Committee introduces RS32054C2 to provide $100 million in tax relief split for homeowners and school facilities

BOISE, Idaho — On Jan. 28, 2025, the House Revenue and Taxation Committee voted to introduce RS32054C2, a legislative proposal that would direct a total of $100 million in property tax relief split between school facilities and homeowners. Speaker Mike Moyle, District 10, presented the measure and explained how the funds would be allocated.

The bill would put $50 million annually into the school facilities (plant facilities) fund, which pays for bonds, supplementals and building repairs, and an additional one-time $50 million payment to homeowners. "I firmly believe that the only way we're gonna stop spending in this building is if we give the money back to the taxpayers," Speaker Mike Moyle said while urging the committee to introduce the RS.

The measure uses two revenue streams described in the committee discussion. The ongoing $50 million supplements an existing mechanism that directs 20% of annual distributions from the state's tax relief fund (revenues from online sales tax collections) to the facilities fund; those distributions are allocated to school districts on the basis of average daily attendance (ADA). The one-time homeowner payment would draw from the remainder of the former bond levy equalization fund — roughly $63 million remained after the bond-levy-equalization program ended — with $50 million of that sum distributed to homeowners with homeowner exemptions.

Representative Gannon asked for clarification about the bond levy equalization program. Speaker Moyle said the state phased out bond levy equalization several years ago and replaced it with the tax relief fund distribution that pays districts for bonds, supplementals and facilities; the new school facility distributions are apportioned by ADA. Representative Birch sought and received confirmation that the one-time $50 million would come from the leftover balance in the bond levy equalization fund and that the ongoing $50 million would be added on top of the existing 20% allocation from the tax relief fund.

Some members voiced budgetary concern. Representative Shannon summarized the aggregate scale of multiple pending tax-relief proposals and said, "you add that up, you're at $540,000,000 which is a lot of money," cautioning the committee that available resources could reach a ceiling. The committee discussion recorded no amendment to RS32054C2 during the hearing.

Representative Ehlers moved to introduce RS32054C2. The committee approved the motion by voice vote; the chair declared, "RS-32054C2 stands introduced." The committee set its next meeting for 10 a.m. the following day and adjourned.

Votes at a glance

- Motion: Introduce RS32054C2 - Mover: Representative Ehlers - Second: not specified - Outcome: Introduced (voice vote; no roll-call tally recorded)

Context

Committee members and the sponsor characterized this RS as the third of three proposals presented to address income, sales and property tax relief. The sponsor said the package is intended to provide tax relief across the three main tax types and that further changes to property taxation would require additional work because local taxing districts set budgets and property tax structures vary by locality.