The Idaho Falls City Council held a work session on July 22, 2025, focusing on property tax valuation and levy rates. The meeting addressed concerns regarding the impact of property tax regulations on local revenue generation and community growth.

The discussion began with an emphasis on the limitations imposed by current property tax laws, particularly the cap that prevents cities from benefiting from growth beyond an 8% increase. Council members expressed frustration that this cap leads to higher levy rates for residents, counteracting efforts to reduce property taxes. The Idaho Association of Cities (AIC) has been advocating for changes to this system, arguing that it hinders cities from leveraging growth to lower tax rates.

Council members reviewed historical data on property valuations and levy rates, noting that while property valuations have increased from 2.9% in 2013-14 to 8.6% currently, the levy rates have generally decreased. This inverse relationship between valuation and levy rates was highlighted as a source of confusion for residents, who may not understand how growth can lead to lower tax rates.

The council also discussed the shifting tax burden between residential and commercial properties, noting that while some individual assessments may be declining, the overall trend in levy rates suggests that residents could be paying slightly less in taxes. However, the complexities of the tax system, including categories without limits, were acknowledged as contributing factors to the ongoing confusion.

The meeting concluded with a call for further clarification on property tax regulations and a commitment to continue advocating for reforms that would allow cities to benefit from their growth. The council plans to follow up on these discussions in future sessions, aiming to enhance understanding and address community concerns regarding property taxes.