Bill Description: House Bill 78 would increase the homeowner's property tax exemption from 50% of assessed value to 55%, increase the maximum exemption from $125,000 to $224,360 for 2024, and index the exemption going forward.
Does it increase government redistribution of wealth? Examples include the use of tax policy or other incentives to reward specific interest groups, businesses, politicians, or government employees with special favors or perks; transfer payments; and hiring additional government employees. Conversely, does it decrease government redistribution of wealth?
House Bill 78 would amend Section 63-602G, Idaho Code, to increase the homeowner's property tax exemption from 50% to 55% and increase the maximum exemption from $125,000 to $224,360 for 2024. It also would index the exemption "to the annual change in the United States all-transactions house price index for the state of Idaho as determined by the federal housing finance agency" going forward.
These changes will reduce property taxes for many homeowners in Idaho. Unfortunately, the property tax relief enjoyed by some homeowners would be a tax shift that results in other property owners paying more.
The mill rate is based on the total taxable value of the property within a taxing district. Increasing the homeowner's property tax exemption will decrease the property’s total taxable value, resulting in a higher mill rate. This change will force owners of commercial and rental property to pay more in property taxes.
This outcome will be particularly harmful in rural communities, where there are fewer commercial and rental properties to share the higher property tax burden imposed by this shift.
STAY CONNECTED with the latest news, research and opinions from the Gem State.