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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Opinion

Our View: Risch listens – and acts – on property tax relief

The Spokesman-Review

Jim Risch continued to show leadership during his whirlwind term as Idaho governor this week by calling a special legislative session to address property tax relief.

He didn’t stop there either.

In press conferences at Coeur d’Alene, Boise and Idaho Falls Tuesday, he spelled out the length of the special session: one day. The date: Aug. 25. The proposed legislation: His. With House Speaker Bruce Newcomb and Senate President Pro Tem Robert Geddes looking on, Risch said he would limit talk for the session to a bill that would provide property tax relief by shifting basic school costs to the state sales tax. Newcomb and Geddes predicted the bill would pass easily.

Idaho politicians have come a long way since January when former Gov. Dirk Kempthorne gave short shrift to property tax relief in his State of the State address, to the chagrin of North Idaho legislators. To their credit, area representatives refused to let the matter die, spearheading the approval of seven bills that provided some property tax relief and narrowly failing to push through legislation similar to Risch’s special session proposal. Their efforts raised awareness in southern Idaho about rapidly increasing valuations and taxes in boom areas. Risch deserves credit for listening to them – and acting.

“Finally, somebody went to work on the second floor,” state Rep. Frank Henderson told The Spokesman-Review in summing up the thoughts of many in the region toward property tax relief.

Kempthorne, who gave up his office on the second floor of the state Capitol when he became U.S. secretary of the Interior in May, accomplished much during more than seven years in office. In 2006 alone, he fought for GARVEE bond funding for state highways, including dangerous Highway 95, and for improvements to state parks. But he failed to grasp the importance of property tax relief in growing areas, like Coeur d’Alene, Post Falls and Sandpoint.

Within days after taking office, Risch tuned in.

Although Idaho Democrats don’t like it, Risch’s plan for property tax relief is solid and protects education funding in tough economic times. He proposes to use a penny increase in sales tax, from 5 cents to 6 cents, and $50 million of Idaho’s revenue surplus to remove $260 million in school costs from property taxes. Also, he wants to funnel another $100 million in excess revenue into a special savings account that would protect school funding in downturn years. The bill calls for raising the sales tax to 6 cents on Oct. 1 and asking voters in November if they approve of the change, although their response would be advisory only.

Risch’s proposal isn’t perfect. Henderson and state Rep. Bob Nonini, R-Post Falls, are working on follow-up legislation to increase the grocery tax credit to help lower-income individuals who’ll be paying more sales tax on food. Nor is the proposal the only one worth discussion. The Democrats have announced a plan that would use $104 million of the $203 million surplus to eliminate the school levy for homeowners but not for businesses, farms and utility property.

Realistically, the Democrat proposal doesn’t have a chance in a state with a veto-proof Republican Legislature.

North Idaho should applaud Risch’s efforts and proposed legislation.