In August of this year, the Idaho legislature convened a special session in which Governor Jim Risch prevailed in shifting a significant portion of property tax revenue (used to fund school operations and maintenance) to the sales tax. In so doing, the sales tax was raised from 5% to 6%.
As 2007 property tax bills go out to Idahoans across the state, the news is generally good! Combined with the legislatureâ€™s increase of the homeownerâ€™s exemption from $50,000 to $75,000, the tax shift is giving meaningful relief. Instead of the large increases in property taxes seen nearly every year, most homeowners will actually see a decrease.
Many Idahoans are being taxed right out of the homes they have owned for years, as county assessors try to keep their appraisals abreast of skyrocketing market values. That is why most conservative legislators see the property tax as the least fair of the three taxes levied in the state.