H0352 Grocery Tax Credit -
This proposal increases the existing grocery tax credit from $100 to $135 per person for all Idahoans including those 65 and older. Currently, the total estimated income tax savings to Idahoans from the credit in CY2019 is $155.8M and increases gradually based on population growth in Idaho. It has been frozen at $100 per person since 2015 ($120 for those over 65 years of age). The intent of the legislation is to offset the sales tax paid on groceries with an increased credit.
Property Taxes
- ISCPA works closely with partner groups like ATI - Associated Taxpayers of Idaho - to monitor and evaluate tax proposals and keep our members informed. ATI is the leader in Idaho tax analysis and working with them has allowed us to share some property tax information we thought you might find especially interesting.
Many ISCPA member companies choose to be affiliated with both ISCPA and ATI to better support and advocate for business in Idaho. ATI is a valued partner and have allowed us to share a recent ATI publication:
Property taxes are very complex and difficult to thoroughly understand. There are over 1,100 taxing districts and over 3,210 tax code areas in Idaho, which is part of what adds to the confusion. We continue to see rising values, rising local budgets and other elements related to growth. Growth is a good thing, but along with it comes rising property taxes and the discussions in the legislature that began with the Property Tax Work Group.
C
urrent statute allows taxing districts to take their previous year’s non- exempt tax rate times new construction and annexation value and add it to their maximum allowable budget calculation. With the level of growth that has occurred in many areas of the State, this means that budgets can grow at much more than 3%. ATI compiles this information in their Property Tax Levy Book (
Email Laura
for info about purchasing).
Taxing districts including cities and counties base levy is 3% above the prior year’s budget. When you add new construction and foregone the percentage can be higher than 3%. A taxing district may choose to set a budget less than the maximum allowed budget and use the foregone amount in a later year. Of note, it is now possible to permanently disclaim the current years foregone balance since the passage of HB207 in 2017.
In addition to property taxes, growth also means other sources of revenue for local government including development impact fees, other income, fees and taxes. Balancing the needs of the local districts related to growth with the a
dditional burden it places on taxpayers is a complex task, but one that is being addressed through multiple pieces of legislation.
Other resources you might find valuable:
View ATI’s presentation to the Interim Committee
here
.
