Idaho GOP enshrines elimination of property taxes in party platform

MERIDIAN and IDAHO FALLS (KIFI) – The Idaho GOP is pushing for the elimination of all property taxes in the state.

Delegates at the State GOP Convention adopted the plank by approximately an 80 percent margin on June 19 in Meridian. 

“It's now an official part of the Republican platform. The Idaho GOP calls for the elimination of property taxes,” said Brian Almon, a delegate at the convention and Legislative District 14 chairman.

Article I, Section II, Subsection C of the newly-adopted Idaho GOP platform states, “We believe Idaho's tax structure should be predictable, fair and balanced. Property tax is an inherently unjust tax that converts privately owned property into government collateral and threatens homeownership. We support the elimination of property taxes in Idaho and their replacement with revenue sources that do not place a lien on a citizen's home.”

The plank was proposed by Scott Herndon, a previously-elected State Senator from north Idaho who recently won a GOP primary to advance to November’s ballot.

The measure supports eliminating property taxes for both private residences and businesses.

Supporters and skeptics caution that the lost revenue would need to be made up with higher sales or income taxes to continue providing essential services.

Idaho schools rely on property taxes for more than $400 million in annual revenue, according to the Idaho State Tax Commission as reported by IdahoEdNews.

Each year, the City of Idaho Falls receives $35 to $40 million from property taxes, about 10 percent of the city budget.

“If they just want to get rid of themselves or property taxes and move on and not have any of those taxes, it would be devastating,” said Idaho Falls City Councilman John Radford. “We wouldn't be able to have our police force. We wouldn't be able to have our ambulances, and our parks and rec department would all be gone. Our general fund is how we get things, those essential services paid for and property taxes fund those things."

Almon agreed the change would require major changes to Idaho’s taxing structure.

“The critics of eliminating property taxes worry that it would blow holes and budgets for cities and counties and schools,” Almon said. “... Property taxes are unique in that they're local taxes. They're the taxes that support your schools, counties, cities, fire departments, police departments, cemetery districts, library districts, etc. How those can be then shifted to the state level without losing the ability of citizens to weigh in on their local taxing districts’ budgets? I'm looking forward to seeing that debate.”

State Rep. Barbara Ehardt, (R)-Idaho Falls, sponsored legislation this year that would eliminate some property taxes, but not those on businesses or secondary residences. 

“My proposal is eliminating property tax for primary place of residence only,” Ehardt said. “It would cost the state the equivalent of $932 million. I just want to offset that. We could raise the sales tax from 6% to 7.75% to make up that difference.”

The bill has not advanced out of the House Ways and Means Committee. 

Bonneville County GOP Central Committee Chairman Michael Colson said the plank’s adoption will spark important discussions.

“This is something that helps start the conversation on an issue that is important to Idahoans that own their homes and are afraid of losing their homes,” he said.