Nampa leaders discuss impacts of House Bill 389 on property tax and local services

A pivotal discussion on House Bill 389 and its implications for property taxes dominated the City Council and Planning & Zoning Commission's joint special meeting in Nampa on April 17, 2025. The meeting highlighted the significant fiscal impacts of recent legislative changes on local budgets and services.

Rick, a key speaker, emphasized that House Bill 389 was designed to address rising property taxes, particularly affecting homeowners whose property values surged during the COVID-19 pandemic. He explained that while homeowners faced increased taxes, commercial properties saw relatively stable rates. The legislation aimed to limit local governments from raising budgets based on new construction, effectively capping the revenue they could collect from newly occupied homes.

The discussion revealed that the changes could lead to a long-term financial strain on city services. Rick warned that while the immediate effects might not be felt, the cumulative impact would become apparent in the coming years, potentially leaving local governments with insufficient funds to provide essential services. He likened the situation to a potluck where new attendees contribute less food over time, ultimately straining the overall meal.

Steve Onofrey, the newly appointed chief deputy in the Canyon County Treasurer's office, joined the conversation to provide further insights into the fiscal mechanics of the legislation. He noted that the changes in property tax calculations, particularly regarding land use changes, would significantly affect future budgets. The removal of land value changes from the new construction formula could lead to a substantial loss in revenue for the city.

The meeting concluded with a call for further analysis and discussion on how these legislative changes would affect Nampa's financial landscape and service delivery in the years to come. As local leaders grapple with these challenges, the implications of House Bill 389 remain a critical concern for the community's future.