Post Falls removes unnecessary sales tax from residential utility bills

The City of Post Falls has removed sales tax previously applied to residential utility bills, starting immediately, a change the city says will deliver immediate and ongoing savings for residents. City officials estimate the adjustment will reduce costs by about $10-15 per household per year depending on service level and usage.

The announcement, posted January 26, 2026, came after Post Falls resident Leon Powell questioned why sales tax was being charged on the full monthly sanitation charge. City staff reviewed the billing practice with Republic Services and the Idaho State Tax Commission and determined that sanitation collection services are not subject to sales tax under Idaho law. The city clarified that only certain tangible personal property, such as refuse containers, may be taxable.

Mayor Randy Westlund thanked the resident and framed the change as part of the city’s effort to control costs. “I’m grateful to Mr. Powell for bringing this to my attention and pleased we were able to eliminate an unnecessary tax,” he said. “We will continue to look for opportunities to streamline operations and reduce costs for our residents.” In its announcement the city also stated that it remains committed to responsible stewardship of public resources and to ensuring residents are not subject to unnecessary taxes.

Residents should see the removal reflected on upcoming utility bills. The city’s press release notes the action applies to residential utility bills and specifically the sanitation line item; it does not spell out changes to commercial accounts. The press release and a PDF copy are available through the City of Post Falls website, and the city also posted a notice on its Facebook page.

The financial impact is modest on an individual basis but meaningful when viewed across Kootenai County households: a $10-15 annual reduction per household translates to thousands of dollars kept by residents over time. The episode also underscores the role of civic engagement in local governance: a single question from Leon Powell led to a review with outside partners and an operational correction.

The city did not address whether sales tax previously collected on sanitation charges will be refunded or credited; residents seeking clarification should check their upcoming bills and the city’s official notices. For now, Post Falls officials present the change as a small but clear win for households and an example of routine checks helping to keep local charges aligned with state tax law.