"You may not always have a comfortable life and you will not always be able to solve all of the world's problems at once but don't ever underestimate the importance you can have because history has shown us that courage can be contagious and hope can take on a life of its own." --Michelle Obama
The Legislature has recessed until April 6, 2021 due to multiple cases of COVID-19 among legislators and staff. I hope that everyone has a speedy and complete recovery and that we do not spread the disease further. We have the capability to do our work remotely as we spent federal aid money on the technology necessary, but the majority refuses to make rule changes to allow it. When we return, we will address remaining bills and budgets.
Income Taxes
The House brought H332 directly to the floor with no opportunity for the public to testify, long past the deadline for new bills to be sent from one house of the legislature to the other. As is too often the case, poor process has lead to a poor outcome.
The legislation slashes income tax rates with the benefits flowing overwhelmingly to those at the top of the income spectrum. It also provides a lopsided one-time tax rebate equivalent to 9% of a taxpayer’s state income tax due in 2019, or a floor of $50 per person. Under the bill, a couple bringing in $1 million annually would receive more than $10,000; while a couple making $50,000 would receive only $113. The ongoing tax cut for the household earning $25,000 is only $13 a year.
This bill also threatens Idaho’s COVID-19 relief package. The American Rescue Plan Act allocates $1.2 billion for Idaho, but will likely be clawed back dollar-for-dollar if the state enacts this tax cut. H332, at a cost of $390 million, puts one-third of our relief dollars in jeopardy in this first year. Idaho could stand to lose more of those relief funds due to the out-year costs of the bill.
This tax cut is not what Idahoans have been asking for. Overwhelmingly, the people have been asking for property tax relief and investment in important governmental functions, such as education and infrastructure.
The bill has come to the Senate, but errors have been identified and the legislature is deciding how to deal with that. I hope we will have an opportunity for public testimony and a robust discussion.
Property Taxes
This week the Senate finally considered S1108, which was amended multiple times. This bill was purportedly aimed at addressing some part of the property tax puzzle.
Many of us in the Senate have been hearing from our constituents about the need for property tax relief. The homeowner's exemption cap at $100,000 in a time of rising residential property values throughout much of the state has shifted much of the property tax burden onto residential property owners while commercial properties are bearing less of the burden. Additionally, counties, cities, school districts, and other taxing districts continue to provide necessary services to the people of Idaho, often without proper support from the state.
Unfortunately, S1108 did not address any of those issues. Instead it would have further constricted localities' ability to collect property taxes while failing to provide meaningful property tax relief to homeowners. Cities identified this bill as an obstacle to allowing further housing development which was particularly problematic in light of our current housing shortages in many parts of the state. After a lengthy and thorough debate on the Senate floor, the bill was voted down 17-18. I hope the legislature can take up real property tax relief measures this session.
Vaccine Updates
Idaho continues to receive increased doses of COVID-19 vaccine. As of Wednesday, March 17, we have 202,520 Idahoans fully vaccinated and another 125,484 have received the first shot in a two shot series.
Vaccine now available for:
Ages 55-64, with at least one medical condition
Ages 65 and Older
Healthcare workers
Long-term care facility staff and residents
First responders
K-12 teachers and school staff
Frontline essential workers
Vaccine Schedule:
March 15: Ages 55-64, with at least one medical condition
March 22: Ages 55-64, general population
March 29: Ages 45-54, with at least one medical condition*
April 5: Ages 45-54, general population
April 12: Ages 16-44, with at least one medical condition*
April 26: Ages 16-44, general population
The South Central Public Health District has more information on COVID-19 vaccines, including information on vaccine providers
