BOISE (Idaho Statesman) — Gov. Brad Little signed a $253 million tax cut into law Thursday, despite sharing his earlier concerns over the total amount of proposed losses in state revenue this year. It is the largest income tax cut in state history, according to a news release announcing the cut.

In his annual State of the State address, Little proposed $100 million in tax cuts. The Legislature responded by proposing more than four times that amount this session across three bills, including the income tax cut.

RELATED | Idaho Senate passes bill to cut income taxes, reduce state revenue by $253 million

“Idaho families and businesses need and deserve to keep more of their hard earned money,” Little said in a statement. “As we continue to deliver historic tax relief, we must ensure our budget balances as the Idaho Constitution requires.”

House Bill 40 is projected to lower state revenues by $240 million by lowering the income tax rate from just under 5.7% to 5.3%.

The bill also would expand an income tax exemption on military pensions and remove capital gains and losses on precious metals and monetized bullion when calculating state income taxes, according to its. Those two measures would together reduce revenue by another $13 million.

The biggest reduction in taxes will go to those paying the most, lawmakers have said.

“This is the people’s money, not ours in government,” House Speaker Mike Moyle, R-Star, said in a statement. “We are just getting started.”

Yesterday, an increase to the grocery tax credit from $120 to $155 starting retroactively for the 2025 tax year cleared the Legislature. It is estimated to cost the state $50 million in revenue, according to the bill’s statement of purpose.

The proposed change is now on Little’s desk for his consideration.

The House this week also passed a $100 million property tax cut bill. It awaits a hearing in the Senate Local Government and Taxation Committee.

Earlier this year, Little told reporters there could be an “economic shock,” from the coming policy changes at the federal level under President Donald Trump.

“We need to be light on our feet,” Little said, of the transition between the Biden and Trump administrations. “I think we’ve got to be careful.”

Little this year has already signed several significant bills, including to spend $50 million to create a school choice voucher program and a bill banning mask mandates.

Idaho could unravel itself more slowly from its current physician education partnership under a new bill introduced Wednesday.

The new plan from Rep. Dustin Manwaring (R-Pocatello) would create 30 new seats with University of Utah’s medical school over the next three years.

Beginning in the fall of 2027, Idaho would cut at least 10 guaranteed seats enrolled in the WWAMI program. It currently has 40 guaranteed spots for Idaho residents.

WWAMI is a partnership with the University of Washington School of Medicine and states around the Northwest region.

Students enrolled in WWAMI take their first two years of medical education at the University of Idaho. They then transition to hospitals or clinics across the five partner states for their final two years of education.

Manwaring’s bill would also direct the state board of education to draft a new medical education roadmap.

“So, we may have room to keep some of that WWAMI program and I’m trying to give a path for the [Idaho State Board of Education] to do that,” he said.

Rep. Mark Sauter (R-Sandpoint) was the only lawmaker to vote against the bill’s introduction. He said the bill puts the cart before the horse.

“I have some real questions about really messing with the WWAMI program at all until we get some traction on a future program,” Sauter said.

Manwaring said WWAMI’s leadership has failed to expand Idaho’s guaranteed seats in recent years to address the state’s physician shortage.

Another bill he sponsors would completely sever ties with the WWAMI program, but the House has repeatedly postponed debate on the issue.

Manwaring’s new proposal still needs a public hearing before it can reach the House floor.

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BOISE, Idaho (KMVT/KSVT) — State lawmakers are looking to put new rules in place when it comes to rental application fees for homes and apartments.

“What this bill does is simply it makes a change where landlords are only allowed to charge rental applicants 2 fees at a time, rather than charging everyone who applies,” says District 16 State Senator Alison Rabe.

Senate bill 1042aa, also known as the “rental applications, fee and limit bill,” passed the senate last month. Those against the bill argued it’s government overreach, but the sponsor, Senator Rabe, says that this proposal came out of conversations with some of the largest landlord associations in the state who helped draft the language.

“Many of us don’t like telling people what to do but the businesses are coming to us asking us to codify what they’re already doing,” says Rabe.

According to the bill’s statement of purpose, the property owner or managers must actually run a background check in order to charge an application fee, and a rental must be available or expected to be available with 60 days unless the tenants agree otherwise.

“My Management” is a company that owns various rental properties in the Magic Valley, who supports this proposal.

“In my personal experience of having worked in this industry for a long time, i think there is a lot of room for vulnerable people to be taken advantage of,” says Briten Perron.

Briten Perron is the company’s asset manager. He says he’s left jobs before because of predatory application fees and believes this bill will make agencies be more honest and ethical.

“When you start an application on our website, before it even ask for a single thing, it has a list of things that says, ‘hey, if you have any of this going on, you may not even pass,’ and this one of those things the bill is looking to address — to be transparent about what is going to qualify people or disqualify them,” says Perron.

The house business committee discussed the measure Wednesday, but some people who testified argued that parts of the bill’s language are not clear. At the end of the hearing, lawmakers called for a substitute motion to hold the bill in committee and requested the sponsors re-draft a new bill.

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