Soaring home values have increased property taxes for millions of homeowners in recent years, prompting action from state lawmakers to lighten the burden.
“The biggest problem was they just went up so quickly. … I think that’s one of the reasons why it became this rallying cry from the people asking for tax relief,” said Idaho state Rep. Jason Monks, a Republican.
The typical home value in Idaho increased from $275,852 in November 2019 to $434,224 this November — a 57% increase over four years, according to data provided by real estate giant Zillow, which tracks the average of the middle one-third of home values.
Rising home prices typically lead to higher property tax assessments, potentially pushing up tax bills even when tax rates remain steady. Those rates are generally set by local governments, not legislatures. But public pressure has compelled lawmakers in several states, including Idaho, to use surplus state revenues to mitigate property tax hikes.
In Ada County, home to Boise and Idaho’s most populous county, the measure that Monks and his colleagues approved in March delivered nearly $100 million in property tax relief. That amounted to a median cut of more than $500 per home, the Idaho Capital Sun reported.
“I think it was wildly successful,” Monks said. “Really everybody across the state received tax relief, which was the objective of the bill.”
Jared Walczak, vice president of state projects at the Tax Foundation, a pro-business research organization, said he expects many other states — both blue and red — to tackle the issue this year.
“In virtually every state where the legislature meets this year, property tax relief bills will be filed,” Walczak said. “This is a front-of-mind issue for many legislators across the country.”
But property taxes are intrinsically complex.
States can set broad property tax policies — such as tinkering with assessment rates on real estate….
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