Coronavirus has made many of Idaho’s problems significantly worse. Property taxes are no exception. Before coronavirus, Idaho legislators were hearing from hundreds of constituents that property taxes are out of control. Our citizens were being priced out of their houses and forced to leave the neighborhoods that they had planned to spend the rest of their lives in. Unfortunately, the ongoing pandemic has made it more obvious that we need property tax solutions.
Idahoans are getting their hours cut, taking furlough days, and even losing their jobs. The stay-at-home order is necessary to keep citizens safe and healthy, but it is undoubtedly creating financial struggles for many of us. Idaho homeowners are worried about making their mortgage payments and keeping their homes. It’s no secret that a lot of Idaho homeowners were living paycheck to paycheck prior to coronavirus. Property taxes have been rising every year since 2016, forcing Idahoans to reassess their finances every year to stay in their homes. For Idahoans on fixed incomes, that meant deciding between staying in their homes and not being able to afford basic necessities or moving out because property taxes had gotten too high.
If the legislature had passed meaningful property tax solutions, Idaho homeowners would have more money in their pockets while making these difficult financial decisions. Property taxes are going to continue to rise, once again, because we did nothing to give relief to our citizens. Instead, we passed legislation that is already being taken to court due to its unconstitutionality. Democrats warned our Republican colleagues that their legislation would cost taxpayers millions in court costs, we even brought Attorney General opinions to show that their legislation would not stand up in court. Republicans refused to hear meaningful property tax legislation, instead we spent the session fighting laws that would ban transgender girls from participating in sports, prohibit Idahoans from changing the gender marker on their birth certificate, and eliminate discrimination protections in state hiring.
One of the pieces of legislation that was most promising, brought by Representative Sally Toone, addressed the internet sales tax. Last June, Idaho began collecting sales tax from online retailers that has gone into a fund that is dedicated for tax relief. In March, that fund had collected about $45 million in sales tax. Rep. Toone’s legislation would have used that money for property tax relief, but the bill was never even given a hearing. Our citizens are paying for that tax, it should be given back to them. Under current law, the sales tax you pay online is sitting with the government instead of being used for tax relief.
Idahoans needed property tax relief before the coronavirus pandemic. The financial crisis that came with the pandemic has made the need for property tax solutions even more apparent. My Republican colleagues had the chance to give relief to Idaho homeowners, instead they passed legislation that taxpayers will be footing the bill for when they lose in court. As more and more citizens lose their homes, I hope that Republicans can finally have the conversation about property tax solutions.