Time to put property tax hikes on ice

When property values skyrocket, as they have for the better part of a decade now in Kootenai County, the owners of that property have an increasingly valuable asset.

Congrats. Take a bow. And grab your checkbook, because the taxman cometh.

The problem is that even though the asset is becoming more and more valuable, the property owner doesn’t benefit one penny by that rising line on a chart unless she or he sells the property. Typically, the more valuable the property, the more property tax the owner must pay. How’s that for rewarding a good investment?

In Kootenai County, The Press hears increasingly of situations where property owners fear they’re going to have to sell because their taxes have risen so much higher, so much faster than Social Security bumps. For these people, there aren’t additional investments to draw upon. Their home is not only their most valuable asset; it is their only decent asset.

If they have to sell, they’re going to have to move away because chances are they aren’t going to find a cheaper house to buy. Rent, you say? You’ll find a dodo bird strutting down Sherman before you’ll locate a nice rental at a fair price.

That’s not the North Idaho most people want. While it’s understandable that many in elected positions insist upon higher taxes because Kootenai County also happens to be one of the fastest growing counties in the nation — and government wants to provide adequate service for all those people — the sense here is that we’ve gone too far on property taxes.

Now is a good time to take a deep breath and assess not just the properties, but the impact of escalating property taxes on some of our most vulnerable homeowners.

Fortunately, the Idaho Legislature is considering three bills that would help buy some of that breathing room. One is a temporary property tax freeze. Another is a cap on property taxes. And yet another is putting controls on taxing entities’ ability to come back years later to collect property taxes they passed on earlier.

The freeze would keep 2020 taxes at 2019 levels, and would last just this year but allow time for deeper review. The cap would limit taxing entities to 3 percent annual increases. Now, taxing entities can go up to 3 percent a year plus reap additional property tax dollars brought on by new construction. Finally, the third bill could indirectly, at least, reduce property taxes while improving government accountability on taxes they put off for possible collection in the future.

Yes, this is an election year, and nothing turns on voters’ love machines quite like the promise of tax cuts. In our view, freezing property taxes for one year is the most reasonable and doable proposal of the three. While it won’t lower most people’s tax bills, it will buy time to stanch the bleeding long enough to consult a good doctor.