Idaho Gov. Brad Little touts property tax relief. Here’s how much you can expect

NAMPA — A sweeping property tax relief bill from this year’s legislative session will result in $300 million of relief this year, Gov. Brad Little and Idaho lawmakers announced Wednesday.

Outside a Nampa home, Little signed a ceremonial check, signifying the total tax reduction from House Bill 292, which became law in March. The bill earmarked at least $205 million for property tax relief this year, along with any surplus money at the end of the last fiscal year, which ended June 30.

The state ended the fiscal year with a $100 million surplus, bringing the total property tax break to roughly $300 million.

“We’re victims of our own success because of the incredible increases in residential property tax,” Little told reporters. “This year, we passed what is going to be an enduring property tax reduction.”

Initial estimates forecast between $205 million and $335 million in relief, according to House Bill 292’s fiscal note. The bill provides ongoing relief every year, including a minimum of $122.5 million in 2024 and $182.4 million in 2025. Those totals could also go up, depending on the state’s tax revenue collections in the coming years.

House Speaker Mike Moyle, R-Star, Rep. Jason Monks, R-Meridian, and Sen. Doug Ricks, R-Rexburg, joined the governor at Wednesday’s news conference. The three lawmakers co-sponsored House Bill 292.

Moyle noted that local governments, not the state, collect property taxes. He encouraged property owners to attend budget-setting hearings with local government leaders in the coming weeks. City and county leaders are preparing budgets before the start of their fiscal year on Oct. 1.

“If they raise those budgets, some of your relief will go away,“ Moyle said.

House Bill 292 created state funds for homeowner property tax credits and for school construction assistance — a major source of property taxes. The bill also barred school districts from hosting March elections, by far the most successful month when schools ask local taxpayers to fund construction and staffing costs.

Taxpayers who qualify for a homeowners exemption are eligible for the tax credit, which will apply to a percentage of their property tax bill. Taxpayers will see the relief on their November and December property tax notices, Little said.

Residents could see a 10% to 13% reduction on their property tax bills, Ricks said, but that percentage could vary widely for each taxpayer.

“It’s all relative to the taxing district you’re in, what levies and bonds ... are coming on and what old ones are going off,” Little said.

Little touted $2.7 billion in total tax relief since he took office in 2019. That includes last year’s consolidation of income tax brackets to create a flat 5.8% income tax rate for individuals and businesses and income tax rebates in 2021 and 2022.

“In Washington, D.C., they spend money they don’t have, where we give money back to the hardworking taxpayers of Idaho,” he said.