House raises hurdle to property tax phase-out

BOISE – The Idaho House of Representatives amended the proposed five-year, $120 million personal property tax phase-out, saying state general fund tax revenue must grow by at least 5 percent before it kicks in.

That’s up from a previous hurdle of 4 percent.

Republican leaders said Wednesday the change increases safeguards ensuring Idaho will have enough money to pay for the tax relief, which has long been demanded by business.

Separately, the chamber rejected a proposal from minority Democrats to limit personal property tax relief to the first $50,000 worth of business equipment.

House Minority Leader Wendy Jaquet, a Ketchum Democrat, said she fears if the current bill becomes law, it will eventually leave state government short of cash for education, prisons and other services.