The unanimous decision by the Ada County Commission to cut $ 12 million from property taxes next year came after a major federal aid package and unexpected income brightened the county’s finances.
In deliberations that exceeded the $ 303 million provisional county budget (the highest ever), members voted on June 23: Reduction of property tax in 2022, Starts October 1st.
The pandemic economic turmoil has led the county to budget carefully and reign in anticipation for next year, but federal coronavirus bailouts and tax revenues have helped boost finances.
The county received $ 11.8 million from Coronavirus Assistance, Relief, and Economic Security ActA major stimulus bill was passed at the start of last year’s pandemic, according to Ada County Secretary Phil McGrain.Governor Brad Little last June Prorated Federal Relief Fund If you’re a state municipality ($ 16 million for Ada), tell them to use that money to reduce property taxes. The county also expects to receive an additional $ 10 million in sales and other tax revenues during the coming year.
“This year was a kind of worst situation, and I say so in a good way,” Kendra Kenion told Idaho Legislature over the phone.
All of that unexpected cash flow helped bring the county to a prosperous position, and the commissioner stopped raising property taxes in 2022 and instead reduced them. More than $ 153 million in property tax will be levied in fiscal year 2021, and the county will not collect $ 142 million in the next fiscal year.
“We’re out of the pandemic and we’re in a really good financial position,” McGrain said.
$ 4 million to cover the $ 12 million savings next year American Rescue Planning ActThe remaining $ 8 million, passed by Congress this spring, comes from taxes collected by the county, McGrain said.
“Last year was very conservative,” said McGrane. “We had estimated a decrease in sales tax revenue, but it actually increased, not decreased. The economy here is doing well locally.”
According to McGrain, this reduction represents a median tax cut of about $ 44 for homeowners in Ada County, and taxpayers need to make sure that the November bill reflects that. House prices in the Boise region have skyrocketed in the last three years Median Ada Selling Price Exceeds $ 500,000 Earlier this year.
Kenion said he hopes the bailout will help homeowners, albeit small.
“COVID has hit people pretty hard in the valley here,” she said. And over the last decade, “the tax burden on homeowners has been reduced.”
Rod Beck said: “This is a $ 12 million property tax reduction that would not have been possible if Ada County citizens had not budgeted as much as possible.”