2023 Idaho Property Tax Update – Legislature Delivers Relief with Veto Override

Idaho property tax relief legislation began this session with House Bill 292 introduced on March 9. This bill passed the House and the Senate and was delivered to Governor Brad Little on March 22.

Little vetoed the bill on March 27 and sent out a press release which stated,

“Governor Little noted the bill brings to a screeching halt many ready-to-go transportation projects that help keep up with growth. He said it handcuffs local schools and limits our ability to provide quality public education for Idaho families.

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 Governor Little said House Bill 292 presents significant impacts on election dates, public defense funding, online sales tax collections, local government sales tax distributions, and funding for transportation, and it jeopardizes bonding for critical infrastructure projects.”

Because all tax bills must originate in the House, the Senate then prepared what is called a “Radiator Cap bill,” essentially rewriting House Bill 198 as a straight property tax relief bill that did not include the school bond election date issue or the transportation and infrastructure projects. It was addressing the concerns the Governor had cited in his veto explanation.

The original bill and the Senate amendments can be found here: HOUSE BILL 198 – Idaho State Legislature

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The House rejected the Senate amendments to House Bill 198 yesterday with a 59-11 vote. Also yesterday, the House voted 58-12 to override the Governor’s veto of House Bill 292. Today, the Senate concurred and voted to override the Governor’s veto with a straight party line split – 28-7. All Republicans in favor, all Democrats against. You can see the full timeline and history here: HOUSE BILL 292 – Idaho State Legislature. With both houses voting at least 2/3 majority to override the veto, House Bill 292 will now become law, despite the Governor’s objection.

Simultaneously, a trailer bill to House Bill 292 was prepared and was introduced as House Bill 376. This passed the House yesterday on a 59-11 vote, and passed the Senate unanimously today, 35-0.  The Statement of Purpose explains how this trailer bill clears up some of the concerns with the original H292.

“This bill clarifies the sales tax distributions found in House Bill 292, to further ensure that $80,000,000 is distributed to the transportation expansion and congestion mitigation fund, and any moneys over $80 million is distributed to local units of government for local highway projects. It also clarifies that these distributions take priority over certain other distributions.”

Full bill text and information here: HOUSE BILL 376 – Idaho State Legislature

David with the Idaho Dispatch sat down tonight with Senator Glenneda Zuiderveld and asked if she could explain to Idahoans what has taken place with these bills up to this point. Senator Zuiderveld responded directly to the press release put out by Governor Brad Little earlier today:

“I want to make clear that this override and what was done…. no credit goes to Little. He is trying to take some credit for it right now. It was completely the Legislative Branch working together, working things out, fixing the problems that were in that bill… and it was all of the people. I have probably 1,000 emails from all of the people throughout the state saying to override the veto. So let’s give credit where credit is due, and it goes to you, the people, and not to Little.”

Full video interview can be heard here:

Senator Glenneda Zuiderveld Explains Property Tax Relief Bills (rumble.com)