Bill Description: House Bill 278 would allow local taxing districts to withhold from newly created or expanded urban renewal districts the tax increment financing funds they would otherwise receive.
Does it transfer a function of the private sector to the government? Examples include government ownership or control of any providers of goods or services such as the Land Board’s purchase of a self-storage facility, mandatory emissions testing, or pre-kindergarten. Conversely, does it eliminate a function of government or return a function of government to the private sector?
House Bill 278 amends Section 50-2908, Idaho Code, to allow local taxing districts (other than highway districts) to withhold incremental financing funds from an urban renewal district created or expanded after July 1, 2021.
Urban renewal districts and tax increment financing are tools used to expand the size and scope of government and to compete with the private sector. While the change proposed by House Bill 278 is minor — it is optional and applies only to newly created or expanded districts — it is still a small step toward reducing wealth redistribution and market manipulation.
STAY CONNECTED with the latest news, research and opinions from the Gem State.