Non disclosure of special tax district by seller broker. Urban renewal district Idaho

[PaulGT3]

What is the name of your state (only U.S. law)? Idaho, My wife and I served the Navy for 30 years. We wanted to leave california for a reasonable cost of living.
We found a nice house of 2200 sq feet for 380k. When we asked the broker the property taxes he said $2500 a year. When we were at the title company we asked
again. The title company said $2500 and set the tax escrow at that amount. We get our tax bill and there is our taxes at around $2500 and a line item that says Urban
renewal district $4000!!! Thats over $6000 a year and its going up to $12000 a year!! In IDAHO!!! its the highest taxed neighborhood in the state including Sun Valley!
Nobody told us about this special tax district and its a way for the city
of Nampa to tax us without voting. The only way of getting it removed is to vote out the council and getting it revoked. This can go up at any time and we cant do anything.
Turns out it was a deal between the city and the developer. But he didnt tell us and I am guessing even the title company didnt know. As I meet my neighbors EVERYONE is
PEEVED and in the same boat. We want to act as a group but we dont know who to talk to or how to act.
Or are we stuck. We wouldnt sell this place without disclosing this.

 

[adjusterjack]

First thing you do is study the Idaho property condition disclosure act and determine if this tax thing was mandatory to disclose and what your remedies might be.

https://realestate.uslegal.com/sellers-disclosure/idaho-sellers-disclosure-law/

Then, for the money that's at stake, you need to hire a lawyer.

 

[FlyingRon]

You're probably out of luck against any action against the seller. Idaho's property disclosure law is here: https://legislature.idaho.gov/idstat/Title55/T55CH25SECT55-2508.htm.

There's a catch-all at the end of the form, but I'd think it's unlikely that the creation of a STD is something that would apply there.
It was up to the buyer to research tax issues as part of their own due diligence.

But as AJ says, as serious as this is, you should consult an attorney.

 

[justalayman]

Your understanding of the question you asked is apparently different than the brokers and the title company's (who has no obligation to provide this sort of information).

To your statement that it is a way for the city to tax you without voting. The law in establishing special assessments.

Idaho law requires owners of at least half of property involved agree to the assessment lest it must be abandoned. That means it is not without permission of the involved land owners. If presidential elections required the same approval we would be looking at a woman president.

It also appears that although a special assessment is an ad valorum tax, it is referred
To at all levels as a special assessment so, when the broker and title company gave you the property taxes on the property, while in the most technical sense they should have included the special assessment, per the title of the additional fee, they did not lie to you.

The other issue you may be surprised about; since property taxes are based on value, the prior owners taxes are often not an accurate rate. If you paid more than the prior owner is being assessed, your taxes would increase. I've seen tax levies in in increase drastically due to a sale.

You should have requested the calculated taxes on the sales price.

What is the total amount levied on your property?

How long is the special assessment to be in place?

 

[Stephen1]

I don't know whether this should be a separate thread but, after reading OP's question I wondered how a buyer could have researched this to learn about the special tax district prior to closing (perhaps even before the Purchase & Sale agreement was final). OP asked the realtor and the title company. Those sound like good sources to me but apparently they aren't always.

Question to OP: If you had contacted the agency that sends out the property tax bill (for me it is the county assessor) would they have had the information about the special tax district or does that bill come from somewhere else?

A side story: once bought a house and asked the bank what my monthly payments would be. They provided an amount. When I received my coupons to send in with the monthly check the amount on them was higher. Why? Because the amount that the bank had provided did not include escrow for taxes and insurance. Now I always ask for the amount I need to make the check out for to include any escrow. These banks look at me as though I have two-heads because they always include escrow in the what they tell me and have asked me why a bank would not tell me that up front.