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Time has come for one-year moratorium on property taxes

| April 10, 2006 9:00 PM

Depending on your perspective, the 2006 Idaho Legislature is either dashing valiantly to the finish line or spinning recklessly out of control.

Unless a property tax miracle lands at the Legislature's doorstep Monday, many citizens will consider the session a failure. But that "miracle" — or at least, a logical next step — is possible.

Two months ago today, we editorialized in favor of a one-year property tax freeze. Here's what we said then, and we believe it's every bit as appropriate today.

Maybe even more so.

House Bill 481, which would freeze property taxes statewide for a year, has often been referred to as the going-home bill.

In other words, it could be the last bill voted on this session before legislators all head home.

That's backward thinking, in our humble opinion. HB481, crafted primarily by Rep. Jim Clark, R-Hayden Lake, should be the centerpiece of discussion right now.

Citizens throughout the state have identified property tax concerns as their No. 1 issue. If legislators accomplish nothing else this session, many residents have concluded, they'd darn well better get a handle on runaway property taxes.

A one-year freeze makes sense for several reasons.

? It would provide taxpayers almost instant relief. Because North Idaho is in a high-growth area, your next property tax bill would actually be less than the previous one. That relief is sorely needed, especially for those on fixed incomes whose homes were recently assessed at a value 30 or 40 percent higher than the previous year's.

? It would create a critical window for logic and research to determine the best long-term solutions to this complex problem. Right now, legislators are almost frantically throwing property tax proposals up in the air, and they're being shot down, one by one. A comprehensive plan is needed, and that will take time.

? Since this is an election year, it would permit a new governor and new legislators to weigh in on the issue. Adoption of the freeze would de-politicize the current session and allow legislators to focus on other important issues.

We expect support for this measure to be strong among citizens and wildly unpopular among taxing entities. Adoption of a one-year freeze would essentially force cities, school districts and other taxing groups to live within their current means for a year. If you're one of Kootenai County's three largest cities, for instance, that isn't a pleasant thought. All three increased their spending by more than 30 percent in the past year.

Property taxes comprise only 35 percent of taxing districts' funding, so this isn't a lethal budget concept. Putting a temporary freeze on that one funding source would require districts to be fiscally responsible without jeopardizing their operation. In cases where desperate needs exist, HB481 contains a provision that would allow a taxing district to ask voters to exempt them from the freeze. For example, if Post Falls School District can convince a simple majority of its voters to support a property tax increase for the school district, the freeze would be waived in that one instance.

We urge citizens to contact their legislators and voice strong support for HB481, sooner rather than later. Legislators can be contacted at www.legislature.idaho.gov.