Senate Bill 1259, sponsored by Sen. Melissa Wintrow (D-Boise), allows a person who owns a certified family home to qualify for the state’s property tax reduction program, known as the circuit breaker, by exempting the payment they receive from the state for caring for someone 24/7 in their home from the income counted toward their application. Last year, it died in the House by one vote. It now goes to Gov. Brad Little, who declared November as In-Home Caregiver Appreciation Month.

Wintrow said in order to keep people with disabilities out of institutions, Idaho is one of many states that allows someone to become licensed to care for a person in their home. The in-home caregiver is compensated, and receives an average of $54 per day from Medicaid. Currently, that money isn’t considered income by federal standards. Wintrow said it doesn’t make sense for the state of Idaho to be more onerous than the federal government, and the bill would change that policy. 

Institutionalized nursing care costs $273 per day, or about $100,000 annually, according to the Division of Medicaid. Right now, roughly 3,000 Idaho residents receive in-home care in a certified family home. If all were institutionalized, that cost would be about $300 million per year.

Wintrow worked closely with a number of in-home caregivers and stakeholders, as well as Rep. Ben Adams (R-Nampa), who carried the bill in the House. It was supported by the AARP, the Idaho Caregivers Alliance, and the Idaho Council on Developmental Disabilities. She said the issue first came to her attention in 2020 at an annual caregiver’s conference by JoAnn Vasko, who owns a certified-family home and is a full-time, in-home caregiver for her son.

“That conversation with JoAnn led me to the state Tax Commission and the Department of Health and Welfare to learn the scope of the issue. And after a two-year push, we finally got it,” she said. “I’m honored to have worked with so many people to get to this point, and hope it’ll receive the governor’s signature, so we can give our in-home caregivers much-needed property tax relief. This approach saves a lot of money and keeps people in a home setting — the best of both worlds.”

Sen. Melissa Wintrow

Senate Bill 1259, sponsored by Sen. Melissa Wintrow (D-Boise), would allow a person who is the owner of a certified family home to qualify for the state’s property tax reduction program, also known as the circuit breaker, by exempting the payment they receive from the state for caring for someone 24/7 in their home from the income counted toward their application. 

Wintrow said in order to keep people with disabilities out of institutions, Idaho is one of many states that allows someone to become licensed to care for a person in their home. The in-home caregiver is compensated, and receives an average of $54 per day from Medicaid. Currently, that money isn’t considered income by federal standards. Wintrow said it doesn’t make sense for the state of Idaho to be more onerous than the federal government, and the bill would change that policy. 

Institutionalized nursing care costs $273 per day, or about $100,000 annually, according to the Division of Medicaid. Right now, roughly 3,000 Idaho residents receive in-home care in a certified family home. If all were institutionalized, that cost would be about $300 million per year.

“We are so thankful for the love and care adults with disabilities receive in these homes instead of being placed in institutions,” Wintrow said. “These folks are doing some of the hardest work on the planet and saving the state millions of dollars. I’m honored to have worked with so many people to get to this point today, and hope this bill can pass the House, so we can give our in-home caregivers much needed relief as property taxes continue to skyrocket. This approach saves a lot of money and keeps people in a home setting — the best of both worlds.”

Wintrow worked closely with a number of in-home caregivers and stakeholders on the bill, which is supported by the AARP, the Idaho Caregivers Alliance, and the Idaho Council on Developmental Disabilities. It now heads to the House, carrying with it strong bipartisan support and 22 co-sponsors. A version of the legislation was brought by Wintrow last year, and died in the House by two votes. 

Sen. David Nelson

The legislation, sponsored by Sen. David Nelson (D-Moscow), would enable the Idaho Legislature to appropriate additional funding to K-12 schools. Per the bill, if a school has a supplemental levy in place, 75% of the allocated money must go to reducing the levy. But if there is no levy, the school can use the funds at their discretion. 

Nelson said the proposal not only benefits schools, but lowers property taxes for residential homeowners, as more districts have been forced to rely on levies for general maintenance. Currently, 89 of Idaho’s 115 school districts have levies in place totaling $218 million.

Nelson said if the bill passed and $300 million were appropriated, property taxes would be reduced by $141 million. The number of schools with an active levy would be cut in half as well. 

“Strong and successful communities start with our children’s schools. By providing our school districts the resources they desperately need, we can ensure facilities are safe and sustainable, teachers have access to the tools they need to succeed, and children receive an excellent education anywhere in the state. With the bill, we can also alleviate the growing property tax burden on homeowners,” Nelson said. “This is a win-win.”

Sen. David Nelson

All Democrats voted against the legislation, advocating instead for more critical tax solutions, such as reducing property taxes or repealing the sales tax on groceries, and using state funds to plug the holes in school budgets that must be filled by supplemental levies.

