House Bill 741, legislation to raise the sales tax from 6% to 7.85% and properties receiving the homestead exemption from paying most nonschool property taxes, will not move forward this session.The legislation proved to be too complex and too big of a change in tax policy to advance this late in the session. In spite of House Bill 741 not moving forward, legislators plan on continuing to work on the concept in the interim and bring back similar legislation in 2023.
Because House Bill 741 is dead, there are no major property tax relief proposals on the table. There are a few property tax relief measures that may move forward, but nothing as impactful as House Bill 741. Bills still on the table include:
The Idaho Legislature does not have much time to tackle legislation to reduce property taxes as it is pressing forward with a March 25th target date for adjournment. Essentially, legislators have a week to sort out how to proceed with the proposals on the table. There is time for action, but the window is closing.