Faced with a projected $3.6 billion decline in assessed property values in Ada County, local governments will be hard pressed to balance budgets without raising the tax rates they levy.
The median decline in property values will come to about 10%–bad news if you want to sell a house and possibly a little good news if you are calculating taxes. GUARDIAN sources tell us the areas along the foothills and in Boise’s north end will see the least amount of change. Property “further out” will see more dramatic reductions in value. Experience tells us some of those “McMansions” in the Eagle area could go down 30% or more.
Boise’s Team Dave plans a public meeting Wednesday, April 29 at 6 p.m. in the Council Chambers on the third floor of City Hall. City leaders are now building the budget for Fiscal Years 2010-11, which will run from October 1, 2009, through September 30, 2011.
In a nutshell, none of this will make a huge difference in anyone’s property tax bill. Cities have the authority to increase budgets by up to 3% annually. In the past “boom cycle” the increase was funded by growth and the RATE we paid was modest, putting Boise on various lists of “best places to live, do business, or pay taxes.” Those days are probably gone and the levy RATE will have to increase unless the politicos actually cut their spending.
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