Effects of HB292 have now shown up in property tax notices

Even though there seemed to be a delay in homeowners receiving their 2023 property tax notices, after their arrival early last week, most show a line for a homeowner tax relief credit plus a possible “additional tax relief credit.” In addition, depending on which of the three school districts in Washington County the property is located, there is a “school savings” reduction included. 

 The savings seen on those tax notices are the result of the passage of HB292 in the final days of the 2023 Idaho Legislative session last March.

 After all of the state’s math calculations were penciled out, by early November the state funds to be distributed across Idaho’s 44 counties in the form of homeowner tax relief credit amounted to approximately $192 million, with another $81.9 million going to school district facility funding, according to documents presented to the Idaho Legislature’s Joint Finance-Appropriations Committee on Nov. 9. 

 Washington County Treasurer Sabrina Young told the Signal American the three new tax relief categories required individual calculations on every property and her office had worked through it all in time to meet the state required deadline for notices to be mailed by the last Monday in November.

 “The school districts received funding to offset payments for bonds and supplemental levies,” Young said. “This payment covered Weiser’s supplemental levy approved this year, but those in Midvale’s school district won’t show school savings because they don’t have any outstanding bonds or levies. They did get some state funds to keep. The Cambridge School District payment wasn’t enough to fully pay their supplemental levy, but they did receive a significant amount from the state.”

 Young went on to say this year’s homeowner’s tax relief was granted only to those with the homeowner’s exemption already in place on or before the second Monday in July.

 “Those who applied for and received their homeowner’s exemption after that date will see the relief next year, if they continue to qualify for the exemption,” Young said.

 At the Weiser School District, Superintendent Kenneth Dewlen confirmed the supplemental levy passed by the district’s patrons in May was paid for from the state funds.

 “We could use the funds for up to three things,” Dewlen said. “The first thing  required to pay off would have been any bonds, but we have no current bond. The next was to pay off any supplemental levies. We had the supplemental levy that school patrons passed in May, and we paid it off. The third thing is still in limbo right now. In addition to the supplemental levy pay off, we received additional funds to the tune of $200,000. It’s in an account and will stay there until we have clear guidance on what we can spend it on.”

 Sitting in, WSD’s new deputy clerk and business manager Barbara Choate added, “That excess has to be reserved until we get specific guidance on how we can spend it. HB292 generically says it’s for facilities, but we are being told by all the powers that be that language is too generic and that the legislature is going to clean up the language in this coming session. It should be more specific on what we can use it for.

 “Because it says ‘for future facilities needs,’ does that mean the day after it all went into effect, or does it mean future facilities?” she said. “Facilities ‘needs’ can be anywhere from the physical structure of a building to replacing HVAC units, or windows, and all those kinds of things. Tomorrow is the future, but what was the bill’s intent?”

 Part of the clarification needed, they said, includes clearing up the distinction between supplemental levies and plant facilities levies.

 “Supplemental levies are for daily operational needs of the school district,” Choate said. “We have a plant facilities levy, but the bill didn’t provide any relief to that. There’s a lot of discussion in the legislature, and because it was a bill that was pushed through at the last minute of the session, there wasn’t a lot of crossing the T’s and dotting the I’s.”

 In remarks early in the 2023 legislative session, Governor Brad Little had called for property tax relief. But he wasn’t completely sold on all of the parts of HB292, stating after he vetoed it that he opposed a section of the bill that removed the March election date that school districts use for bond and levy elections. Little also said House Bill 292 jeopardized transportation funding.

 In a letter explaining his veto he stated his concerns, saying “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.”

 The legislature overrode Little’s veto, but at the same time passed a trailer bill to address the transportation issues.

 According to the legislation’s fiscal note, the property tax relief funding will be reduced over a period of three years, with it providing between $205 million and $355 million in year one, with $122.5 million to $272.5 million in year two, and $182.4 million to $332.4 million in year three.