The bill, which later passed the House, increases the grocery tax credit by $20 per person starting in the 2023 tax year. The motion sought to amend the legislation to instead repeal the grocery tax versus increasing the credit. Democrats have advocated for eliminating the sales tax on groceries throughout the 2022 session, since it would help Idaho’s working families each time they shop.

“We have been saying all along that if the legislature pushed $600 million out the door for corporate and income tax cuts benefiting the wealthy, we would not have dollars available for meaningful tax solutions that benefit working Idahoans. House Bill 509 illustrates this exact result: all the legislature can now do is promise a modest benefit for regular Idahoans two years from now,” Asst. House Democratic Leader Lauren Necochea said. 

The proposed increase to the grocery tax credit is modest, and doesn’t fully account for inflation that has occurred since the credit was last updated and the expected inflation that will occur before the bill takes effect, Necochea said. Idahoans wouldn’t receive the benefit until they file taxes in 2024. If the state is going to promise this future benefit to Idahoans, Democrats have stressed the need for a bolder proposal providing meaningful aid.

“The House GOP has an ongoing pattern of providing huge tax breaks for people at the top, and only after their priorities are brought to light, throwing occasional bread crumbs to working Idahoans,” House Democratic Caucus Chair Sally Toone said. “Our people need help. We receive calls and emails from constituents daily asking us to repeal the grocery tax. As lawmakers, we have a duty to listen to the people of Idaho, but the majority party isn’t doing that. House Bill 509 isn’t nearly enough. Our working families deserve real help.”

“We need inflation relief now. At 9%, Idaho is a hotspot for inflation and Idahoans need inflation relief, not $20 two years from now,” Rep. John Gannon said. “We also need to address the homeowners exemption and quit borrowing and spending money. Policies need to change.”

Sen. Grant Burgoyne, Rep. John Gannon, and Rep. Lauren Necochea, each of whom have done extensive work on the subject, discussed the various pieces of upcoming property tax legislation with members of the media in a virtual news conference.

The Idaho Legislature caved to lobbyists in 2016, and capped the homeowner’s exemption, which had been indexed to rise with market values. The decision dramatically shifted the property tax load away from commercial real estate and onto homeowners, making it a win for big business and a loss for regular Idahoans. Now, in Ada County, resident homeowners pay at least 73% of the property tax burden.

“We must pass legislation to ensure that everyone pays their fair share of property taxes, and only their fair share,” Burgoyne said. “We have been bringing bipartisan bills to reduce property taxes for residents for more than three years and have faced a wall of opposition from some House majority leaders. We must overcome that opposition and deliver meaningful change this year.”

The legislative solutions proposed by the three included:

• A bill to re-index the homeowner’s exemption to housing values, to restore a fair balance of the tax load between commercial and residential property.
• A bill to catch up the Property Tax Reduction program, or circuit breaker, with rising property taxes.
• A bill to revise provisions regarding a tax exemption for new capital investments.

“Property taxes are not like sales or income taxes, where revenue reductions mean less money to spend. When there is less property to tax, local governments raise the levy (percentage rate) on other property – mostly residential — and residential pays more. That’s why we need to add more properties to the system,” Gannon said. “Otherwise residential is just shifting the tax around.”

“Every year, state policies are shifting more and more of the property tax load onto homeowners and away from other types of real estate,” Necochea said. “It is urgent that we adjust our homeowner’s exemption to restore a fair balance to our property taxes.”

Tom Luna, the new Idaho GOP Chairman, recently previewed his plan for attacking Democratic candidates this election year:

Step One: Harp nonstop on a report generated for the City of Boise by a nonpartisan team of volunteers, and falsely attribute it to Idaho Democrats, who in fact never wrote, endorsed, or implemented it. The report compiled some citizens’ suggestions, and is not and never has been Democratic policy or platform.

Step Two: Call Democratic legislators “socialists,” ignoring the fact that we are not only capitalists who embrace the importance of businesses large and small, but many of us are business owners ourselves.

Step Three: Hope that voters will settle for name-calling and distortion, and won’t probe into actual positions or records.

This brazen misdirection by the GOP Chairman belies a fear that if Idaho voters really understand Democrats’ positions and the GOP’s dismal single-party governance record, the Republican super-majority would be in jeopardy.

Voters deserve to know where Democrats actually stand. Here is our legislative agenda, plain and simple:

