There are approximately 90 new residential units sitting empty in Ketchum. In the city's eyes, that represents $54 million in potential taxable value—a percentage of which the city thinks it is entitled to.
The Idaho Association of County Assessors and cities, like Ketchum, are hoping the Legislature will amend state law to allow property tax collection on new residences before a certificate of occupancy is issued.
Valdi Pace, Blaine County assessor, and Ketchum city officials made their thoughts known to District 25 lawmakers during a pre-legislative session meeting Thursday, Nov. 30.
Ketchum Mayor Randy Hall said the general public is in effect subsidizing developers while their projects sit empty.
"They should be having to pay in some prorated share," he said.
The finished but empty houses, condominiums and townhomes have an average price of $600,000 each, said Ketchum City Administrator Ron LeBlanc.
Some states make developers pay a percentage of what's built, he said.
"A foundation can have a six-figure value and that should be taxed," LeBlanc said. "We're still sending a police officer there if we get a call. Why shouldn't they pay?"
LeBlanc noted that those 90 empty houses and condos are inside the boundaries of the city's newly formed urban renewal district. While those units are unoccupied, the district will not be able to collect the increment value, or increase in value from one year to the next, to help fund projects such as affordable workforce housing.
