House Bill 409 — Taxing districts, budgets

Parrish Miller 2020 House bill ratings Leave a Comment

Bill description: HB 409 freezes the property tax portion of non-educational taxing districts’ budget for one year.

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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?

HB 409 says that during 2020, all taxing districts shall not collect more in property taxes (the certified tax charge) than they did in 2019. School districts are exempted from this requirement.

HB 409 does allow taxing districts to override this prohibition if two-thirds of voters at an election approve a levy that results in a tax increase.

Under the practice of accrual of a foregone increase, a taxing authority that does not collect all the taxes it could in one year may collect that in a subsequent year. HB 409 prohibits this practice for the 2020 tax year.

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Analyst’s note:
Excluding school districts from the property tax freeze will exempt approximately 30% of all property tax collections from the freeze. The impact of this exclusion will vary among property owners depending upon how much of their property tax bill is due to school taxes. But overall, the bill would mean lower taxes for most Idahoans.