Affects of Urban Districts
How Urban Renewal Affects Taxing Districts
Taxing districts still have the ability to collect their full budget requests. This includes the allowed 3% budget increase and forgone amounts. This is because property taxes are budget driven not assessment driven. This means the amount of taxes collected by taxing districts is determined by budgets not assessed values. Since taxing districts only levy taxes on the base value, they are not able to collect on occupancies.
New construction located in urban renewal districts. See Idaho Code 50-2908. Occupancy taxes pay for growth such as added equipment and manpower needed for a fire department to adequately protect new buildings in their area. Taxing districts are required to support all of the structures and population within their districts regardless of the funds available to accomplish this. See Required County Services . Urban renewal districts often bring new construction and growth to the community. Taxing districts don't see the revenue created by this growth until the urban renewal district ends which is typically around 24 years.
How Urban Renewal Affects All Tax Payers
Any given taxing district, such as the County, can cover properties both inside and outside of an urban renewal district. The taxing district can only levy taxes on the base value of the portion of properties that are also in the urban renewal district. This creates a tax shift and causes levy rates to increase at a faster rate (or in some cases not decrease as much as it would have otherwise).
This affect on the levy rate applies to all of the properties within the taxing district whether or not they are located in an urban renewal district. This means each tax payer is responsible for providing a larger percentage of the tax district's budget. When there isn't an urban renewal district in place a taxing district levies taxes against the entire taxable value of every property in their code area. See the table below.
When an urban renewal district is in place, the taxing district must subtract the increment value (of the properties that are also in the urban renewal district) from the total assessed value of all of the properties within that taxing district. See the table below.
The tables above illustrate the affect urban renewal has on levy rates. The assessed value of the individual property and the taxing district budget are exactly the same in both instances above. Yet, the individual tax bill increased. This increase would be exactly the same if the property were inside or outside of the urban renewal district. Note, These two charts are meant to illustrate the impact to a taxpayer if no urban renewal district existed. These are representative numbers which have been rounded for the purpose of this illustration. No other purpose is intended or implied.
For purposes of calculating the rate at which taxes shall be levied for each taxing district in which a revenue allocation area is located, the county commissioners shall, with respect to the taxable property located in such revenue allocation area, use the equalized assessed value of such taxable property as shown on the base assessment roll rather than on the current equalized assessed valuation of such taxable property, except the current equalized assessed valuation shall be used for calculating the tax rate for:
- Levies for refunds and credits pursuant to section 63-1305 Idaho Code , and any judgment pursuant to section 33-802(1), Idaho Code, certified after December 31, 2007;
- Levies for payment of judgments pursuant to section 63-1305A, Idaho Code;
- Levies permitted pursuant to section 63-802(3), Idaho Code, certified after December 31, 2007;
- Levies for voter approved general obligation bonds of any taxing district and plant facility reserve fund levies passed after December 31, 2007;
- Levies set forth in 1(a) through (d) of this subsection, first certified prior to December 31, 2007, when the property affected by said levies is included within the boundaries of a revenue allocation area by a change in the boundaries of either the revenue allocation area or any taxing district after December 31, 2007; and
- School levies for supplemental maintenance and operation pursuant to section 33-802(3) 4, Idaho Code, approved after December 31, 2007.
Tax Billing Table
The school bonding and supplemental tax calculation do not go to Urban Renewal.
The Pie Graph display is based on the information contained on the tax billing data above for a single property within the URD.
School District Note
Kootenai County has five school districts of which two do not levy against increment for bonds and supplemental levies at this time. They passed bonds or supplemental levies before the law change in January, 2008.