CDHA in Boise, ID region cuts abandoned tax proposal to $ 1.6 million
It turns out that the Ada County Road District will be considering an even lower lost tax amount than previously announced.
ACHD staff last month reported new figures on how much lost taxes the entity could collect after receiving clarified advice from the Idaho Tax Commission. In July, the commission signaled support for considering a shortfall of $ 7.5 million, but now the commission only plans to take $ 1.6 million, plus a 3% tax hike. and income from new construction.
[Property tax on your house keeps going up. But many commercial properties see a different story]
Lost taxes are property taxes that agencies have chosen not to collect in previous years, but are allowed to recover later if they choose. This is a one-off tax increase, and not recurring like the 3% or new construction authorized under the code.
Navigating a New Tax Policy Brings Change
It has been an uncertain fiscal year for local governments across Idaho. Budget officials have tried to sort through the impacts of the sweeping tax reform bill HB 389 passed in the last days of the record-breaking legislative session. Initially, ACHD’s budget coordinator Christine Tannler believed the bill allowed the agency to calculate the amount of the shortfall based on ACHD’s total budget of $ 126 million. But instead, it only allowed him to calculate the percentage based on the budget’s $ 42 million from property taxes.
This means that the highest amount of property tax increase that CDHA commissioners can approve at its August 25 public hearing is $ 1.2 million in revenue from an increase in fundraising. 3%, $ 1.2 million in new construction revenue and $ 1.6 million lost. The transferred amount will go towards maintenance and operating costs and capital projects.
If the CDHA adopts this amount, it will increase the cost of property tax on an average home by $ 27.
May calls for more budget meetings
The budget proposed by ACHD has gone through several iterations, with staff initially offering an option with $ 10 million lost to the commission. However, due to a lack of quorum, the commissioners did not have the opportunity to discuss the budget in full before the end of July. This, in addition to the change in tax law, has led to several changes in what the agency is considering.
Commissioner May May said at the July 28 meeting that she hoped Commissioners would start budget discussions earlier next year and prioritize more working sessions so officials can all be on. the same wavelength earlier.
“I would like to start as soon as possible where we have discussions with the commissioners and sit down at the table so that we look at each other and have more communication here,” she told staff. “But here it’s kind of like being introduced and asking the questions, but we want to get a little more involved in the whole budget.”