In November 1978, Idaho voters approved an initiative that limited property taxes to 1 percent of a property's 1978 market value and that limited the property's growth in market value to 2 percent per year. Due to the initiative's imprecise wording and incompatibility with Idaho statutes, the 1979 Idaho Legislature passed two bills designed to clarify the initiative and enact it into law and to rewrite the school finance statutes to conform to the new limitations. These two bills included limitations on the amount of taxes taxing districts and school districts could levy, with the provision that school district voters could approve increased levies for school finance only. The state's share of the costs of education rose as a result of the changes from 65 percent in 1978-79 to 75 percent in 1979-80. Among the issues remaining to be resolved are determining how revenue from property taxes should be divided among taxing jurisdictions, since taxing district boundaries overlap; whether voters will be allowed to override limitations in the future; and whether underassessed residential property will be reassessed to full 1978 values, possibly resulting in higher tax bills for homeowners than were faced prior to the reforms. (Author/PGD)