House Revenue & Taxation Advance Property Tax Relief Package

The House Revenue & Taxation Committee approved House Bill 292 this morning on a 14-1 vote. The bill now advances to the floor of the House of Representatives for a full vote. The bill will likely be voted on in the next two days. House Bill 292 is the culmination of negotiations kicked off over the summer at a meeting hosted by Senator Scott Grow. Primary participants in discussions over the last year have included Senate Finance Chairman Grow (Ada County), Senate Local Gov’t and Tax Chairman Doug Ricks (Madison County), House Rev & Tax Chairman Jason Monks (Ada County), and Speaker of the House Mike Moyle. Other stakeholders, including IAC, ATI, AIC, IACI, Realtors, and Farm Bureau, participated in various discussions throughout the year. House Bill 292 is an amalgamation of House Bill 77 sponsored by Senator Grow and House Bill 79 sponsored by Representatives Monks and Moyle. The key takeaways are:

• Homeowners will see a reduction in property taxes levied by cities and non-school taxing districts by up to 7.3%
• Homeowners will see a reduction in property taxes levied by counties by up to 16%
• Homeowners will see a reduction of property taxes levied by school districts between 5% and 100% depending on the school district (the statewide average is around 40%)
• A return to the pre House Bill 735 revenue sharing formula
• Reestablishment of the Tax Relief Fund (commonly known as “Wayfair”)
• 5% in new sales tax distributions for ongoing property tax relief
• Up to $150 million in annual state surplus revenues for one time property tax relief (for the next three years)