Economy and The Sandpoint Real Estate Market

Orientation
The city of Sandpoint is located in Bonner County on the northern shore of Lake Pend Oreille (pronounced Pon-duh-ray). This lovely valley sits in the center of the Idaho panhandle, nestled against the foothills of the Selkirk Mountains. The majestic Cabinet Mountains rise to the east and Canada is 60 miles north. On the south, the scenic Long Bridge crosses the lake at the point where the lake becomes the Pend Oreille River.

Economy
The city was founded as a timber community in the 1800s. With the timber industry winding down, tourism became a strong force in Sandpoint as visitors from around the world discovered Lake Pend Oreille, the mountains, and the exciting outdoor activities. The Greater Sandpoint area is home to a surprisingly diverse light manufacturing and retail base, with notables such as Coldwater Creek, Litehouse Foods, Unicep Packaging, Encoder Products, Quest Aircraft, and Riley Creek Lumber.

Population
Bonner County experienced impressive population growth in the 1990s as its beauty, recreational opportunities, and quality of life attracted thousands of new residents. From 1995 to 2005, the county’s population grew 23 percent, from 33,206 to 40,908.

Sandpoint has a population of 8,105 and occupies the center of the county, along with suburbs Ponderay (pop. 697) and Kootenai (pop. 480). Priest River, with 1,909 people, dominates the western part of Bonner County, while Clark Fork at 570 dominates the east.

Climate
Sandpoint is blessed with a moderate four season climate. Few winter days fall below zero, and summer temperatures seldom climb above 90 degrees. The warm summer days and long, cool, evenings are perfect for outdoor activities. Sandpoint receives approximately 33 inches of precipitation per year. The mountains receive 300 inches of snow on average. Summers are relatively dry, with weeks of sunny days in a row.

Labor Force & Employment
Schweitzer Mountain Resort and a thriving arts community combine to make the Sandpoint area a popular destination for tourists, seasonal visitors, and RV travelers. Schweitzer’s continued expansion supports winter employment at local motels, restaurants, and stores. The winter season brings excitement, but summer is even better.

Coldwater Creek, the Sandpoint-based catalogue company, was the largest source of new jobs in the 1990s as it grew from a mom-and-pop operation to a nationally known company. Today, Coldwater Creek employs nearly 500 people in Bonner County.

Bonner County’s growth continues with manufacturers such as Litehouse Foods (salad dressing), Quest Aircraft (airplanes), Unicep Packaging (plastic applicators), Diedrich Manufacturing (coffee-roasting machines), Encoder Products (electronics), and Thorne Research (pharmaceutical products). Wood products manufacturing employs 840 people, while other manufacturing jobs employ 1,200. Constructions jobs are booming as new people move to the area and real estate sales continue to shatter previous records.

Idaho Taxes
Property Tax Average Urban Rate: 1.57% Average Rural Rate: 1.13%
The rates shown above are average statewide total tax rated for 2005. You can calculate a rough estimate of property taxes by multiplying the average tax rate by the property value, less exemptions. The actual tax rate is the sum of the tax rates of all the taxing districts in one location. Owner-occupied primary residences in Idaho qualify for homeowners exemption; this exempts 50% of the taxable value of the home and up to one acre of land, up to a maximum of $75,000 for 2006 property taxes and $89,325 for 2007 property taxes. Farms qualify for a partial exemption.

Retirees: Idaho Property Tax Reduction (formerly Circuit Breaker) of p to $1,320 is available to persons age 65 and older, widowed or disabled persons of any age, and POWs who meet income and residence requirements.

Income Tax (Personal) Rate:1.6% to 7.8%
Personal income tax is graduated so higher earnings are taxed at a higher rate. For 2006, the first $1,198 of taxable income is taxed at 1.6% the next $1,198 is taxed at 3.6%, etc. The maximum 7.8% tax rate is reached at $23,963 of taxable income for single filers and $47926 for married couples filing jointly. Idaho residents are taxed on their total income, even if it’s earned in another state or country. Idaho income tax brackets are adjusted for inflation each year.

Retirees: Idaho doesn’t tax Social Security income and Tier 1 and Tier 2 Railroad Retirement benefits. Retired taxpayers may receive a partial tax exemption for civil service and military retirement income received after age 65.