Twin Falls URA Could See Budget Cuts If Personal Property Tax Is Repealed
Twin Falls, Idaho ( KMVT-TV / KTWT-TV ) Idaho lawmakers continue to work out a personal property tax bill.
Local cities are concerned about cuts they would see to their budget.
The Twin Falls urban renewal agency could see drastic cuts.
The URA is the only economic development tool in Idaho that supports new development in cities. The agency depends on the personal property tax, and could see a large budget cut if repealed.
"That would significantly impact the Twin Falls Urban Renewal Agency budget because personal property tax income is about 45-percent of the annual income that the agency gets in, “said Executive Director Melinda Anderson, Twin Falls URA.
If Idaho lawmakers repeal the personal property tax, the URA would only receive funds to pay off debt and not support new projects.
"If we lose 45-percent of our revenues it eliminates what we can do in the community especially in infrastructure development or fixing infrastructure, like down in this area in old town” said Chairman Gary Garnard, Twin Falls URA.
URA members have reached out to local lawmakers.
"Most of them have responded and a couple of them agree with me and a couple of them want to see when the bill comes out before they actually take a position” said Garnard.
A tax decision important to businesses and government agencies.
Governor Otter's personal property tax plan would eliminate one-hundred and forty million tax on business equipment over six years.