfer But Sponsor Calls Measure ‘Simple Accounting Change’

Ron Rankin is steamed about legislation that he says could lead to property tax increases, but the bill’s sponsor says Rankin is “seeing black helicopters” over a mere accounting change.

The measure, SB 1535, changes the way property tax relief money approved in Gov. Phil Batt’s first year in office is transferred in the state budget.

Currently, the money comes off the top of sales tax proceeds. It replaces a quarter of the property taxes that previously funded schools, and the amount now totals about $55 million a year.

Under the bill, the money would go into the general fund, then be included in the public school budget.

Rankin said that opens the door for the Legislature’s budget committee to decide not to fund the property tax relief, or to just fund part of it. “It’s a real sneaker as far as I’m concerned,” he said. “They’re greasing the skids to take it away.”

Rankin said he plans a radio ad campaign against the bill, starting today.

If the state failed to come up with the money, property taxpayers would be charged, Rankin said, leading to a jump of up to 25 percent in property taxes.

But Sen. Evan Frasure, R-Pocatello, the bill’s sponsor, said the state can’t do that. The transfer for property tax relief still would be required by law, he said. The budget committee would have no leeway to trim it back.

“All it is is a plain and simple accounting change, so the general fund is credited the money,” Frasure said. “There’s no sinister plots behind it.”

Frasure, other budget committee members and even Gov. Phil Batt have complained in recent years that they get little credit for redirecting the large chunk of the state budget to property tax relief. Because the money automatically comes off the top of sales tax proceeds, it’s not even counted as part of the state’s general fund budget, Frasure said.

Frasure said the budget committee should see the amount come through each year so everyone knows how much state money is flowing into the tax relief program.

“Either way, it’s going to happen,” he said. “That fund is going to grow every year. We need to be aware of how much it’s going up.”

, DataTimes