3/30/2024 0 Comments 2021 idaho income tax brackets![]() Simply put, the property tax has three major parts: 1) the assessed value of taxable property established by the County Assessors 2) the tax rate applied to that assessed valuation set by the County Commission and Treasurer and 3) the revenue generated by the property tax (also known as the property tax portion of the local government’s budget). To understand property tax reform, it’s useful to look at how the property tax works. In other words, the legislature/state sets the rules and the local governments live with them. It’s important to note that the rules about the property tax are established by the state legislature and/or by citizens through the initiative process. Several of these changes take the form of limitations to the property tax, while others are targeted at property tax relief for taxpayers. There are many ways to structure changes to property taxes to try to address citizen and/or local government complaints. Idaho taxpayers have let the legislature know they are unhappy about property taxes, but the issues are complex and several interim legislative committees met without producing substantial change until 2021. Boise Idaho’s housing market was recently found to be the most expensive relative to income in the United States. Many parts of the state are experiencing record increases in housing costs and assessed values. Idaho local governments, trying to build and maintain infrastructure and provide services to all those new residents, are finding their budgets strained as they try to meet increased costs. State population growth was first in the nation from 2010-2020, leading to sharp increases in housing values and prices. Idaho is currently in a perfect storm when it comes to property taxes. The Idaho legislature has imposed several property tax limitations, most recently in 2021. In Idaho, voters twice defeated initiatives that would have limited the property tax rate at 1% (19). ![]() Most of these property tax limits were enacted by the citizens directly through the initiative, although some were enacted through legislation passed by legislatures. Within several years, most rapidly growing western states had adopted some form of property tax limitation. This started what is commonly referred to as the Property Tax Revolt. The mother of all property tax limitations, California’s Proposition 13, was passed using the initiative process in 1978. One way to gauge voter unrest about the property tax is to look at the number of times voters have utilized the initiative process to try and limit it. Sales taxes are volatile when the economy slows and consumers limit purchases. Why do local governments stick with a tax that so many people dislike? They do so because, with a few notable exceptions such as the Great Depression of the 1930s and the Great Recession of 2008, property taxes are very stable and comparatively easier to collect than sales taxes. Unlike sales taxes that we pay out in small amounts each time we buy groceries or other retail goods, the property tax is due twice a year, so the total amount of the tax is clearly highlighted. Homeowners on fixed incomes are especially vulnerable to rising property taxes that may threaten their ability to stay in their homes. First, homeowners can feel the pinch of rapidly rising property taxes when housing markets are hot and population growth is fueling housing prices-and the assessed value of homes–to rise. There are likely several reasons for this animosity about property taxes. In this year’s survey, less than 1% of respondents thought the property tax was “too low.” We know this from earlier Idaho public opinion polling done by Boise State University, which found over the years that the property tax was consistently identified as “the least fair” tax (see this link to previous surveys). ![]() Despite being the source of most local government and school district revenues, both nationally and in Idaho, people seem to dislike this form of taxation. The property tax doesn’t have a lot of friends. The following is the first policy brief in a series that explores findings from the School of Public Service’s 7th Annual Idaho Public Policy Survey and places those results within their broader policy context. She is the former Editor of the Social Science Journal, and has served as Department Chair, Associate Dean, and the Associate Vice President for Academic Affairs. Her research interests include intergovernmental relations and human resource management. She is also a Professor in the Master of Public Administration (MPA) and Political Science programs. Stephanie Witt is Director of Training for the School of Public Service.
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