Idaho Senate rejects property tax decrease

By Doug Nadvornick, Spokane Public Radio

Idaho state senators today (Thurs) rejected a major property tax cut that would have changed the way the state’s schools are funded. The vote was 20-to-15.

Yesterday, the House debated and then approved the bill by a 44-26 margin. But the measure faced a tougher path through the Senate, which earlier this session had rejected a similar proposal.

The measure would have eliminated county property taxes that are earmarked for public schools, a 30-percent cut for the average homeowner. It called for the state to replace that money with a one-and-a-quarter percent increase in the state sales tax.

The bill’s supporters say their constituents, especially in areas that are experiencing rapid growth, are calling loudly for property tax relief.

Critics call it a tax shift that would move more of the burden of funding schools from property owners to poor and middle-income people who don’t own property, but who pay sales taxes. They also say because the sales tax is more volatile than the property tax school funding levels may fluctuate.

Even though senators rejected the bill, they’ll consider putting it to an advisory vote in November. That vote wouldn't be binding, but would be a way to measure public sentiment.