Taxes could go up if proposed bill passes

Rexburg city leaders sent a letter to Idaho state representatives Monday in opposition to a proposed bill. If passed, House Bill 173 will take 50 percent of new construction property tax revenue from local cities to fund schools.City leaders said the revenue that would be taken from the bill helps fund police, fire agencies and streets.

“It would be catastrophic, actually catastrophic for us financially,” said Richard Woodland, mayor of Rexburg.

Rexburg Chief Finance Officer Matthew Nielson said an average of about $64,000 would be taken out of the city’s total budget for 9 years.

“Cities are allowed to increase their budgets by 3 percent every year, but if you lose that 50 percent of new construction every year you could lose the 3 percent increase on that 50 percent,” said Nielson.

Nielson also said cities with urban renewal districts will suffer financially. The city of Rexburg has multiple districts.

“At some point when those urban renewal districts expire that money would be able to go to new construction and depending on what city it is, there may be a large amount of money that would be lost at the city level,” he said.

Woodland said it is the state’s constitutional responsibility to fund public schools.

“We would have to raise money other ways and ultimately the taxpayers would have to pay it. We are very conservative and we try very hard to give citizens the most bang for their buck and if there is ever a need for tax protest it is now,” said Woodland.

The Madison County School District Superintendent said Monday he needed more time to look at how the bill will help the district financially.

On Monday, the bill was referred to the Revenue and Taxation Committee for review. For more information on the bill, go to:http://www.legislature.idaho.gov/legislation/2015/H0173.htm.