Idaho Bills

Amends existing law to revise provisions regarding certain limitations of budget requests by taxing district and to provide certain exceptions to such limits.

RS33625 / H0842 This legislation addresses the limitations placed on the growth of property taxes by HB 389 (2021). These constraints have prevented cities, fire protection districts, and ambulance service districts in a small number of very fast-growing communities from being able to keep up with the public safety service demands of their growing populations. Specifically, this legislation: 1.) Increases the cap on overall property tax growth for cities under 30,000 people, as well as for fire protection districts and ambulance service districts that serve any of these smaller cities, from 8% to 15%, if enough new construction and annexed territory has been added to cover the cost of these extra property taxes. 2.) Increases the amount of foregone property tax revenue that can be added to the ongoing property tax budget above these caps, to 2%, replacing the current 1% limit. 3.) Provides that new construction and annexations are added to property tax budgets based on the prior year’s levy rate, rather than the estimated current year levy rate. 4.) Prohibits the accumulation of additional foregone property tax balances in the future. Foregone property tax balances from prior to 2026 may continue to be retained and used in the future, subject to statutory limitations. 5.) Provides that city and county voters may utilize the existing local initiative process to reduce city or county property tax budgets, using the same threshold for passage that the law currently provides for voters to increase property taxes beyond statutory limits (2/3rds vote for counties, and 3/5ths vote for cities).