Despite concerns about the economy and state spending, the Idaho House voted to send a property tax relief bill to the Idaho Senate.
House Bill 304 would allocate an additional $50 million toward property tax relief. It builds on 2023’s HB 292, which dedicated hundreds of millions toward two funds aimed at providing property tax relief.
HB 304 proposes adding $50 million to the homeowners relief fund established under HB 292, while another $50 million is already slated to go toward a second fund for schools that can be used to pay down bonds and levies.
The bill’s sponsor, Rep. Jason Monks, R-Meridian, said, “(The bill provides) $100 million worth of property tax relief to Idahoans, and that I’ll support all the time.”
The bill passed with all representatives in favor, with Steve Berch, D-Boise, and Josh Wheeler, R-Ammon, not present. The bill will head to the Idaho Senate for consideration.
What did representatives discuss?
The handful of representatives who spoke on the bill expressed hesitation to vote in favor.
Rep. Stephanie Mickelsen, R-Idaho Falls, said that while she supported reducing taxes, she felt that “we’re in a situation where we’d be foolish not to look at what’s going on in the economy around us,” mentioning potential tariffs and the stock market. On Tuesday, stock markets whipsawed over news that President Donald Trump would move forward with tariffs on Canadian and Mexican goods, with leaders of Canada and Mexico promising countermeasures.
Mickelsen wondered whether waiting a few weeks could provide more clarity, including on state sales tax revenue.
“If we have massive corrections to sales tax revenue, which we could definitely have, and income tax, then we put ourselves in a position where we’re in deficit spending,” she said.
Rep. John Gannon, D-Boise, pointed to a document from the Joint Finance-Appropriations Committee, the legislative committee composed of people from both chambers. That document shows that the legislature is considering bills that would affect $477 million in revenue, and $58 million in appropriations, he said.
“We’re really getting into a log jam,” Gannon said. “ … I just ask people to keep that in mind.”
Ahead of the vote, Monks said that despite economic uncertainty, he would prefer to see taxpayers benefit from state funds.
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“A lot of things could happen in our economy, but I’ll ask you this question: Who would you rather have holding the money? Our citizens, our constituents, or the state government? Who will use the money more wisely? If there is a downturn in the economy, who needs the money?”
