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State must address property tax dilemma

| August 6, 2005 9:00 PM

The following are brief comments concerning facts about property tax, problems involved and possible solutions.

Residential property taxes have increased dramatically this past 10 years, while taxes on other properties such as commercial, industrial, utilities, mining, etc. have increased very little, if any. In the year 2004, residential property owners have paid 61.1 percent of the property tax.

In recent years state lawmakers, specifically the House Revenue and Taxation Committee, have given substantial property breaks to business, agriculture, land developers, etc. Attempts to increase homeowners exemption have been stopped in committee. Further, lawmakers have been reluctant to allow local governments other ways to fund services. On the other hand, Kootenai County was authorized to charge a one-half cent local option sales tax. This was initially approved by the House committee.

The counties of Bonner and specifically Boundary are in need of help in offsetting the strain put on the residential homeowners by the state Legislature failing to act on their behalf. Part of the problem, and there are others, is the inconsistency of the state Legislature.

In my opinion, there are two possible solutions. There may be many others. First, bring back the one-cent sales tax to augment the income of the counties to give relief to the residential property owners. The one cent could be reduced to a half cent. This would have to be determined. The second suggestion would be to revamp the entire state tax structure. The problems involved could be great, politically and time-consuming.

DR. RICHARD P. LUEDTKE

Eastport