Tax relief dominates forum

Candidates couldn’t escape questions about ever-increasing property taxes Tuesday night, regardless of whether they were running for the Kootenai County commission or to represent the northern part of the county in the Idaho Legislature.

How to give property taxpayers relief is a common question of voters in Kootenai County, where property values have increased as much as 250 percent in a year. And that was no different Tuesday during the Coeur d’Alene Area Chamber of Commerce forum that included candidates in the two county commission races and those in legislative District 3, which covers Hayden and northern Kootenai County.

All of the candidates are on the May 23 Republican primary ballot.

Rep. Jim Clark, R-Hayden, summed it up.

“Property tax: That’s the only issue,” said Clark, who is running against Hayden City Councilwoman Jeri DeLange and who sponsored several property tax relief bills during this year’s Legislative session. He said another year is needed to get true relief, which to him is eliminating the property taxes that now fund public school operations and replacing them with a higher sales tax.

DeLange said she supports that idea but is disappointed that Clark, who sits on the House Revenue and Taxation Committee, waited so long to offer a solution.

“Frankly, I’m surprised someone who sits on Revenue and Taxation has not come up with this concept sooner,” she said.

Rep. Phil Hart, R-Athol, likes the idea because sales tax is a voluntary tax, unlike property tax, which is mandated. Hart’s opponent, former Rep. Wayne Meyer, who lost to Hart in the 2004 primary, said lawmakers can achieve tax relief without increasing the sales tax if only a portion of the property tax that now funds school operations is eliminated. Sen. Mike Jorgenson, R-Hayden, likes the idea because tourists and illegal immigrants pay sales tax. His opponent, former Sen. Kent Bailey of Hayden, would rather see lawmakers reduce the size of government before considering a sales tax increase to relieve some of the property tax burden. Yet he said the sales tax idea might be the best solution, but that he needs to do more research.

In the Kootenai County commission races, commission Chairman Gus Johnson said service cuts in departments such as Parks and Waterways might be warranted to reduce property taxes at the county level. He said the commission has to look to departments that aren’t mandated by state law. Other ways to cut the budget are to reduce service levels, such as reducing the staff in the automobile licensing department, meaning drivers will have to wait longer to get their plates.

“The commission is going to have to make tough choices,” Johnson said.

Post Falls City Councilman Todd Tondee, who is challenging Johnson, advocates hiring a county administrator who would create more efficiency in county government. He said the commission also must work with state lawmakers to slow the skyrocketing increase in property valuations, which lead to higher property taxes.

Commissioner Katie Brodie said attracting “good, clean industry” will help shift the tax burden off homeowners, in addition to reducing county spending.

Homeowners now shoulder about two-thirds of Idaho’s $1.1 billion property tax bill. That’s up from 40 percent a quarter-century ago, according to a state analysis of 2005 property taxes.

Retired county property assessor Rich Piazza is challenging Brodie. He thinks the county shouldn’t ever take forgone taxes – property tax that the county has the ability to collect but opts instead to leave in property owners’ pockets. In 2004, before Brodie was in office, the county tapped $870,000 in forgone taxes to increase employee wages.

Not taking forgone taxes is a way to keep tax bills lower for county property owners, Piazza said.