Little: Tax relief on the way

BOISE — Idaho ended another fiscal year with a budget surplus — an extra $100 million that will go to property tax relief, said Gov. Brad Little Wednesday.

That means Idaho property taxpayers will receive about $300 million in relief this fall after the passage of a property tax cut measure during the 2023 legislative session as part of Little’s “Idaho First” plan, according to a press release.

“We’re proud to deliver even more tax relief to help Idahoans combat the horrible impacts and soaring costs of Bidenflation," Little said. "What Idaho is doing is working. Our conservative approach to governing means we encourage economic prosperity, we rein in government spending, and we manage our budget with money to spare, unlike Washington, D.C."

House Bill 292 provided at least $205 million of property tax relief in the first year and the bill also included a surplus eliminator, which meant that any excess cash in the state budget at the end of the fiscal year would be returned to Idahoans in the form of additional property tax relief, the release said.

District 5 Sen. Carl Bjerke of Coeur d'Alene said he saw firsthand what it takes to move the needle within the legislative and budget processes to provide meaningful tax relief to Idahoans.

"This is a positive step, especially if we continue in this vein," he wrote in an email to The Press. "I was more than pleased to be able to do my part in voting to support H292 and as well for the veto override. This tax relief was important to me, as it helps to buffer the effects of rising property values, especially for homeowners here in N Idaho."

District 1 Sen. Scott Herndon of Sagle, said the property tax relief that will be gained by H292 is "real tax relief and an actual reduction to the tax burden for every Idahoan.

"Credit where due though, it was the Republicans in the Idaho House and Senate that drove that bill through the process despite a veto by the governor. It was the first veto override of the Idaho legislature in 17 years," Herndon wrote.

He said there is still work to be done for Idaho’s taxpayers.

He said the Senate considered almost 150 budget bills for government spending and didn’t reject a single bill, even though Idaho has a number of government programs that need greater legislative oversight.

"The best example is Medicaid, which this year was the single largest budget in the state of Idaho ever," Herndon wrote. "At $4.6 billion, the budget was $2 billion higher than just a few years ago. The government has been slow to remove ineligible Medicaid participants from the rolls, and the Idaho legislature missed the opportunity to save taxpayers an additional $1 billion this year."

Herndon said that hopefully, legislators will be even more diligent in the next session to "examine waste and inefficiencies throughout Idaho’s 180 boards, commissions, agencies and departments so that we can keep Idahoan’s hard-earned money where it is best used - in their own pockets."

According to Little, "Idaho leads the nation in delivering historic tax relief for our people."

In addition to the property tax relief announced Wednesday, the state has turned back $2.7 billion in tax cuts to the people of Idaho since Little took office in 2019, the release said.

The tax cuts included a new, lower flat income tax, lower payroll taxes for Idaho businesses and an enhanced grocery tax credit.

Idaho property owners will see the combined reduction on the property tax notice they receive in November.