Under the bill, someone with $1 million in annual taxable income will receive an ongoing yearly tax cut of over $5,000 on top of a nearly $8,000 one-time rebate. Idahoans with the most modest incomes will receive a rebate of about $75. It also lowers the corporate income tax rate from 6.5% to 6%, matching the sales tax rate people pay for food, diapers, medicines, and other needs. 

Sen. David Nelson, D-Moscow, was one of several Democrats who said they hadn’t been contacted by a single constituent asking for an income tax cut. In his debate against the bill, Nelson said he’d received a number of calls asking for a repeal of the grocery tax, meaningful property tax relief, and well-funded schools. But if signed into law, HB436 will gobble up much of the dollars needed to address any of those critical needs, he added. The bill has a one-time cost of $350 million in addition to an ongoing cost of $250 million, for a total of $600 million.

Sen. Michelle Stennett

“Our legislative priorities are completely lopsided when the first bill we pass blatantly ignores the needs of Idaho’s working families,” Nelson said. “Why not help our local schools and provide the necessary funding needed to make essential facility repairs rather than force districts to rely on supplemental levies for general maintenance. Or increase our property tax assistance program to help keep fixed-income seniors in their homes. That’s what we should be doing.”

Senate Democratic Leader Michelle Stennett, D-Ketchum, echoed Nelson, and said Idahoans deserve long-term benefits from their tax investments.

“Right now, there are over 2,000 bridges in need of repair in our state — some of the most dangerous are in my district. This is a major public safety issue. We have to be looking at the real problems, like Idaho’s crumbling infrastructure, before anything else,” Stennett said. “Do people want a one-time $75 check, or to have services that boost the safety, wellbeing and quality of life for themselves and their children?”

First, GOP legislators ended the annual adjustment to the homeowner’s exemption that used to keep pace with housing prices, causing a dramatic shift of the property tax load away from commercial property and onto homeowners. So, even if county budgets didn’t increase by a penny, the legislature caused property tax on your home to increase every year. Meanwhile, many corporations have watched their property tax bill decrease while yours goes up. GOP legislators slightly increased the exemption this year, but not nearly enough to remedy the harm they inflicted on homeowners by ending the indexed exemption.

Second, they severely underfunded schools, with the lowest per-student education investment in the nation. This forced voters who want adequate schools to pass bonds and levies, further spiking property taxes. Want to fix the school roof before it collapses? Better pass a bond — the legislature won’t help. Want full-day kindergarten? Or enough operating funds to stay open five days a week? Better pass a levy — the legislature won’t help.

Third, for 14 years GOP legislators stopped every effort to increase property tax assistance for low-income seniors and veterans. This year they allowed a miniscule increase in the aid amount for some, but financed it by kicking 4,000 people out of the program.

Reps. Ilana Rubel, Lauren Necochea, and Sally Toone

Fourth, they denied local government their share of internet sales tax. You buy a shirt at Target, 11% of the sales tax collected funds local government. But if you buy that same shirt on Amazon, GOP legislators have blocked local government from receiving any of the tax collected. As sales have shifted online, this has hit local governments’ revenue stream and forced them to rely more on property taxes.

Finally, the GOP bill shamefully touted as “property tax relief” limits taxes that can be collected based on new development, blocking growth from paying for growth. Thus existing homeowners must either pay more in property taxes to make up for the deficiency (as happened in Meridian, which was forced to raise property taxes by this legislation), or suffer cuts to vital local government services like police, fire, and paramedics. Cities like Caldwell and Ketchum, already operating on tight budgets, were forced to halt new construction, exacerbating the state’s housing crisis.

For years, GOP legislators have blocked every bill providing meaningful relief, like capping assessment increases, restoring the indexed exemption, treating internet sales tax the same as regular sales tax, and increasing property tax assistance for low-income seniors and veterans. The result has been rising property taxes driving people from their homes.

A recent study from the Idaho Office of Performance Evaluations showed it isn’t “spendthrift counties” causing the problem. County populations went up 39% over the last 20 years, but their budgets only increased 27%. Counties are running extremely lean budgets that underspend compared to population growth.

Rather than admit to having caused the problem or try to fix it, GOP legislators are pointing fingers at innocent local government officials. You deserve the truth, and we hope you will respond by electing legislators who will work to reduce your property taxes while preserving vital local services. Idahoans need leaders that deliver real solutions, not scapegoats.

As a result, people who’ve lived here for generations are being forced to move to other states. In some cases, Idahoans are losing their housing and becoming homeless for the very first time.

We can’t afford to ignore this growing crisis any longer, especially when mechanisms are already in place to help address the issue. One simple solution is to invest in Idaho’s Housing Trust Fund.

