How Idaho’s Tax Burden is Worse Than Some Neighboring States
At least we aren’t in New Jersey! I recall speaking with a friend ten years ago. This was after he sold a home and left that state. At the time, the average property tax was $17,000 a year! He also paid an exit tax when he left the state. I’m not sure if the latter is even constitutional.
We complain about property taxes in Idaho. Our rate is higher than neighboring Utah and Wyoming. Where the population of those states has comparable lifestyles and economies.
Is it much higher? Overall, among 50 states, not really. I do realize it’s still a burden. If you paid 80,000 for a house 35 years ago and now it assesses at $375,000, you haven’t had much control over the situation.
Property tax is a complex subject. The state government has been looking for ways to relieve the burden for several years. We can lay some blame at the feet of politicians for some legislation, but I think it’s reasonable to say they’re giving it their best on property tax. Why do I say that?
Because tax burdens drive voter turnout. Our state legislators are also subject to the same pressures on property tax. They own houses. Their elderly parents lobby them on the cost.
What we need is more housing. However, more housing creates more demand for other resources. Think water. We simply haven’t been able to keep pace with demand. As the market sags nationally due to higher mortgage interest rates, the Deseret News says demand in Idaho will still be intense.
Last year I read that Idaho's overall tax burden remains the seventh lowest in the nation.