Coeur d’Alene opts into COVID property tax relief

Brad Little introduced $200 million plan on June 8

The city of Coeur d’Alene has decided to opt into Gov. Brad Little’s plan to give Idahoans property tax relief through federal funds designed to stymie the effects of COVID-19.

“The state of Idaho is offering the city of Coeur d’Alene the opportunity to opt into coronavirus relief fund dollars to cover the payroll of public safety employees,” city comptroller Vonnie Jensen explained, “if they agree to pass along the resulting budget savings to city of Coeur d’Alene residents in the form of property tax relief.”

It’s a statewide $200 million plan Little introduced in a June 8 press conference in Coeur d’Alene. Under his plan, 103 percent of counties’ and cities’ public safety salary costs would be covered by the funds, which ultimately came from federal stimulus dollars, so long as those salaries are not already being paid for by property taxes.

The move would save Coeur d’Alene property owners $3.5 million in what essentially would serve as a credit on property owners’ tax bill, only to be reimbursed to the city by the federal dollars. The funds would essentially drop property owners’ levy rate from $4.30 to $3.87

Even though the City Council voted unanimously to opt in, its decision does not guarantee the funds will be available.

“There’s been some questioning by some of the counties and entities in Idaho about the legality of the program and how it’s administered,” said city attorney Michael Gridley. “… In good attorney fashion, the Attorney General said, ‘Well, we’re not sure about how this is all going to work.’ But they have determined the money coming into the state can be distributed.”

Mayor Steve Widmyer said he felt confident about moving forward.

“I did have a conversation with a guy from finance from the Governor’s Office,” Widmyer said. “They have submitted a letter to the Department of Treasury to seek clarification that, yes, this is (an) appropriate use of these funds. It’s certainly not a clear issue right now, but there isn’t any way the city is going to get burned on this deal.”

So far, as part of the fine-tuning process, were the property tax relief funds deemed to be an inappropriate use, the city could either reverse the credit the following year or hold Little and the state accountable for the money. The city is in the midst of putting together its budget, meaning city staff would have to have a better idea of the legality of Little’s plan in August, before the budget is finalized in September.

Widmyer emphasized Coeur d’Alene’s decision to send a letter of intent to opt in simply reserves the funding without locking into the agreement before lawyers have had their say.

“We’re just throwing our hat in the ring,” Widmyer said, “to say, ‘Yes, we’re interested.’”