Property tax bill headed for Senate

BOISE — The Senate Local Government and Taxation Committee on Tuesday unanimously voted to approve a bill committing $100 million of state general funds annually toward property tax relief.

House Bill 304 would provide $50 million to an existing School Facilities Fund, which is money sent to districts based on average daily attendance to pay off bonds and levies, and another $50 million to the Tax Relief Fund, which may go to local governments to reduce property tax bills on owner-occupied homes by around 5.4%.

Senate bill sponsor Sen. Scott Grow, R-Eagle, said the reductions would appear on homeowners’ property taxes this November.

The funds would be added to accounts created through the passage of the 2023 bill, House Bill 292, a sweeping property tax bill that used a number of funding sources to go toward school facilities and the homeowner property tax reductions.

The $100 million in HB 304 would be added to the 2.25% of state sales tax revenue that is already automatically distributed into each of the two funds.

HB 304 is the last of three major tax bills introduced this session to be passed — a bill cutting income taxes and another bill to increase the grocery sales tax credit both cleared the Legislature this year. HB 304 unanimously passed the House.

Additionally, a bill to provide $50 million to a refundable tax credit for use of educational expenses that can include private school tuition also passed both chambers and was signed by Gov. Brad Little.

In total, the bills are expected to reduce state revenues by $450 million annually.

Guido covers Idaho politics for the Lewiston Tribune, Moscow-Pullman Daily News and Idaho Press of Nampa.

She may be contacted at lguido@idahopress.com and can be found on Twitter @EyeOnBoiseGuido.