Established in the early ’90s, the fund was created as a way to support affordable housing developments. At the time, the state was experiencing a similar period of unprecedented growth, prompting legislators to take action. But no appropriations were ever allocated. Without a dedicated revenue stream, the fund cannot be utilized.

If the state put money into the fund – which could be a mix of state and federal revenue – it could be used to enable and empower local governments across Idaho to create tailored solutions to boost housing supply and lower cost for all citizens in their communities.

City and County officials are begging for an opportunity like this. I’ve talked with many local leaders about how they would use the fund to boost workforce and affordable housing options and the ideas are endless. Localities could use funding to create:

• Tax relief – provide tax relief to homeowners who use their property as their primary residence or leave their rentals in a long-term rental pool. Tax waivers could be used to mitigate supply issues created by short term rentals.
• Building incentives – reduce impact fees or property taxes for certain developers.
• Land banks – purchase land to contract with developers to build.
• Housing preservation – contract with developers to redevelop blight and unused or run-down buildings.

And the list goes on.

Housing is the number one issue for Idahoans. I can’t think of a better use for the state’s $900 million surplus other or federal COVID relief money other than investing in our serious housing problem. If our government fails to act, the crisis will only worsen.

You often hear lawmakers say they don’t want Idaho to turn into Oregon, Washington, or California. We are well on our way to becoming like our neighboring states – where tens of thousands of people are living in homelessness – if we continue to do nothing. The mechanism for the fund is already in place; only a funding source is needed.

Contact members of the Legislature and the Governor’s office today and ask that they allocate at least $40 million to Idaho’s Housing Trust Fund during the 2022 session. It’s time to chart a new course for our state before it’s too late. Spending millions of dollars now will prevent us from spending hundreds of millions later.

The legislation had bipartisan opposition in the House and Senate. Many local officials as well as the AARP testified about the damaging impacts House Bill 389 will have. Those concerns went ignored.

“Gov. Little bemoaned ‘unintended’ consequences for seniors, but the GOP designed the bill deliberately to kick certain low-income seniors out of property tax assistance,” said Asst. House Democratic Leader Lauren Necochea. 

While this bill also expands circuit breaker assistance slightly, Necochea said it is disconcerting that the legislation pays for this modest increase in support by cutting other people out of the program.

“Our popular circuit breaker program provides much-needed property tax assistance to low-income seniors. We need to increase both the income eligibility level and amount of assistance provided,” she added. “In this bill, if your home value is somewhat above average, you are cut from property tax assistance regardless of how low your income is or how much equity you actually have in the home.” 

Per the legislation, the homeowner’s exemption is allowed to creep up by 25%; while the property tax exemption for business equipment jumps up by 150%, going from $100,000 to $250,000. Sen. Melissa Wintrow said these priorities are backward, especially after years of the property tax shifting onto homeowners and away from commercial properties.

If the homeowner’s exemption had not been capped at $100,000 by Republicans in 2016, it would be worth $150,000 in the current year, according to the Idaho State Tax Commission. Home prices continue to grow rapidly. In the last 12 months, home prices in Ada County have grown by 27% and in Canyon County by 42%.

“What a slap in the face to Idahoans who have spent the last year struggling. This legislation does not even cushion homeowners from one year of skyrocketing home prices, let alone the five years of price growth that occurred since the exemption was capped in 2016,” Wintrow said. “The Senate GOP members stated the bill was better than nothing, but Idahoans would have been better off without this disingenuous attempt at providing so-called relief. The Legislature has the power to uncap the exemption, and yet, it continues to add to the burden already carried on the backs of homeowners. It’s truly unforgivable.”

Necochea said the legislation harms cities’ abilities to manage growth as well, creating arbitrary limits that will force cities to choose between cutting vital services, such as emergency response or halting home construction that is desperately needed to address the housing crisis. 

“We need to allow for local control, allowing local officials to adjust their service levels within the budget growth restrictions already in statute and according to their residents’ needs,” Necochea said. “Nampa currently needs three new fire stations to meet best practices for emergency response. This bill will prevent rapidly growing areas of Idaho from catching up to standard service levels. This puts Idahoans’ lives at risk.”

“The No. 1 priority for Idahoans this session was property tax relief,” Wintrow added. “But the Legislature waited until the 11th hour, one month after we normally adjourn, to finally address property taxes with a bill that doesn’t do enough, and then, Gov. Little once again proved he doesn’t have the best interest of Idahoans in mind by signing this unacceptable legislation. Once again, the majority party has let down the majority of Idahoans.”

If the homeowner’s exemption had not been capped at $100,000 by Republicans in 2016, it would be worth $150,000 in the current year, according to the Idaho State Tax Commission. “To increase the homeowner’s exemption to only $125,000 is an insult to homeowners across Idaho,” said Asst. House Democratic Leader Lauren Necochea, who sits on the committee. 

