Bill Description: House Bill 437 would allow counties to create community infrastructure districts and impose special assessments (property taxes) on property owners without direct voter approval.
Rating: -4
NOTE: House Bill 437 is related to House Bill 407 (2025).
Does it create, expand, or enlarge any agency, board, program, function, or activity of government? Conversely, does it eliminate or curtail the size or scope of government?
Idaho law allows cities to form community infrastructure districts. It also allows counties to do so when the district is "within a city's comprehensive plan with the city's consent."
House Bill 437 would amend Section 50-3101, Idaho Code, to allow counties to create community infrastructure districts "outside of a city's comprehensive plan." This means that such districts could be created anywhere in the state.
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Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?
Community infrastructure districts are de facto taxing districts that have a lengthy list of powers under Section 50-3105, Idaho Code. Among these powers is the ability to "establish, impose and collect or cause to be collected special assessments on real property located within an assessment area of the district and, in conjunction with the imposition of such assessments, set and collect or cause to be collected administrative fees for community infrastructure."
There is no statutory cap on how much a special assessment may be, and it can increase by up to 2% per year to a maximum of 10%. The law says "a district may issue special assessment bonds at such times and in such amounts as the district deems appropriate."
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Does it increase government spending (for objectionable purposes) or debt? Conversely, does it decrease government spending or debt?
Community infrastructure districts exist to spend money. Among the non-exhaustive list of allowable purposes for this spending, found in Section 50-3102, Idaho Code, are "highways, parkways, expressways, interstates, or other such designations, interchanges, bridges, crossing structures, and related appurtenances"; "public parking facilities, including all areas for vehicular use for travel, ingress, egress and parking"; "trails and areas for pedestrian, equestrian, bicycle or other nonmotor vehicle use for travel, ingress, egress and parking"; and "public safety facilities."
The districts can also spend money on "acquiring interests in real property for community infrastructure" and "planning, design, engineering, construction, acquisition or installation of such infrastructure, including the costs of applications, impact fees and other fees, permits and approvals related to the construction, acquisition or installation of such infrastructure."
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Does it in any way restrict public access to information related to government activity or otherwise compromise government transparency, accountability, or election integrity? Conversely, does it increase public access to information related to government activity or increase government transparency, accountability, or election integrity?
The process for creating a community infrastructure district involves "a petition signed by no fewer than two-thirds (0.6667) of the owners of all the lands located in a proposed assessment area." It is unusual for such a threshold to be based on landowners rather than eligible voters. The law does not specify any time limit for gathering the signatures.
While the district's creation requires a signed petition, the special assessments imposed by the district do not require approval by voters.
This process lacks the transparency of a typical election. A petition can be circulated by private actors over an unspecified period of time, and only landowners need to sign it. No formal announcement of this signature gathering effort is required.
Once the signatures have been gathered, a district can be created, special assessments can be levied, and special assessment bonds can be issued — all without voter approval.
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