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More Taxes or Less Taxes?

An interesting article from the local paper...

It seems like the article contradicts itself. No tax increases, but property taxes are going up. Extra money is coming from the federal government. So the city is getting more tax money....

"A press release Friday announced that the Post Falls City Council will consider adopting a balanced budget with no tax increases for the sixth year in a row.

“The proposed budget is balanced, responsible and reflects the city’s priorities as we recover from the largest public health crisis of our lifetime,” Mayor Ron Jacobson said. “Department heads have worked very hard to reduce expenses, plan for projects, be efficient and still provide a high level of service to our citizens.”

Over the last 13 years only one tax increase has been taken by the city, and that was to replace the street light fee seven years ago.

Despite not requesting a tax increase, council members expect residential property owners will continue paying more in property taxes than most commercial property owners.

A tax shift from commercial to residential properties has taken shape over the last several years. The city said it's caused by uneven property value increases.

The city has “analyzed the data provided by Kootenai County and this shift will continue with the upcoming year.”

For 2022, Idaho legislators have approved an increase of $25,000 in the homeowners exemption to offset increasing property taxes.

The city estimates the actual dollar amount increase at “$190 in city taxes and $550 in taxes from all taxing districts.”

The city says it will continue to work with state legislators to find a solution to the increased residential property taxes.

The general fund budget for the city of Post Falls for 2022 is $37.5 million dollars, which is a $5.2 million dollar increase from last year.

The majority of extra funds are coming directly from the federal government, distributed through the American Rescue Plan Act.

Some funds will come from increases in state pass-through funds taken from sales and gas taxes.

Goals of the proposed budget include the hiring of more staff: two police officers, one emergency communications officer, an assistant city prosecutor, a senior landscape construction worker, a staff engineer and a projects division manager.

Also part of the plan are acquiring three patrol cars, city fleet replacement vehicles, park equipment to replace worn play structures and funding for a city center parking project."

Info: Post Falls Finance Department 208-777-4504

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