Plan to slash property taxes passes Idaho House. Governor has voiced concerns about cuts
Idaho Gov. Brad Little has expressed trepidation about the Legislature’s efforts this session to slash property tax and drain the state’s general fund. He said that he’d prefer the state keep its coffers full — especially amid the uncertainty of what the Trump administration’s cuts to federal programs could mean for Idaho.
“We need to be light on our feet” in the transition from the Biden administration to President Trump, Little told reporters last week at a mid-session press conference. “I think we’ve got to be careful.”
On Tuesday, Idaho lawmakers appeared largely unfazed by the warning. The House voted unanimously to pass a bill to cut Idahoans’ property tax by $100 million each year, and send it to the Senate.
Earlier on Tuesday, the Senate passed a massive income tax cut proposal, part of what has been characterized as the largest tax cut in state history. That bill has cleared the full Legislature after prior House approval, and now goes to Little’s desk for his consideration.
Under House Bill 304, the state would direct $50 million each year toward a property tax relief fund that would distribute the savings to residents for their primary residence in counties across the state. Each property owner’s tax relief is based on a formula that incorporates the value of their home, the Idaho Statesman previously reported.
The bill also would divert some funds from the state’s online sales tax revenues and use them to maintain and improve public school facilities.
Supporters of the property tax cut have been vocal about their desire to reduce spending and give money back to Idaho residents. In response to concerns about maintaining a state “rainy-day fund,” House Majority Leader Jason Monks, R-Meridian, who sponsored the bill, asked fellow House lawmakers Tuesday: “Who would you rather have holding the money” — Idaho residents or the state?
The tax cuts that the Legislature is pushing through this session, including the property tax relief bill, could reduce the state’s general fund by about $450 million. In his January State of the State address, Little called for a reduction of the fund by $100 million — less than a quarter of the Legislature’s amount.
“If I would have thought we could do $450, I would have proposed $450,” Little said last week of the hundreds of millions more that lawmakers aim to return to taxpayers.
This story was originally published March 4, 2025 at 5:50 PM.
