Sponsor Says Bill Would Slow Hikes In Residential Property Taxes

Rep. Ken Robison says two bills he is sponsoring won’t stop increases in residential property taxes, but will slow the growth a little.

The House Revenue and Taxation Committee listened to the Boise Democrat’s presentation on Monday. Chairman Rep. Donna Jones, R-Payette, sent Robison’s bills to a subcommittee headed by Post Falls Republican Hilde Kellogg.

If either of Robison’s bills became law, homeowners would be able to exempt more of their property from taxes. The measures are likely to be opposed by local governments, fearing the loss of property tax revenue.

State laws allow residential homeowners to exempt 50 percent of the value of their property, up to $50,000, from property tax. The value of the lot is not included.

Robison’s bill would allow a homeowner to exempt 25 percent of the value of the lot, up to $10,000, over a five-year period. For a homeowner taxed at 1 percent of market value, that would be a property tax cut of $100 per year.

A companion bill increases the $50,000 limit for inflation, which Robison said would be about 3 percent per year.

Robison was a prime sponsor of the initiative that led to the property tax exemption in 1983, but said it hasn’t been adjusted for inflation since then. If the $50,000 figure were adjusted for inflation in the last 14 years, it would be $81,000, he said.

Robison said 80 percent of the homeowners in Idaho don’t reach the $50,000 maximum exclusion. Since the value of the lot is not included, it takes property value of about $130,000, including home and lot, to reach that level.

If cities, counties and other taxing districts fell under a state law limiting property tax growth to 3 percent per year, the bill would have no impact on them, Robison said.

Over a five-year period, if both bills were in effect there would be $700 million less growth in property value subject to taxation, he said.