Impact Fees Get Slim Senate Victory Measure Moves To House After Passage By Just One Vote

By just one vote, the Senate on Monday passed legislation that forces owners of newly built homes to wait two years to qualify for a homeowner’s tax exemption.

Supporters said it was the last chance this legislative session to pass something to make growth in fast-growing communities help pay for itself. The bill now goes to the House.

“I don’t think it’s the perfect answer,” said Sen. Mary Lou Reed, D-Coeur d’Alene. But she said it was the first in a long series of impact fee bills to raise any money for schools.

“This seems to me to be the best idea that we’ll have a chance to vote on this year which would, indeed, get some more money to the schools from new construction.”

Idaho’s homeowner’s exemption is substantial. It exempts from taxation 50 percent of the value of a home, up to $50,000. It can cut a homeowner’s taxes almost in half.

By going without the exemption for two years, owners of newly built homes would pay more to help schools, cities, counties, libraries and all the other taxing districts that must provide services to the new homes, said Sen. Stan Hawkins, the bill’s author.

Hawkins, R-Ucon, said his bill is far simpler than earlier proposals for development impact fees. Hawkins was among those helping kill those proposals in committee.

Those proposals included elaborate systems for assessing fees on new developments and assuring that the fees paid only for major improvements needed specifically to serve those new developments, like roads and parks. None of the proposals addressed school needs.

“We need to do something to help the schools,” Hawkins said.

Opponents said the bill would penalize longtime Idaho taxpayers who simply build new homes. “We have no idea how many of those new homes are being built by Idaho residents,” said Sen. Evan Frasure, R-Pocatello.

Hawkins responded, “Somebody who builds a new home ought to buy into the infrastructure that’s required by the new home being there.”

Last year, he proposed a bill that would have targeted only newcomers to the state. But it died in the Senate.

“I liked that bill better, but a majority of this Senate didn’t,” Hawkins said.

The bill passed on a 17-16 vote, with Reed and Sen. Tim Tucker, D-Porthill, voting in favor; and Sens. Gordon Crow, R-Hayden, and Clyde Boatright, R-Rathdrum, voting against.

, DataTimes