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A bill that would have allowed homeowners who do not itemize to claim a deduction for property taxes has been blocked in the Idaho Senate after sailing through the House.
The reason: It would cost the state $2 million at a time when lawmakers are struggling to avoid deeper cuts in state services as tax revenues fall.
Under current Idaho law, taxpayers who itemize can claim deductions of up to $1,000 for joint filers and up to $500 for individuals.
The federal Housing and Economic Recovery Act of 2008 allows taxpayers to claim the same deduction even if they don't itemize. House Bill 64 would allow Idaho law to conform to the new federal law and make the deduction available for state income taxpayers, too.
"Every dollar is an important dollar for us to look at," said Senate Majority Leader Bart Davis, R-Idaho Falls.
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