Idaho residents receive $76.5 million in additional property tax relief – Idaho Dispatch
Idaho ends fiscal year with budget surplus and improved credit rating
Boise, Idaho – Governor Brad Little today commented on the news that Idaho completed Fiscal Year 2024 with another strong performance, further underscoring Idaho’s economic strength, prudent fiscal management and focus on taxpayers.
Idaho residents will receive an estimated $76.5 million in future property tax relief, in addition to the hundreds of millions of dollars in property tax relief they received last year following the passage of a property tax cut measure for 2023 as part of Governor Little’s “Idaho First” plan.
Due to strong revenues, particularly stable sales tax development, Idaho closed the 2024 fiscal year with a surplus of $52.5 million, which will go directly to property tax relief. In addition, the state will put an additional $24 million of unspent agency funds into property tax relief as well.
“The Legislature and I are proud to pass even more tax relief to help Idahoans combat the terrible impacts and rising costs of inflation caused by the Biden-Harris administration. What Idaho is doing is working. Our conservative approach to governing means we promote economic prosperity, rein in government spending, and manage our budget with cash reserves unlike Washington, DC. We also have the largest nest egg ever held to help us weather any economic storm,” said Governor Little. “Idaho is embracing ‘kitchen table economics,’ just like ordinary Idahoans. Washington, DC could eliminate the national debt if it follows Idaho’s example!”
The heads of state and government were able to push through the tax cut because government revenues were higher than expected and the authorities spent less than budgeted.
In addition, the state has a closing balance of $320 million that will be carried over into fiscal year 2025, leaving the state well positioned to absorb any economic uncertainty.
Idaho is leading the nation in delivering historic tax relief to our people. In addition to the property tax relief announced today, the State of Idaho is on track to return $4.6 billion in tax relief to the people of Idaho since Governor Little took office in 2019 – more than any other state per capita. The tax relief included a new, lower flat income tax, lower payroll taxes for Idaho businesses, and an enhanced grocery tax credit.
In addition, Moody’s Ratings upgraded Idaho to AAA last week for Idaho’s sales tax bonds and its school guarantee program, including an upgrade for Idaho’s transportation bonds. The rating saves taxpayers even more money in the long run. The ratings reflect Idaho’s overall economic strength, which is characterized by the state’s strong performance on the sales tax used to back these bonds, and gives the state favorable bond credit ratings, which lowers interest rates and improves financial performance.
More importantly, it reflects Idaho’s strong creditworthiness, which is driven by the stability of state revenues, confidence in Idaho’s growing economy, and low debt and long-term liability burden.
“Idaho remains one of the strongest economic states in the United States and continues to lead all states in population growth (including prime working age), employment, GDP and income. The state’s economic expansion is leading to a steady increase in revenue, which in turn is helping to build reserves and cash balances,” the report said.
The rating upgrades come at a time when Idaho is making historic new investments in school facilities and has $1 billion available for public school facility upgrades. Because Idaho is raising these funds through bonds, the improved credit rating means lower borrowing costs, ensuring that a larger portion of school facility investments goes toward construction and the actual costs of upgrading and replacing school buildings.
Tags: Brad Little, Idaho, income, property tax relief, taxes
