COEUR D'ALENE, Idaho - Counties in North Idaho will lose millions of dollars if a new proposal by Governor Butch Otter goes through.
He plans to eliminate personal property taxes which can affect fire departments and school districts, cutting thousands of dollars out of their budgets. Eliminating the tax would strip Idaho of 141-million dollars in tax revenue per year.
To soften the blow, Governor Otter has set aside $20 million dollars for local government and is advocating for more power at the local level, to raise taxes to make up for the shortfall.
In 2012, 45 county districts generated almost $2.3 million dollars in personal property taxes. Those funds go towards fire departments, school districts and ambulance services.
Taking the biggest hit locally, would be the Lakeland School District which receives $944,000 a year in personal property tax funding.