Yesterday afternoon the Senate passed the AIC-supported personal property tax bill, House Bill 315, by a unanimous vote. The bill now goes to Governor Otter.

The Senate Local Government & Taxation Committee voted unanimously yesterday to approve the AIC-sponsored personal property tax bill, House Bill 315. The bill is expected to be up for floor vote in the Senate on Monday or Tuesday of next week. Thanks again to all the city officials who testified at the hearings on this bill, and contacted legislators in support of HB 315.

Today the House voted to pass HB 315. The bill will now move to the Senate for consideration. 

An announcement was made on the House Floor this morning that HB 315 will be voted on this afternoon when they meet again at 3:30 p.m. 

URGENT ACTION REQUEST: Contact Your Legislators in Support of House Bill 315 on Personal Property Tax

The House Revenue & Taxation Committee voted unanimously to approve AIC-sponsored personal property tax legislation after a brief hearing this morning. House Bill 315 now heads to the House floor. We ask city officials to contact their local legislators as soon as possible to show their support for this bill.

This afternoon, the House Ways & Means Committee introduced a new version of personal property tax legislation supported by the Association of Idaho Cities, the Idaho Association of Counties, the Idaho School Board Association and the Idaho Association of School Administrators. House Bill 315 will be up for hearing tomorrow morning at 7:30 a.m. in the House Revenue & Taxation Committee.

House Bill 315 is basically the same as HB 272 with the following exceptions:

The de minimis exemption is increased from $1,500 to $3,000 per item purchased after January 1, 2013, and language is added to better define "acquisition cost" and prevent gaming the system through multiple purchases, purchase of components, etc. Lost revenue from the de minimis exemption is not replaced.

The $100,000 per taxpayer, per county exemption effective January 1, 2013 is broadened to include operating property.

Taxpayers with less than $100,000 in personal property need only apply for the exemption every five years. A uniform application will be developed by the State Tax Commission. County Assessors will mail the taxpayer's application and inventory from the prior year, making reporting much easier.

The amount of replacement money received by each local government is fixed at the 2013 level and will not change going forward.

House Bill 315 strikes the right balance among these important considerations.

• Providing personal property tax relief in a fiscally responsible way.

• Allowing the Legislature to expand the scope of the exemption in the future as permitted by economic growth.

• Fully exempting 89 percent of taxpayers from paying personal property taxes.

• Providing replacement revenue prevents shifting tax burden onto homeowners.

• Reducing the administrative burden on businesses: all items under $3,000 would no longer have to be tracked and reported, which will streamline the reporting process considerably. Taxpayers with less than $100,000 in personal property will only have to certify their property for the exemption every five years.

• Protecting schools, law enforcement, fire protection, street maintenance and other essential local services.

City officials may contact members of the House Revenue & Taxation Committee and their local legislators and respectfully express their support for House Bill 315. The members of the House Revenue & Taxation Committee are listed below.

Rep. Gary Collins, Chair: gcollins@house.idaho.gov
Rep. JoAn Wood, Vice Chair: jawood@house.idaho.gov
Rep. Lenore Hardy Barrett: lbarrett@house.idaho.gov
Rep. Mike Moyle: mmoyle@house.idaho.gov
Rep. Dell Raybould: draybould@house.idaho.gov
Rep. Lawerence Denney: ldenney@house.idaho.gov
Rep. Neil Anderson: nanderson@house.idaho.gov
Rep. Robert Anderst: randerst@house.idaho.gov
Rep. Thomas Dayley: tdayley@house.idaho.gov
Rep. Stephen Hartgen: shartgen@house.idaho.gov
Rep. Clark Kauffman: ckauffman@house.idaho.gov
Rep. Mark Patterson: mpatterson@house.idaho.gov
Rep. Janet Trujillo: jtrujillo@house.idaho.gov
Rep. Grant Burgoyne: gburgoyne@house.idaho.gov
Rep. Mat Erpelding: merpelding@house.idaho.gov
Rep. Carolyn Meline: cmeline@house.idaho.gov

You can phone legislators at the Legislative Information Center at (208) 332-1000.

You can also fax a letter to the Legislative Information Center at (208) 334-5397 and ask that it be distributed to one or more Representatives—faxes must have your name and address to be processed.

You may also email Representatives and Senators using the Legislature's website.

The House Revenue & Taxation Committee rejected a bill authorizing the creation of Transportation and Economic Development Zones (TEDZ) which would dedicate sales tax revenue generated by new development surrounding transportation corridors to finance major highway construction projects. TEDZ was proposed primarily as a means of bringing the extension of State Highway 16 to Interstate 84 to fruition.

AIC-supported legislation aimed at making local planning and zoning processes more responsive and cost-effective will be up for floor consideration in the Senate soon.  Senate Bill 1138 was reported out of the Senate amending order with minor changes, which are supported by AIC.

The House Revenue & Taxation Committee will not be voting on the personal property tax bills on Thursday as expected. Areport from Melissa Davlin of the Magic Valley Times-News indicates that a new bill will be introduced Friday. It is not clear what changes may be proposed.

City officials were well represented at today's hearing on the personal property tax bills before the House Revenue & Taxation Committee. The city officials in attendance offered compelling and persuasive testimony, and we extend our appreciation to Meridian Councilmember David Zaremba, Burley Mayor Terry Greenman, Burley City Administrator Mark Mitton, Twin Falls City Manager Travis Rothweiler, Pocatello Mayor Brian Blad, Pocatello Chief Financial Officer David Swindell, Chubbuck Mayor Steven England, and Councilmember Kristen Jensen of American Falls. Other city officials in attendance at the hearing included Garden City Councilmember Pam Beaumont, Twin Falls Mayor Greg Lanting, Twin Falls Assistant to the City Manager Mike Williams and Meridian Chief of Staff Robert Simison.