A NEW proposal in Idaho is currently in the works, and it could cut property taxes to less than $600 a year.
But, it might not be all that it’s cracked out to be.
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Proposal in Idaho is set to eliminate most property taxes on owner-occupied homesCredit: Getty Images – Getty
Senate Local Government and Taxation Chairman Jim Rice helped to introduce the bill into the Idaho House this week.
It would eliminate most property taxes on owner-occupied homes, except those associated with voter-approved bonds and school levies.
These are other types of local property taxes, of which the latter helps to fund services not covered by the state as part of basic education.
The bill would include the removal of city and county levies, along with other taxing districts — such as highway, cemetery and mosquito abatement districts.
Mr Rice told the Idaho Press: “On average, it would lower property taxes by about two-thirds.
“In some areas, it’s higher. I think the lowest reduction is 50%.”
One home in Meridian, for example, could see a drop in property taxes from $2,600 to less than $600 a year, Mr Rice told Red Wave Radio.
Increase in sales tax
Despite this, people should not get too excited.
Though property taxes in Idaho would be significantly decreased, the proposal does call for an increase in sales tax from 6% to 7.95%.
This means the price of basic goods like food would go up.
The proposal also does not cover people who own commercial, agricultural and industrial properties and residential properties that don’t qualify for the homeowner’s exemption.
All of these people would still have to pay property taxes as well as an increase in sales tax.
By hiking the sales tax to 7.95%, it is estimated to generate about $900million in additional revenue for the state of Idaho.
Some of the revenue generated from the sales tax will be going toward an increase in the grocery tax credit to help offset the impact the higher sales tax would have on food costs.
However, people would not need an increase in grocery credit if the sales tax was kept the same.
House Majority Leader Mike Moyle favors the property tax route and told the Idaho Press: “You can decide what purchases you’ll make.”
How to qualify for Idaho property tax relief
Since the bill still has not been finalized, the qualifications to reduce your property taxes are still being …….
Source: https://www.the-sun.com/money/4813387/property-taxes-axed-homeowners-idaho/
