House Revenue and Taxation Committee introduces 'truth in taxation' measure requiring mailed notice of local tax increases

The Idaho House Revenue and Taxation Committee on March 5 voted to introduce RS 32605, a proposal the sponsor called a "truth in taxation" measure that would require local taxing districts to publish a newspaper notice and send mailed notice to property owners before proposing a tax increase.

"This is a transparency piece of legislation," Representative David Cannon said as he introduced RS 32605. Cannon, a Republican from Legislative District 30 who represents Bingham and Butte counties and lives in Blackfoot, said the measure would require two notices before a taxing district could raise taxes: publication in a newspaper and a mailed notice — which he described as similar to a postcard — to property owners in the taxing district. "That notice and the notice in the newspaper would also contain the information for the public hearing, at which there could be public input with regard to their proposed budget," he said.

Cannon said the bill is intended to make proposed tax increases easy for residents to spot and compare with the prior year. "It would be kind of an apples-to-apples comparison as to what the budget amount was the previous year and what they are proposing for the coming year," Cannon said. He also said the measure would not apply to taxing districts whose budgets are less than $1 million and would exclude annexation and new construction when calculating whether a tax increase had been proposed.

Committee members asked for clarifying details that Cannon said would be addressed in a full hearing. Representative Raybould asked how the proposal would differ from the existing public hearing process; Cannon replied that the bill is intended to be "seamless with the existing process" but would add the mailed notice and a clearly labeled notice of a proposed tax increase so taxpayers would not have to "do the leg work" to determine whether a budget constitutes an increase.

Representative Cheatham questioned the bill's requirement for newspaper publication given a statewide push to allow some jurisdictions to move notices online to lower costs. "Is this a different idea or is online dead at this point?" Cheatham asked. Cannon said the bill does not take a position in the debate between online and newspaper notice and that the intent is simply to increase transparency; he said details could be examined in a full committee hearing.

Representative Birch asked whether the required notice would be limited to dollar amounts or allow additional explanation from the taxing entity. Cannon said the bill "requires certain information and then leaves the door open" and would not, in his view, prohibit an explanatory statement about the purpose of the increase; he suggested the committee could examine legal limits on explanatory language at a later hearing.

Representative Bruce moved to introduce RS 32605, explaining that he supported the measure because many budget hearings draw little public attendance and mailed notice would help inform residents. Representative Raymond indicated he would support introduction as well. Representative Cheatham registered the lone recorded opposition when the committee voted to introduce the request.

At the start of the session the committee approved the minutes from March 3 by unanimous voice vote. The sponsor asked that RS 32583 be pulled from the day's agenda by unanimous consent; the committee agreed to remove that item. The committee adjourned with a reminder it will meet again the next day at 9 a.m.

Votes at a glance: The committee approved a motion to introduce RS 32605 (motion made by Representative Bruce) with one recorded no vote from Representative Cheatham; the motion to approve minutes from March 3 carried by voice vote.

The introduction establishes a bill for a future hearing; no substantive committee action on RS 32605 beyond introduction was taken on March 5.