Bill Description: Senate Bill 1107 would increase the income and home value thresholds for getting a benefit from the circuit breaker property tax relief program.
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?
Senate Bill 1107 would amend Section 63-705, Idaho Code, which deals with the property tax relief program, commonly known as the "circuit breaker." This bill makes two changes, increasing both the income and home value thresholds for the program.
The income threshold is increased from $31,900 to $37,000, which is a 16% increase. The home value threshold is increased from 150% of "the median assessed valuation for all homes in the county receiving the homestead exemption" to 250% of this valuation.
At its core, the "circuit breaker" is a redistributive program that allows a small number of homeowners to pay less in property taxes and correspondingly forces their neighbors to make up the difference. By increasing the income and home value thresholds for the program, Senate Bill 1107 would exacerbate this redistribution.
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