Staff writer
Market value for 2007 about $500 million less than 2006
COEUR d'ALENE -- For what could be the first time in Kootenai County history, taxable value declined this year -- by about $500 million.
Market value for 2007 was about $16.6 billion. For 2008, that number should drop to around $16 billion, said county assessor Mike McDowell.
The county is separated into districts, and each district's value dropped anywhere from 2 percent to 5 percent on average.
"We're certainly seeing these numbers drop back down to more normal ranges," McDowell said, referring to recently inflated home values.
In 2006, taxable value rose 44.56 percent. Last year, value rose 14 percent.
The numbers are not final and will not be until matched with the treasurer's office to prevent another snafu like the one in 2006. That year, an error used in the data to collect taxes caused a $1.4 million shortfall.
The error was not realized until 2008.
Final numbers should be available next week, McDowell said.
On Tuesday, 84,783 assessment notices were mailed, up from last year's 81,468.
On the east side of Lake Coeur d'Alene, property values rose on average 2 percent.
Waterfront properties rose 40 to 50 percent last year. This year, waterfront property values were "really varied," McDowell said, some dropping and some increasing.
The 2008 homeowner's exemption increased to $100,938 from $89,325 in 2007.
Tax bills aren't determined until budgets are set this fall, McDowell said, adding that changes to taxing entities' budgets more directly impact taxes than individual property values.
Dates and times for budget hearings are listed on assessment notices.
As overall value declines, officials say levy rates could increase slightly.
Asked what effect value decreases will have on the county, McDowell said, "it's a revenue-neutral thing."
Despite an overall decline in residential values, new construction values grew, as did some commercial properties.
"When we see a decline in that (residential) segment, even despite increases in other sectors, the overall value of the county can be impacted and that's what we're seeing this year," said McDowell.
"I don't know that I'd call it a false inflation," he added, "but a correction."
Valuations in some other North Idaho counties likewise ceased their steep ascent. In Shoshone County, some Wallace properties rose 100 percent in 2007. For 2008, values dropped 13 percent, said Shoshone County Assessor Jerry White.
But, overall, he said, "I think we're going to break about the same as last year."
"For most residents, your No. 1 investment is their homes," White said. "You like to see your investments do well, but unfortunately people equate that to higher taxes."
In Bonner County, the overall residential market value increased 4 percent, said Jeri Peterson, residential supervisor in the assessor's office.
For Kootenai County residents, the deadline for appeals is 5 p.m. Monday, June 23. Property owners are encouraged to stop by the assessor's office and chat before filing an appeal.
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