The Property Taxes & Revenue Expenditures Study Committee Holds First Interim Meeting

The Property Taxes and Revenue Expenditures Study Committee held its first interim meeting on Friday, August 27, in Boise. Information about the interim committee including committee members, agenda topics and materials (coming soon) can be found here. The interim committee listened to an update from the State Controller’s Office regarding the implementation of House Bill 73, creating a local government budget repository, alternative appraisal methodologies, local government fund balances as well as a general discussion on ways to provide property-tax relief. Below is a summary of what was discussed.

• The State Controller is in the beginning stages of developing both a uniform accounting manual as well as a data portal to serve as a hub for local government budget information. Several counties are among a group of local governments that will pilot the program over the next year. Staff from the State Controller’s Office will meet with IAC next week to discuss the pilot program as well as IAC’s uniform accounting manual.
• Senator Rice is working with a group of county assessors to explore changes to Idaho’s current appraisal methodology. Several alternatives are being discussed, including a strict cost approach, capping annual residential assessment increases to align with commercial valuation increases and a rolling average appraisal methodology. Each scenario would require exempting an additional amount of residential property from taxation.
• Representative Addis is working on legislation to grant highway districts limited ordinance authority for impact fees.
• Representative Addis and Senator Guthrie once again want to look at limiting local government fund balance accrual. Senator Guthrie would like to work with local governments on a reasonable solution that both allows for the accrual of general fund balances but limits accrual of excessive fund balances.
• Many on the committee expressed interest in exploring alternative revenue sources for local government operating expenses, including using ongoing state revenue from increased sales tax collections provided that new funding sources be offset with property-tax reductions.

Monthly interim committee meetings will continue in September and October. Stay tuned for more information on dates and agenda topics for future meetings. In the meantime, please take time to discuss with your legislators ideas to provide meaningful property-tax relief. We’ll have much more to discuss on property-tax reform at our upcoming IAC Annual Conference September 27-29th at the Boise Centre.