City Considers 1 Percent Foregone Property Tax Levy for Budget Season

During the recent Idaho Falls City Council meeting, a significant discussion centered around the city’s financial strategy regarding property taxes. The council reviewed the state statute that allows the city to levy a 1% increase on foregone property taxes. Foregone taxes refer to the property taxes that the city could have collected but chose not to, providing an opportunity for the city to adjust its budget during the annual budget season.

The council emphasized that this 1% increase is ongoing, meaning it can be applied each year as long as it remains within the state’s guidelines. Additionally, there is a provision for a one-time capital project levy of up to 3%, which is strictly for specific projects and cannot be reused once the project is completed.

City officials noted that the total amount levied, including foregone taxes and any budget increases, must not exceed 80% of the overall budget. This cap ensures fiscal responsibility while allowing the city to address its financial needs effectively.

This discussion is crucial for residents as it directly impacts the city’s budget and, consequently, the services and infrastructure that the city can provide. The council's careful consideration of these financial strategies reflects its commitment to maintaining a balanced budget while planning for future community needs.