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How Will The Personal Property Tax Measure Affect Cities?
Burley, Idaho ( KMVT-TV / KTWT-TV ) A hot button legislation issue has come to an end in the Idaho Senate.
On Tuesday, legislators voted 35-0 on an alternative $120 million dollar repeal proposal on the personal property tax.
The City of Burley depends on state funding, money that comes from the Idaho personal property tax.
"The association for Idaho counties and the association for Idaho cities got together with the school system and said look we have a problem on our hands how are we going to best deal with it. We said let's do a compromise bill” said Mayor Terry Greenman, City of Burley.
90-percent of Idaho’s businesses will no longer have to pay taxes on their computers, tables, chairs and other personal property that is once governor otter signs the bill.
"What this means is that businesses all across Idaho will no longer have to fill out a business inventory tax on the goods and materials that they bought if it's less than $100,000 in a calendar year also if it's less than $30,000 they won't even have to file a form” said Rep. Stephen Hartgen.
The plan would redirect 20-million annually from Idaho’s sales tax revenue to make up for money that local taxing districts including school districts, counties, and cities.
"This bill is going to hit us around $40,000 a year. We can somehow handle $40,000 compared to a $3 million, we will work through it. We will tighten our budgets; we'll do what we have to do” said Greenman.
A new measure cities like Burley say will benefit them in the end.
The Governor is expected to sign the personal property tax bill sometime next week.