As the 2021 legislative session inches closer, the issue of property tax reformation is gearing up again.

It was a hot, but unresolved, topic during the 2020 session.

Kootenai County’s three commissioners recently participated in statewide call about property tax legislation proposals.

A firm plan is still up in the air, but Commissioner Leslie Duncan said the group spent the most time discussing one based on a Consumer Price Index-based cap of 5%.

The 5% cap would be reached by combining CPI, new growth, and forgone balance increases. Counties and local jurisdictions are now allowed to increase property taxes by no more than 3% every year (not including new growth or CPI).

“Last year using new growth was a 2.78% increase to Kootenai County’s property tax revenue portion of the budget,” Duncan said. “With a 5% cap, we could only raise taxes an additional 2.22%, provided the CPI is that high.”

This year Kootenai County commissioners did not take the 3% (or $1.4 million) increase on property taxes. However, they did see a considerable increase in new growth — about $1.2 million.

Duncan said she supports keeping taxes low. To her, the challenge comes when the Legislature passes laws without budgeting additional funding for new programs.

Property taxes, which are divided between a number of taxing districts, including schools, law enforcement, and fire departments, are a key financier in county services.

Commissioner Bill Brooks said the whole system is broken and a severe issue for taxpayers. To him, the conference call lacked luster.

“I was dissatisfied that nothing innovative and creative was being done,” Brooks said. “Property taxes are a major burden for everybody, especially the elderly and the working poor.”

Kootenai County housing valuations have skyrocketed in recent years as the region experiences a tidal wave of incoming growth from out-of-state people with deeper pockets. Brooks, who has owned his house for decades, said he and his wife bought it for $177,000. Now because of growth, it’s worth over $500,000.

“People are suffering, and it gets back to growth. Growth is out of control, and property taxes are a very unfair way to fund county services,” Brooks said. “I think it’s got to change."

Commissioner Chris Fillios said other ideas were presented, including a five-year rolling average, which would save property owners from dramatic single-year increases.

In 2019, Kootenai County’s property tax rates were 15% lower than the state average, according to performance data on the county website. According to the Tax Foundation, Idaho has one of the lowest property tax rates per capita, ranking 38th out of 50 states in 2017.

“This is essentially just the start so that when they (lawmakers) go into session in January, they will be discussing it,” Fillios said. “I’m guessing that property taxes will be very much so on the table.”