The IACI’s dream of repealing Idaho’s personal property tax might come true.
SUN VALLEY — Gov. Butch Otter acknowledged that his position has shifted since the 2012 legislative session, when he approved a cut in the income tax rate instead of the Idaho Association of Commerce and Industry’s top priority.
Cutting income taxes had to come first, Otter argued, because it covered a broader segment. “In order to help the economy, we needed to help the entire economy,” he said.
The next step, Otter said, is phasing out the $129 million personal property tax, which provides about 11 percent of property tax revenue statewide.
“I want you to know my commitment to the personal property tax and the reduction and eventual elimination of that is undaunted,” Otter said to applause at the group’s annual public policy conference.
‘STARS ARE ALIGNED’
House Majority Leader Mike Moyle said the time has come for repeal, and said a draft bill is already circulating for the 2013 Legislature.
“We’re on the verge of getting something done here that will be beneficial to everybody,” said Moyle, R-Star. “It’s something we need to get done and be done with it. The stars are aligned now.”
IACI has pressed for years to repeal the tax on equipment and other nonreal property, which is considered an administrative nightmare by many businesses.
Senate Majority Leader Bart Davis, however, said the state budget is unlikely to be robust enough to replace $129 million in lost income to local governments.
Though the average proportion is 11 percent, four of Idaho’s 44 counties receive more than 25 percent of their property tax revenue from the personal tax. It supports all levels of local government reliant on property taxes, most of which are collected on assessments of land and structures.
“I couldn’t agree more that that’s a priority,” said Davis, R-Idaho Falls. “But if the solution today is that the state of Idaho will provide an economic reimburse-ment to the counties. … I don’t know how we have the dollars to do that.”
If the property we ‘own’ can be taken from us for non-payment of taxes, then either we really don’t own the property and are just paying rent, or we are paying extortion. I am a Nevada resident, and would like to see a return to the alloidial title that Nevada had for a short time.
That’s not likely to happen, though.
Bear
My recommended solution: If you own land, it cannot be taken from you except for treason. I agree with reasonable property taxes and that the uses of that money should be precisely defined and outlined in the State’s Constitution (for future reference). If you don’t pay your taxes, a lien is placed on your land. If you sell your land, the back-taxes are taken right off the top of the sale, but the property should NEVER be taken from the rightful owner, including his/her heirs. IMHO
Admin,
If we could reduce the size of government such that it could be paid for with a sales tax (consumption based
tax), wouldn’t that be better than a property tax on homes? The advantage I see with a consumption tax
is that it’s possible to protest the tax through boycotting purchases for some length of time, whereas you
do not have that option with a property tax.
The loss of tax revenue would show the support for the ‘NO’ position pretty clearly.
Bear
butch otter is good at lip service. this tax won’t be repealed. it will mean revenue loss, and as you know all politcians can’t tolerate revenue loss. idaho finances may as well be run my the mafia. thats how much integrity our elected officials have.
What’s sort of worrisome is that talk about removing the 3% cap on property taxes, eh? Once those politicians get their noses under the edge of THAT tent, it won’t be long before they’ll be taxing property like the People’s Republic of California or New York.