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ID H0741
Bill
Status
3/4/2022
Primary Sponsor
Revenue and Taxation Committee
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AI Summary
HB 741 Summary
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Increases sales and use tax rate from 6% to 7.85% effective July 1, 2022, with 1.65 percentage points dedicated to property tax relief and local government funding through a new distribution formula
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Exempts owner-occupied homesteads (up to 5 acres) from most local property tax levies except school levies, bonds, and community infrastructure district levies, effective tax year 2022
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Increases food tax credit from $100.75 to $175 for tax years 2022 and after to offset grocery sales tax increases
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Creates Property Tax Relief Stabilization Fund to stabilize local tax area revenues during periods of declining sales tax collections, with up to 30% fund balance cap
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Submits advisory ballot question to 2022 general election asking voters whether Idaho should maintain the property tax relief measures funded by increased sales and use tax
Legislative Description
Amends and adds to existing law to provide property tax relief for owner-occupied homesteads, to increase the grocery tax credit, and to raise the sales and use tax rate to provide replacement funding for local tax areas.
TAXATION
Last Action
Reported Printed and Referred to Revenue & Taxation
3/7/2022