“In the last 12 months, home prices in Ada County have grown by 27% and in Canyon County by 42%,” Necochea said. “This bill does not even cushion homeowners from one year of skyrocketing home prices, let alone the five years of price growth that occurred since the exemption was capped.”

“This bill heavily favors corporations that are already benefiting from the tax shift onto homeowners,” Necochea said. “The homeowner’s exemption is allowed to creep up by 25%, while the property tax exemption for business equipment jumps up 250%, from $100,000 to $250,000. These priorities are backward, especially after years of the property tax shifting onto homeowners and away from commercial properties.” 

“While this bill also expands circuit breaker assistance slightly, it is disconcerting the legislation pays for this modest increase in support by cutting other people out of the program,” said House Democratic Caucus Chair Sally Toone, who also sits on Ways and Means.

“Our popular circuit breaker program provides much-needed property tax assistance to low-income seniors. We need to increase both the income eligibility level and amount of assistance provided,” Toone said. “In this bill, if your home value is somewhat above average, you are cut from property tax assistance regardless of how low your income is or how much equity you actually have in the home.” 

“Last year, the average circuit breaker benefit was only $600,” Rep. John Gannon added. “Increasing the maximum benefit to $1,500 is wholly inadequate because income eligibility levels are still too low and that doesn’t cover the increase in property tax bills.”

Necochea said the legislation harms cities’ abilities to manage growth as well, creating arbitrary limits that will force cities to choose between cutting vital services, such as emergency response or halting home construction that is desperately needed to address the housing crisis. 

“We need to allow for local control, allowing cities to adjust their service levels within the budget growth restrictions already in statute,” Necochea said. 

Sen. Ali Rabe, who argued against it in the Senate Local Government and Taxation Committee, said the bill makes sweeping changes that are neither fair to working Idahoans nor responsible, and it is the hope of the Senate Democratic Caucus the legislation is killed on the floor.

The bill, a revised version of HB 332, Idahoans in the top 1% will receive nearly $9,000 each year, on average; while roughly 60% of Idahoans will receive only $14-15 a month. Middle-class families will see their taxes go down by just $246, on average. Households with very modest incomes can expect $80 in tax savings. 

Rabe said it also makes Idaho ineligible for a portion of the much-needed infrastructure dollars, threatens our ability to balance our budget, and directs benefits to the people (as well as profitable corporations and out-of-state shareholders) who need them the least.

Democrats in both the House and Senate have tried to introduce numerous pieces of legislation that address the real problems in the state, such as increasing investment in education and delivering targeted tax reform that benefits working Idahoans. Rabe said some of the proposed solutions included increasing the grocery tax credit, leveraging state funds to reduce property taxes, expanding property tax assistance, and increasing the homeowner’s exemption. The majority party denied the Democrats hearings at each point. 

“Idahoans have been asking us for property tax relief, not deep cuts to our budget which mainly benefit people in the top income tax bracket. This is one more stark reminder of the disconnect between the supermajority’s actions and what Idahoans really want us to do,” Rabe said.

The GOP-sponsored legislation sought to cap local governments’ budgets in an effort to lower property taxes for residents. However, opponents of the bill, which included all seven Democrats, said it provided minimal relief at great expense to cities and counties, forcing cuts to vital services, such as police, paramedics and fire departments. 

Sen. Michelle Stennett

Sen. Ali Rabe, D-Boise, said under the legislation, residents in Ada County would’ve received a $13 reduction in property taxes. 

“This bill would have reduced local government budgets and their ability to build more housing to address the housing crisis, rather than reduce residential property taxes.” Rabe said following the legislation’s defeat. “People have been asking us to address property tax fairness and the shift from commercial to residential that’s occurred over the last five years. Rather than addressing the root of the problem, this would have acted as a disincentive for our local governments to annex land and build more housing, making our housing prices even worse. If local governments can’t pay for essential services such as water, sewer, trash, police, and fire, they can’t build.”

Sen. Ali Rabe

Senate Democratic Leader Michelle Stennett, D-Ketchum, said S1108 — drafted by Sen. Rice, R-Caldwell — was amended numerous times before the Thursday vote, but was still insufficient. 

This session, Democrats in both the House and Senate have attempted to bring several bills to reduce property taxes for Idahoans, like re-indexing the homeowners exemption and increasing the circuit breaker, but all have been denied hearings.

“People want property tax relief. I experienced this personally when my building designed to provide workforce housing burned down this week. People are desperate for that kind of housing. I talked to the firefighters who told me, ‘I’m getting priced out. I can’t live here anymore,’” Stennett said. “People are in need, and we need to do a better job.”