Idaho Taxes 101
Nobody likes taxes. The government takes money from what we earn, what we buy, and what we own. Like the Beatles sang 60 years ago:
If you drive a car I'll tax the street
If you try to sit I'll tax your seat
If you get too cold I'll tax the heat
If you take a walk I'll tax your feet
It’s true taxes can provide necessities we have grown accustomed to or services that benefit the majority. Few would likely choose to live in complete anarchy or a kingdom, where things like law enforcement, fire departments, and roads are entirely privatized and services are granted in a caste system. The debate, therefore, revolves around how much taxpayers should be expected to fund.
Governments have limited options for raising revenue. Taxation by definition changes behaviors, meaning whatever is taxed will be affected. They can tax productivity by taking money from paychecks or businesses, tax consumption by imposing charges on purchases such as cars, furniture, or groceries, or tax property based on the assessed value of homes.
We must understand taxes before we can reform them. State government is funded by tax dollars. Our general fund (that is, everything that is not funded by federal grants or dedicated funds) comes from two sources: income taxes and sales taxes. Income in Idaho is taxed at a rate of 5.8%, while purchases are taxed at 6.0%. (Alert: Property taxes fund local governments, not the state.)
Idaho receives grants from the federal government for specific purposes, such as free and reduced school lunches and Medicaid. About 40% of the most recent state budget (2024) came from federal funds, and that’s not free money! Those federal funds come from federal income taxes as well as inflationary money printing, which is a mortgage against our children’s future. We’ll talk more about that in a future article.
Other sources of revenue for the state government include corporate income taxes, and other minor taxes and fees.
Property taxes fund local government. If you’re a homeowner, check your property tax bill and you’ll see where your hard-earned money is being spent. Property taxes fund cities, counties, public schools, libraries, community colleges, fire departments, cemeteries, and more.
Every taxing district is overseen by an elected board of trustees, which means voters are ultimately responsible for how their property taxes are spent. Districts hold budget hearings throughout the summer, taking input from citizens, before passing a final budget for the next fiscal year.
Taxing districts are limited to a property tax increase of 3% per year. However, they can take more taxes if they did not raise them in previous years, as well as adding more taxes on new construction.
Reining in our government means controlling both taxes and spending. If we cut spending without cutting taxes, then that money simply goes into a surplus. After House Bill 292 (2023 Property Tax Relief), some of that surplus revenue goes back to taxpayers, but much of it is squandered and spent elsewhere.
On the other hand, if we cut taxes without cutting spending, that often just shifts taxes to other sources. A good conservative Legislature can do both — cut taxes AND cut spending.
Deciding how to spend your hard-earned money is the most sacred trust laid upon lawmakers. Members of the Idaho Freedom Caucus stand with the hardworking taxpayers of Idaho, working towards a goal of the best government for the least amount of money.
After all, it’s your state and your money!
Once elected, many commissioners and legislators simply ignore citizens. They do not return phone calls. They do not read or respond to emails. In-person conversations often result in little if any action. So our tax dollars are not spent wisely.
All taxation is a form of theft. People who steal stuff should not be allowed to run our lives.
Ammon Bundy’s proposals for taxes made a whole lot of sense. See https://www.votebundy.com/about/keep-idaho-idaho-plan/
* Eliminate property tax: https://www.votebundy.com/about/keep-idaho-idaho-plan/?1_1
* Eliminate personal income tax: https://www.votebundy.com/about/keep-idaho-idaho-plan/?1_2
* Eliminate personal property tax: https://www.votebundy.com/about/keep-idaho-idaho-plan/?1_3
* Collect taxes only through consumption: https://www.votebundy.com/about/keep-idaho-idaho-plan/?1_4
The only tax we approve of is a consumption tax. This type of tax allows each person to control their own spending and decide whether part of that spending should be taxed.
Property tax must be built into the mortgage or initial price of a property. Once paid off, that property should not be taxed again. Otherwise, you don’t own your property; you rent it from the government to do with as they please.
Some “common good” functions of government to protect the citizens from invasion and crime (whether foreign or domestic), maintain roads and infrastructure, fire, police are proper. That’s pretty much it. Everything else is a nice to have.
For each line item in the local, state, and federal budget, elected officials must assess:
1. Is it the proper role of government to provide and pay for this (most items will NOT pass this sniff test)? THIS IS MOST IMPORTANT.
2. What is the source of funding? Local, state, federal, grant? What happens if that funding source dries up? Who is left holding the bag?
3. Are strings attached that will raise future costs or require citizens to behave in a way that we wouldn’t behave without that funding?
All three conditions must be assessed before we even consider the costs of a new or existing program. Especially #1 — proper role of government. If it doesn’t pass #1, it must not be done in the first place and it must be removed from the budget if it already exists.
Nice to haves are fine if it’s one’s own money, but NEVER fine if it’s other people’s money. Not the proper role of government? Then it should not happen with taxpayer money. Period.
I pay nearly $5000 in property taxes. This has to stop- I’m basically “renting” my property from the county and it should be illegal that they can take it from me for not being able to pay such high taxes.