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Libertarian group in Idaho sues Boise for taxing mechanism

January 19, 2019

BOISE, Idaho (AP) — A libertarian think-tank in Idaho is suing Boise for diverting new tax revenue to fund the capitol city’s urban renewal projects.

The Idaho Statesman reported Friday that the Idaho Freedom Foundation claims the city’s use of the tax increment financing mechanism violates the state’s Constitution, which says cities cannot take on debt without a voter-approved referendum.

Boise since 1987 has created urban renewal districts six times, freezing the amount of property taxes collected in parts of the city and diverting all additional tax revenue collected over time to pay for street updates, new parking garages and a downtown plaza renovation.

Mayor David Bieter called the lawsuit “silly” and defended Boise’s use of the taxing mechanism, which has generated almost $60 million for investments that benefits businesses in the city.

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Information from: Idaho Statesman, http://www.idahostatesman.com

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