Caldwell cites property tax law, halts new growth for months

CALDWELL, Idaho (AP) — The quickly growing southwestern Idaho city of Caldwell is stopping all new residential development for four months because city leaders say a new property tax law could put its citizens in "imminent peril" by straining public safety services, and officials say other cities are considering similar moves.

Idaho Gov. Brad Little signed the property tax bill last week. The bill restricts city governments to recognize only a percentage of new development in taxing districts rather than the full amount.

City leaders often attempt to capture 100% of the taxable value of new developments so existing residents aren't unduly burdened in paying for the expanded public safety services needed to accommodate new residents.

Under the new law, either growth will be curtailed or services will be compromised, said Kelley Packer, the executive director of the Association of Idaho Cities.

"This is not a threat. It's got to be one or the other," Packer said. "We can't just grow if we can't cover the service needs of that growth."

Packer said Caldwell isn't alone in considering halting growth for now. Emmett, Rathdrum, Nampa, Kuna, Star and other Idaho towns are also looking closely at what the impact of the new law will be.