Why Did My Property Tax Bill Go Up?

Understanding Moscow's levy rate, assessed values, and what the law allows

The Levy Paradox

Here is the formula on your tax bill: levy rate × assessed value / 1,000 = tax owed. Moscow's levy rate has actually fallen over the past decade, from a peak of $5.23 per $1,000 in FY2020 down to $3.64 per $1,000 in FY2026. But tax bills went up. How?

Assessed values grew much faster. A home that was worth $862 million total in 2008 (city-wide) was worth $2.48 billion by 2026 - nearly a 3x increase. When the base multiplies by three and the rate only drops by a third, the total levy collected still rises significantly. The rate going down does not mean your bill goes down.

Example: A home assessed at $300,000 with a $5.00 rate pays $1,500/year. That same home reassessed at $450,000 with a $3.64 rate pays $1,638/year - a higher bill despite the lower rate.

Idaho law caps the annual levy increase at 3% of the prior year's levy amount, plus any accumulated "foregone balance" - amounts the city chose not to take in prior years. Moscow took a 4% increase (3% statutory + 1% foregone) each year from FY2023 through FY2026. Two years stand out as exceptions: FY2010 (zero increase, council rejected the 3% cap) and FY2021 (zero increase, COVID-19 response).

Levy Rate per $1,000 Assessed Value, FY2008-FY2026

Source: Moscow adopted budget documents, each fiscal year. Rate shown is combined city levy (general + special levies). FY = fiscal year ending September 30.

Total Assessed Valuation, FY2008-FY2026

Source: Moscow adopted budget documents. Values are city-wide non-exempt assessed valuation used for levy calculation.

Annual Levy Increase Approved by Council

Percent increase each year as stated in budget. Idaho law cap is 3%; cities may also recapture foregone balance. Zero years: FY2010, FY2021.

Year-by-Year Property Tax History

Fiscal Year	Levy Rate (/$1K)	Assessed Value	Levy Increase	Notes

Source: Moscow adopted budget documents, FY2008-FY2026. Assessed value is city-wide figure used for levy calculation.

What Does Idaho Law Actually Allow?

Under Idaho Code 63-802, a taxing district's budget authority grows by 3% per year on the prior year's certified levy. Any portion of that 3% the city declines to take is "banked" as foregone balance. House Bill 389 (2021) limits annual foregone recapture to 1% of the prior year's levy - preventing cities from suddenly recapturing years of banked amounts all at once.

New construction gets added to the levy base separately - it does not count against the 3% cap. So a city can collect more from growth without triggering the cap. Moscow's strong housing market and UI-area development has added new value each year on top of the capped increase.

The Idaho State Tax Commission publishes levy rates for all taxing districts. For Latah County, the 2025 urban overall rate is $1.099 per $100 assessed value (which equals $10.99 per $1,000). This includes the city, county, school district, fire district, and other levies combined. Moscow's city-only share in FY2026 is $3.64 per $1,000.