Boise homeowners and business property owners have faced property tax increases in nearly every fiscal year since 2021, with the city employing a budgeting mechanism that allows it to exceed Idaho’s standard 3 percent tax cap. The pattern reflects broader questions about municipal spending priorities as Ada County’s capital city grows.
The Forgone Tax Strategy
Boise’s property tax increases have been consistent and substantial. The fiscal year 2021 budget was spared an increase due to pandemic-era state and federal funding relief, but increases resumed the following year. From fiscal year 2022 through 2026, the city applied annual raises: 3 percent in FY22, 2.45 percent in FY23, 2 percent in FY24, and 4 percent increases in both FY25 and FY26.
The 4 percent increases in recent years came through use of the “forgone tax” mechanism—a practice that allows cities to recover a portion of previously authorized tax increases they chose not to impose. Under this approach, Boise collected the state-allowed 3 percent base increase plus an additional 1 percent representing previously uncollected authority, effectively circumventing the 3 percent statutory cap.
The Idaho Freedom Foundation backed legislation to remove the forgone-tax provision, but proposals to curb the practice and offset the revenue loss through other means failed in the state legislature. House bills 842 and 959 did not advance, leaving the mechanism intact for municipal use across Idaho.
Boise’s Revised Fiscal Year 2027 Budget
For the upcoming fiscal year, Boise initially proposed a 4 percent property tax increase using the same forgone-tax approach. However, the city revised its proposal downward to a 2.7 percent increase. Simultaneously, voters approved an $11 million tax hike for what the city designated as an “open-space” levy—the third such dedicated tax increase since 2001 and 2015.
The open-space levy adds another layer to the property tax burden on Ada County homeowners. Combined with the base property tax, special assessments, and school funding mechanisms, residential and commercial properties in Boise face a cumulative tax obligation that continues to climb.
Spending Plans and New City Positions
Boise’s budget proposals include 24 new city employees across various departments, including positions for a librarian, zoo employee, and pool mechanic. The budget also earmarks funding for nine additional firefighters, contingent on a federal SAFER grant—though the city has not identified funding sources for salaries and benefits after federal grant money expires.
Beyond personnel, the city has committed substantial resources to discretionary projects. A public art initiative developed with Boise’s Chinese community is estimated to cost $400,000. A temporary public art installation at the Erma Hayman House carries a $25,000 price tag, while utility box artwork projects consume tens of thousands of dollars.
City hall’s flagpole wrapping project totaled $3,368.31, and the design and installation of a single window decal cost $1,943.96. The city also spent more than $10,000 on pride-related decals and wraps on city vehicles and facilities.
A $2 million remodel of the Planning and Development Services office is funded through development fees, which are passed through to builders and ultimately to property buyers and commercial tenants in the Treasure Valley region.
Legislative Action on Pride Symbols
The Idaho Legislature passed legislation barring pride flags and related symbols from government property, with enforceability through fines. The measure created tension with some cities’ spending priorities but reflected broader legislative intent to restrict certain types of government expression.
Impact on Ada County Property Owners
For Boise homeowners and businesses, the cumulative effect of steady tax increases, new levies, and municipal spending choices directly affects household and operational budgets. Renters in Boise also feel the impact indirectly, as property taxes factor into rent calculations. The property tax burden in Ada County’s largest city influences broader regional affordability concerns, particularly as home listings affordable to middle-income buyers sit below 2 percent in many neighborhoods.
The reliance on the forgone-tax mechanism represents a deliberate choice by city leadership to maximize available revenue authority. Unlike a voter-approved ballot measure, the forgone-tax approach requires no explicit public approval—only routine budget adoption by the city council.
What Comes Next
Boise residents and property owners can track the city’s final fiscal year 2027 budget through council meetings and public hearings. Those concerned about property tax increases or municipal spending priorities can attend budget hearings or contact city council members directly. Information on Boise’s budget process is available through the city’s official website and finance department.
For Ada County property owners across the region, monitoring local government spending—whether in Boise, Meridian, Eagle, Kuna, or other municipalities—remains an important tool for understanding property tax trends and advocating for fiscal priorities that align with household values.