Weiser signs up for Gov.’s plan to reduce property taxes

By: 
Steve Lyon

Weiser is one of 54 cities in Idaho that have signed up to participate in Gov. Brad Little’s plan to use federal COVID-19 relief funds to pay public safety salaries and pass on the savings to property taxpayers.
 In announcing the plan, Little  said he wanted the budget savings that cities and counties will see given back to property owners with  a tax break rather than “backfilling” local government budgets.
 Property taxpayers in cities or counties that participate could see a 10-20 percent one-time reduction in their property taxes this year. It’s estimated that the plan could provide up to $200 million in property tax reductions, according to the governor’s office.
 Interest in the plan has exceeded the funds available so a pro-rated allocation of funds will cover about 44 percent of local government payroll costs.
 Weiser city clerk Dave Tate told the city council on July 13 that the governor announced the plan last month to allow cities and counties to account for the  funds as budgets are set for fiscal year 2021.
 The city is working with the guidelines that have been announced so far, but they are not “hard facts” as the governor’s plan is finalized.  
 “We’re going to proceed as if we’re going to participate in this program for now,” he said.
 City budget officials said it appears the city could be in line for about $560,000 in state relief funds to cover public safety payrolls through the governor’s plan based on current calculations. The city is supposed to receive the funds to cover public safety salaries by December.
 The county treasurer will credit city property taxpayers with the amount of money the city receives from the state, providing a tax break to homeowners.
 In return for the state payroll support, cities and counties that agree to participate cannot raise their tax levy by the annual 3 percent that is allowed under state law as they set their FY 2021 budgets. Cities and counties also must agree that they will not use any forgone tax money they may have on the books.
 City officials said there is still some uncertainty about whether the federal relief money that went to the state can be used for public safety salaries and if that qualifies as COVID-19 related. The city has the opportunity to opt out of the program.
 Washington County commissioners also discussed the governor’s plan and declined to participate.
 Commissioners cited uncertainties about knowing how much the county would receive to pay for public safety salaries with a deadline looming to finalize the county budget for fiscal year 2021.
 It’s a fiscal unknown that commissioners said they were not comfortable with in finalizing the FY 2021 budget.
 “I don’t think it’s worth the risk. That’s my opinion,” commissioner Nate Marvin said.
 Commissioners said they would take the allowed 3 percent increase in property taxes allowed under state law as a sure thing rather than risk an unknown amount of funding from the state.
 “There are too many unknowns,” commissioner Lisa Collini said.
 Prosecuting attorney Delton Walker said some counties are not planning to take funds because they don’t feel like they can meet the requirements of the federal relief law that says the money has to be used for emergency management and law enforcement payroll related to COVID-19 expenses.  
 Some counties are worried they might have to pay it back if the plan somehow doesn’t meet the letter of the law for use of COVID-19 funds.
 Cities and counties that did send in letters of intent to the state can back out of the governor’s plan if they want to up until September.
 Idaho received $1.25 billion in federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funds to address the economic impacts of COVID-19.
 U.S. Treasury guidelines allow for the funds to cover the payroll of public health and public safety personnel.
 

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Weiser, ID 83672
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