May 19, 2026

The Property Tax: Expensive and Outdated

By: Idaho Freedom Foundation President Ron Nate, Ph.D.

When my dog gets hold of one of her toys, she won’t let it go. The harder I try to take it, the harder she holds on. I’m the same way about the revolutionary idea of eliminating property taxes in Idaho. The more you try to talk me out of abolishing these unfair, misguided, and stupid taxes, the more I want it done. Hear me growl.

Always Had It, Always Changing It

Did you know Idaho has ALWAYS had property taxes in its government support structure? Even before statehood, the territory of Idaho began in 1863 with property taxes at the territorial level, as well as at the county and municipal levels. A property tax was identified as THE primary method for financing state government in the Idaho Constitution (Article VII, Section 2). Even after statehood, property taxes were the predominant means of state collections, predating the Idaho income tax by 68 years and Idaho sales taxes by over a century. 

The property tax started small, increased over time, and eventually was shifted from being a state-collected tax into many local government-collected taxes. The state instituted its income tax in 1931 and its sales tax in 1965. Starting in 1965, Idaho abolished the state property tax, but allowed cities, counties, school districts, and a variety (e.g. libraries, fire stations, ambulance, etc.) of other taxing districts to continue collecting property taxes.

In its earliest limitations in 1895, the state capped total, statewide property tax collections at $231 THOUSAND. Of course, times do change, the values of property to be taxed rise, and the amounts being collected have exploded accordingly. In 1999 (104 years later), the property taxes collected in Idaho totaled $807 MILLION. Most recently, FY2025 (the last full year recorded), property taxes paid by homeowners amounted to nearly $2.20 BILLION. 

The property tax is not a “state” thing anymore — there is no statewide property tax. But the property tax is an institution at the local government level for everything from mosquito control to school construction to police services. 

It Puts the “Big” in Big Local Government Politics. 

Local governments are so accustomed to collecting more and more taxes that the state government has to put limitations on them. They cannot increase their budgets by more than 3% per year, plus the amount of new property construction, overall a limit of 8% per year. It’s a limit many local taxing authorities bump up against. Governments always want to grow, and especially so at the local level.

Yes, people like some or most of the things local governments provide. And local governments require funds to do those things. But are property taxes the only way to do it? Are they the best way? Let’s take a look. 

Why the Property Tax Is So Uncool

Property taxes are problematic because they fly in the face of our Constitutional rights to keep what is ours. When the government coercively collects property taxes under threat of confiscation of the property, then the property isn’t truly owned — it’s merely rented. In 2025, I wrote twice about this and other moral problems regarding property taxes as a tool of government finance. See the articles here and here. 

Basically, the problem of property taxes is threefold: 

1. Property taxes turn owners into renters. Just like renters are tossed from an apartment for not paying rent, homeowners who don’t pay property taxes are evicted without compensation. Homeowners see their homes taken by the government and sold, with all the proceeds going to government. So, what’s the point of owning a home when you can be evicted?
2. Property taxes are assessed on unrealized gains. Because property taxes are based on homes’ assessed values and the budget growth of the government they fund, the property tax bill goes up even though the homeowner’s ability to pay may have stayed the same or even dropped. Because of inflation, folks on fixed incomes are twice punished: higher costs of living, higher property taxes. Higher home values may mean higher taxes, even though the homeowner hasn’t sold their home or gotten any of its gains.
3. Property taxes also thwart people’s rights to life, liberty, and happiness. Everyone needs a place to live. The right to life, liberty, and happiness begins with the right to have a place to live and grow. Without a home, we cannot fully exercise our rights to live and be free. Any government regulation or tax on homeownership infringes on our rights to live and prosper.

The Administrative Burden of Property Taxes

Think about what it takes for property taxes to be calculated, billed, and collected. Here’s what needs to happen: the local government needs to develop a budget for its spending, the property owners need to be informed of that spending, the total value of all property to support that spending needs to be assessed at its market value (minus any exemptions), the math must be done to determine the rate at which to tax the properties, the bills need to be sent to the property owners, the payments and collections must be made, any non-payers must be collected from or prosecuted, unpaid taxes lead to confiscations and sales, and finally all the money is ready for government’s use. 

All of these processes require vast government offices and employees to accomplish. There are elections for county assessors, employees are hired to staff the assessors’ offices, appraisers are out trudging and nosing around properties, billing software and accounts receivable workers are hired, regulations and tape are abundant, lawyers deal with disputes, collectors are employed, courts are engaged in lawsuits, and seizures are ugly and contentious.  

Without property taxes, there is no need for 44 county assessors, 44 county assessor offices, all the bond and levy elections, and all those other operations developed to simply determine and collect one of the most hated taxes known to Idahoans. There would be millions and even billions of dollars saved over time from ending the administration, collection, and disputes by simply abolishing property taxes. Imagine a world with no county assessors and no property tax bills! 

Could We Ever Eliminate the Property Tax?

The answer is, Yes! Even though Idaho has always had a property tax, it doesn’t mean we must keep it. Our IFF team has laid out a reasonable, measured plan to eliminate property taxes within 10 years. And here’s the kicker: the plan does NOT require raising any other taxes. 

It’s simple, really. Allow the natural growth in Idaho’s economy, which leads to greater sales and income tax collections, to offset and replace the property tax reductions and phase-out. Idaho law already allows the state to transfer money to local governments in lieu of them collecting more property taxes, and the plan puts that to its full extent. Replace property taxes with state funding over time. Remove layers of government around the property tax administration and pass those savings to local government and the people. 

Take a look at this article from IFF’s own Fred Birnbaum detailing the plan and creating the roadmap for legislation to eliminate and replace property taxes without further burdening taxpayers or local government budgets. It’s a brilliant plan.

Conclusion

Stop telling me and all Idahoans we can’t get rid of the property tax. Stop fighting with us and let us have our toy– er, wealth and property. Let go of the d****d tax already! 

For those who say, “Idaho has always relied on a property tax, and so it needs to stay,” perhaps they should consider how, when it was instituted, we didn’t have the myriad of other taxes such as income taxes, sales taxes, product taxes, use taxes, and various other fees. But now that we do, the time is ripe to finally get rid of the property tax.

The Gem State could be a national leader in paving the way to eliminate property taxes altogether and recognizing and reinforcing the foundational right to truly own property as our Constitution guarantees.