Committee introduces bill letting counties raise lodging tax, requires at least half for property tax relief

BOISE — On March 7, 2025, the House Revenue and Taxation Committee introduced RS32583C3, a bill that would let counties that obtain voter approval increase their lodging tax by up to 3 percentage points and require that at least 50% of the additional revenue be used for property tax relief.

The bill, sponsored by Representative Kevin Andrus of District 35, would raise the existing 2% lodging tax ceiling by up to 3 percentage points (for a possible total of 5%) where a local referendum is approved. Representative Andrus said the measure targets counties with heavy tourism-related demand and infrastructure needs. "This bill deals with the lodging tax," Andrus said, explaining that counties currently receive funds through the Department of Commerce but want more flexibility to pay for local impacts from visitors.

Under the proposal, at least half of any approved increase must be dedicated to property tax relief. The remaining portion — up to 50% — would be available for services listed in the bill, including law enforcement, search and rescue, emergency medical services and fire protection, to be allocated on an equal-share basis among those services, if not used for property tax relief.

Representative Linda Cheatham asked whether the 3 percentage points would be added on top of the existing 2%, seeking clarification on the total cap. "It is up to a total of 5%. So, up to additional 3," Chairman Cannon quoted Andrus in response to the clarification request.

Representative Greg Monks proposed and offered a substitute motion to introduce the RS with one textual change to the election timing on page 2, line 32: striking the words "fourth Tuesday in May or the" so that the question would remain tied to the first Tuesday in November (the general election). Representative Andrus agreed to that change.

The committee considered a substitute motion to introduce RS32583C3 with the May timing language stricken. The substitute motion was moved from the floor and, after no further debate, passed by voice vote. The committee recorded the motion as carried; vote counts were not specified in the transcript.

The RS was introduced as amended. The committee did not take further action such as scheduling hearings or votes on final passage during the meeting.

The measure was presented as intended to provide counties with a local funding tool for tourism-related impacts while ensuring a guaranteed share is used to lower property taxes.

Votes at a glance: A substitute motion to introduce RS32583C3 (strike the May-election language) was moved and approved by voice vote; explicit roll-call tallies were not provided in the record.