Bill Description: House Bill 670 [as amended in the Senate] has been completely rewritten to be a different bill and now amends existing law to revise provisions regarding certain limitations of budget requests by taxing districts and the value of new construction.
Rating: -5
NOTE: House Bill 670 (originally unrated) was amended in the Senate to replace the bill with content similar to, but ultimately far worse than, what exists in House Bill 842.
Analysts note: House Bill 670 has been “radiator capped,” meaning that the original bill has been replaced by a different bill, in this case, a property tax limitation increase bill. The bill makes a number of changes to property taxes; all of which are negative, with the short-term impact being potentially higher property taxes for residents of over 90% of Idaho’s cities and many of Idaho’s smallest counties.
Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?
The bill increases the value of new construction added to the property tax roll from the current 90% of market value to the full (100%) market value, subjecting more value to taxation.
(-1)
The bill would increase the value used for annexed property added to the property tax roll from 90% of market value to the full (100%) value.
(-1)
The bill simplifies how the 3% growth calculation is obtained, which is neither positive nor negative, except that it will likely make it easier to calculate the levy rates. The overall 8% cap remains in effect for cities with populations over 30,000. The use of the previous year’s levy rate for the new construction calculation versus using the current market value will work in both directions, depending upon the direction of market values. According to the Idaho Tax Commission data, the 3% increase allowed by the general cap was the single largest tax increase category from 2024 to 2025.
(0)
H670 would completely lift, with no limitation, the overall property tax increase cap on small cities with populations under 10,000, meaning a tax increase for any cities bumping up against the current 8% cap. The bill would increase the cap to 15% for cities between 10,000 and 30,000 people. Taken together, this represents about 95% of Idaho’s cities that would be subject to no limitation or a 15% limitation. This could result in a major tax increase for residents of smaller cities.
(-1)
Furthermore, this bill applies the same lifting of limitations on counties for those under 10,000 and those 10,000 to 30,000 as was done with cities. Meaning residents of smaller counties who don’t live in city limits would be hit with tax increases.
(-1)
Does it create, expand, or enlarge any agency, board, program, function, or activity of government?
In the definitions section, subsection 14, of this bill, infrastructure for emergency services, as well as equipment, are added to the urban renewal project definitions, expanding the scope of what money could be spent on. In subsection 15, these project costs for emergency services are added as well.
(-1)