• A Strong Economy. Idaho has lost business opportunities due to inadequate infrastructure, an insufficiently skilled workforce, and a lack of affordable housing. We want to correct these deficiencies.  Let’s be honest—there’s a lot of crony capitalism in this state masquerading as real capitalism.  We’ll do a lot better without a one-party government whose focus is on well-connected insiders rather than making sure everyone has economic opportunity.
• The success of our communities starts with our schools. Teacher pay must be sufficient to recruit and retain quality educators. Lack of funding shouldn’t force schools into four-day weeks and sub-par education programs. Education should be adequately funded by the state as mandated by our Constitution – property taxpayers shouldn’t have to pass levies to keep schools operational.We should be generating a skilled workforce that draws high-wage employers to Idaho, not underfunding higher education, forcing tuition hikes that make a degree unaffordable.
• Fair Taxes. We oppose the GOP’s giant tax cuts and exemptions to those at the top that leave the rest of us with overblown property taxes and underfunded schools and infrastructure. The 2018 Republican income tax cut cost the state over $200 Million annually in revenue, gave over $5,000 a year in cuts to the wealthiest, but only $12 a year to earners in the bottom 20%, while leaving schools underfunded and giving nothing to those needing it most.  The indexed homeowner exemption should be restored and we must increase property tax assistance for seniors and veterans. Millions of dollars a year in internet sales taxes are currently held hostage by the majority party’s infighting. These funds should be used to fund education, repair infrastructure and reduce property taxes. And the legislature should examine the $2.5 billion a year in lost revenue from sales tax exemptions.
• Public Lands. Democrats always fight to protect public lands and your right to access and use them, as well as your right to enjoy clean air and clean water.
• Strong families. Idahoans should not have to work three jobs to support a family. We support gradual increases to the minimum wage and affordable, safe childcare.
• Public Safety. We support our first responders.  We back adequate funding for training and equipment, including ensuring proper standards for use of force.
• Idaho has 187 structurally deficient bridges, and 898 bridges that are past their expected structural life. You deserve roads and bridges that are strong enough for the needs of business and your family’s safety.
• Health Care. We support affordable, quality health care, so we and 61% of Idahoans who agreed with us made Medicaid expansion a reality.

Idaho Democrats are fighting for a more balanced legislature that addresses constituents’ needs.  After thousands of conversations with voters, we have found broad public support for our platform as described above, and the GOP is rightly concerned that a debate on real issues will not play out to their advantage.

In 90 days, you’ll have the chance to correct the harmful imbalance in our legislature. We hope that you’ll join us in paving a better road for Idaho’s future.

Representative John Gannon/(D-Boise) stressed the importance of learning from the Mississippi legislature outbreak.

“The 26 legislators and 10 staffers who tested positive for the virus are evidence that the virus can disrupt a legislative session and cause serious illness.” Gannon said. “There is no doubt that meeting without masks, without a virtual option, and with a casual disregard for the virus can result in a mess. The virus is real, and the problem is real. The first task for the working group should be to set up a process and procedure to protect members and the public.”

“The Idaho legislature will have to meet in January to work on legislation to address the financial, health, and other impacts of the coronavirus pandemic. However, we need to make sure that we are meeting safely so legislators aren’t getting sick and bringing coronavirus back to their communities. The Idaho legislature needs to create a safe environment for legislators, staff, and citizens.”

The first concern is for individual legislators and members of the public who are at high risk for Covid 19 because of health conditions, and those who live with family members who are at high risk. There may be as many as 15 House legislators in this category. These members and public participants may be conservatives, progressives, old or young, but our system encourages and promotes their participation. Regardless of how they vote, or what they say, they have a right and obligation to participate. Legislative procedures should never prevent their participation.

Second, a legislative session may have an obligation to conform with emergency health declarations such as limits on the number of people congregating in one place. Failure to respect limits could result in many getting sick and while the disease for them may not be life threatening, illness can significantly disrupt the process. Furthermore, most legislators travel back to their home districts on weekends. If the legislature is not following safety recommendations, there is a higher risk of legislators unknowingly bringing Covid 19 to their communities and increasing infections in every corner of the state.

The Utah legislative model provides some ideas. Utah has laws allowing alternative meeting methods. In April the entire legislature convened virtually. On June 16 the legislature convened again and this time allowed members to participate via videoconference and others to appear in the chambers. Committee hearings have proceeded with virtual participation. But the bottom line is each legislator must participate and the public has a method of participation. Other legislatures are convening sessions with virtual options as Wyoming did in May and nationwide most legislatures are taking steps to modify their proceedings according to the National Conference of State Legislatures.

Today Idahoans are meeting through video apps and we are adapting and learning how to use these communication methods efficiently. Business, journalism, courts, advocacy groups and dozens of other professions, trades and organizations are using video apps effectively and often. The legislature can do this too.

But make no mistake, the in person legislature should always be used except where there is a serious, dangerous emergency in which case legislation should allow the legislature to adapt. Our legislative services office has advised they can handle virtual participation under existing contracts and the Attorney General has informally advised it is constitutional. My proposal to do so at the end of the last session was well received but too late for consideration. A priority item
on the agenda next year should be to fix this problem. Let’s let everyone participate to the fullest extent possible.

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John Gannon is a Democratic Representative from Boise who proposed legislation late in the session to give the legislature an option to meet virtually in an emergency.

“This legislation serves no purpose but to discriminate against our already vulnerable transgender population.” Rep. Gannon explained. “In 2018, a federal judge ruled that the state of Idaho must allow avenues for transgender people to change their birth certificate to reflect their gender identity. This decision cited that barring transgender people from birth certificate changes violates the Equal Protection Claus of the U.S. Constitution.”

“This legislation is a legal disaster, setting the state of Idaho up for an expensive lawsuit that will ultimately fall on the back of taxpayers. House bill 509 ignores the protections offered under the U.S. Constitution and will only serve cost Idahoans money. Our job as legislators is to protect the rights of all Idahoans and this bill stands to undermine that. This blatant disregard for a federal judge ruling in order to infringe upon the rights of transgender people will envoke unconstitutional harm on a community that is already disadvantaged for the sole purpose of promoting a dangerous and discriminatory agenda.”