For some Blaine County property owners, the process of appealing ever-rising real estate assessments backfired.
Following more than a month convened as a board of equalization, the Blaine County Commission last week increased property values for 600 county landowners. Some of those landowners had approached the county to appeal increased assessments they received in June.
"People came to appeal their property values, and it came to the attention of the board of equalization that people who were appealing really should have had much higher values," said Marisa Nelson, the county's property taxpayer advocate. "Those are the people you feel bad for the most."
In June, Blaine County's assessed property values made a record leap, catapulting from $8 billion to $9.7 billion, a 21 percent increase.
This year's boost only slightly topped last year's 20 percent increase.
But the increase was only partially complete in June. In a mid-July letter to county property owners, Blaine County Assessor Valdi Pace explained the uncommon exercise of boosting values twice in one tax season.
"... Blaine County commissioners and I believe that the action was necessary to reflect current property values and to find solutions to fair property taxation and assessments in this current environment of rapidly appreciating property values in Blaine County," she wrote.
The 600 properties experiencing additional increases are in the Hulen Meadows neighborhood near Ketchum, Sun Valley Townhouses, Golden Eagle Ranch I and II, the subdivisions directly north of Golden Eagle, Greenhorn-area subdivisions, The Valley Club north of Hailey and a handful of properties at the mouth of the East Fork of the Big Wood River canyon.
"These value increases ranged from 8 percent up to 65 percent, and all increases are applied to the land portion of the assessed value," Pace wrote.
Although taxes are determined from assessed property values, they may not increase proportionally, Pace said.
Because the exercise of boosting values increases the county's taxable base, the levies exacted by the county, cities, school district, fire districts and ambulance district should be lower. In some cases, there will be tax decreases. In other cases, however, there will be tax increases.
To affect budget blueprints, citizens must attend budget meetings, which are commonly held during summer months.
"It is up to you, the taxpayer, to get involved and be a participant in those budget hearings to make sure your tax dollars are being spent wisely," Pace said.
Also, there is an upcoming opportunity for local taxpayers to effect change at the state level. A state legislative Interim Property Tax Committee will host a public hearing on Aug. 10 at 1 p.m. in Room 301 of the Community Campus in Hailey to discuss property tax reform.
The meeting is one of seven that will be held throughout Idaho.
The committee was created by the 2005 Legislature after seven bills related to property taxes were introduced in the House Revenue and Taxation Committee. The committee's charge is to undertake a study of the state's property tax structure with the goal of developing a strategy that encourages economic development and meets the needs of local government.
"The purpose of the hearing will be for Blaine County residents to share their personal stories, opinions and suggestions regarding Idaho property tax law," said House Minority Leader Wendy Jaquet, D-Ketchum. She is one of four Democrats serving on the committee.
In Blaine County, the dramatic rise in assessed property values is not only the result of a rapidly increasing market but also of increased scrutiny from the county assessor's office.
"What we did was, we concentrated on every piece of land because of what we went through last year," Pace said.
Last year, the Idaho State Tax Commission determined that several categories of local real estate were undervalued. In August, county leaders responded by issuing revised assessments to approximately 4,500 Blaine County property owners.
The affected properties experienced 10 percent to 140 percent value increases, on top of increases that hit them in June 2004.
What is happening in Blaine County is not unusual, said Gregory Cade, the tax commission's county support administrator in a 2004 interview. Every July, the state tax commission reviews county assessment records to ensure that equalization standards are met.
It happens every year statewide, and three counties were under the microscope last summer.
The problem, Cade and Pace agreed, is that Blaine County is growing too fast.
"There's really, really significant growth going on here," Cade said. "This is a very difficult challenge under the best of conditions."
And the conditions that created the problem are still at work.
"I don't want to leave the impression that this is a one-time fix," said Idaho State Tax Commission Tax Policy Supervisor Alan Dornfest. "It's a moving target, if you will."
What's more, Blaine County is not alone.
"It's not just happening here," said Blaine County Commission Chairwoman Sarah Michael. "It's happening in Teton County, Idaho, Valley County, Ada County."
Michael said Idaho must work to spread the cost of providing essential services more evenly. The current system relies too heavily on property owners.
Local option sales taxes and real estate transfer taxes are examples, she said.
"We think that there should be other ways to fund essential services," Michael said. "We want to work with our state representatives, work with the Legislature and work on community education.
"We recognize that people are concerned. They're going to see their property assessments skyrocketing, and we want to let them know that there are programs, and also that it doesn't necessarily mean their property taxes are going to follow."
Legislative committee to hold local meeting
There is an upcoming opportunity for local taxpayers to help effect change at the state level.
A state legislative Interim Property Tax Committee will host a public hearing on Aug. 10 at 1 p.m. in Room 301 of the Community Campus in Hailey to discuss property tax reform.
