Idaho committee holds House Bill 74 and advances RS 32,441 to second reading

BOISE, Idaho — The House Revenue and Taxation Committee on Feb. 21 voted to hold House Bill 74 in committee and, separately, introduced RS 32,441 and recommended it be sent to the second-reading calendar.

Representative Jason Monks, sponsor of both measures, told the committee the two items are intended to add $50 million to the state’s School Facilities Fund and $50 million to the Homeowners Property Tax Relief Account. "We used to have $50,000,000 that was ongoing to the school facilities fund and $50,000,000 1 time to the homeowners tax relief fund," Monks said, explaining the new draft statute (RS) would make both amounts ongoing.

The change would not increase the total dollar amount proposed for relief but would shift the homeowners allocation from a one-time payment to an ongoing distribution, Monks said. He described how the School Facilities Fund operates: funds first pay school bonds and levies and any remainder "comes out to the bottom" and can be used by districts for maintenance or capital projects.

Monks said the School Facilities Fund benefits all property taxpayers in a taxing area, while the homeowners account is distributed only to property owners who claim the homeowners (homestead) exemption. "A lot longer explanation than what this bill really did," Monks added, but he said the intent is property tax relief with a mechanism that also helps districts that have few bonds or levies.

Public testimony submitted by email and read into the record by the committee came from Lisa Anderson of ARP Idaho, who urged support for House Bill 74. "Property tax continues to be the most burdensome tax for low income and older Idahoans to absorb," Anderson testified, saying relief helps older Idahoans on fixed incomes and may limit landlords passing increases to renters.

Committee action and debate

A motion by Representative Shepherd to hold House Bill 74 passed on a voice vote; the committee did not take further action on that bill at the hearing. Representative Ehlers moved to introduce RS 32,441 and recommend it be sent to the second-reading calendar; that motion also passed on a voice vote.

Committee members debated the broader fiscal effects of the measures. Representative Melissa Wintrow Birch (identified in debate as Representative Birch) voiced reservations about longer-term budget impacts, noting the cumulative effect of multiple recent tax measures and exemptions and saying such shifts remove revenue that funds public education and other state services. "This will not provide the property tax relief that people may think it is because there are, if it's paying off old school bonds, there's need for additional school bonds to meet current and future needs," she said.

Representative Raybould questioned whether it is appropriate for the state to use sales-tax-derived or other state funds to offset local property tax decisions. Representative Monks responded that Idaho’s sales tax was introduced historically in part to replace property taxes and defended using state revenue to offset local property-tax burdens. Representative Ehlers argued the measures fit a broader tax-relief policy; Representative Gannon raised concerns about large tax exemptions shifting burden onto homeowners and small property owners.

What the measures would do (as discussed)

- Add $50 million to the School Facilities Fund (Monks said that additional amount will produce roughly another $6 million that would "fall out to the bottom" and be available for districts with few bonds or levies). - Convert a previously one-time $50 million homeowner property-tax relief allocation into an ongoing distribution to the Homeowners Property Tax Relief Account, so homeowners with the homestead exemption would receive those funds.

Decisions recorded

- House Bill 74: Motion to hold in committee (mover: Representative Shepherd). Outcome: held in committee (voice vote). No roll-call tally recorded in the transcript. - RS 32,441: Motion to introduce and recommend to second reading (mover: Representative Ehlers). Outcome: introduced and recommended to second reading (voice vote). No roll-call tally recorded in the transcript.

Votes at a glance — Feb. 21, 2025

House Bill 74 — Motion to hold in committee carried; bill held in committee (mover: Rep. Shepherd; voice vote). RS 32,441 — Motion to introduce and recommend to second reading carried; RS stands introduced and will be recommended to the second-reading calendar (mover: Rep. Ehlers; voice vote).

Why it matters

Committee members and the sponsor framed the measures as part of broader state efforts to provide property-tax relief. Supporters said converting the homeowners amount to an ongoing stream and adding funds to the school account would reduce some property-tax pressure for homeowners and could help districts that do not rely heavily on bonds or levies. Critics said the measures remove general-fund dollars or sales-tax-derived revenue from the state budget and that the net effect on taxpayers depends on how school districts adjust future bonds and levies.

What’s next

House Bill 74 now is held in committee; RS 32,441 was introduced with a recommendation to place it on the House second-reading calendar. Further committee or floor action would be required to enact either measure.

Reporting note: quotes and attributions are taken from the committee hearing transcript dated Feb. 21, 2025. No vote tallies by member were recorded in the transcript; outcomes are reported as the committee chair announced them.