The new tax law passed during the one day session of the legislature might appropriately be called the “Law of Unintended Consequences.”
One thing it did was create a windfall profit for the CCDC, (Capitol City Development Corp.) Boise’s urban renewal agency.
Prior to passage of the new tax law, all the tax revenues on improvements within the CCDC district went to CCDC with the EXCEPTION of the taxes due the Boise School District…city, county, and highway district taxes are all diverted to the CCDC. That means all the new buildings and improvements downtown yield NOTHING to local governments.
Thanks to repeal of previous provisions in the law, Boise schools no longer collects any money whatsoever on downtown improvements. Under the old formula CCDC received revenues destined for Boise Schools. Under the new law they get revenues nearly 1% higher than in the past. That translates to about $211,000 in windfall profit for CCDC.
New construction–especially BoDo–combined with the school windfall have increased the expected tax revenues that go to CCDC and NOT to the city, county, schools or highway district. The value of IMPROVEMENTS and appreciation to downtown property is about $350million.
Last tax year they received about $4.5 million that other agencies made up by increasing the tax levy on property outside the downtown area. The current year property taxrevenue estimate for CCDC is nearly $6.25 million.
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