Gov. Little signs Idaho property tax cut bill, raising total cuts this year to over $400M

Idaho Gov. Brad Little signed into law a bill that cuts property taxes and bolsters school districts’ bond issues and levies.

Joined by Idaho Republican legislative leaders at a livestreamed news conference in a Boise neighborhood on Wednesday, Little signed House Bill 304 into law.

The new law reduces Idaho’s state tax revenue by $100 million every year, shifting funds in two ways:

• It transfers $50 million to a state fund to reduce property taxes for Idaho homeowners.

• And it sends another $50 million to a state fund that helps pay off school districts’ bond issues and levies.

Little called the bill a “win-win,” saying it builds on $4.6 billion in recent tax relief by the Legislature and Idaho’s “historic public education investments.”

“America wants what Idaho has: safe communities, strong schools, a bustling economy that offers tremendous opportunities for our people to prosper,” Little said at the news conference. “I’m proud to join the dedicated leaders in the House and Senate for the signing of this important bill.”

The average Idahoan homeowner should see property taxes reduced by 14.6%, said Sen. Scott Grow, R-Eagle, who co-chairs the Legislature’s powerful budget committee.

Senate President Pro Tempore Kelly Anthon, R-Rupert, said when he came to the Legislature, he told his constituents he’d see if every bill he looked at is good for the Idaho family. And that’s true for this bill, he said.

“We’re seeing taxes cut historically this year in the Idaho Legislature,” Anthon said. “… These are things that really impact people’s lives.”

Idaho Legislature enacts $403 million in tax cuts, reducing the state’s general fund revenue

The bill is the third major tax cut bill the Idaho Legislature passed this year, totalling $403 million in annual reductions to Idaho’s state revenue.

• House Bill 40 reduces the corporate and individual income tax rates from 5.695% to 5.3% and reduces state revenue by $253 million per year. When Little signed the bill, the governor’s office described the bill as the largest income tax cut in state history.

• House Bill 231 increases the grocery tax credit used to offset the sales tax Idahoans pay on food to $155 per year. To increase the grocery tax credit, House Bill 231 reduces state revenue by $50 million every year.

Another new law this year, House Bill 93, provides a refundable tax credit for education expenses for families, including tuition at private, religious schools. That bill reduces revenue by $50 million – bringing total revenue reductions from those four bills to $453 million.

In February, Little told reporters he was concerned by the amount of revenue that will be reduced by the three major tax cuts and the education tax credit. In his State of the State address in January, Little called for $100 million in tax cuts.

“If I would have thought we could do $450 (million), I would have proposed $450 (million),” Little said Feb. 25.

Asked on Wednesday if he had concerns there were too many tax cuts this legislative session, Little replied “we’ll see.”

And he referenced praise from Florida Gov. Ron DeSantis, who visited Idaho earlier this week.

“He made the point that Florida is doing great. But the only state doing better than Florida is Idaho,” Little said. “And as long as we keep growing our gross domestic product. … We’ll need to watch it. We’ll need to be vigilant.”

House Bill 304, the property tax cut bill, takes effect immediately through an emergency clause. The Idaho Legislature unanimously passed the bill in the House and Senate.