Tax relief

Two Farm Bureau policies were implemented with the legislature’s override of Governor Little’s veto of H292. IFBF policy #102 opposes shifting property taxes to agricultural land by increasing the homeowner’s exemption, and policy #114.2 supports eliminating the odd March election date.

H292 successfully provides property tax relief without shifting any taxes. It also eliminates the March election date used by schools to run bonds and levies.

While the votes to override were not quite as robust as the original votes to pass the bill, both chambers easily surpassed the 2/3 vote needed to override a veto. It was largely a party-line vote to override, although Rep Greg Lanting (R-Twin Falls) was the lone Republican to oppose the override.

A veto override is a rare occurrence in Idaho, despite having a supermajority of Republicans in both chambers of the legislature. The last successful veto override occurred in 2007, when the Legislature overrode then Gov. Butch Otter’s veto of a bill banning smoking in bowling alleys. Previously, in 2002, lawmakers overrode then Gov. Dirk Kempthorne’s veto of a bill repealing Idaho’s term-limits law.

According to the Idaho Education News: “Despite being on the losing side of the veto override, Little claimed victory in a Wednesday afternoon news release. He hailed lawmakers for passing “simpler” and “enduring” tax relief, while addressing his concerns about funding road projects.  The 309-word news release made no mention of the March school election date.”

H292 will provide targeted property tax relief to all Idaho homeowners which will show up on your annual tax notice as a credit labeled “tax relief appropriated by the legislature.” This relief is funded by 2.25% of Idaho sales tax, as well as some one-time monies and a portion of any surplus tax revenues each year. 

H292 also provides modest tax relief to all property owners by earmarking approximately $100 million to go to every school district in the state based upon their average daily attendance.  This money comes from an additional 2.25% of Idaho sales tax, and additional one-time monies and potential surplus taxes. The schools must use this money to directly reduce the amount they collect in property tax to pay for school bonds and/or levies. If they do not have any bonds or levies, they can use that stream of income to bond against for future projects.

Farm Bureau would like to thank all Farm Bureau members who contacted their legislators and asked them to vote to override the veto.  This effort likely would not have been successful without your engagement.

Farm Bureau would also like to thank the sponsors of H292, Speaker Mike Moyle (R-Star), Rep Jason Monks (R-Meridian), Senator Scott Grow (R-Eagle) and Senator Doug Ricks (R-Rexburg) for recognizing the importance of avoiding a shift in taxes when providing property tax relief, and for their tireless efforts on this major project. IFBF supports H292.