The city of Dover is a rural town in Idaho’s panhandle. Despite having a population of 476 people in 2005, the city decided to form an urban renewal agency, which would then use property tax revenue as a means to foster development. The Dover urban renewal district has grown to more than 99 percent of Dover’s base taxable value, making it the largest in the state when compared to a city's base taxable value.
Dover is a prime example of the misconceptions associated about taxing impacts of urban renewal on property owners. URAs and cities have said repeatedly that establishment of URD does not result in higher taxes or other burdens for taxpayers or other taxing districts. In the case of Dover, residents have been forced to absorb higher taxes and fees because property in the city is being taxed at 2005 levels and growth inside the urban renewal district is not used in levy calculations.