Tax exemptions and the Governor's address

Governor's State Address focuses on education and tax relief. 

Why this matters: Outlines budget and policy priorities for the upcoming year.

On January 8th, Governor Brad Little delivered the 2024 State of the State Address and the FY2025 budget highlights. A few things to note for  nonprofits in Idaho:  

• Fully funds the Idaho LAUNCH program ($75 million), to ensure grants are awarded to up to 10,000 Idaho graduates. Grants may be used at any Idaho college, career technical program, or workforce training provider of their choice for an in-demand career.
  
  
• Provides an additional $806,000 for home delivered meals and to increase the reimbursement rate for congregate and home delivered meals by 25 cents per meal. This will assist Area Agencies on Aging (AAA’s) that are experiencing shortfalls and waiting lists for this critical program for seniors.  
  
  
• Recommends $125 million of state funding for ongoing property tax relief to be directed to local school districts to defray the costs of unmet capital construction needs. This is expected to provide more than $1 billion in long-term property tax relief.  

Watch Our Nonprofit Advocacy 101 Recording

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Property Tax Exceptions will be on the chopping block again. 

Why this matters: Nonprofits sacrifice politics, privacy, and profits in exchange for property tax exemptions.

Last year, we saw two bills introduced that would limit the amount of property that nonprofit hospitals can claim as exempt.

• We anticipate that these attempts, and possibly even broader restrictions on nonprofits exempt status, could be introduced again this year.  
  
  
• Nonprofits paying taxes would lead to providing less charitable care, thus hurting the people most in need of charity care. 

Read more about how nonprofits earn their exempt status every day, stay tuned to our updates, and get ready to take action—if needed—to convey to our elected officials how crucial property tax exemptions are for Idaho nonprofits.

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New process implemented for setting the State budget

Why this matters: Nonprofits rely on federal and state pass through dollars and grants which can be debated during the budget process.

JFAC has significantly changed how it sets the State budget this year, and as part of the changes they have launched a new budget information website. 

• Previous years: JFAC met for three hours each day, for public budget meetings.
  
  
• This year: the public portion of the daily meeting will be shortened to 90 minutes, with the remaining 90 minutes utilized for small groups to meet within the committee.
  
  
• What to expect: voting on agency budgets will still happen in public sessions, but the public might not be privy to as much of the budget setting process as they have been in the past—such as presentations by agency directors.  
  

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Changes to the Independent Contractor Rule

Why this matters: Nonprofits rely on contract employees and regular employees, and must know how to distinguish the differences between the two.  

The Department of Labor has released its long-expected final rule: Employee or Independent Contractor Classification Under the Fair Labor Standards Act. 

This new (restored) rule identifies six factors to analyze employment status. All factors hold the same weight when coming to the final decision. The factors are: 

1. The nature and degree of the worker’s control over the work  
   
2. The worker’s opportunity for profit or loss  
   
3. Investments by the worker and the potential employer  
   
4. The degree of permanence of the work relationship  
   
5. The extent to which the work performed is an integral part of the potential employer’s business, and  
   
6. The worker’s skill and initiative.  
   

Read more about this rule change that goes into effect on March 11, 2024.  

• Wage and Hour Independent Contractor landing page. 
  
• FAQs